As a firm dedicated to supporting the Filipino business landscape, Babylon2k is excited to celebrate the recent enactment of the “Tatak Pinoy” Act (RA 11981). This legislation represents a significant step forward in fostering a thriving ecosystem for domestic enterprises.
Key Provisions of the “Tatak Pinoy” Act:
- Comprehensive Strategy: The Act establishes a multi-year plan with concrete initiatives to support every value chain stage, from product development to market expansion, empowering Filipino businesses to flourish.
- Dedicated Governance: Creating the Tatak Pinoy Council (TPC) ensures collaborative and effective implementation of the strategy, bringing together the government and private sectors to synergize efforts.
- Financial Backing: The Act allocates dedicated funding and incentives to fuel the “Tatak Pinoy” program, providing crucial resources for local businesses to innovate and compete effectively.
Benefits and Initiatives:
- Prioritization for 10 years: Philippine products and services will be prioritized in designated sectors and economic activities within the “Tatak Pinoy” Strategy for a period of 10 years.
- Streamlined approvals: “Green lanes” will expedite the process of obtaining approvals, permits, and certifications for Tatak Pinoy investments and exports, reducing administrative burdens.
- Enhanced market access: Initiatives will be implemented to enhance market access of Philippine products and services both domestically and internationally, including increased participation in international exhibitions and strategic retail placements.
- Financial support: Low-interest or flexible loan programs, credit guarantees, lease agreements, venture capital, and other financing options will be made available to Tatak Pinoy enterprises, facilitating access to capital.
- Faster VAT refunds: Tatak Pinoy enterprises will benefit from faster processing of their value-added tax refunds, improving their cash flow and operational efficiency.
Alignment with SIPP 2020 and 2022:
Businesses falling within Tier 1, 2, and 3 of the Strategic Investment Priority Plan (SIPP) 2020 and 2022 stand to gain additional incentives, complementing those provided by the “Tatak Pinoy” Act.
While awaiting the detailed provisions in the IRR, it’s anticipated that Tatak Pinoy enterprises may qualify for a 4-year tax holiday (ITH), with the possibility of extension to 2-3 years. Additionally, they could benefit from a reduced 5% special corporate income tax (SCIT) on gross income or enhanced deductions (ED) for an additional 7 to 10 years following the ITH period.
We have included an attachment outlining the specific benefits available under the SIPP program for eligible businesses.
Why This Matters:
The “Tatak Pinoy” Act holds tremendous potential for Filipinos across various sectors:
- Consumers: Increased access to a wider range of high-quality and competitive Filipino products and services.
- Businesses: A supportive environment that fosters local companies’ growth, innovation, and global competitiveness.
- Economy: Stimulation of economic activity through job creation, increased local production, and a stronger brand identity.
At Babylon2k, we’re committed to actively supporting the “Tatak Pinoy” initiative. As the country waits for the crafting of the law’s implementing rules and regulations (IRR), we encourage you to join us in advocating for Filipino excellence:
- Embrace local products: Make informed choices by considering Filipino alternatives whenever possible.
- Support local businesses: Empower your community by patronizing local entrepreneurs and their ventures.
- Spread the word: Raise awareness about the “Tatak Pinoy” campaign and its significance for the nation’s economic growth and national pride.
By working together, we can unlock the full potential of Filipino ingenuity and propel “Tatak Pinoy” to become a globally recognized symbol of quality and innovation.
The “Tatak Pinoy” Act aligns perfectly with Babylon2k’s mission of empowering Filipino businesses. Our comprehensive accounting, tax, and financial advisory services are designed to help you navigate complex regulations, maximize efficiency, and achieve sustainable growth.
Whether you’re a starting entrepreneur or an established enterprise, we’re ready to collaborate and contribute to your success.
Schedule a FREE call today to learn how Babylon2k.org can support your journey as a proud “Tatak Pinoy” business!
Source:
Press Releases. Sec. Mina welcomes enactment of the “Tatak Pinoy Act”; lauds PBBM, Congress for swift approval, passage of the law. PIA. Published February 27, 2024. Accessed February 27, 2024. https://pia.gov.ph/press-releases/2024/02/27/sec-mina-welcomes-enactment-of-the-tatak-pinoy-act-lauds-pbbm-congress-for-swift-approval-passage-of-the-law
