Sunday, June 23, 2013

5yr tax grace period for start-up businesses in PH

The Philippines is the most stupid government I know, but its people can still redeem itself. In Philippines, they have economic zone concept where the government grants tax grace period to large FOREIGN-owned companies who want to do business in the country. The stupid policy is, there is no tax grace period for STRUGGLING START-UP businesses that are owned by it's very own citizens (Filipinos). That is why foreign companies in Philippines succeed at start-up period, but most small Filipino companies don't.

I am a Filipino, a struggling start-up professional, I want to start-up a SMALL new office and employ around four Filipinos. I want 5 year`tax grace period.

Pag foreign-owned companies na mag start-up sa economic zones, merong 5 year tax grace period. Bakit ako, Filipino, small business lang, bakit ako walang tax grace period? Maliliit nga ako pero marami ang katulad kong maliliit na negosyo, at sa dami namin eh marami kami ma employ pag makapag-simula kami ng magaan ang tax obligations namin. Five years lang naman hinihingi ko. Bakit ako at mga kapwa ko maliliit hindi mapagbigyan ng gobyerno?

Capital ba ka mo? Hindi lang naman foreigner ang merong capital. Meron din tayo dito mga Pilipino. I have P1Million to start up my new, small, purely Filipino owned, and purely Filipino-employed business. Pag mag start-up ako sa current set-up, 1/3 ng pera ko for the year ay kukunin lang ng gobyerno as buwis. So, mabigat. I need a tax grace period, kahit five years lang, hindi ako naghihingi ng sobra sa pabor na binibigay ng gobyerno sa mga foreigners. Gusto ko lang ng pantay, TAXES is a vital factor in competitiveness, I just want na level ang playing field.

Now, who do I speak in bahalf? I speak in behalf of ALL SMALL FILIPINO professionals and businessmen. Napaka-rami ng katulad ko.

Pag i-negosyo ko ang P1Million ko sa current set-up, malulugi lang kasi huhuthutin lang ng gobyerno. So, decision ko, itago ko na lang sa baul ang P1Million ko, buwan-buwan kukuha ako ng P10,000 pang gastos, aabot pa eto ng 100 months (more than 8 years).