November 16, 2024 | 12:00am
MANILA, Philippines — The country’s largest business organization expects the approval of the CREATE MORE Act to enable businesses to expand and position the Philippines as a globally competitive investment destination.
In a statement, the Philippine Chamber of Commerce and Industry (PCCI) lauded the signing into law of CREATE MORE or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy.
The law, which seeks to improve the country’s fiscal incentives policies, was signed by President Marcos last Monday.
“CREATE MORE is a crucial step toward further enabling local businesses, empowering SMEs and enhancing the country’s attractiveness as an investment destination,” PCCI president Enunina Mangio said.
The PCCI welcomed key provisions of the law such as the simplification of tax administration, clearer guidelines for applying for tax incentives and the refinements made in the tax exemption system offering performance-based tax holidays depending on an enterprise’s specific economic contributions.
Mangio said these provisions significantly improve tax certainty and create a more sustainable incentive framework.
“Under a more favorable and predictable tax environment, businesses can better plan for long-term growth,” she said.
“We can likewise expect to foster more foreign direct investments to come in,” she said further.
The PCCI expects the introduction of value-added tax exemptions for a variety of essential services such as janitorial, security, financial consultancy, marketing and human resources services to bring down costs for businesses.
Also seen supporting the expansion of businesses is the increased deduction for power expenses to 100 percent from 50 percent.
“One of the major considerations for investing in energy-intensive industries such as manufacturing and data centers where our country is emerging as a preferred destination is the high cost of power. The increased deduction on power expenses is one way of addressing such concern,” Mangio said.
To ensure CREATE MORE is implemented in line with the law’s intent, she said the Private Multi-Sectoral Group led by PCCI would be working closely with the Department of Finance and the Bureau of Internal Revenue.
Be the first to comment