Duterte Signs Innovative Startup Act into Law to Benefit Startup Companies
President Rodrigo Duterte has officially signed into law Republic Act No. 11337, or better known as the Innovative Startup Act, a new law that seeks to provide tax benefits to all registered startup companies in the Philippines.
According to the official copy of the law released on July 17 by the Malacañang Palace, RA 11337 shall support the research and development of startups and startup enablers in the Philippines by allowing the creation of a Philippine Startup Development Program or referred to as the “Program”. It is composed of targeted services for the development and growth of businesses with innovative products and services within the country.
Leading and developing the program are the government agencies of the Department of Science and Technology (DoST), Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI). The law also mandates the agencies “to assess, monitor, develop, and expand the Program.”
The programs, benefits, and incentives will include full or partial subsidies for: business documents processing costs; processing of claims with other government agencies; the use of facilities, office space, equipment, and services provided by government or private institutions; the use of repurposed government spaces and facilities; and grants-in-aid for research, development, training, and expansion projects.
“The State shall provide incentives and remove constraints aiming to encourage the establishment and operation of innovative new businesses. Business crucial to the growth and expansion of the ecosystem of companies, government, and non-government institutions that foster an innovative entrepreneurial culture in the Philippines,” the law reads.
The new law shall officially take effect nationwide in 15 days after its publication in at least one newspaper of general circulation in the Philippines.