Government agencies signed on Monday the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The IRR of Republic Act 12066, signed by Finance Secretary and Fiscal and Incentives Review Board (FIRB) chair Ralph Recto and Department of Trade and Industry (DTI) Secretary and FIRB vo-Chair Ma. Cristina Roque, clarifies and refines the provisions the law’s smooth implementation.
Present during the signing rites were Senator Sherwin Gatchalian, and FIRB Board Members Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go and National Economic and Development Authority Secretary Arsenio Balisacan.
Key officials from various investment promotion agencies were also in attendance.
In a statement, Recto said the signing of the IRR means the Philippines is all business.
“[W]e are ready to compete. We are a dependable economic ally. We offer stability amid uncertainty. And yes, we are Trump 2.0-ready,” he said.
The IRR provides clearer guidelines on the transitory rules for pre-CREATE registered business enterprises (RBEs) to continue enjoying their previously granted tax incentives.
The Department of Finance said that RBEs under the CREATE Act may avail of additional incentives or measures under the CREATE MORE Act.
The IRR also directly addresses investor concerns regarding the issuance of the value-added tax (VAT) zero-rating certificate by providing detailed guidelines on eligibility and compliance criteria and clarifying the certificate’s covered period.
Under the IRR, the FIRB is tasked to conduct impact evaluations to guide the President in deciding the grant of fiscal and non-fiscal incentives for highly desirable projects to determine whether the benefits outweigh the costs of incentives.
It also prohibits double registration of projects, preventing redundant incentives and ensuring responsible fiscal management.
“On the part of the government, we are committed to making CREATE MORE not just a tool to attract more investments, but a magnet to keep them here, grow them here, and give every reason for investors to place their trust in the Philippines. Again and again,” Recto said. (PNA)
