QUEZON CITY  -- Department of Finance (DOF) Secretary Carlos G. Dominguez and Department of Trade and Industry (DTI) Secretary Ramon M. Lopez signed the Implementing Rules and Regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act on June 21, more than two weeks ahead of July 10 or the 90-day deadline set under the law.

Lopez said the signing of the IRR would attract more investors to grow their business and “make it happen in the Philippines, " referring to the DTI’s new investment production campaign dubbed “Make It Happen in the Philippines.”

Meanwhile, Dominguez also thanked stakeholders from the private sector and other government agencies such as the investment promotion agencies (IPAs) for their IRR input during the multiple rounds of consultations.

The IRR is  intended to ensure that the law is appropriately implemented following the core principles of granting incentives based on the significant contribution of business enterprises to the economy.

In addition to these, the IRR also requires IPAs to establish a one-stop action center or expand the services of the existing one-stop action center through a physical or virtual setup within one year from the effectivity of the IRR, subject to budgetary support and available resources. This takes effect immediately upon publication in a newspaper of general circulation.

CREATE Act is the largest fiscal stimulus package for business in the country’s history, providing enterprises more than one trillion-peso worth of tax relief over the next ten years with a significant cut on the tax rate for corporations.

Micro, small and medium enterprises (MSMEs) will be the biggest beneficiaries of this Act as the law cuts the regular corporate income tax (CIT) rate by up to 10% from 30% to 20% for domestic corporations with a taxable income of P5M and below and total assets of not more than P100M. It will also reduce 25% CIT for big corporations with assets of above P100M. (MBP/PIA-IDPD/DTI)