President Ferdinand R. Marcos Jr. on Monday signed the CREATE MORE Act, a law designed to expand tax incentives for strategic industries to drive job creation and economic growth in the Philippines.
CREATE MORE, short for “Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy,” builds on previous tax reforms to further enhance the country’s business landscape.
“CREATE MORE sets the stage for a business landscape that empowers our enterprises and enhances their growth prospects,” Marcos said at the ceremonial signing in Malacañang. He added that the new law strengthens the tax and incentive framework to attract more investments while upholding fiscal prudence and stability.
House Speaker Ferdinand Martin G. Romualdez, one of the principal authors of CREATE MORE, commended the President for signing the law which amends 25 sections and adds four new provisions to the National Internal Revenue Code.
Romualdez said the new law refines the original CREATE Act of 2021 by addressing investor concerns over ambiguities, particularly in value-added-tax (VAT) incentives.
CREATE MORE extends tax incentives to include non-registered exporters and high-value domestic market enterprises, clarifying eligibility for VAT and duty incentives.
This Act is “a symbol of the invaluable insights” from our international partners, whose feedback has helped shape a business-friendly environment that promotes growth in the Philippine economy, President Marcos said.
Additionally, the CREATE MORE Act simplifies doing business in the Philippines by establishing a more efficient VAT and excise tax refund process, with defined timelines to increase transparency and predictability. It also clarifies local taxation rules during the Income Tax Holiday and Enhanced Deductions Regime, providing businesses with greater security.
Other key provisions include raising the capital approval threshold for investment projects under Investment Promotion Agencies (IPAs) from P1 billion to P15 billion, requiring only projects above this amount to undergo Fiscal Incentives Review Board (FIRB) scrutiny.
CREATE MORE also introduces tax exemptions for donations of capital equipment, raw materials, spare parts, and accessories to the government, as well as to state-owned entities, TESDA, State Universities and Colleges, the Department of Education, and CHED-accredited schools.
“CREATE MORE is tangible proof that we listen to the business community,” President Marcos said, underscoring the administration’s commitment to nurturing an investment climate where businesses can thrive.