The General Department of Taxation issued Instruction No. 18412, dated May 20, 2024, on the Implementation of Tax Incentives on Micro, Small, and Medium Enterprises for the Development of Informal Economy, in response to the Pentagon Strategy Phase 1 and the National Strategy for Informal Economic Development 2023–2028, which seek to formalize the important sectors in the informal economy. Therefore, if they voluntarily register at the tax administration, Micro, Small, and Medium-Sized Businesses operating in four priority sectors—(1) wholesale, retail, and repair services; (2) lodging and food services; (3) handicrafts; and (4) agricultural cooperatives—may be eligible for a variety of tax incentives. This directive is unexpected because prior to its distribution, a sub-decree and a Prakas implementing similar national strategies were established.

* Exemption of patent tax upon registration, and the subsequent 2 years