One of the objectives of the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is to improve the equity and efficiency of the corporate tax system by reducing tax distortions and leakages.
The long-enjoyed incentives involving the VAT zero-rating on local purchases of REEs are now qualified under the CREATE Act to apply only to local purchases of goods and services that are directly and exclusively used in their respective registered project/s or activity/ies.
Source: www.philstar.com
