Monday, April 26, 2021
The Philippines Department of Finance has announced that the Fiscal Incentives Review Board (FIRB) will complete the implementing rules and regulations for the corporate Recovery and Tax Incentives for Enterprises (CREATE) Act by the third week of May.
The rules and regulations will contain details of tax incentives available for investors. They will also set out the remit of the FIRB, which will be responsible for tax incentives oversight.
Under CREATE, the Secretaries of the Department of Finance (DOF) and the Department of Trade and Industry Philippines are given 90 days from the entry into effect of the law (that is, by July 11) to promulgate the rules and regulations.
The grant of tax incentives to registered projects or activities with investment capital of over P1 billion is now the responsibility of the FIRB under CREATE, while applications for tax incentives for project or activities with investment capital of P1 billion and below will be approved by the various investment promotion agencies (IPAs).