Corporate income tax cuts ‘huge help’ to pandemic-hit businesses

A group of businessmen in Iloilo hailed the signing into law of a measure that reduces corporate income taxes.

Lea Lara, Iloilo Business Club (IBC) executive director, said the newly signed Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, which is now Republic Act No. 11534, is a “huge help” to the business sector especially during this COVID-19 pandemic.

She is expecting that the law would improve liquidity conditions of pandemic-battered businesses.

“There’s not much income to declare from last year and businesses need their liquidity to recover and survive,” said Lara.

Under the new measure signed by President Rodrigo Duterte, the corporate income tax rate is lowered from 30% to 25% for corporations, and 20% for micro, small and medium enterprises (MSMEs).

According to Lara, businesses in iloilo are starting to slowly recover from the adverse impact of the pandemic with the loosening of quarantine measures.

“There are still limitations and strict observance of protocols. Bisan hinay hinay lang. What is important is that we do not return to ECQ (enhanced community quarantine) as other cities have,” she said.IMT