BIR CREATE Law: What You Need to Know
Republic Act (RA) No. 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises or BIR CREATE Law was created by the Philippine Congress as a fiscal relief to domestic and foreign corporations doing business in the country in following to the COVID-19 pandemic. BIR CREATE Law pursues to adjust several provisions in the former Tax Code, focusing on the lowering of corporate income tax rates and rationalizing fiscal incentives. This law is estimated to provide private enterprises up to more than 1 trillion pesos worth of tax relief in the coming 10 years.
BIR CREATE Law was signed by President Rodrigo Duterte on March 26, 2021 and took effect on April 11, 2021.
Corporate Income Tax (CIT) under BIR CREATE Law
Table from: Department of Finance
It is really hard for companies to thrive and survive during the pandemic and the efforts of the government has a significant impact to them, it is a relief to know and have such regulations to help them overcome these challenges. And with the ongoing digitalization, it is also vital to invest on business software to help manage the business seamlessly.
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