🇵🇠Tax28 Nov 2024
Philippines cuts tax for registered business enterprises under the CREATE MORE Act
The Philippines' CREATE MORE Act (Republic Act No. 12066) took effect on 28 November 2024. It cuts corporate income tax for registered business enterprises under the enhanced deductions regime from 25% to 20% on income from their registered projects, and keeps a 5% special corporate income tax on gross income as an alternative for qualifying enterprises. The general corporate tax rate stays at 25%.
The Act amends the 2021 CREATE Act, which had cut the general rate from 30% to 25%.
What changed
- Registered business enterprises opting for the enhanced deductions regime pay 20%, down from 25%, on taxable income from their registered projects or activities.
- Qualifying enterprises can instead choose the 5% special corporate income tax on gross income in place of most national and local taxes.
- The general corporate income tax rate remains 25%.
Who is affected
Companies registered with investment promotion agencies, such as PEZA and the Board of Investments, and groups planning Philippine investments.