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Duterte Signs Create Bill Into Law
Duterte Signs Create Bill Into Law
President Rodrigo Duterte has signed into law Republic Act 11534 or the “Corporate
Recovery and Tax Incentives for Enterprises (Create) Act,” which seeks to lower
corporate income tax and streamline fiscal incentives for impacted industries.
But Duterte vetoed some provisions of the new law, including the increase of the value-
added tax-exempt threshold on sales of real property; 90-day period for processing of
general tax refunds; definition of investment capital; and redundant incentives for
domestic enterprises.
“I suggest that the legislature, the Department of Finance and the BIR (Bureau of Internal
Revenue) come up with mechanisms to streamline the process of tax refunds in a separate
The President also vetoed items on allowing existing registered activities to apply for
new incentives for the same activity, limitations on the power of the Fiscal Incentives
Review Board, particular industries mentioned under activity tiers as well as provisions
granting the President the power to exempt any investment promotion agency from the
reform.
Albay Second District Rep. Jose Ma. Clemente “Joey” Salceda, chief author of the bill,
“Create has been created. This is one of the pins of light signaling the end of this dark
The Create Act will slash corporate income tax (CIT) to 25 percent from 30 percent,
which is regarded as one of the highest rates in Southeast Asia. It will also reduce CIT to
20 percent for micro, small and medium enterprises with net taxable income of less than
incentives, including four to seven years of income tax holiday. It aims to provide relief
to businesses affected by the pandemic and help Filipinos generate jobs through foreign
direct investments.
Create may be applied retroactively from July 2020, paving the way for corporate