Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act
(Republic Act No. 11534, signed on March 26, 2021)
This Tax Alert is issued to inform all concerned on the significant provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act or Republic Act (RA) No. 11534 as approved by President Rodrigo Duterte.
This summary is based on our interpretation of the provisions of the law. Should there be different interpretations in the implementing regulations that will be issued by the Bureau of Internal Revenue, such interpretations shall prevail. We shall issue another Tax Alert as soon as the implementing regulations are released.
Below are the changes introduced by CREATE Act on the income taxation of corporations, value-added tax and percentage tax. A separate infographics will be issued for changes on tax free exchanges under Sec. 40 (C) (2) and rationalization of tax incentives (Title XIII).