Quick CREATE IRR draft eyed

If you can finish it in less than 30 days, the better. Let everybody focus on this date (17 May)

Required implementing rules and regulations (IRR) for the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law is expected to be accomplished ahead of its 90-day deadline.

This was learned from the Department of Finance (DoF) as it noted the newly reconstituted Fiscal Incentives Review Board’s (FIRB) plan to complete the IRR by the third week of May.

Finance Secretary Carlos Dominguez III, who also chairs the FIRB Board told its members to “focus” on 17 May 2021 as the target date for IRR signing.

“If you can finish it in less than 30 days, the better. Let everybody focus on this date (17 May),” Dominguez said.

Under CREATE, the DoF and the Department of Trade and Industry (DTI) are given 90 days from the effectivity of the law, or by 11 July to come up with the IRR for the law.

According to the agency, the CREATE IRR will contain details on the new menu of tax perks awaiting investors, as well as the expanded functions of the FIRB as overseer of the grant of investment incentives.

Strict sked set

“The DoF had two initial discussions with the BIR (Bureau of Internal Revenue) and the BoI (Board of Investments)-DTI this week on the draft IRR and are scheduled to have a final meeting next week,” it explained.

“A joint DoF-DTI consultation with the various investment promotion agencies (IPA) will be held on the week of 26 April to discuss the draft, as well,” it added.

CREATE was considered as the biggest fiscal stimulus by the government to the private sector as it will immediately reduce the corporate income tax from 30 percent to just 20 percent for micro, small and medium enterprises while a 5 percent reduction will be granted for the same to large corporations.