It’s understandably frustrating to sustain business operations in the country as authorities continue to struggle between the health of the economy and the health of the people.
Even Presidential Adviser for Entrepreneurship and Go Negosyo Founder Joey Concepcion, Trade and Industry Secretary Ramon T. Lopez, and the private sector, all breathe in exasperation. Even without admitting, it’s in the air, and in their facial expressions.
Finally, though, the leanings of the higher ups in the Palace by the river have tipped a bit towards the health of the economy with the metropolis in GCQ though still at alert level 4 peppered with granular lockdown in areas with high transmission incidents.
More than one and a half years into the pandemic and a series of lockdowns, the economy is inching its way to the edge. It is in dire need of nurturing. Thanks to this granular lockdown and tiny bubbles, fully vaccinated individuals are now granted more mobility.
Slowpoke as it may seem, the wheels of business are churning. But before we reach the tipping point, commendation goes as well to the department of Trade and Industry (DTI).
Through its arm, the Board of Investments (BOI), has strategically partnered with Bank of China (BOC) to promote the country as an attractive investment haven at this year’s China International Fair for Investment and Trade (CIFIT).
At the CIFIT virtual three-day forum, BOC brought together roughly 250 of its top-tier clients from Hong Kong and Mainland China to participate in the Philippine Investment Forum, the Philippine Construction and Infrastructure Opportunities Investment Forum.
BOC Philippine country head Deng Jun Key sectors of interest for participants include hyperscalers, manufacturing, infrastructure, innovation and digital technology, and renewable energy. Its mission is to be the bridge between Chinese and Philippine trade and investments through corporate banking, personal banking, and financial markets services while facilitating Chinese investments in key sectors of the fast-growing Philippine economy.
My view from the banking corridor is that the bank is well positioned to assist along the way through its accumulated expertise and knowledge on the Philippine and Chinese markets and offer the best banking services to serve the financial requirements of prospective investors.
DTI has achieved its objective with its participation in the CIFIT, motivating the HK and Chinese clients of BOC by walking them through the array of tax incentives provided for under Republic Act 11534 otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE).
A range of new financial measures and incentives and fiscal relief are provided to domestic and foreign corporations doing business in the Philippines, among them an income tax holiday of four to seven years followed by a 10-year five percent Special Corporate Income Tax on gross income.
To lighten the financial load, CREATE offers Net Operating Losses Carry Over or NOLCO for the first three years from the start of commercial operations for the next five straight years immediately after such loss.
Voila, the response was positive. CREATE created a stir. Heard from the business corridor that Grandsun Advanced Electronics Philippines Co. Inc. with mother-company Shenzhen Grandsun Electronics Co. Ltd., is expanding its operations in Malvar, Batangas to cash-in on the incentives under CREATE.
“The feedback is really good, the outcome very positive. Prospective investors are willing to visit the Philippines… do business in the Philippines,” Mr. Deng shares the good news.
And the wheels of business partnership continue to grind. This October, DTI, also in partnership with BOC, will again participate in the China International Export-Import Forum to be held in Shanghai.
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