#MINDANAO
As the year begins, we need vital economic reforms that can boost our resilience and competitiveness. Lower taxes, infrastructure improvements, and continuous efforts to modernize agribusiness and encourage investments in minerals and manufacturing will help drive recovery and growth, especially in the rural areas in 2021.
We hope to see the passage of the CREATE bill, which mandates a 5-10 reduction of corporate income taxes based on the Senate version of the proposed measure. This tax cut that can help many businesses. From the current 30 percent, taxes can go down to as low as 20 percent for micro, small, and medium enterprises (MSMEs) with net taxable income of P5 million and below, and with total assets of not more than P100 million excluding land.Others, including foreign firms will see their CIT rates go down to 25 percent. MSMEs are about 90% of all businesses. Imagine many businesses in the rural areas benefitting from this.