Finance Secretary Ralph Recto assured Singaporean investors that the much-anticipated enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) will make doing business in the Philippines smoother.
“The new amendments to the country’s fiscal incentives regime—known as CREATE MORE—are designed to attract even more Singaporean investors to lay down roots and flourish in the Philippines,” Recto said before over a hundred Singaporean investors at the 4th Philippine-Singapore Business and Investment Summit (PSBIS) on Sept. 19, 2024 at Shangri-La, Singapore.
Showcasing the Philippines’ more open and liberalized investment landscape, Recto said the CREATE MORE bill, which is expected to be passed within the year, would enhance both fiscal and non-fiscal incentives, resolve key investor concerns and respond to emerging global developments.
It will streamline business compliance by reducing documentary requirements. A dedicated Registered Business Enterprise Taxpayer Service (RBETS) will be created to provide personalized tax compliance support for investors and serve as a one-stop-shop for the Bureau of Internal Revenue’s (BIR) services.
The bill also directly addresses investors’ concerns about value-added tax (VAT) by exempting export-oriented enterprises from paying it.
It also provides a more attractive incentive package for registered projects or activities with an investment capital exceeding about $260 million (P15 billion).
Under the enhanced deductions regime, registered business enterprises (RBEs) will enjoy a 5-percent reduction in corporate income taxes, from 25 percent to 20 percent.
The maximum duration of tax incentives availment would be extended by 10 more years, from 17 years to 27 years. Another 10-year extension will be allowed for labor-intensive projects.
Meanwhile, RBEs will also benefit from the 100-percent deduction on power expenses—significantly cutting costs for the manufacturing sector.
The tourism sector will be given an additional 50-percent deduction for reinvestment allowances on priority tourism projects or activities.
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