The Corporate Recovery and Tax Incentives for Enterprises (CREATE) law aims to make the Philippines more competitive in ASEAN by lowering the corporate income taxes to 25% and 20% for small, medium and micro enterprises. It is also seen as a fiscal relief and recovery measure for Filipino business still suffering from the COVID 19 pandemic.
It also aims to plug tax leakages by rationalizing the fiscal incentives granted to investors and shifts the administration of such investments towards a performance-based, targeted and time bound system. President Duterte signed the CREATE act as Republic Act No. 11534 with certain line items vetoed last March 26, 2021.
Read more on the CREATE act.
The law is set to take effect 15 days after its complete publication in the Official Gazette or in a newspaper of general circulation.