Period 2019 - Before CREATE
Prior to the RMC changes, if you generated a 1702-Q form in JuanTax, the only option for Period 2019 and older is (Part 2, 25B), where the Applicable Tax Rate is set to 30%.
After choosing the applicable option, changes to the tax rates will be automatically adjusted and calculated in the BIR 1702-Q Form. These changes are in line with the C.R.E.A.T.E. law and based on the transitory rates provided in the regulation.
Period 2021 - After C.R.E.A.T.E.
Users will now see a banner in JuanTax giving them the option to choose the total assets applicable to them (below or over 100M).
After choosing the applicable option, changes to the tax rates will be automatically adjusted and calculated in the BIR 1702-Q Form. These changes are in line with the C.R.E.A.T.E. law and based on the transitory rates provided in the regulation.
C.R.E.A.T.E. bill trims down Corporate Income Tax (CIT) from 30% to 25% for large corporations. While the small to medium corporations with a net taxable income below Php 5M and total assets of below Php 100M have a CIT of 20% under C.R.E.A.T.E.