The urgent need to pass Create

Tax reform is part of the main agenda of the Duterte administration. So it was a welcome development when Republic Act 10963, or the “Tax Reform for Acceleration and Inclusion Act” (Train), took effect on Jan. 1, 2018 to mainly address and amend the antiquated personal income tax brackets of individual taxpayers, and to introduce significant amendments to the National Internal Revenue Code (“Tax Code”).

Taxpayers have also been waiting for the corporate income tax (CIT) rate to be lowered. So it was such a relief when the Senate approved last November Senate Bill 1357, or the “Corporate Recovery and Tax Incentives for Enterprises Act” (Create). But much to their — and our — disappointment, Create was not only not passed into law last year, it was also not yet adopted by the House of Representatives. As we understand it, a bicameral committee will need to be convened to harmonize the amendments introduced by Create and House Bill 4157, or the “Corporate Income Tax and Incentives Rationalization Act” (Citira).