Eligibility for new incentives under RA 11534 CREATE Philippines

RA 11534 CREATE Philippines provides as well that existing registered business enterprises with PEZA,
BOI, and other IPAS could be eligible for new incentives under RA 11534 CREATE, subject to the
conditions and qualifications under Strategic Investments Priorities Plan (SIPP). The original text
(enrolled bill forwarded to President for approval) actually provides for an extension of up to 10 years
but was Vetoed by the President justifying among others that only new export enterprises should be
allowed new incentives. As such, we will have to wait and see how the Strategic Investments Priorities
Plan would deal with this

Summary

In summary, existing registered business enterprises under IPAs (e.g. PEZA BOI) would seem unaffected
in short to mid-term as they could continue their ITH until expiration of the granted term and continue
further their 5% gross income tax for 10 years from effectivity of RA 11534 CREATE Philippines on April
11, 2021 or until April 10, 2031.

Existing registered business enterprises under IPAs (e.g. PEZA BOI) could qualify for the incentives under
RA 11534 CREATE subject to the conditions and qualifications under the Strategic Investments Priorities
Plan (SIPP) that is yet to be promulgated and issued. For those export enterprises, they could have the
option to apply for the new incentives under RA 11534 CREATE Philippines based on the SIPP guidelines.
Finally, they may also consider relocating their business outside NCR should they wish to avail of the
new incentives under RA 11534 CREATE

The above rules are premised on Section 296 and 311 of RA 11534 CREATE Philippines supplemented by
personal views of the author. These are further subject to guidelines under the SIPP that will hopefully
be issued soon. Will make necessary updates as soon as SIPP becomes available.

https://taxacctgcenter.ph/tax-incentives-existing-peza-boi-ipa-entities-transition-ra-11534-create-
philippines/