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    Ren Mar Cruz
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    The CREATE Act reduced corporate income tax rates for domestic corporations to 25% from 30% and lowered the minimum corporate income tax rate to 1% from 2% to stimulate investment and job creation. It also set new tax rates for non-profit educational institutions, small businesses, foreign corporations, and regional operating headquarters effective July 1, 2020 or January 1, 2021.

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    The CREATE Act reduced corporate income tax rates for domestic corporations to 25% from 30% and lowered the minimum corporate income tax rate to 1% from 2% to stimulate investment and job creation. It also set new tax rates for non-profit educational institutions, small businesses, foreign corporations, and regional operating headquarters effective July 1, 2020 or January 1, 2021.

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    2 views1 page

    Create Rates

    Uploaded by

    Ren Mar Cruz
    The CREATE Act reduced corporate income tax rates for domestic corporations to 25% from 30% and lowered the minimum corporate income tax rate to 1% from 2% to stimulate investment and job creation. It also set new tax rates for non-profit educational institutions, small businesses, foreign corporations, and regional operating headquarters effective July 1, 2020 or January 1, 2021.

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    of 1

    Republic Act (RA) No.

    11534, otherwise known as the Corporate Recovery and


    Tax Incentives for Enterprises (CREATE) Act, took effect on April 11, 2021

    Taxpayer Old Rate New Rate Effectivity

    Domestic Corporations 30% 25% July 1, 2020

    Minimum Corporate Income Tax (MCIT) July 1, 2020 -


    2% 1%
    for Domestic Corporations June 30, 2023

    Domestic Corporations with Net Taxable


    Income not exceeding ₱5M and total 30% 20% July 1, 2020
    assets not exceeding ₱100M

    Non-Profit Proprietary Educational July 1, 2020 -


    10% 1%
    Institutions and Hospitals June 30, 2023

    Resident Foreign Corporations (RFCs) 30% 25% July 1, 2020

    July 1, 2020 -
    MCIT Resident Foreign Corporations 2% 1%
    June 30, 2023

    Non-Resident Foreign Corporations


    30% 25% January 1, 2021
    (NRFCs)

    Regional Operating Headquarters


    10% 25% July 1, 2020
    (ROHQs)

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