CREATEL

AW
Cor
por
ateRecov
eryandTaxIncent
ivesf
orEnt
erpr
isesAct
Republ
icActNo.11
534
(
Inf
ogr
aphi
csPar
t1)

DOMEST
ICCORPORAT
IONS RESI
DENTFOREI
GNCORPORAT
IONS

Bef
ore CREAT
E Bef
ore CREAT
E
St
art
ingJul
y01
,2020*
-25%;or
25%
30% 30% St
art
ingJul
y01
,2020*
-20% ,subj
ectt
obel
ow
condi
ti
ons: *Note:T
axabl
eincomedeemed
earnedequal
lyforeachmont
h
i
.NetTaxabl
eIncomeofnot
oftheyear
morethanP5M;and
i
i.Totalasset
sofnotmor e
Regul
ar thanP1 00M (
excl
udingland
RegularCor
porate
Corporat
e onwhi chthebusiness IncomeTax(RCIT
)
entit
y’soffice,plant
I
ncomeT ax(RCI
T) andequi pmentaresit
uated)

*Note:T
axabl
eincomedeemed
earnedequal
lyforeachmont
h
oftheyear

2% 1
% 2% 1
%
(
Jul
y01
,2020t
o June30,2023) (
Jul
y01
,2020t
o June30,2023)

Mi
nimum Cor
por
ateI
ncomeT
ax(
MCI
T) Mi
nimum Cor
por
ateI
ncomeT
ax(
MCI
T)

Additi
onal50% deduction Additi
onal50% deduction
Additi
onaldeductionfor Additi
onaldeductionfor
forlabortrai
ningexpense, forlabortrai
ningexpense,
labortrai
ningexpense: labortrai
ningexpense:
subjectt
obelow condit
ions: subjectt
obelow condit
ions:
-None -None
i
.nottoexceed10% ofdi
rect i
.nottoexceed10% ofdi
rect
l
aborwage; l
aborwage;
Non-deductibl
einter
est Non-deductibl
einter
est
i
i.cov
eredbyapprent
ices
hip expense: i
i.cov
eredbyapprent
ices
hip
expense:
agr
eement;and -33% ofint
eresti
ncome agr
eement;and
-33% ofint
eresti
ncome
subj
ectedtofinaltax i
ii
.suppor
tedbyDepEd, subj
ectedtofinaltax i
ii
.suppor
tedbyDepEd,
TESDAorCHEDcert
ificat
ion TESDAorCHEDcert
ificat
ion
Deducti
onsfrom Non-deductibl
einter
est Deducti
onsfrom Non-deductibl
einter
est
GrossIncome expense: GrossIncome expense:
-20% ofint
eres
tincome -20% ofint
eres
tincome
subj
ectedtofinaltax subj
ectedtofinaltax

1
0% Repeal
ed 1
0% -2021
1
0% ofnett
axabl
eincome
25% -Start
ing
January01
,2022

I
mpr
oper
lyAccumul
atedEar
ningsT
ax(
IAET
)
ROHQs

1
0% ofnet 1
%ofnett
axabl
eincome 1
0% ofgr
ossi
nterest
t
axabl
eincome (
Jul
y01
,2020t
o June30,2023)
i
ncomefr
om r
esident
s;
Subj
ecttoRCITand
exemptf
orincomef
rom othert
axes
non-r
esi
dents;
Pr
opr
iet
aryEducat
ionalI
nst
it
uti
onsandHos
pit
als ex
emptf
rom ot
hert
axes

OBUs
Divi
dendsfr
om NRFC -
Divi
dendsfr
om NRFC exemptfr
om incomet ax
-30% RCI
T subj
ecttobelow condit
ions: Int
eres
tonFCDUdeposi
ts Inter
estonFCDUdeposi
ts
i
.rei
nvest
mentint
hedomes
tic -7.
5% -15%
corpor
ation
CGTonunli
stedshar
es CGTonunl
ist
edshar
es
i
i.20% ormor
eowner
shi
p;and -5% /1
0% -1
5%
I
nter
corporat
e i
ii
.2yearsormor
ehol
ding
Di
vidends per
iod.
Fi
nalT
axonPas
siv
eIncome

NON-
RESI
DENTFOREI
GN V
ALUEADDEDT
AX
CORPORATI
ONS

Bef
ore CREAT
E Bef
ore CREAT
E
Exemptprovi
dedit -Requi
rementtoappearat
25% ongr
ossi
ncome appearsatregul
ar regul
arint
erval
sisremoved
30% ongr
ossi
ncome St
art
ingJanuar
y01
,2021 int
erval
s -Digi
talorel
ectr
onicfor
mat
i
ncludedintheexempti
on
-Journal
,oranyeducat i
onal
readi
ngmaterialcover
edby
theUNESCO agreement
i
ncludedintheexemption
Regul
arCor
por
ateI
ncomeT
ax(
RCI
T)
Sal
e,i
mpor
tat
ion,pr
int
ingorpubl
icat
ionofbook
s,anynews
paper
,magaz
ine

CGTonunli
stedshar
es CGTonunl
ist
edshar
es
-5% /1
0% -1
5% VATEx
empt
1
2% VAT (
Jan.01
,2021t
oDec.31
,2023)

Fi
nalT
axonPas
siv
eIncome Saleorimportat
ionofcapi
talequi
pment,itssparepart
sandr
awmat er
ial
s,
necessarytoproducePPEsanddr ugs
,incl
udingthoseforusei
ncl
ini
caltr
ial
s,drugs
,
v
accinesandmedicaldevi
cesforthetreat
mentofCOVID-1
9

Requir
edtaxcredi
tint
he Requir
edtaxcreditinthe
domicil
ecount
ry: domicil
ecountry:
-1
5% -
10% (st
art
ingJuly1,2020) VATexempt VATexempt
Star
ti
ngJanuar
y01
,2023 Star
ti
ngJanuar
y01
,2021

I
nter
cor
por
ateDi
vidends
Sal
eori
mport
ati
onofpr
escr
ipti
ondrugsandmedicinesf
orcancer
,
ment
ali
ll
nes
s,t
ubercul
osi
s,andkidneydi
seases

PERCENT
AGET
AX
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tionsandcl
ari
ficat
ions
,cont
act
:
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ore CREAT
E
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% M +6391753717
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(
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,2020t
oJune30,2023)
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