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Business and Economics > Corporate Taxation

You are looking at 1 - 8 of 8 items for :

  • Type: Journal Issue x
  • Philippines x
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Cover IMF Working Papers
Does Taxation Stifle Corporate Investment? Firm-Level Evidence from ASEAN Countries
Mr. Serhan Cevik
and
Fedor Miryugin
This paper conducts a firm-level analysis of the effect of taxation on corporate investment patterns in member states of the Association of Southeast Asian Nations (ASEAN). Using large-scale panel data on nonfinancial firms over the period 1990–2014, and controlling for macro-structural differences among countries, we find a significant degree of persistence in firms’ net fixed investments over time, which vary with firm characteristics, such as size, sales, profitability, leverage, and age. Our analysis brings up interesting empirical results, including nonlinear patterns of behavior in firms’ capital investment decisions acrosss ASEAN countries. Concerning the main variable of interest, we find that a moderate level of taxation does not hinder business investment, but this effect turns negative as higher tax burden raises the user cost of capital and distorts resource allocations.
Keywords:
WP; firm characteristic; investment behavior; firm level; nonfinancial firm; Corporate income tax; investment; leverage; firm performance; fixed investment; cost of capital; Capital spending; Public investment and public-private partnerships (PPP); Tax incidence; Private investment; Global; Southeast Asia; Asia and Pacific
Cover IMF Staff Country Reports
Philippines: Selected Issues
International Monetary Fund. Asia and Pacific Dept
This article is an empirical analysis on tax collections in the Philippines. The tax system is characterized by a rule of tax incentives provided by 13 investment agencies. Tax collections showed regular growth. The GDP ratio increased from 12.1 percent (2009) to 12.8 percent (2012), but the revenue-to-GDP ratio was low to fill large gaps for education, health, and infrastructure; therefore the authorities encompassed the sin taxes (alcohol and tobacco excises). The most important source of income for the Philippines is the labor export. This large-scale labor emigration fetches a sufficient amount of annual inflows of more than 9 percent of GDP.
Keywords:
ISCR; CR; Philippines; remittance; VAT; excise; remittance inflow; Bangko Sentral ng Pilipinas; excise tax tax collection; worker household; elasticity estimate; Tax collection; Corporate income tax; Value-added tax; Personal income tax; Remittances; Global
Cover IMF Staff Country Reports
Philippines: Reform of the Fiscal Regimes for Mining and Petroleum
International Monetary Fund
This Technical Assistance (TA) Report on the Philippines discusses the fiscal regime for the mining sector. The Philippines has long been a producer of minerals, but the mining and petroleum sectors account for only a small share of the economy, exports, and government revenue. The petroleum sector comprises only two fields—one producing natural gas and condensate and one producing crude oil. The TA report suggests legislative reforms of financial and technical assistance agreements (FTAAs), repealing of tax incentives and consolidating all domestic tax rules, and fostering sound environmental practices.
Keywords:
ISCR; CR; government share; withholding tax; excise tax; fiscal regime; tax revenue; Mining sector; Income and capital gains taxes; Non-renewable resources; Corporate income tax; Oil; gas and mining taxes; Africa
Cover IMF Staff Country Reports
Philippines: Technical Assistance Report on Road Map for a Pro-Growth and Equitable Tax System
International Monetary Fund
The Technical Assistance Report on the Philippines’ road map for a pro-growth and equitable tax system is examined. Tax revenue has declined over the last decade in the Philippines owing to generous and expanding tax incentives, tariff rate reduction, deteriorating tax compliance caused by ineffective and inefficient revenue administration, and a gradual erosion of excise revenue owing to nonindexation. One of the key reasons for providing tax incentives in the Philippines is concern that the country needs to be competitive with other countries in the region to attract foreign direct investment.
Keywords:
ISCR; CR; excise tax; tax rate; tax burden; income tax; tax revenue; withholding tax; gross sales; flat rate; taxable income; tax system; excise rate; Excises; Tax incentives; Corporate income tax; Income and capital gains taxes; Global
Cover IMF Working Papers
Investment Incentives and Effective Tax Rates in the Philippines: A Comparison With Neighboring Countries
Mr. Alexander D Klemm
,
Mr. Dennis P Botman
, and
Reza Baqir
We compare the general tax provisions and investment incentives in the Philippines to six other east-Asian economies-Malaysia, Indonesia, Lao, Vietnam, Cambodia, and Thailand. We calculate effective tax rates and find that general effective tax rates are relatively high in the Philippines, while investment incentives are comparable to those in neighboring countries. Tax holidays are most attractive for very profitable firms, creating redundancy, and for investment in short-lived assets. We also consider recently-proposed tax reforms that would replace tax holidays by a reduced corporate income tax rate or a low tax on gross receipts. The results suggest that this would result in stronger incentives to invest, while government revenue increases. Alternatively, replacing holidays with a general reduction in the corporate tax rate and offering accelerated depreciation will either not provide the same incentives or be very costly.
Keywords:
WP; income tax; accelerated depreciation; export enterprise; personal income; contract research and development company; depreciation rate; export processing zone company; indirect tax; tax year
Cover IMF Staff Country Reports
Philippines: Selected Issues
International Monetary Fund
This study discusses the Philippine output gap from three perspectives and evaluates the utility of the approaches for policymaking. Incentives in the Philippines appear broadly comparable with those in neighboring countries. The reform would also improve short- and especially medium-term revenue collection. The general tax provisions and investment incentives in seven east-Asian economies are compared. The analysis focuses on stocks of foreign assets and liabilities and adopts a cross-country perspective to help determine the Philippines’ position within a broader universe of emerging market economies.
Keywords:
ISCR; CR; firm; Philippines; inflation-output gap relationship; Philippine output gap; portfolio equity inflow; EME portfolio allocation; location specific; estimates of the output gap; Tax holidays; Output gap; Effective tax rate; Tax incentives; Corporate income tax; Europe; Asia and Pacific; Global
Cover IMF Working Papers
Tax Incentives in The Philippines: A Regional Perspective
Mr. Nigel A Chalk
The Philippines is faced with a policy dilemma in the area of corporate taxation. On the one hand, the country has, over the past few years, witnessed a decline in revenue as a share of output. On the other, it is operating in an increasingly competitive regional market for foreign direct investment. In order to remain competitive, the Philippines offers a broad array of fiscal incentives to entice inward investment and pursue the country's development goals. This paper looks at the fiscal incentives available in the Philippines, compares them with those available in the ASEAN region, and with the evidence on the efficacy of tax incentives in a global context. The paper provides some broad conclusions on the use of the various forms of tax incentives in the Philippines and on their administration.
Keywords:
WP; import duty; investment incentive; personal income; accelerated depreciation; double taxation; duty drawback; investment decision; corporate tax incentives. ASEAN.; location decision; SEZ enterprise; companies expense; economic zone; footloose company; Tax incentives; Tax holidays; Corporate income tax; Tax allowances; Investment incentives; Global
Cover IMF Policy Discussion Papers
Tax Policy and the Asian Crisis
Mr. David C Nellor
This paper focuses on tax policy and the crisis in Asia in the context of globalization and technological change. Two sets of conclusions, specific tax reform measures and general lessons from the crisis, form the tax policy agenda on these issues. The complexity and volume of financial transactions, associated with the opening of emerging markets, have made tax administration a more challenging task. Just as strengthening financial systems must be a precursor to capital account liberalization, tax administrations clearly also require strengthening in such an environment. In many emerging markets the capacity to tax capital returns is limited. Tax administrators need to understand and monitor complex financial transactions that grew rapidly due both to financial sector liberalization and technological innovation. Traditional difficulties for tax administrators, such as transfer pricing, that had often been limited to natural resource sectors in developing economies, took on wider importance as local companies gained sophistication and developed offshore operations.
Keywords:
PDP; asset; tax; value; proceeds; debt equity swap; exchange rate; income tax; tax firm; net capital; arbitrage possibility; taxable income; capital return; stamp tax; World tax organization; debt forgiveness; Tax incentives; Corporate income tax; Personal income; Income and capital gains taxes; Tax administration core functions; Global; Asian CrisisTax Policy; Asian crisis; tax policy; capital; Asia and Pacific