Preferential Taxation - Tax Incentives - CREATE Law

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30 Terms

1

Investment Promotion Agencies (IPAs)

Government entities created by law, executive order, decree or other issuance in charge of promoting investments, granting & administering tax & non-tax incentives & overseeing operations of different economic zones and Freeport

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2

Income generated from a registered project or activity

ITH shall be limited to ___.

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3

4 to 7 years depending on location & industry priorities

Period of availment of ITH for both Export Enterprises (EEs) and Domestic Market Enterprises (DMEs)

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4

5% on Gross Income Earned in lieu of all national & local taxes

Special Corporate Income Tax (SCIT) Rate for Export Enterprise

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5

Expiration of ITH

SCIT is available only after ___.

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6

Gross Sales/Revenue - Sales Discounts/Returns/Allowances - Cost of Sales

Computation of Gross Income

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7

3% to National Government; 2% to Treasurer's Office of municipality or city where enterprise is located

Allocation: 5% SCIT is paid and remitted as follows ___.

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8

+ 10% for buildings & + 20% for machineries & equipment

Enhanced Deduction (ED): Depreciation on qualified capital expenditures

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9

+ 50%

ED: Labor expense

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10

+ 100%

ED: Research and development expense

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11

+ 100%

ED: Training expense

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12

+ 50%

ED: Domestic input expense

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13

+ 50%

ED: Power expense

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14

Max. 50% within 5 years from time of reinvestment

ED: Reinvestment allowance to Manufacturing Industry
* Reinvests undistributed profits & surplus in any projects/activities listed in SIPP

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15

May be deducted within the next 5 years immediately following year of loss

ED: NOLCO for the first 3 years

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16

Application for registration

Option to avail either SCIT or ED after ITH shall be exercised at the time of ___.

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17

Additional 2 years of ITH

ITH for projects or activities located in areas recovering from armed conflict or a major disaster

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18

Additional 3 years of ITH

ITH for projects or activities relocating from the NCR

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19

Expiration of initial ITH

Projects/activities Relocating from NCR: For existing project/activity registered under this ACT, additional 3 years shall commence after ___.

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20

Expiration of transition period

Projects/activities Relocating from NCR: For existing project/activity under the transition period of this ACT, additional 3 years shall commence after ___.

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21

Certificate of Entitlement to Tax Incentives (CETI)

Proof of entitlement to additional 3 years of ITH

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22

3 years

The industry & locational prioritization shall be subject to review and revision every ___.

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23

Custom duties

The importation of capital equipment, raw materials, spare parts & accessories shall be exempt from ___.

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24

Net book value

Customs Duty Exemption: If sold, transferred, or disposed within the first 5 years from date of importation, the RBE shall be required to pay duties based on the ___.

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25

Twice the amount of duty exemption

Customs Duty Exemption: If RBE sells, transfers, or disposes without prior approval of concerned IPA, the RBE and vendee, transferee or assignee shall be solidarity liable to pay ___.

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26

Amount corresponding to exempt duties on importation.

Customs Duty Exemption: If used for a non-registered project/activity within the first 5 years from date of importation, the RBE shall pay ___.

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27

In proportion to utilization in non-registered project/activity

Customs Duty Exemption: If part-time utilized in a non-registered project/activity, the amount corresponding to the duties exempt shall be paid ___.

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28

VAT Exemption & VAT zero-rating

VAT Exemption: ___ on importation & ___ on local purchases.

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29

True

True or False: Importation of petroleum products shall be subject to payment of applicable duties & taxes upon importation into Philippine customers territory and/or into free zones.

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30

Direct export such as sale to international carriers or sea vessels engaged in international trade

Importer of petroleum products can file claims for refund of duties & taxes for ___.

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