In a recent development, the Department of Finance (DoF) has announced new tax incentives for registered business enterprises (RBEs) under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act. According to the recent order, eligible RBEs can now claim additional deductions on specific expenses as part of the Enhanced Deductions Regime (EDR).
To clarify the benefits of the EDR, the Department of Finance (DoF) has issued Advisory No. 010-2026. The order emphasizes the clarification of the enhanced deductions, which are treated as additional deductions from taxable income. The labor deduction will cover only directly hired Filipino workers, while R&D and training deductions will be limited to qualified local expenditures and technical programs.
Additionally, domestic inputs must have at least 50% local value added, while penalties and late payment fees are excluded from power expenses.
From the taxable year ending on December 31, 2026, strict compliance with substantiation requirements, including the submission of a notarized comprehensive summary report, will be mandatory. The Department of Finance (DoF) urges businesses to review and comply with this new ruling to maximize their tax incentives.
Notably, the Department of Finance has emphasized that the Enhanced Deductions Regime (EDR) benefits are available to eligible RBEs under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the benefits of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income.
To clarify, the labor deduction will cover only directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure compliance with the regime, businesses must adhere to strict substantiation requirements, including the submission of a notarized comprehensive summary report. This will be mandatory from the taxable year ending on December 31, 2026.
Eligible businesses must ensure they review and comply with this new ruling to maximize their tax incentives.
The Department of Finance has emphasized that the Enhanced Deductions Regime (EDR) benefits are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the benefits of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income.
To illustrate, the labor deduction will only cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure proper compliance with the regulation, businesses must follow strict substantiation requirements, including the submission of a notarized comprehensive summary report. This will be mandatory starting from the taxable year ending on December 31, 2026.
Businesses must ensure they review and adhere to these new regulations to optimize their tax incentives.
The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the benefits of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income.
For instance, the labor deduction will only cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be confined to qualified local expenditures and technical programs.
To ensure compliance with the regulation, businesses must adhere strictly to the substantiation requirements, including the submission of a notarized comprehensive summary report. This requirement will be mandatory starting from the taxable year ending on December 31, 2026.
Businesses must ensure that they thoroughly review and follow these new rules to maximize their tax incentives.
The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the advantages of the EDR, ensure that the enhanced deductions are treated as additional deductions from taxable income.
For example, the labor deduction will only cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure compliance with the regulation, businesses must strictly adhere to the substantiation requirements, including the submission of a notarized comprehensive summary report. This requirement will be mandatory from the taxable year ending on December 31, 2026.
Businesses must ensure that they thoroughly review and follow these new rules to maximize their tax incentives.
The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the benefits of the EDR to ensure that the enhanced deductions are treated as additional deductions from taxable income.
For instance, the labor deduction will cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure compliance with the regulation, businesses must strictly adhere to the substantiation requirements, including the submission of a notarized comprehensive summary report.
Businesses must ensure that they thoroughly review and follow these new rules to maximize their tax incentives.
The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new clarification aims to simplify the benefits of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income.
For instance, the labor deduction will cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure compliance with the rule, businesses must strictly adhere to the substantiation requirements, including the submission of a notaried comprehensive summary report.
Companies must guarantee that they thoroughly review and follow these new guidelines to maximize their tax incentives.
The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
This new declaration aims to simplify the advantages of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income.
For example, the labor deduction will cover directly hired Filipino workers, while Research and Development (R&D) and training deductions will be limited to qualified local expenditures and technical programs.
To ensure compliance with the rule, businesses must strictly adhere to the substantiation requirements, including the submission of a notarized comprehensive summary report.
Organizations must guarantee that they thoroughly review and follow these new guidelines to maximize their tax incentives. The Department of Finance has clarified that the Enhanced Deductions Regime (EDR) incentives are available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
In this new declaration, the advantages of the EDR, ensuring that the enhanced deductions are treated as additional deductions from taxable income. The Department of Finance has provided clarity on the EDR incentives that is available to businesses under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvestment (CREATE MORE) Act.
