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Trabaho Bill is the tax reform for attracting better and high-quality opportunities, or Trabaho is the second package of the Comprehensive Tax Reform Program CTRP).


TRABAHO aims to lower the Philippines corporate income tax rate and create a fair and accountable incentive system to make the Philippines’ business field more competitive.

 

At present, the Philippines has the highest corporate income tax rate in the ASEAN region.

 

Below are some comparative corporate income tax rates in ASEAN

  • Singapore – 17%
  • Cambodia – 20%
  • Thailand – 20%
  • Vietnam – 20%
  • Laos – 24%
  • Malaysia – 24%
  • Indonesia – 25%
  • China – 25%
  • Philippines – 30%

 

The TRABAHO Bill proposes to reduce the corporate income tax (CIT) by 2 percentage points every 2 years starting in 2021 until it reaches 20% in 2029.

 

The Comprehensive Tax Reform Program, or CTRP, is a holistic tax reform composed of multiple packages to establish a fairer, more efficient, and more progressive tax system and administration.