Oliver Bugarin 10 0 0 4 min to read

DTI’s e-commerce bill will aid the expansion of small online enterprises

According to the Department of Trade and Industry (DTI), a three-year tax exemption term for small e-commerce businesses will aid in the expansion of those companies operations.

This statement was made by DTI Undersecretary Ruth Castelo as she renewed her call for the proposed Internet Transactions Act to be passed, highlighting how much small e-commerce businesses would gain from it.

Newly registered e-commerce microenterprises would, under certain conditions, be exempt from all municipal and federal taxes for three years under the proposed legislation.

“We want them to grow, we want to help them start properly, that they have permits, they have licenses from government agencies involved,” she said in a Laging Handa public briefing. “We want them to grow, we want to help them start properly, that they have permits, they have licenses from government agencies involved.”

Castelo stated that many small e-commerce businesses are hesitant to register with the government out of concern that they will be required to pay fees.

“The trend of our tiny players in the internet commerce is that they are scared to register with any government agency because they are afraid of the fees,” she continued. “Takot silang magrehistro sa kahit na anong government agency.”

She said it is anticipated that the three-year tax exemption term will motivate people to enroll.

A person who has an annual taxable income of less than PHP250,000 is now exempt from paying personal income tax under the Tax Reform for Acceleration and Inclusion Act (TRAIN) Law.

According to Castelo, the new measure will enhance the TRAIN Law.

“According to the TRAIN Law’s current rules, the first PHP250,000 of income is exempt from income tax. However, we would like to have all other taxes and permit fees exempted so that we can pay our debts on time. This is why the TRAIN Law currently has provisions that the first PHP250,000 of revenue is tax-free. But in order for us to get off to a good start, we still want all other taxes and permit fees to be waived,” she said.

The country’s e-commerce sector will expand thanks to the planned Internet Transactions Act, which would also help the digitalization of micro, small, and medium-sized businesses (MSMEs).

Additionally, it will create a legal framework for online transactions.

We appreciate your reading. You may also consider sharing it with others.
Please comment below if you found this post interesting.
Be one of our DONOR / SPONSOR to support NextGenDay news website.
Please follow and like us:
Tweet 2k
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Enjoy this blog? Please spread the word :)

Would love your thoughts, please comment.x