CREATE law's IRR to be amended amid 'inconsistencies'

Vivienne Gulla, ABS-CBN News

MANILA - The implementing rules and regulations of the law rationalizing corporate taxes and incentives will be amended, the Department of Finance said on Tuesday.This was after House lawmakers said the IRR of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) had “inconsistencies” with the law itself. Albay 2nd District Representative Joey Salceda said that the CREATE law allows registered business enterprises to continue availing, for a period of 10 years, the tax incentives granted prior to the effectivity of the law. However, the IRR ignored this transitory provision, said Salceda who heads the House Ways and Means Committee. <div>RELATED VIDEO:</div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/UdPQzbC3cHk?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>He noted that this could be one of the factors for the “slower” growth in foreign direct investments observed the Department of Finance in recent years.“The BIR really mangled the interpretation of that law,” Salceda said.Salceda said the BIR sought to interpret the law and removed the “zero-rating” provision. “The interpretation of the IRR is in fact in conflict with the intent and spirit of the CREATE law. Which one will prevail?” said Surigao del Norte 2nd District Rep. Robert Ace Barbers asked.The DOF told the House tax panel that the IRR will be amended to address these inconsistencies and that the National Tax Research Center expects the amendments to be out within the week.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/03/26/21/duterte-signs-create-bill-lowering-corporate-income-taxes-vetoes-some-provisions">Duterte signs CREATE bill lowering corporate income taxes, vetoes some provisions</a></li></ul>“We are in the process of amending the IRR so that that it would be consistent to the interpretation mentioned by the chairman, wherein the 10-year sunset provision should be followed,” Finance Assistant Secretary Karlo Adriano replied. House resolutions were previously filed in the 19th Congress seeking an inquiry into the implementation of the CREATE law. House Resolution 490 filed by House Deputy Speaker Gloria Macapagal-Arroyo said it is imperative to remedy the inconsistencies between the CREATE law and its corresponding administrative issuances.Arroyo said this is to ensure the stability of registered business enterprises located inside freeport zones and prevent the mass exodus of investors, which is “detrimental to the objectives of the CREATE law.&quot;CREATE lowers the rate of corporate income taxes and rationalizes tax incentives for companies.

The implementing rules and regulations of the law rationalizing corporate taxes and incentives will be amended, the Department of Finance said on Tuesday.

CREATE law's IRR to be amended amid 'inconsistencies' | ABS-CBN

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CREATE law's IRR to be amended amid 'inconsistencies'

CREATE law's IRR to be amended amid 'inconsistencies'

Vivienne Gulla,

ABS-CBN News

Published Aug 08, 2023 03:33 PM PHT

|

Updated Aug 08, 2023 03:38 PM PHT

Read More:

House of Representatives

House Committee on Ways and Means

Rep. Joey Salceda

Department of Finance

CREATE law

IRR

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