The Philippine Economic Zone Authority (PEZA) warns of the “win some, lose some” opportunities provided by the newly-enacted Corporate Recovery and Tax Incentives for Enterprises (CREATE), due to the provisions vetoed by President Rodrigo Duterte.
PEZA said that since registered investors are unable to apply for new incentives, it could lead to their departure from the country.
In a statement, the investment promotions agency said that registered businesses would have “no choice but to make do” with the 10-year sunset period after their income tax holiday lapses. Then, they can graduate to the slashed corporate tax rate of 25%.
“Although CREATE may offer ‘win some, lose some’ opportunities for the different industries, we are glad that CREATE sustained our argument and has placed a high premium on export-oriented enterprises with their availment of superior fiscal incentives particularly for new projects,” said PEZA Director General Charito Plaza…