CREATE MORE The IRR lays down rules for the transfer of business registration

A temporary LAW implementing the rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Economic Revitalization (CREATE MORE) Act was issued on Tuesday, laying down the rules for the transfer of registration to other investment promotion agencies (IPAs).

The interim IRR allows “REFORMED RBEs (registered enterprises) with an investment capital of more than P15 billion… to transfer their registration… (if) they have started operations or (are in the early stages of operation)” as long as they have not already done so. available to any tax-based benefits.

Eligible RBEs intending to transfer their registration, if authorized to do so, must provide their certificates.fiList of Registration or Certificate of Registration and Tax Exemption for cancellation, before issuance of new certificate.

Last week, President Ferdinand R. Marcos, Jr. signed the CREATE MORE Act into law. It also reduced corporate income tax to 20% from 25% for RBEs.

CREATE MORE features income tax holidays, a 5% Special Corporate Income Tax, and tax exemption on the sale of capital equipment, raw materials, spare parts, and project services.

In addition, RBEs will also enjoy local tax exemption and VAT exemption on exports and zero-rating VAT on local purchases of goods and services directly generated by the registered project or activity.

“The calculation period for income tax-based compensation for the use of RBEs issued through new registration certificates will be on Jan. 1, 2025,” it added. – Aubrey Rose A. Inosante