Senator Paolo Benigno “Bam” Aquino 4th has filed a bill granting tax exemption for start-up enterprises for the first two years of their business operations.
Senate Bill 2217 or the Start-Up Business Bill grants start-up enterprises enough time to stand on their own while they try to create a niche in the market.
“Let them grow, and by the end of two years, they will be able to pay the right taxes and join the formal economy,” Aquino stressed. “The idea is not to exempt businesses, but to give them space to grow.”
“The intervention provides the opportunity for these start-ups to get organized, establish their business operations and market base,” the chairman of the committee on trade, commerce and entrepreneurship said.
The bill said tax exemption for the first two years of operation would be provided only to the duly registered businesses that are not affiliated with any existing companies and have no previous or existing registered businesses.
“They should have at least a five-percent share with no nominal stockholders and in case of a corporation, a venture capitalist should only have up to fifteen percent of total outstanding shares,” Aquino said.
The senator believed the passage of the bill will legitimize the start-ups’ role in the economy and the acknowledgement of the government’s commitment to innovation.
“Start-ups have the potential to spur and spread innovation. As these enterprises have likewise the appetite to take on more risks, they would fuel creativity and challenge existing ways of doing business,” he said.
Aquino said the growth of start-ups would be beneficial for more Filipinos who have the innate talent of working with limited resources.