In pursuance of the Corporate Recovery and Tax Incentives Enterprises Act (CREATE) and Revenue Regulation Memorandum Circular No. 69-2023, the following rates are revised effective July 1, 2023:

  1. The rate of percentage tax (PT) shall revert to three percent (3%) from 1%;
  2. The rate of minimum corporate income tax (MCIT) shall change back to two percent (2%) from 1%. This is applicable for domestic and resident foreign corporations, including offshore banking units and regional operating headquarters; and
  3. The rate of regular corporate income tax (RCIT) for proprietary educational institutions and not-for-profit hospitals shall revert to ten percent (10%) from of 1%.

As such, the relevant taxes for the taxable year 2023 shall be computed as follows:

For illustrative purposes, the sample computations are as follows:


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 05 July 2023