CREATE Act

Republic Act No. 11534

The Corporate Recovery and Tax

Incentives for Enterprises Act
CREATE Act Republic Act No. 11534

- Neil Armstrong
Salient Features
Effective July 1, 2020, corporate Income Tax rate is reduced from
30% to 20% for domestic corporations with net taxable income not
exceeding P5 Million and with Total assets not exceeding P100 Million.
All other domestic corporations and resident foreign corporations will
be subject to 25% Income Tax.
Salient Features
• Effective January 1, 2021, Income Tax Rate for non-resident
foreign corporation is reduced from 30% to 25%.

• Minimum Corporate Income Tax (MCIT) rate is reduced form 2%

to 1% effective July 1, 2020
Salient Features
• Effective January 1, 2021, Income Tax Rate for non-resident
foreign corporation is reduced from 30% to 25%.

• Minimum Corporate Income Tax (MCIT) rate is reduced form 2%

to 1% effective July 1, 2020
Salient Features
• Percentage Tax is reduced from 3% to 1% effective July 1, 2020 to
June 30, 2023.

• Rate of proprietary educational institutions and hospitals is

reduced from 10% to 1% effective July 1, 2020 to June 30, 2023.
Salient Features
•Imposition of Improperly Accumulated Earnings Tax (IAET) is
repealed.

•Definition of "reorganization", for purposes of applying the tax-

free exchange provision under Sec.40 (C)(2), is expanded. Prior
BIR Ruling or confirmation shall not be required for purposes of
availing the tax exemption of the exchange.
Salient Features
• Qualified export enterprises shall be entitled to 4 to 7 years
Income Tax Holiday (ITH) to be followed by 10 years 5% Special
Corporate Income Tax (SCIT) or Enhanced Deductions.

• Qualified domestic market enterprises shall be entitled to 4 to 7

years ITH to be followed by 5 years Enhanced Deductions.
Salient Features

• Registered enterprises are exempt from customs duty on

importation of capital equipment, raw materials, spare parts,
or accessories directly and exclusively used in the registered
project or activity.
Salient Features
• VAT exemption on importation and VAT zero-rating on local
purchases shall only apply to goods and services directly and
exclusively used in the registered project or activity by a
Registered Business Enterprise.
Salient Features
• For investments prior to the effectivity of CREATE
-RBES granted only an ITH shall continue with the availment of the ITH
for the remaining period of the ITH while RBES granted an ITH+ 5% Gross
Income Tax (GIT) or currently enjoying 5% GIT shall be allowed to avail of
the 5% GIT for 10 years.
Implementing Rules and Regulations
Revenue Regulations issued on April 8, 2021

RR NO. 2-2021
- Neil Armstrong
Implementing Rules and Regulations
Revenue Regulations issued on April 8, 2021

RR NO. 3-2021
- Neil Armstrong
Implementing Rules and Regulations
Revenue Regulations issued on April 9, 2021

RR NO. 4-2021
- Neil Armstrong
Implementing Rules and Regulations
Revenue Regulations issued on April 8, 2021

RR NO. 5-2021
- Neil Armstrong
Implementing Rules and Regulations
Revenue Regulations issued on June 11, 2021

RR NO. 8-2021
- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
DOMESTIC Corporations

- Neil Armstrong
RESIDENT
FOREIGN
Corporations
RESIDENT FOREIGN Corporations

- Neil Armstrong
RESIDENT FOREIGN Corporations

- Neil Armstrong
RESIDENT FOREIGN Corporations

- Neil Armstrong
RESIDENT FOREIGN Corporations

- Neil Armstrong
RESIDENT FOREIGN Corporations

- Neil Armstrong
RESIDENT FOREIGN Corporations

- Neil Armstrong
 NON-
RESIDENT
FOREIGN
Corporations
NON-RESIDENT FOREIGN Corporations

- Neil Armstrong
NON-RESIDENT FOREIGN Corporations

- Neil Armstrong
NON-RESIDENT FOREIGN Corporations

- Neil Armstrong
VALUE–ADDED
TAX
(VAT)
 Sale, importation, printing or publication of books,
and any newspaper, magazine, journal, review bulletin

- Neil Armstrong
 Sale or importation of capital equipment, its spare parts and
raw materials, necessary to produce PPEs and drugs, including
those for use in clinical trials; drugs, vaccines and medical
devices for the treatment of COVID-19

- Neil Armstrong
 Sale or importation of prescription drugs and
medicines for cancer, mental illness, tuberculosis,
and kidney diseases

- Neil Armstrong
PERCENTAGE
TAX
Persons Exempt form Value-Added Tax

- Neil Armstrong
Revenue Memorandum Circular
issued on May 17, 2021

RMC No. 62-2021

- Neil Armstrong
Revenue Memorandum Circular
issued on May 24, 2021

RMC No. 67-2021

- Neil Armstrong
Revenue Memorandum Circular
issued on July 6, 2021

RMC No. 81-2021

- Neil Armstrong
Revenue Memorandum Circular
issued on July 12, 2021

RMC No. 83-2021

- Neil Armstrong
Revenue Memorandum Circular
issued on July 19, 2021

RMC No. 83-2021

- Neil Armstrong
- Neil Armstrong