The passage of the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE (Republic Act 11534) provides an expansion of fiscal and non-fiscal opportunities for enterprises registered with Investment Promotion Agencies. This includes stakeholders of the book publishing industry who are part of the priority group for investments.
Book publishers are encouraged to avail of the following incentives:
- Income Tax Holiday (ITH)
- 5% Special Corporate Income Tax (SCIT) based on Gross Income Earned, in lieu of all national and local taxes for 10 years. This is available for exporters.
- Enhanced Deductions
- Depreciation allowance of assets-additional 10% for buildings; and additional 20% for machineries and equipment
- 50% additional deduction on labor expense;
- 100% additional deduction on R&D
- 100% additional deduction on training expense given to Filipino employees
- 50% additional deduction on domestic input expense
- 50% additional deduction on power expense
- Deduction for reinvestment allowance to manufacturing industry – the amount reinvested to a maximum of 50%
- Enhanced NOLCO (Net Operating Loss Carry Over)
- Duty exemption on importation of Capital Equipment, raw materials, spare parts, or accessories
- VAT exemption on importation and VAT Zero-rating on local purchases
You may find the complete details here. For more information, contact us at numbers +63 927 877 4639 (mobile) or +63 2 8359 4552 (landline) or email us at [email protected].