Passive Income And Financial Intermediary Taxation Act Of 2019

After a fourth deliberation the unnumbered substitute bill which proposes to be the passive income and financial intermediary taxation act of 2019 which proposed to a flat rate of 15 on dividend income among others cleared the panel in less than 10 minutes.

Passive income and financial intermediary taxation act of 2019. A single gross receipt tax grt rate of 5 will be imposed on banks quasi banks and certain non bank financial intermediaries fis. 304 hurdled the scrutiny of the house ways and means committee a few days ago. The passive income and financial intermediary taxation act pifita or house bill no. House bill hb 304 or the passive income and financial intermediary taxation act is also expected to be passed next year.

Package 4 of the ct rp is aimed at making the taxation of passive income. Unification of tax rates on passive income. We also expect the passive income and financial intermediary taxation act or pifita to be a game changer when it is passed later this year. If passed into law pifita will amend certain provisions of the national internal revenue code of 1997 tax code on the taxation of passive income and income of financial intermediaries.

In fact this measure could be approved before citira as it is less controversial. With a tally of 186 affirmative votes six negative votes and two abstentions house bill 304 called the passive income and financial intermediary act was passed at the plenary level. Frequently asked questions on the proposed passive income and financial intermediary taxation act pifita of the i comprehensive tax reform program what is package 4 of the ctrp. This means taxpayers may be required to allocate income before its enactment and those they earned thereafter.

This reform will make the country more attractive for long term investments. We discuss below the differences in the tax treatments of debt and equity instruments and how house bill 304 or the passive income and financial intermediary taxation act pifita seeks to simplify the system and neutralize the taxation between debt and equity instruments. House bill hb 304 or the passive income and financial intermediary taxation act is also expected to be passed next year. In fact this measure could be approved before citira as it is less controversial.

The passive income and financial intermediary taxation act pifita or house bill no. Xxxi 6 november december 2019 1. Harmonization of business taxes on financial intermediaries. A single rate of 15 in general will be imposed on interest income dividends and capital gains.