Members: DATE: March 21, 2022

Score:

Clarito, Ma. Shoebie L.

Perdido, Keavin Jeason A.

Saja, Mariel E.

Tamboong, Mark Paolo C.

TITLE: The Effect of the Corporate Income Tax (CIT) under CREATE Law for
Individual Investors Doing Business During Pandemic

Area of Research:

Corporate Income Tax (CIT) under CREATE LAW.

Research Question:

1. How CIT will influence the decision-making of individual to do business

during pandemic?
2. Does the new CIT rate during pandemic will be the right time to create
business?
3. Is there a benefit for the development of economic stability under CREATE
law?

Articles: (APA Format)

Oden, C. (2022), Impact of Taxation on Business Decision,

https://www.projecttopics.org/impact-taxation-business-decision.html
Villanueva J. (2020, May 26). “CREATE bill to attract more investments, save
and create jobs’’. Gov.ph. https://www.pna.gov.ph/articles/1104017
Villanueva, J. (2021, July 12). “CREATE law, opening of economy boost PH's
net FDI’s”. PNA Gov.ph, https://www.pna.gov.ph/articles/1146823#:~:text=
 %22Some%20foreign%20investors%20may%20have,tax%20rates%20in
%20other%20Asean%2F

Justification:

According to Roche 2015: 5), Corporate taxation is of great concern on

investors’ decisions and hence in economic growth and employment. Depending on
the nature of tax, taxation may have a positive or negative effect on business
decisions.  A high marginal tax rate will be a disincentive for business while a lower
one will be an incentive to work. (Oden, 2022)

Economist Michael Rica fort said that “some foreign investors may have
started to come in view of the progress made on the CREATE law, which was finally
signed on March 26, 2021 and reduces corporate income tax rates to 25 percent for
large corporations (from 30 percent) retroactive July 1, 2020, thereby narrowing
the gap with the tax rates in other Asean/Asian countries, and also provides greater
certainty on investment incentives, thereby helping attract more FDIs and making
some foreign investors on the sidelines in recent months/years to become more
decisive and finally bring in more FDIs into the country. “(Villanueva, 2021, par. 4)

Economist Michael Rica fort said that “some foreign investors may have
started to come in view of the progress made on the CREATE law, which was finally
signed on March 26, 2021 and reduces corporate income tax rates to 25 percent for
large corporations (from 30 percent) retroactive July 1, 2020, thereby narrowing
the gap with the tax rates in other Asean/Asian countries, and also provides greater
certainty on investment incentives, thereby helping attract more FDIs and making
some foreign investors on the sidelines in recent months/years to become more
decisive and finally bring in more FDIs into the country. “(Villanueva, 2021, par. 4)