Tax Notes

Clarification on the Issuance of CETI under the CREATE Act

Contents

The Philippine Economic Zone Authority (PEZA) shall no longer issue Certificates of Incentives and 5% GIT and instead issue the Certificate of Entitlement to Incentives (CETI) in accordance with the CREATE Act.

Prior to the filing of Income Tax Return (ITR), a registered business enterprise (RBE) shall apply for a CETI to confirm whether its registered project is entitled to either the Income Tax Holiday (ITH) or the 5% Special Corporate Income Tax (5% SCIT) for the taxable period. Each registered activity shall be issued a separate CETI. The CETI shall be issued upon verification of the RBE’s compliance with the terms and conditions of its registration. Request for a CETI should be filed within ninety (90) days prior to the statutory deadline for the filing of the Annual ITR.

Please be guided accordingly.

 

Source:

P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.

 

As published in SunStar Cebu, dated 24 August 2022

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