CITIZENS’ Battle Against Corruption (Cibac) Rep. Eddie Villanueva
on Thursday renewed his call for the urgent passage of a bill for a three-year income tax holiday covering newly registered micro-enterprises.
Villanueva filed House Bill 5438 last Oct. 10.
“For micro-entrepreneurs, the first few years determine whether a business survives or shuts down. A three-year income tax holiday gives them the breathing room they need to recover capital, create jobs, and become sustainable contributors to the economy — without fear of being crushed by taxes before they even gain footing,“ Villanueva said in a statement.
“Easing tax burdens during the critical startup years encourages formalization, broadens the tax base in the long term, and ensures that public policy supports — not stifles — entrepreneurship,“ he added.
If the bill is passed into law, Section 74(B) of the National Internal Revenue Code mandates that “self-employed individuals registered as sole proprietors of micro-enterprises employing less than 10 employees shall be exempt from payment of income taxes within the first three years of their registration as taxpayers.“
Micro, small and medium enterprises (MSMEs) must grow, formalize, hire more Filipinos, and must not be treated like big corporations, Villanueva said. “This tax holiday is not a giveaway — it is an investment in jobs, livelihoods, and inclusive growth.“
