Lawmakers Approve Bill Granting Tax Benefits to Companies’ CSR in the Philippines
Lawmakers approved a measure encouraging social responsibility in the private corporate sector by granting them fiscal benefits upon participating in corporate social responsibility (CSR) projects and community programs.
Last Monday, with 283 votes, three against, and no abstentions in the House of Representatives, lawmakers approved the House Bill (HB) 451, or the Corporate Social Responsibility Act, on its third and final reading. HB 451 is a consolidation of six similar measures pushed by other lawmakers.
House Speaker Ferdinand Martin G. Romualdez stated, “This measure recognizes the important role of the private sector not only in nation-building but also in developing and aiding our communities to raise the quality of life of our citizens. With the vast resources available to our corporations, they are in a position to help our country.”
According to the HB, the State acknowledges the importance of the private sector in nation-building and will “encourage its active participation in fostering sustainable economic development and environment protection in the Philippines.”
HB 451 reads, “Towards this end, the government shall mobilize its various agencies, in coordination with nongovernment and people’s organizations, to work hand-in-hand for the integration, promotion, and strengthening of corporate social responsibility in all business organizations.”
The bill primarily aims to encourage private corporations to introduce the importance of social responsibility in community development in their business operations and activities. Whether they are single proprietorships, partnerships, or corporations, HB 451 seeks to strengthen sustainable economic development and environmental protection.
HB 451 offers several benefits to promote CSR among private-sector companies, including allowing stock corporations to keep their profits over 100% of paid-in capital stock, which will be used for expansion and corporate social responsibility projects or programs.
Moreover, the bill describes CSR as referring “to the commitment of business to contribute on a voluntary basis to sustainable economic development by working with relevant stakeholders to improve their lives in ways that are good for business, sustainable development agenda and society at large.”
