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Republic Act No. 8762
Minimum PaidUp Capital*
USD 500,000 / EUR 450,000
USD 2.5 Million / EUR 2.25 Million
Minimum investment per retail store*
USD 200,000 / EUR 185,000
USD 830,000 / EUR 765,000
Pre-qualification of Foreign Retailers
No longer required
5 year retailing branches 5 year track record in retailing
Promotion of Locally Manufactured Products
Encouraged but amount is not specified
10%-30% of the aggregate cost of the stock inventory
R+'#)/'"&/'"(1#).1$#/)"&)('1#(+)(#3$%',6"#%'(),.#'"('%0%,1'1#/51(#+,%'# D,.,0,"$#@$%F'%1#4'3$%'#'"6)6,"6#(+'#1'%-,*'1#$3#)#3$%',6"#")(,$").A#H')"< @+,.'2#3$%',6"#%'(),.'%1#)%'#'"*$5%)6'&#($#F''0#)#1($*F#,"-'"($%7#$3#.$*)..7# /)"53)*(5%'&#0%$&5*(1#45(#"$#.$"6'%#%'E5,%'#=I<cIV#$3#(+'#)66%'6)('# *$1(#)1#/)"&)('&#,"#(+'#0%'-,$51#.)@A
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31,#451-651-2/ O#B0;1*$0)$H0;(0;26#$4)/01#$!2P#*# 8$%0$%)('#!"*$/'#R)['1#3$%#&$/'1(,*#)"&#3$%',6"#*$%0$%)(,$"1# 1+)..#4'#%'&5*'&#3%$/#cIV#($#GOV#)"&#1+)..#4'#%'&5*'&#35%(+'%#47# =V#')*+#7')%#5"(,.#,(#%')*+'1#GIV#47#GIG\A# CREATE Law
Old Rate
25%
30%
Minimum Corporate Income Tax for Domestic Corporations
1%
2%
Domestic Corporations with Net Taxable Income not exceeding ₱5M
20%
30%
Non-Profit Proprietary Educational Institutions and Hospitals
1%
10%
Domestic Corporations
25%
30%
Minimum Corporate Income Tax for Resident Foreign Corporations
1%
2%
Non-Resident Foreign Corporations
25%
30%
Regional Operating Headquarters
25%
10%
Resident Foreign Corporations
"-+,613(8.%H21>2%'(%=@ANAOP%'2*%#$=$@A9%#@QA=Q%R'>%>'(%'8(1%0'((+*%'(%'% 562'246'8%(/6)383(%0-1:-')%/&'/%0-1,6*+(%/'?%-+86+5%51-%41)0'26+(%62%562'246'8% 2++*%*3-62:%/&+%#PS$TIBE%0'2*+)64<
Q2'>#IJ33#3$!2P$.P#1(6&0)* X# K).'#$%#&,1(%,45(,$"2#,/0$%()(,$"2#0%,"(,"62#$%#054.,*)(,$"#$3# )"7#'&5*)(,$").#/)('%,).#*$-'%'&#47#(+'#_MaK89#)6%''/'"(# ,"*.5&,"6#'<4$$F1A X# K).'#$3#,/0$%()(,$"#$3#*)0,().#'E5,0/'"(#)"&#%)@#/)('%,).1#3$%# ??a#0%$&5*(,$" X# K).'#$3#,/0$%()(,$"#$3#)..#0%'1*%,0(,$"#&%5612#/'&,*).#1500.,'12# &'-,*'12#)"&#'E5,0/'"(#3$%#89:!;<=> X# K).'#$%#,/0$%()(,$"#$3#-)**,"'1#3$%#89:!;<=> X# K).'#)"&#,/0$%()(,$"#$3#0%'1*%,0(,$"#&%561#$"#*)"*'%2#/'"().# ,.."'112#(54'%*5.$1,12#)"&#F,&"'7<%'.)('&#&,1')1'1
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31,#451-651-2/#7+(-2*-892*(-: F57&5-$<)O$<,-4"850
K&4"85&'"(&4"85)89)G"0-&')C5-$54"/$0 CREATE Law Income Tax Holiday Duration
Old Law
Exporters
Domestic
Exporters
4-7 years
4-7 years
4-6 years
Domestic 4-6 years
Option 1: ITH + 5% tax on Gross Income Earned (GIE)
14-17 years
Special Corporate Income Tax (SCIT) / GIE Duration
ITH: 7 years, GIE: 10 years
Not Applicable
Indefinite
Indefinite
Option 2: ITH + Enhanced Deductions (ED) Enhanced Deductions Duration ITH + Enhanced Deductions Duration
X# X#
10 years
15 years
14-17 years
9-12 years
ITH: 7 years, ED: 10 years
ITH: 7 years, ED: 5 years
None
None
None
None
CREATE Law
Old Rate
Power Expense
150%
100%
Labor Expense
150%
150%
Training Expense
200%
100%
Research and Development
200%
100%
Domestic Input Expense
150%
100%
Reinvestment Allowance to Manufacturing Industry
Up to 50% of reinvested profit
None
10% buildings; 20% machinery
None
Depreciation Allowance
;5(7#'['/0(,$"#$"#,/0$%()(,$"#$3#*)0,().#'E5,0/'"(2#%)@#/)('%,).12#10)%'#0)%(12#$%#)**'11$%,'1 :JR#'['/0(,$"#$"#,/0$%()(,$"#)"&#:JR#S'%$<%)(,"6#$"#.$*).#05%*+)1'1 FM:8%4D8%"$54$<)F54$%:%"0$0 LOCATION / INDUSTRY TIERS
O,%&4"85)89)C5-$54"/$0) &'3,"'&#5"&'%#(+'#K(%)('6,*# !"-'1(/'"(#?%,$%,(7#?.)"# )"&#.$*)(,$"#*$"&,(,$"1
Tier 1
Tier 2
Tier 3
National Capital Region (NCR)
4 ITH + 10 ED/SCIT
5 ITH + 10 ED/SCIT
5 ITH + 10 ED/SCIT
Metropolitan areas or areas contiguous and adjacent to NCR
5 ITH + 10 ED/SCIT
6 ITH + 10 ED/SCIT
7 ITH + 10 ED/SCIT
All other areas
6 ITH + 10 ED/SCIT
7 ITH + 10 ED/SCIT
7 ITH + 10 ED/SCIT
O83$04"-)F54$%:%"0$0 LOCATION / INDUSTRY TIERS
!!
Tier 1
Tier 2
Tier 3
National Capital Region (NCR)
4 ITH + 5 ED
5 ITH + 5 ED
5 ITH + 5 ED
Metropolitan areas or areas contiguous and adjacent to NCR
5 ITH + 5 ED
6 ITH + 5 ED
7 ITH + 5 ED
All other areas
6 ITH + 5 ED
7 ITH + 5 ED
7 ITH + 5 ED
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