FOUR telecommunications companies will be exempted from paying income tax and other tax-related obligations ranging from four years to 11 years.
The Fiscal Incentives Review Board (FIRB), through the recommendation of the Board of Investments (BOI), approved the tax incentives applications of the four telecommunications companies, which include Converge ICT Solutions, Inc., for the rollout of its fiber optic network in the country that will cost around P150.6 billion..
This means Converge will enjoy a four-year income tax holiday, enhanced deductions for five years, and duty exemption on equipment and raw materials for 11 years from the date of registration, except if this will be expanded under the Strategic Investment Priority Plan (SIPP).
The SIPP identifies priority industries, projects and activities that may be awarded fiscal incentives by the government under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
For his part, Department of Finance Secretary Carlos Dominguez III that Converge will stick to its performance commitment to provide faster and more affordable internet access in areas and communities in the country that still does not have internet connection or where connectivity is slow and weak.
Aside from this, Dominguez said the government expects these telco firms to provide more opportunities to Filipinos, especially those living in the provinces or rural areas.
The three other telcos awarded with tax incentives were Skytowers Infra Inc., Frontier Tower Associates Philippines, Inc. and Transcend Towers Infrastructure Philippines, Inc.