CREATE Bill Could Decrease Corporate Income Tax

The proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) would make business owners pay lesser Corporate Income Tax (CIT) if it would be enacted into law this month.

Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo said that the proposed bill will most likely be passed into a law since he is also confident that lawmakers will approve of it.

Meanwhile, the house of representatives want a shorter transition for CREATE, making different business firms to enjoy a 5% gross income earned. CREATE will extend the sunset provision 4 up to 9 years minimum compared from CITIRA’s transition period of just 2 to 7 years.

However, if firms are ready to file their income tax return and CREATE has not been enacted to a law, they will still have to pay the current 30% CIT rate. (MLC)