Connect with us

Hi, what are you looking for?

Economy

South Korea eyes more investments in PHL but flags ‘high’ corporate tax

SOUTH KOREA granted $100 million worth of loans to the Philippines to boost its war chest against the coronavirus disease 2019 (COVID-19) pandemic. — REUTERS

SOUTH KOREA is looking to expand investments in the Philippines, but expressed concern over the country’s “high” corporate income tax rate, according to the Department of Finance (DoF).

A DoF statement said South Korean Ambassador to the Philippines Han Dong-man expressed concern over the country’s current 30% corporate income tax (CIT) rate during a recent meeting with Finance Secretary Carlos G. Dominguez III.

Mr. Dominguez assured Mr. Han that the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill aims to immediately cut CIT by five percentage points to 25% this year, and by an additional one percentage point every year until it hits 20%.

The CREATE bill is still pending in the Senate.

Mr. Han said the two countries should explore investment opportunities involving the manufacturing of environment-friendly vehicles, since the Philippines is among the world’s largest producers of nickel. Nickel is a key component in electric car batteries.

South Korea also committed to providing more funding support for the Philippines’ infrastructure projects.

Mr. Dominguez said the South Korean government “expressed willingness” to grant financial assistance for the proposed P65.7-billion Panay-Guimaras-Negros Bridge Project in Visayas.

He said the Philippine government affirmed its plan to advance the processing of the South Korean loans and grants in the pipeline.

This includes possible additional loans for pandemic response and more funding to support projects on maritime safety, water resources management information system, agricultural modernization and forest management.

Last month, South Korea granted $100 million (P4.8 billion) worth of loans to the Philippines to boost its war chest against the coronavirus disease 2019 (COVID-19) pandemic.

In January, South Korea also provided a $50-million (P2.4-billion) loan for the Philippines-Korea Project Preparation Facility that will fund feasibility studies and various preliminary activities for infrastructure projects under the “Build, Build, Build” program.

Mr. Dominguez also sought South Korea’s support to create a framework agreement needed to process tied financing in buying military equipment for the Department of National Defense (DND).

South Korea is ready to extend the financial support needed by the Philippines for its projects and COVID-19 response, said Mr. Han.

He also assured that the two nations are already in the final stages of negotiations on the proposed Philippines-Korea free trade agreement.

South Korea is the Philippines’ fifth-biggest source of foreign funding with ongoing loans and grants amounting to $680 million (P33 billion) as of June.

As of Oct. 2, the government has secured $9.91 billion (P480 billion) worth of loans and grants from its bilateral and multilateral partners for its coronavirus pandemic response. — B.M.Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

SEOUL — North Korea fired a submarine-launched ballistic missile (SLBM) from off its east coast on Tuesday, South Korea’s military said, pulling Japan’s new...

Economy

TOKYO — Japan’s lack of a vaccination passport and limited testing capacity is threatening ambitions to reopen the economy at a crucial year-end period...

Investing

Purbeck Personal Guarantee Insurance has spoken to SME business owners and directors and set out what it believes are an Autumn 2021 Budget wish-list to...

Economy

Among 10 countries in the Asia-Pacific region, the Philippines saw the most remarkable change in e-cash adaptation during this pandemic. A survey conducted by...

Economy

(Part 4) We have the potential to become an advanced economy by the year 2050. Our strong fundamentals create the opportunity for us to...

Economy

IN ITS RECENT Regional Economic Outlook (REO), the IMF notes that the COVID-19 pandemic has taken a turn for the worse in Asia since...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

Pfizer Inc on Wednesday raised its 2021 sales forecast for its COVID-19 vaccine by 29% to $33.5 billion, and said it believes people will...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!