December 22, 2024 | 12:00am
MANILA, Philippines — The Department of Trade and Industry (DTI) and the Department of Finance have issued interim rules to enable investment promotion agencies (IPAs) to register projects and offer incentives under the CREATE MORE Act, while waiting for the law’s implementing rules and regulations (IRR).
In a statement, the DTI’s attached agency, the Board of Investments (BOI), said the interim rules were released to bridge the gap while the IRR for the CREATE MORE has yet to be released.
The CREATE MORE Act, which took effect on Nov. 28, amended certain provisions of the CREATE Act, which rationalizes the country’s incentives system.
The law enhances the incentives system to attract investors by reducing the corporate income tax rate to 20 percent from 25 percent, offering enhanced deductions for eligible activities and clarifying value-added tax (VAT) rules.
Under the interim rules, the IPAs may process applications for registration under the CREATE MORE and grant incentives provided by the law pending the effectivity of the IRR.
The IRR should be released within 90 days of the law’s effectivity.
The rules state that the application should comply with requirements and conditions prescribed under the IRR for CREATE, but will be governed by the IRR of the CREATE MORE upon its effectivity.
As part of the interim rules, projects registered with IPAs prior to CREATE and under the CREATE with investment capital over P15 billion may transfer their registration to CREATE MORE to take advantage of incentives under the new law.
“Transferring projects may signify their intent by Dec.31, 2024,” the BOI said.
The interim rules also clarify that the application of liberalized incentives such as VAT exemption on importation and zero-rating on local purchases and the 20 percent income tax rate for enterprises availing of the enhanced deductions regime took effect on Nov. 28.
The BOI said this allows registered business enterprises with incentives granted prior to the CREATE MORE Act to enjoy the incentives while the IRR is still being crafted.
Special Assistant to the President for Investment and Economic Affairs Frederick Go emphasized that CREATE MORE shows the government’s strong commitment to fostering a conducive investment environment and regionally competitive incentive framework.
Through this move, the government is providing support to both local and foreign investors to create quality jobs, boost incomes and drive sustainable economic growth.
“Beyond improving business conditions, this law is a crucial step in ensuring that the benefits of growth reach the Filipino people – creating more high-quality jobs, advancing economic mobility, and addressing poverty through inclusive growth and development,” Trade Secretary Cristina Roque said.
To enjoy benefits available under the new law, the BOI is encouraging all eligible businesses to submit their applications as soon as possible.
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