(Eagle News) — The Department of Finance and the Department of Trade and Industry have signed the implementing rules and regulations of the Corporate Recovery and Tax Incentives Enterprises Act, more than two weeks ahead of the July 10 deadline.
In a statement, the DOF said the IRR of the law which aims to reduce corporate income tax rates benefitting micro, small, and medium enterprises were signed by Finance Secretary Carlos Dominguez and Trade Secretary Ramon Lopez on Monday, June 21.
The signing came after multiple rounds of consultations held with stakeholders in the course of two months.
“The inputs provided by the stakeholders have helped us improve the IRR and provide clarity on the implementation of the new Title XIII on tax incentives in the tax code,” Lopez said.
He said with the signing, he expects investment promotion agencies or IPAs to “go full steam ahead” in attracting investments in the Philippines, creating quality jobs and improving the lives of Filipinos.
Dominguez said the approval of the IRR way ahead of the deadline shows the government’s commitment to come up with an “effective, efficient, and fiscally responsible incentive system which hopefully will be the standard in the region.”
The CREATE Act is the country’s largest fiscal stimulus package which provides private enterprises with more than P1 trillion in tax relief over the next ten years.
It reduces the regular CIT rate by up to 10 percent from from 30 percent to 20 percent for domestic corporations with a taxable income of P5 million and below, and with total assets of not more than P100 million.
Big corporations with assets of over P100 million can expect a reduction of the CIT rate to 25 percent.
President Rodrigo Duterte had certified the bill as urgent and signed it into law in March.
