CREATE Act boosts conglomerate profits

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MANILA – Diversified engineering conglomerate DMCI Holdings Inc. posted record core net income in 2021 despite the pandemic as it continued to benefit from lower income tax under the Corporate Recovery and Tax Act (CREATE). Incentives for Enterprises).

In a statement, DMCI Holdings said its core net income for the full year jumped 164% to PHP17.4 billion last year from PHP6.6 billion in 2020.

Including a non-recurring income of 1 billion pesos in 2021 mainly due to the revaluation of deferred taxes under the CREATE Act and a non-recurring loss of PHP 708 million mainly due to the cancellation of sales of a real estate project in 2020.

The company also saw its net profit increase by 214% from PHP 5.9 billion to PHP 18.4 billion, including a non-recurring income of PHP 1 billion in 2021 mainly due to the reassessment of deferred taxes. under the CREATE Act and a non-recurring loss of PHP 708 million mainly due to sales cancellations for a real estate project in 2020.

President Rodrigo Duterte signed into law the CREATE Act on March 26, 2021 to attract more investment and maintain fiscal prudence and stability in the Philippines.

Republic Act 11534 or the CREATE Act introduces corporate tax reforms and incentive systems.

DMCI Holdings also attributed last year’s spectacular growth to soaring commodity prices, recovering electricity rates and increased construction achievements.

“This year, we expect extreme volatility in coal and nickel prices due to the ongoing crisis in Ukraine, economic sanctions against Russia, and possible political interventions from China and Indonesia,” he said. said Chairman and President of DMCI Holdings, Isidro Consunji. (PR)


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