PRESIDENT Ferdinand R. Marcos Jr. signed into law the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, or the CREATE MORE Act.
The new law aims to generate more jobs for Filipinos and spur economic growth.
“CREATE MORE sets the stage for a business landscape that empowers our enterprises and enhances their growth prospects,” President Marcos said during the ceremonial signing of the new tax law in Malacañang on Monday.
“By building on the reforms initiated through the CREATE Act, we have enhanced our tax regime [and] incentive framework, and making it more inviting for investment—while remaining steadfast in the principles of fiscal prudence and stability,” he added.
According to the President, the passage of the CREATE MORE Act will attract more investments both domestic and global “focusing on strategic industries that will shape our future.”
“CREATE MORE clarifies the rules of availment of VAT and duty incentives, and further extends its coverage to include non-registered exporters and high-value domestic market enterprises,” the President said in detailing the salient points of the law.
He said the CREATE MORE Act is “a symbol of the invaluable insights” from international partners he gathered during his various trips abroad.
“Their feedback has enriched this legislation, a reflection of our resolve to foster a climate where businesses will flourish and continue to meaningfully contribute to the Philippine economy,” he said.
He stressed the administration’s effort to ease the way of doing business in the country through a more efficient VAT and excise tax refund process under the newly-signed law.
“By establishing clear timelines and deadlines, and by limiting compliance requirements to those mandated by law, we are promoting transparency and predictability,” he said.
The CREATE MORE Act also clarifies local taxation during the Income Tax Holiday and Enhanced Deductions Regime, which will create a fair and balanced system for local taxes and give businesses greater security.
The law will also establish a more efficient approval process by raising investment capital approval threshold for Investment Promotion Agencies from PhP1 billion to PhP15 billion, wherein only projects exceeding this amount will require review by the Fiscal Incentives Review Board.
CREATE MORE also expands the Enhanced Deductions Regime that offers greater tax relief to registered business enterprises (RBEs).
The new law also provides tax or duty exemption on donations of capital equipment, raw materials, spare parts, or accessories to the government, and Government owned and controlled corporations (GOCCs), Technical Education and Skills Development Authority (TESDA), State Universities and Colleges, and the Department of Education or accredited schools of the Commission on Higher Education (CHED).
“CREATE MORE is a tangible proof that we hear and respond to the voices of the business community. This reaffirms our commitment to work hand-in-hand with enterprise, continually seeking avenues to make your investments grow and prosper,” President Marcos said.
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