LEARNING INSIGHTS It was a nice way to start the day with a webinar entitled, “CREATED Act: An Answer to the Effects of COVID-19 on the Philippines’ Economy” that was hosted by the Accountancy Student Council, supervised and guided by Mrs. Annelen B. Marcos, the Chairperson of the Accountancy Department. The COVID-19 pandemic indeed changed and still affecting the way how everyone normally lived their lives; health, lifestyle, education, jobs, transportation and many more. It has been infecting and threatening people’s lives and the country’s economic status for more than a year now. But through this webinar, the speaker, Mr. Mac Kerwin P. Vidas, CPA-Lawyer and a former UPHSD professor, brought to us a solution that was done by the government in order for the businesses to ease the burden in terms of taxation. The talk was about the latest updates in our tax law and tax practice. More about the CREATE Finally: Republic Act 11534 which is Corporate Recovery and Tax Incentives for Enterprises Act. Mr. Vidas stated that this act was actually planned prior the happening of the COVID-19 pandemic but it just got signed by the President this March 26, 2021. The reason for having a reform of this act was pushed from the public and there is confidence from the Congress about corporate taxation. The government has done a lot about corporate taxation reform like TRAIN Law or TRABAHO bill, CITIRA bill and many more which eventually failed. Mr. Vidas only discussed the first part of the CREATE Act which is the Non Incentives Provisions. Under the CREATE act, most of the tax rates to be paid by small, domestic and resident foreign corporation decreased on the percentage tax for the business to not spend massive amount for their tax. While in other income taxes of small, domestic and resident foreign corporations, the tax rate increased. This act has a purpose to grant tax relief for companies in financial need, provide transparent tax provisions, and further increase the competitiveness of the Philippines. Many SMEs have been adversely affected by the pandemic, and the tax advantages are a welcome respite. For the near- to medium-term, the CREATE Act's promotion of a business competitive environment is expected to counterbalance the predicted decline in government revenues. Firms that profit from the Act can reinvest in their businesses' revival and create more jobs for local workers. Furthermore, the CREATE Act allows the government to deliver performancebased, transparent, and strategically focused incentives to businesses and enterprises. This, in turn, will stimulate foreign investment in sectors and businesses that are compatible with the country's development objectives, such as producing higher-value jobs, expanding pioneer industries, and encouraging investments in underdeveloped regions.
