Despite encouraging prospects for the local economy, the Duterte administration’s chief economic manger admitted that it would take more years before the Philippines can fully recover from the 2020 coronavirus pandemic.
Speaking at the Economic Forum hosted by the Manila Times on Friday, Feb. 26,
Published February 15, 2021, 1:10 PM
The soon-to-be enacted Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) will strengthen the culture of research, development, and innovation in the country, the Department of Finance (DOF) said.
Finance Secretary Carlos G. Dominguez III said that CREATE has the tool to promote a regime that rewards innovation and the creation of new knowledge while opening numerous doors of opportunities for the Philippines.
Finance Secretary Carlos G. Dominguez III
Dominguez said that CREATE, once enacted, will prioritize industries that make use of the knowledge economy in their activities.
“The COVID-19 pandemic has magnified the need for us to rapidly modernize our processes and transition to the New Economy,” Dominguez said during the launching of Kwoledge, Innovation, and Science Technology (KIST) park in Batangas State University (BatStateU).
SunStar
File February 03, 2021 BOTH the Senate and the House of Representatives on Wednesday, February 3, 2021, ratified the bicameral conference committee report on the proposed Corporate Recovery and Tax Incentives for Enterprises Act (Create).
The final version of the bill, which amends provisions of the National Internal Revenue Code, will be forwarded to Malacañang for approval by President Rodrigo Duterte.
Under the bill, corporate income tax (CIT) will be reduced outright to 25 percent from the current 30 percent.
While this would reduce government revenues by an estimated P37 billion, the same amount is expected to help businesses finance their operations and retain employees.
Reporters
CONGRESS ratified on Wednesday the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, which will cut corporate income tax (CIT), streamline fiscal incentives and ease coronavirus disease 2019 (COVID-19) vaccine importation.
The final version of CREATE will now be sent to Malacañang for President Rodrigo R. Duterteâs signature.
It will immediately slash CIT to 25% from 30% which is currently one of the highest in Southeast Asia. It further cuts corporate income tax to 20% for micro, small, and medium enterprises with net taxable income below P5 million and total assets below P100 million.
âHopefully, this will be implemented soon, as CREATE can be a ventilator that will help companies in ICU, or prevent them from entering one,â Senator Ralph G. Recto said in his explanation of vote.
Reporter
PHILIPPINE STOCKS closed higher on Tuesday as investor sentiment got a lift from the Bicameral Conference Committee’s approval of the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).
The bellwether Philippine Stock Exchange index (PSEi) improved by 53.12 points or 0.77% to close at 6,867.88, while the broader all shares index rose 40.5 points or 0.98% to 4,144.17.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail that the market improved as investor sentiment was boosted by the approval of the CREATE bill by the Bicameral Conference Committee on Monday.
“The bill is expected to boost the economy’s recovery with the outright reduction of corporate income tax and other fiscal incentives,” Mr. Mangun said.