The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which prescribes lower tax rates and other incentives to business enterprises has been submitted to the Office of the President for certification as urgent.
Under the CREATE bill, the current corporate tax of 30 per cent will be cut to 25 per cent by July and then to 20 percent over the next few years.
and other tax incentives for business enterprises, is awaiting certification as urgent by President Rodrigo Dutrte.
The corporate tax rate in the Philippines is the highest among countries in the ASEAN region.
The proposed legislation also allows businesses that have incurred losses this year to extend their net operating loss carry over. “This means that the current loss would be used for the deduction of their taxes in the next five years, Finance Assistant Secretary Tony Lambino explained.
CREATE aims to help small business owners hard hit by the pandemic to bounce back as quickly as possible.
CREATE also gives the President the power to grant non-tax incentives to investors in the form of training programs, warehousing accommodations, registration and permitting services.