SyCipLaw Tax Issues And Practical Solutions (TIPS) International Edition – March 31, 2021

1. What are the salient provisions on income tax under the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE Act?

On March 26, 2021, President Rodrigo R. Duterte signed the "Corporate Recovery and Tax Incentives for Enterprises Act" (Republic Act No. 11534, the CREATE Act) into law. It will take effect within 15 days from its publication in the Official Gazette or in a newspaper of general circulation.

The CREATE Act further amends certain provisions of the National Internal Revenue Code, as amended (the Tax Code). As stated in Section 2 of the CREATE Act, the declared policy of the amendments is to "increase the Philippines' global competitiveness by implementing tax policies instrumental in attracting investments, which will result in productivity enhancement, employment generation, countrywide development, and a more inclusive economic growth, while at the same time maintaining fiscal prudence and stability." The CREATE amends the following