By Philippine News Agency
Restrictive measures to prevent the spread of the coronavirus disease 2019 (Covid-19) have affected economies worldwide.
National Economic and Development Authority Acting Secretary Karl Kendrick Chua cited Republic Act 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, as one of the government’s way of attracting more investments and help recoup losses.
“It is the biggest incentive that will create an estimated 1.6 million jobs,” Chua said in previous statements.
The government through CREATE, Chua said, will be able to provide immediate relief to micro, small, and medium enterprises (MSMEs) and enable the Philippines to attract foreign direct investments (FDI), especially after the pandemic.
CREATE cuts the Corporate Income Tax (CIT) rate from 30 percent to 20 percent for MSMEs and to 25 percent for other corporations with retroactive application to July 1, 2020.
It includes key forms of pandemic relief, such as the lowering of Minimum Corporate Income Tax from 2 percent to 1 percent, effective July 1, 2021 to June 30, 2023.
CREATE may just be the answer to a business group’s suggestion for the country to improve its foreign investment laws.
READ full story HERE.