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Friday, March 29, 2024

Multinational firms asked to hike salaries

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Finance Secretary Carlos Dominguez III on Wednesday asked the regional operating headquarters of multinational companies in the Philippines to increase the salaries for managerial positions to cushion the impact of the proposed removal of the 15-percent preferential tax treatment under the comprehensive tax reform program.

“There is a solution to that, you pay more [salary],” Dominguez told a representative of a foreign company who asked a question on the impact of the PTR removal on ROHQs in the country, in a forum organized by Colliers International in Makati City.

Data show there are currently 158 ROHQs in the Philippines with a combined $2 billion in employee wages and benefits and employing more than 50,000 workers.  ROHQs were invited to locate in the Philippines through fiscal and non-fiscal incentives, including a preferential 10-percent tax on corporate income, exemptions from customs duties and local taxes, and a 15-percent preferential tax treatment for employees occupying managerial and technical positions who earn a gross annual taxable compensation of at least P975,000.  The Finance Department wants to remove the 15-percent PTR under the the first package of tax reforms.

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