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    qnlrnr mlla
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    The document discusses additional deductions from taxable gross income, specifically an Additional Deduction for Labor Expense (ADLE) that allows registered enterprises a 50% deduction from taxable income equivalent to wages paid to additional skilled and unskilled workers for the first 5 years. This incentive is granted if the enterprise meets a capital to labor ratio requirement and cannot be used simultaneously with an Income Tax Holiday. The deduction is doubled to 100% if located in a Less Developed Area, except for mining and forestry projects which are naturally located near raw materials sources.

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    The document discusses additional deductions from taxable gross income, specifically an Additional Deduction for Labor Expense (ADLE) that allows registered enterprises a 50% deduction from taxable income equivalent to wages paid to additional skilled and unskilled workers for the first 5 years. This incentive is granted if the enterprise meets a capital to labor ratio requirement and cannot be used simultaneously with an Income Tax Holiday. The deduction is doubled to 100% if located in a Less Developed Area, except for mining and forestry projects which are naturally located near raw materials sources.

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    © All Rights Reserved
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    1 views3 pages

    Document 5

    Uploaded by

    qnlrnr mlla
    The document discusses additional deductions from taxable gross income, specifically an Additional Deduction for Labor Expense (ADLE) that allows registered enterprises a 50% deduction from taxable income equivalent to wages paid to additional skilled and unskilled workers for the first 5 years. This incentive is granted if the enterprise meets a capital to labor ratio requirement and cannot be used simultaneously with an Income Tax Holiday. The deduction is doubled to 100% if located in a Less Developed Area, except for mining and forestry projects which are naturally located near raw materials sources.

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    © All Rights Reserved
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    of 3

    3.

    Additional deduction from Taxable Gross Income


    a. Additional Deductions for Labor Expense (ADLE)
    For the first five (5) years from date of registration, a registered
    enterprise shall be allowed an additional deduction from taxable income
    equivalent to fifty percent (50%) of the wages of additional skilled and
    unskilled workers in the direct labor force.

    The incentive shall be granted only if the enterprise meets a prescribed


    capital to labor ratio and shall not be availed of simultaneously with ITH. This
    additional deduction shall be doubled or became one hundred percent (100%) if
    the activity is located in a Less Develop Area (LDA).
    The privilege, however, is not granted to mining and forestry-related
    projects as they would naturally be located in certain areas to be near their
    source of raw materials.

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