To encourage small online businesses to register with the government, the Department of Trade and Industry (DTI) offers them a three-year tax exemption period.
This is one of the provisions addressed at the Senate committee on trade, commerce, and entrepreneurship regarding the proposed Internet Transactions Act, according to DTI Assistant Secretary Mary Jean Pacheco.
It will incentivize them to register and maintain their businesses in the first two to three years as they grow into more established companies.
Registered business entities under the proposed action cannot be affiliates, subsidiaries, or franchises of existing businesses.
Moreover, proprietorships, one-person corporations, and partnerships cannot have a previous or existing company, partnership, or business.
Each stockholder in a corporation must own at least five percent of the company’s shares to qualify. Moreover, no nominal stockholder may hold the shares in trust for anyone else.
Essentially, the proposed act covers business-to-business, business-to-consumer, and other online activities such as retailing consumer goods and services online, travel services online, media services online, delivery services online, and digital financial services online.
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