March 29 – Two days following the signing of CREATE law, the Makati Business Club held “A User’s Guide to CREATE (Part 2)” featuring Atty. Alexander B. Cabrera, Chairman and Senior Partner at PwC Philippines. This is the second information session organized by MBC on the recent law.
The session covered major changes in corporate tax rates as well as tax incentives, and also tackled in detail the provisions vetoed by the President. Attended by Chief Financial Officers, tax and accounting heads, the discussion dwelled into CREATE’s impact on income tax filing for 2020, tax free exchanges, and Special Corporate Income Tax.
Atty. Cabrera affirmed the benefits of the law, notwithstanding the veto of key provisions. “Despite the veto provisions, this is the best version of the bill.”
Atty. Cabrera said reduced and changed incentives, which some industries opposed, may have less negative effect on investments as some believe. “While the CREATE law says you cannot reapply [for incentives for the same activities], I think the speed at which technology changes – you can still try. Because if the technology you are using is not the same as the one you are using now, maybe you can qualify for a new project,” he said.
With CREATE being the biggest corporate tax and incentives reform in decades, MBC plans to hold more related activities about the law in the coming months.