CREATE law to strengthen culture of innovation and research

Finance Secretary Carlos Dominguez said the new Corporate Recovery and Tax Incentives for Enterprises law will help strengthen the culture of innovation and research in the country, as it offers not only a reduced corporate income tax rate for investors but also attractive incentives, such as a 100-percent additional deduction on R&D expenses.

CREATE lowered the corporate income tax from 30 to 20 percent for micro, small and medium enterprises, and to 25 percent for all other businesses.

Dominguez said the Department of Finance uses this fiscal policy under CREATE as a tool “to promote a regime that rewards innovation and the creation of new knowledge.”

He added, “Under CREATE, the types of investments that will be pursued are activities consistent with the Fourth Industrial Revolution. These would spur the development of new production techniques and business models…[helping] our workers… upgrade their skills.”

Source: https://www.pna.gov.ph/articles/1143623

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