CREATE bill to create 1.4-2M jobs through tax breaks

The Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, recently ratified by Congress, is expected to create 1.4-2 million jobs through tax breaks and incentives.

The bill reduces the corporate income tax rate from 30% to 25%, with a further reduction to 20% for MSMEs with net taxable income of P5 million or less and total assets under P100 million.

DTI Secretary Ramon Lopez estimates that CREATE will attract over PHP200 billion in new investments, supporting the National Employment Recovery Strategy (NERS) Task Force's efforts to boost employment recovery during the pandemic.