Perks eyed for business-minded OFWs
In a bid to encourage overseas Filipino workers (OFWs) to put up small and medium enterprises in Quezon City, a councilor has pushed a measure that will exempt them from paying business taxes for up to three years.
Councilor Anthony Peter Crisologo of the first district said that his proposed ordinance was aimed at promoting the establishment by OFWs of business ventures through the provision of incentives and benefits, including tax exemption.
He added that apart from encouraging the entrepreneurial spirit among OFWs, affording them incentives for setting up businesses would also lead to the creation of more jobs for the city’s residents.
“It is vital to promote the entrepreneurial spirit of our OFWs in order to [enable them to create] new business in our country which will not only provide them with a stable source of income but also will help in reducing unemployment and the development of our country’s national economy,” he said.
Crisologo added that the measure would also serve as a recognition by the city government of the OFWs’ vital contribution to boosting the economy through their remittances.
Under the proposed ordinance, a small-scale enterprise refers to a company with assets and property used of not more than P1.5 million while a medium scale enterprise has total assets of not more than P3 million.
For a small or medium enterprise to be covered by the ordinance, the company should be solely owned by an overseas Filipino worker; an OFW should have contributed half of the capital in the partnership; majority of the members of a cooperative are OFWs; and in case of stock corporations, more than 50 percent of the outstanding capital stock should be held by one or more OFWs.
Applications for the incentives should be made with the office of the city treasurer which will determine the assets of the registered business.
Once registered, the small or medium enterprise will be exempted from paying its business tax based on gross income. A small enterprise will be exempted for two years while a medium enterprise will enjoy the privilege for three years.
The exemption, which is nontransferable, will not apply if the enterprise is a branch, subsidiary or division of a large scale enterprise and if the small or medium enterprise expands into a large-scale business.
A business found to have committed misrepresentation or fraud to qualify for the exemption will be disqualified and its certificate of registration cancelled.
The owners of the business may also be held administratively and criminally liable.
