The Philippines: CREATE IRR completed by 17 May 21

  • The newly reconstituted Fiscal Incentives Review Board (FIRB) is targeting to complete the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) by the third week of May 21, according to the Department of Finance (DOF).
  • The IRR will contain details on the new tax incentives awaiting investors, as well as the expanded functions of the FIRB as the overseer of the grant of tax perks.
  • During the first meeting of the FIRB on 14 Apr 21, the board agreed to set 17 May 21 as the target date for signing the IRR on Title XIII of CREATE, which covers the expanded functions of the FIRB and the new menu of tax incentives.
  • Also discussed were the proposed set of industries qualified to get generous tax breaks in the Strategic Investment Priority Plan (SIPP).
  • The Secretaries of Finance and Trade as chair and co-chair are given 90 days from the effectivity of the law or until 11 Jul 21 to promulgate the IRR of Title XIII.
  • The DOF had two initial discussions with the Bureau of Internal Revenue (BIR) and the Board of Investments (BOI) this week on the draft IRR.
  • A joint consultation by the DOF and the Department of Trade and Industry (DTI) with the various investment promotion agencies (IPAs) will be held on the last week of Apr 21 to discuss the draft as well.
  • While the new SIIP under CREATE is being completed, it was agreed upon that the current 2020 Investment Priorities Plan (IPP) will be adopted as the transitional list of priority sectors qualified for tax incentives.

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