Manufacturers in the Philippines are allowed to carry over any operating loss from financial year 2020-2021 as tax deduction from gross income over the next five taxable years, according to the Board of Investments (BOI).
BOI Managing Head Ceferino Rodolfo said this has been allowed under the Bayanihan to Recover as One Act or Bayanihan 2, which provides P165 billion in economic stimulus package.
“A range of new financial measures and incentives are now available to manufacturers in the Philippines, thanks to new legislation recently signed into law,” said Rodolfo, who is also Trade and Industry’s Undersecretary for industry promotions group.
The ‘Bayanihan 2 Act’ is aimed at helping the Philippines recover from the economic impact of Covid-19. It was signed into law by President Duterte in September.
Elsewhere, he said, many qualified manufacturers will be exempt from business taxes, import duties, and other fees on a range of products.
This includes the production of medical equipment and Covid-19 related items such as Personal Protective Equipment (PPE), as well as the raw materials relevant to the manufacturing of these items.
The same relief measures will also apply to the production of equipment for waste management, including waste segregation, storage, collection, sorting, treatment and disposal services.
The Philippine Board of Investments (BOI) is urging manufacturers and other large businesses to take advantage of these provisions. For more details on doing so, businesses can book an appointment with BOI via their Facebook page and speak to a dedicated specialist. Information is also available on BOI’s Covid-19 resource hub for businesses.
“We know that Covid-19 is still having a significant impact on the operations of manufacturers across the Philippines, and we at BOI are doing all we can to help them,” said Rodolfo as he urged businesses to visit BOI resource hub website and book an appointment with BOI via its Facebook page.
“Our dedicated specialists can help businesses understand more about how they can take advantage of the incentives and support in the Bayanihan 2 Act”
The Bayanihan 2 stimulus package consists of P140 billion of regular appropriations and an additional standby fund of P25.5 billion.
Under the law, P3 billion will be allotted for the procurement of personal protective equipment, face masks, and face shields; P4.5 billion for the construction of temporary medical isolation and quarantine facilities and the expansion of government hospital capacity; and P13.5 billion for emergency employment and compensation of health workers.
A total of P4.5 billion will be used to finance isolation facilities, hotel accommodation, food, and transportation of Covid-19 patients; and PHP5 billion for the hiring of contact tracers.
Other allocations include P13 billion for the cash-for-work program; P9.5 billion for assistance to public utility drivers and other programs of the transportation department; P6 billion for “individuals in crisis” and other programs of the social welfare department; P4 billion for the tourism industry; and P4 billion for the education department’s implementation of digital learning.
Bayanihan 2 is the second installment of the Bayanihan to Heal as One Act (Bayanihan 1), which gave Duterte emergency powers to address the Covid-19 crisis in the country. The Bayanihan 1 law, signed by the president on March 25, already expired on June 25, 2020.