President Ferdinand Marcos Jr. on Monday signed into law the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The new law aims to bolster the country’s economic competitiveness, offering enhanced tax incentives and a streamlined business environment to attract both domestic and foreign investment.
“This was a hard-fought and hard-won bill that really encompassed such a great scope of everything that we are trying to do in our economic transformation,” President Marcos said at the signing event attended by members of Congress, cabinet officials, diplomats, and private sector stakeholders.
The CREATE MORE Act builds on the 2021 CREATE Act, expanding tax benefits and providing greater regulatory clarity to further position the Philippines as a key investment destination in Southeast Asia.
“The signing of [CREATE MORE] is a resounding testament of our commitment to make the Philippines the destination of choice for investments,” Mr. Marcos said.
Key provisions of the CREATE MORE Act include an adjustment in the corporate income tax rate from 25 percent to 20 percent for qualified businesses, enhanced deductions on power expenses, and a 50 percent deduction for tourism reinvestments and trade fair expenses.
The new law also extends VAT incentives to non-registered exporters and high-value domestic enterprises and introduces a streamlined approval process for investment projects.
Now, only projects with capital exceeding P15 billion will require review by the Fiscal Incentives Review Board, raising the threshold from the previous P1 billion.
The legislation also emphasizes support for work flexibility, allowing registered business enterprises (RBEs) to adopt work-from-home arrangements for up to 50 percent of their workforce without losing their tax incentives.
President Marcos noted that this adjustment reflects “our readiness to meet the demands of the digital age.”
President Marcos highlighted the collaborative work that went into the legislation, crediting the business sector and legislators for their input and support.
“We cannot emphasize enough the important role of the business sector in shaping this law. Your feedback has been essential in our efforts to craft policies that make our country truly competitive on the global stage,” he said.
The CREATE MORE Act allows businesses established before the original CREATE Act to retain certain national and local benefits, such as VAT and duty incentives, until 2034, provided they register for the new incentives by the end of 2024.
“This reaffirms our commitment to work hand-in-hand with enterprise, continually seeking avenues to make your investments grow and prosper,” he stated.
As the country seeks to transition to a more dynamic, investment-led economy, the President voiced optimism that CREATE MORE would catalyze economic growth and foster job creation for generations.
“As we open new doors of opportunity, we drive businesses to reinvest their capital, build upon the workforce, and initiate a ripple effect that will be felt across generations,” he said.
