By Ruth Abbey Gita-Carlos
MANILA – President Ferdinand R. Marcos Jr. on Monday signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to promote the Philippines as a prime investment destination.
CREATE MORE Act or Republic Act (RA) 12066, signed by Marcos in a ceremony at Malacañan Palace in Manila, builds on the game-changing economic reforms introduced under the CREATE law by making the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.
Marcos said the signing of RA 12066 signifies his administration’s unwavering commitment to “promote and boost businesses more” towards stronger and more inclusive economic growth.
“The reforms we have instituted in CREATE MORE are a testament to our firm resolve to roll out the red carpet for investors, usher in critical investments, and foster a conducive and robust environment for businesses to thrive,” he said in his speech.
“The Philippines is open for business, and the Filipino people means business,” Marcos added.
Under the CREATE MORE Act, the maximum duration of tax incentives availment is extended by 10 years to 27 years from 17 years, to attract strategic and high-quality investments.
Registered business enterprises (RBEs) under the enhanced deductions regime will benefit from a reduced corporate income tax rate of 20 percent.
The new law also grants a 100-percent additional deduction on power expenses to cut the costs for the manufacturing sector.
It also further streamlines the value-added tax (VAT) refund process by limiting the documentary requirements and addressing the VAT concerns raised by export-oriented enterprises.
RA 12066 also introduces various reforms such as the rationalization and streamlining of incentives-related processes to address investors’ pain points and cultivate an investment-friendly climate.
It likewise simplifies local taxation by imposing a local tax on RBEs in lieu of all other local taxes, fees, and charges.
The CREATE MORE law also strengthens the respective mandates of the Fiscal Incentives Review Board (FIRB) and the investment promotion agencies (IPAs).
It institutionalizes the adoption of flexible work arrangements as a business model for RBEs operating inside economic zones and freeports, without disruption in the enjoyment of their tax incentives.
Marcos said the Filipino people would benefit from the passage of the CREATE MORE Act through more and better economic opportunities that uplift their lives, such as high-quality jobs.
“Ang paglagda natin sa batas na ito ay higit pa sa pagbubukas ng pinto ng oportunidad para sa mga mamumuhunan at mga negosyo — tayo rin ay namumuhunan tungo sa isang mas maliwanag, panatag, at maunlad na kinabukasan para sa bawat Pilipino (Our signing of this law is more than opening the door of opportunity for investors and businesses — we are also investing towards a brighter, more secure, and prosperous future for every Filipino),” Marcos said.
“Sa Bagong Pilipinas, titiyakin natin na ang pagyabong ng ating ekonomiya ay tunay na mararamdaman at matatamasa ng bawat mamamayan (In the New Philippines, we will ensure that the prosperity of our economy is truly felt and enjoyed by every citizen),” he added.
The signing of CREATE MORE law is consistent with the Marcos administration’s 8-point socioeconomic agenda. (PNA)
