The newly signed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) will help attract more investments in the country, Department of Finance (DOF) Secretary Ralph Recto said.
“CREATE MORE will open the floodgates of more high-impact investments both from our international investors and domestic enterprises,” Recto, also the Fiscal Incentives Review Board chairperson, said in a statement on Monday.
“This will not only attract new investments and grow existing businesses to make more money but also enable us to create more high-quality jobs, increase our people’s income, and reduce poverty. Through CREATE MORE, we will secure a brighter future for every Filipino.”
Signed by President Ferdinand R. Marcos Jr. on Monday, Republic Act No. 12066 or the CREATE MORE Act makes the Philippines’ tax incentives regime more globally competitive, investment-friendly, predictable, and accountable.
CREATE MORE enhances the ease of doing business in the country, clarify value-added tax rules, provide more attractive tax incentives, strengthen governance and accountability, and make clear transitory rules for pre-CREATE registered business enterprises (RBEs).
“CREATE MORE will certainly fast-track the entry of more foreign investors into the Philippines, as evidenced by the bullishness and strong interest from nearly a thousand investors who attended our recent economic briefings abroad. This will help facilitate more partnerships and joint ventures with our local companies,” Recto said.
The law provides a more competitive and generous incentive package for strategic and highly desirable investments.
For instance, RBEs will have the option to choose between the special corporate income tax (SCIT) of 5 percent or the enhanced deductions regime (EDR) right from the start of their commercial operations.
The SCIT and EDR incentives, initially capped at a maximum of 10 years, are now extended to a period of up to 17 or 27 years.
Labor-intensive projects will also be allowed to apply for an extension of another five or 10 years.
More incentives will also be given to registered export enterprises and high-value domestic market enterprises with investment capital exceeding PHP15 billion, and are engaged in sectors considered import-substituting or export sales in the immediately preceding year of at least USD100 million. (PNA)
