This Circular is issued to inform the public and all concerned that pursuant to Sections 6,7 and 13 of Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act" (CREATE), as implemented by Revenue Regulations (RR) Nos. 4-2021, 5-2021 and 8-2021 and as clarified by Revenue Memorandum Circular (RMMC) Nos. 65-2021 and 67-2021, stating that the Regular Corporate Income Tax Rates, Minimum Corporate Income Tax Rates, and Percentage Tax Rates in the Philippines are now reverted to their original rates, effective July 1, 2023:
Based on the sample computations provided in the RMC, the taxable year 2023 shall be computed as follows:
In view of this, the tax rates were reduced previously to temporarily assist taxpayers to manage their losses from the business difficulties encountered during the pandemic. The government believes that three (3) years after the commencement of the epidemic, businesses are already recovered, which is why they are reverting the tax rates to the previous rates in accordance with CREATE.
Taxpayers can adjust their decisions and strategies throughout the year by being aware of the continuous updates in the tax compliance laws in the Philippines. It can help them stay compliant despite the increased Regular Corporate Income Tax rates, Minimum Corporate Income Tax Rates, and Percentage Tax rates in the Philippines.
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