Will CREATE Resolve the Philippines’ Unemployment Woes Amidst the COVID-19 Pandemic?

• Main Authors: Yu, Krista Danielle, Tiongco, Marites
• Format: text
• Published: Animo Repository 2020
• Subjects: CREATE Law; taxation; Pandemic; Covid-19; Corporate Income Tax and Incentives Reform Act; Corporate Recovery and Tax Incentives for Enterprises Act; Business Law, Public Responsibility, and Ethics; Taxation; Tax Law
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/121; https://animorepository.dlsu.edu.ph/context/res_aki/article/1110/viewcontent/Will_CREATE_Resolve__the__Philippines_Unemployment_Woes_Amidst_the_COVID_19_Pandemic.pdf
• Institution: De La Salle University

In response to the COVID-19 pandemic, there is a proposal to amend the Corporate Income Tax and Incentives Reform Act (CITIRA) into the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Act. The proposed amendments are as follows: (a) An immediate five percentage point cut into the corporate income tax (CIT) rate starting July 2020; (b) Maintaining for up to nine years the status quo for registered business activities enjoying the 5% tax on gross income earned (GIE) incentive; and (c) More flexibility for the President to grant a combination of fiscal and non-fiscal incentives, which will be critical as the country competes internationally for high-value investments (Department of Finance (DOF), 2020).