THE INTERIM implementing rules and regulations (IRR) for the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act were issued on Tuesday, laying down the rules for the transfer of registrations to other investment promotion agencies (IPAs).
The interim IRR allows “Pre-CREATE RBEs (registered business enterprises) with investment capital exceeding P15 billion… to transfer their registration… (if they have) started operating or (are) in the pre-operating stage” as long as they have not availed of any income tax-based incentives.
Qualified RBEs intending to transfer their registrations, if approved to do so, must surrender their Certificate of Registration or Certificate of Registration and Tax Exemption for cancellation, prior to the issuance of a new certificate.
Last week, President Ferdinand R. Marcos, Jr. signed the CREATE MORE Act into law. It further reduces the corporate income tax to 20% from 25% for RBEs.
CREATE MORE features income tax holidays, a 5% Special Corporate Income Tax, and duty exemptions on imports of capital equipment, raw materials, spare parts, and project accessories.
Additionally, RBEs will also enjoy local tax exemptions and VAT exemptions on imports and VAT zero-rating on local purchases of goods and services directly attributable to the registered project or activity.
“The reckoning period of the income tax-based incentive for operating RBEs issued with new Certificates of Registration shall be Jan. 1, 2025,” it added. — Aubrey Rose A. Inosante