Bill to give financial incentives and benefits to OFWs

A lawmaker has filed a bill granting financial incentives and benefits to Overseas
Filipino Workers (OFWs) to encourage them to put up businesses or engage in
entrepreneurial activities.
Rep. Regina Ongsiako Reyes (one !istrict" #arindu$ue)" author of %ouse &ill
'()*" said the government should recogni+e the contributions of the OFWs in helping the
country,s economy to flourish and grow.
-One way for OFWs to invest is through the establishment of new businesses"
specifically" small businesses" also known as micro small and medium enterprises or
#.#/,s" whose ob0ective is to ma1imi+e profits"2 Reyes said.
At present" Reyes said the government programs are clearly insufficient to
encourage the OFWs to invest their hard3earned money in the country and assist in
attaining financial stability to facilitate their reintegration and improve the $uality of their
lives.
-4he government should encourage OFW,s to make investments and undertake
positive action to uplift the $uality of their lives" and it may do so through government
intervention" with the help of 56,s and even 75O,s"2 Reyes said.
Reyes said the new businesses would create more 0obs and sources of income"
which will then be the source of more ta1es to the government" and such businesses may
even attract potential foreign investors" which will then trigger further economic growth
for the country.
6nder the measure" OFWs and or their immediate family members shall be given
unlimited and preferential access to financing from government financial institutions at
rates below the market rates.
OFWs and their immediate family members may avail of the income ta1 holiday for
the first five years of their business. 4hey are also $ualified for a 89 percent reduction
from income ta1.
Another 89 percent reduction can be availed on real property ta1es to the local
government unit where the real property used for business purposes is located.
4he investment incentives may be availed only when the established business is
related to education" food" goods consumed by the general public" or established with the
intention of boosting the :hilippine tourism industry or will showcase Filipino heritage
NR # 3512
JUNE 29, 2014
and culture" or used for establishment of facilities intended for retirement.
4he measure provides another (9 percent reduction on the re$uired national" local
or business ta1es" if the place currently used by the OFWs in their business will be
converted into a business establishment"
4he measure also re$uires the local government units" with participation of the
various government agencies such as" the !epartment of 4rade ;ndustry" &ureau of
;nternal Revenue" .ocial .ecurity .ystem" :ag3;big fund" :hilippine %ealth and ;nsurance
<orp." and the .ecurities and /1change <ommission" among others" shall establish a one3
stop3shop business processing centers to facilitate an e1pedient means of registration and
eliminate red tape.
4o ensure that the benefits provided are effective and ma1imi+ed" the Overseas
Workers Welfare Administration (OWWA)" the 7ational Reintegration <enter of OFWs
(7R<O) and the 4echnical /ducation and .kills !evelopment (4/.!A) shall
institutionali+e the conduct of financial literacy programs and capacity building seminars
on entrepreneurship and investment programs for the OFWs and their immediate family
members. (*9) jc