CAMARINES Sur Rep. LRay Villafuerte has filed a bill that aims to provide tax incentives, streamlined business procedures and easier immigration to help startup entrepreneurs and their investors flourish in the country.
LRay said his measure, House Bill 2882, “adopts the best practices in startup communities and tailors them to fit the Philippine startup ecosystem.”
“The continued growth of startups in the country benefits Filipinos who have innate talent for shaping contemporary ideas. The startup industry instigates a string of positive effects on the economy at large, such as encouraging investment, bringing innovation, creating jobs and building a more vibrant entrepreneurial ecosystem,” he added.
Under HB 2882, registered startup enterprises should first apply for a Startup Pilipinas certificate with the Department of Trade and Industry (DTI) to avail themselves of the series of incentives outlined in the measure.
A counterpart bill has been filed by Sen. Paolo Benigno Aquino IV in the Senate for startup enterprises.
Startups cover enterprises operating for no longer than 60 months and whose core business function involves product, process or business model innovations with a gross annual revenue not exceeding P250 million, LRay said.
He said startups covered by his bill should also ensure that their product, process or business is their primary source of revenue; they are not mere end users of the innovative product, process or business model; and the cost of their enterprise for research and development is at least 15 percent of its total operational cost, or is a licensee or owner of a patent or registered software.
“The Startup Pilipinas certificate expires after 60 months from its issuance or when the enterprise receives venture capital from an investor in the amount of P250 million, whichever is earlier,” said LRay, who was a successful young businessman before embarking on a career in politics in 2004.