Finance Secretary Ralph Recto assured Singaporean investors that the upcoming CREATE MORE law will significantly improve the ease of doing business in the Philippines.
The bicameral conference committee of the Senate and the House of Representatives earlier approved the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill.
“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).
Showcasing the Philippines’ more open and liberalized investment landscape, Recto said the 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 will 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.
Recto said the CREATE MORE bill would bolster the country’s investment attractiveness, enticing more Singaporean investors to the Luzon Economic Corridor.
“This will be a perfect nexus for Singaporean investors involved in manufacturing, semiconductor supply chains, renewable energy, and agribusiness,” he said.
“True to the bill’s name, we envision this new policy to CREATE MORE thriving economic corridors in every corner of the Philippine archipelago, with Singapore taking a leading role,” Recto said.
Recto also highlighted the new Public-Private Partnership (PPP) Code that has made PPP involvements faster and easier.
He encouraged Singaporean investors to submit unsolicited proposals, respond to solicited ones, and explore more joint ventures with the Philippine government through the administration’s 186 flagship infrastructure projects (IFPs).
“As we aggressively enhance our logistics backbone and human capital through productivity-boosting investments, Singapore’s role has never been more crucial. We need more of Singapore’s cutting-edge expertise and technology for our 186 flagship infrastructure projects,” Recto said.
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