MANILA – Diversified engineering conglomerate DMCI Holdings Inc. booked a record-high core net income in 2021 despite the pandemic, as it continued to benefit from a lower income tax under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.
In a statement, DMCI Holdings said its full-year core net income surged by 164 percent to PHP17.4 billion last year from PHP6.6 billion in 2020.
Including a nonrecurring income of P1 billion in 2021 mostly from deferred tax remeasurement under CREATE law and nonrecurring loss of PHP708 million mainly from sales cancellations for a real estate project in 2020.
The company also saw its net income surge by 214 percent from PHP5.9 billion to PHP18.4 billion, including a nonrecurring income of PHP1 billion in 2021 mostly from deferred tax remeasurement under CREATE law and nonrecurring loss of PHP708 million mainly from sales cancellations for a real estate project in 2020.
President Rodrigo Duterte signed into law on March 26, 2021 the CREATE Act to attract more investments and maintain fiscal prudence and stability in the Philippines.
Republic Act 11534 or the CREATE Act introduces reforms to the corporate income tax and incentives systems.
DMCI Holdings also attributed last year’s spectacular growth to surging commodity prices, recovering electricity rates, and higher construction accomplishments.
“This year, we expect extreme volatility in coal and nickel prices because of the ongoing crisis in Ukraine, economic sanctions on Russian and possible policy interventions of China and Indonesia,” DMCI Holdings chairman and president Isidro Consunji said. (PR)