Philippines Slashes Corporate Income Tax Rate to 20%

JAKARTA. The Philippines is rumored to have cut its corporate income tax rate from 25% to 20%. 

In addition, the Philippine government also provides a 100% tax reduction facility to encourage investment for 27 years for the manufacturing sector.

This was confirmed after Philippine President Ferdinand Marcos Jr signed a regulation called the CREATE MORE Act or Republic Act.

The CREATE MORE Act is short for ‘The Corporate Recovery and Tax Incentives for Enterprises to Maximise Opportunities for Reinvigorating the Economy, or CREATE MORE Act’.

Boosting Competitiveness

Quoting the Philippine News Agency, Marcos stated that the signing of the CREATE MORE Act demonstrates his administration’s commitment to strengthening the business sector and promoting economic growth.

He hopes this policy will make the Philippine economy more competitive, attracting more investments into Indonesia's neighboring country.

With increased investment, the expectation is that it will lead to a rise in employment opportunities.

Indonesian Government's Discourse

Previously, the team of Indonesia's President-elect Prabowo Subianto expressed a desire to cut the corporate income tax rate to 20% from the current rate of 22%.

However, this plan is still under discussion and has not yet been decided by the government. According to antaranews.com, this policy aims to ease the burden on the public. (ASP/KEN)