The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act aiming to reduce corporate income tax will attract investments that will create more jobs.
The recent bicameral approval of the game-changing CREATE Act can also provide a big boost to the National Employment Recovery Strategy (NERS) Task Force chaired by the Department of Trade and Industry (DTI) and co-chaired by the Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA), which was signed recently 5 by several agencies.
“The landmark tax and incentives reform bill that we expect to be signed by the President is expected to bring in massive inflow of investments that will create more jobs, especially as we focus efforts in the National Employment Recovery during this period of the pandemic and beyond. The passing of CREATE will firm up the tax and incentive reforms that will make the investment climate significantly more attractive than the current tax and incentive regime,” Trade Secretary Ramon Lopez said.
He said the bill will certainly encourage more investments with the lowering of the corporate income taxes rate from 30 percent to 20 percent for micro, small and medium enterprises (MSMEs), and 25 percent for large corporations.
“Modernizing the incentives system likewise makes the incentives such as income tax holiday (ITH), special corporate income tax rates (SCIT) or enhanced deductions (ED), available to industries considered strategic, critical or export oriented,” he added.
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