![]() Passed into law on 26 March, effective on 11 April 2021 SALIENT FEATURESĪ. The tax incentives system under CREATE balances the interests of all stakeholders while remaining faithful to the fundamental principles and mindful of the country’s fiscal challenges. These principles have been unanimously recognized by stakeholders during hearings and consultations. Large corporations also enjoy an immediate reduction in the corporate income tax rate from 30 to 25 percent.ĬREATE also provides other forms of tax relief which are part of a package of economic recovery measures implemented by the government to address the varying needs and concerns of the business sector brought about by the ongoing COVID-19 pandemic.ĬREATE also provides for a generous and flexible tax incentive system that is performance-based, time-bound, targeted, and transparent. MSMEs will be the biggest beneficiaries of CREATE through the grant of the largest ever corporate income tax rate reduction in the country, from 30 percent to 20 percent. ![]() It is estimated to provide private enterprises more than 1 trillion pesos worth of tax relief over the next 10 years. ![]() The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is the largest fiscal stimulus for businesses in our recent history.
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