CREATE-st

The acronym CREATE means

• Corporation Recovery And Tax Incentives for Enterprises

• Corporate Recuperation And Tax Incentives for Enterprises

• Corporate Recovery And Tax Incentives for Enterprises

RA _____ or Corporate Recovery And Tax Incentives for Enterprises

It is the second package of the Comprehensive Tax Reform Program that reduces Income Tax Rates from 30% to __% for corporate taxpayers in general, and to 20% for other corporate taxpayers, subject to certain qualifications, effective July 1, 2020

• 20%

• 25%

• 22%

When was the act approved by President Duterte?

• June 26, 2021

• March 29, 2021

• April 11, 2021

• March 26, 2021

____ 26, 2021 – effectivity of the Implementing Rules and Regulation (IRR)

• May

• June

• July

• March

> shall be limited to the income generated by the Registered Business Entity (RBE) from a registered project or activity

> 4yrs to 7yrs entitlement depending on the location and industry priorities (SIPP)

• Income Tax Holiday

• Income Tax Table

• Income Tax Return

What is the allowable deduction for assets acquired for the production of goods and services (qualified capex) under CREATE?

• 20% for buildings

  10% for machinery

• 15% for buildings

  20% for machinery

• 10% for buildings

  20% for machinery

• 20% for buildings

  15% for machinery

VAT Exemption and VAT Zero-rating on local purchases

• Shall only be applied to goods and services directly and exclusively used in the registered project or activity of export enterprises, during the period of registration with the concerned IPA

• Provided further, that excess input taxes attributable to zero-rated sales by VAT-registered RBEs, may be refunded or applied for tax credit, at the option of the RBE

• Provided, that transactions falling under Section 106(A)(2)(a)(3), (4) and (5) and Section 108(B)(1) and (5) of the Tax Code, as amended, shall be subject to 12% VAT pursuant to RR 9-2021.

• All of the above

Bonus question: Who is our resource speaker? (complete with middle name)