The Department of Trade and Industry (DTI) on Tuesday lauded the newly-signed Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act as “game-changing” legislation poised to transform the Philippine economic landscape.
In a statement, the DTI said the law would strengthen the country’s position as an attractive investment destination through significant tax incentives and regulatory reforms.
“This law marks a critical turning point in the Philippines’ economic development, underscoring our dedication to building a thriving and globally competitive business landscape,” DTI said.
Signed by President Ferdinand R. Marcos Jr. on Monday, Republic Act (RA) 12066 or the CREATE MORE Act makes the Philippines’ tax incentives regime more globally competitive, investment-friendly, predictable and accountable.
“Indeed, the CREATE MORE law is a game-changing legislation aimed at transforming the Philippine economy. It will boost investor confidence and drive long-term growth by making the business environment more transparent, efficient, and predictable,” DTI said.
These incentives include reduced corporate income tax rates and enhanced deductions to boost investor profitability.
The DTI also highlighted that the streamlined value-added tax (VAT) procedures would facilitate easier compliance and lessen administrative burdens for foreign businesses.
“Together, these incentives are designed to stimulate foreign direct investment, leading to job creation, infrastructure development and technological advancement within the country. The CREATE MORE law sends a clear signal to the international business community that the Philippines is open for business and committed to providing a supportive and rewarding environment for investors,” DTI said.
The DTI said key provisions, such as VAT zero-rating and duty exemptions for export-oriented companies, are expected to enhance the country’s export competitiveness.
The DTI vowed to work with all stakeholders to ensure the success of the law and establish the Philippines as a “leading economic powerhouse in the region.”
In a separate statement, the Management Association of the Philippines (MAP) said CREATE MORE will help improve the global competitiveness of the Philippines by improving the ease of doing business (EODB), sustaining an enabling business environment for local and foreign investors, and attracting greater and more diverse job-creating investments for more Filipinos to be gainfully employed.
“EODB has always been a top concern of MAP members. We are glad that CREATE MORE will be addressing EODB issues pertaining to VAT refund, local taxation, investment approval process and flexible working arrangements, among others,” it said.
“We thank President Marcos Jr. for signing a law that signifies his administration’s unwavering commitment to empowering the business sector and fostering a climate where businesses will flourish and continue to contribute meaningfully to the Philippine economy.” (PNA)
