Tax & Spend
Philippines Cuts Corporate Tax, Adds Perks to Win Investment
- Law cuts tax rate for registered businesses to 20% from 25%
- New law plus rate cuts may double inward FDI, Recto says
The Makati business centre in Metro Manila.
Photographer: Ted Aljibe/AFP/Getty ImagesThis article is for subscribers only.
Philippine President Ferdinand Marcos Jr. on Monday signed a law that lowers corporate income taxes and boosts incentives for businesses, in a bid to spur more investment into one of Asia’s fastest-growing economies.
The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, or CREATE MORE Act, reduces the corporate income tax rate for businesses registered with investment agencies to 20% from 25%. It also grants a 100% additional deduction on power expenses of these enterprises and extends the maximum duration of tax incentives by another 10 years to 27 years.