The Senate Finance Commission unanimously approved a provision in the megareform granting companies a 150 UTM tax credit per worker if they finance catastrophic illness treatments for employees or direct family members.
The measure, proposed by independent senator Rodolfo Carter and Republican Party senator Renzo Trisotti, was approved last week in the commission. It allows companies to make payments for catastrophic illness treatments benefiting dependent workers, children up to age 25, spouses or civil partners.
To access the benefit, the worker must have at least three years of continuous seniority and the company must keep all social security contributions up to date. If disbursements exceed the credit limit, the excess may be deducted as a necessary expense to produce income.
Catastrophic illnesses are defined as chronic or potentially fatal conditions whose treatments are extremely costly, complex and prolonged. Specific details will be set by supreme decree from the ministries of Finance and Health.
Senator Carter said the initiative aims to shift the business logic from confrontation to collaboration and address families' urgency in facing dramas such as cancer. According to the Financial Report, the rule would mean lower fiscal revenue of 20.844 billion pesos, assuming 5,818 funded cases.
