The Philippines CREATE Act Comes into Effect, Pushing for Accelerated Economic Recovery
The Philippines CREATE Act Comes into Effect, Pushing for Accelerated Economic Recovery April 16, 2021 Posted by ASEAN Briefing Written by Lisa Prodent Reading Time: 4 minutes
The CREATE Act is a time-bound and tailor-made set of corporate and tax reforms to counter the effects of COVID-19 on the Philippines’ economy.
The Act reduces the financial burden on foreign and domestic companies through various tax incentives.
Through the CREATE Act, the government hopes to increase the country’s investment appeal and better compete with its ASEAN counterparts.
The Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act), was passed into law on March 26 this year. The Act’s purpose is to grant tax relief for companies in financial need, provide transparent tax provisions, and further increase the competitiveness of th
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CONGRESS ratified on Wednesday the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, which will cut corporate income tax (CIT), streamline fiscal incentives and ease coronavirus disease 2019 (COVID-19) vaccine importation.
The final version of CREATE will now be sent to Malacañang for President Rodrigo R. Duterteâs signature.
It will immediately slash CIT to 25% from 30% which is currently one of the highest in Southeast Asia. It further cuts corporate income tax to 20% for micro, small, and medium enterprises with net taxable income below P5 million and total assets below P100 million.
âHopefully, this will be implemented soon, as CREATE can be a ventilator that will help companies in ICU, or prevent them from entering one,â Senator Ralph G. Recto said in his explanation of vote.
Published December 22, 2020, 10:49 AM
Senator Juan Edgardo “Sonny” Angara has sought the establishment of Science and Technology Parks (STPs) nationwide to help support the government’s bid to boost research and development, invention and innovation efforts in the country that are essential for national development.
Sen. Sonny Angara
(Joseph Vidal / Senate PRIB / FILE PHOTO / MANILA BULLETIN)
In filing Senate Bill No. 1944 or the proposed “Science and Technology Parks Act of 2020,” Angara said it is essential for the government to establish STPs “to largely promote the culture of competitiveness and innovation through tech-based enterprises and knowledge-based institutions.”
Angara, who chairs the Senate Finance Committee, noted that the country’s innovation performance has been continuously rising as evidenced by the country’s continuous climb in the Global Innovation Index (GII).