More than 82 projects registered with the Board of Investments (BOI) expressed interest in transferring their incentives accreditation from the CREATE Act to the CREATE MORE Act.
BOI managing head Ceferino Rodolfo emphasized the importance of the transition provisions and the Dec. 31 deadline for eligible projects.
“We issued an announcement on the BOI Facebook page to prevent a ‘wait-and-see’ approach. This transition is not relevant for all projects but is particularly advantageous for those with capital investments of P15 billion or more,” Rodolfo said in a virtual briefing Thursday.
Under the CREATE MORE Act, eligible projects may benefit from enhanced tax reductions, extending the incentive period to up to 27 years.
The tax rate during this period will also be lowered from 25 percent to 20 percent, offering significant savings for businesses that meet the criteria.
Eligible projects include those with over P15 billion cost that should pass through the Fiscal Incentives Review Board (FIRB) and those that have not yet availed of income tax holiday (ITH).
The BOI identified 275 projects that could potentially transfer to CREATE MORE. Of these, 119 projects are already operational but have not availed of ITH incentives, while 156 projects are in the pre-operating stage and can also qualify.
It said of the 275 projects, 22 formally signified their intention to transfer to CREATE MORE.
While the CREATE Act allows for an open-ended timeline for transferring incentives, CREATE MORE imposes a strict deadline, the agency said.
Companies should submit their applications by the end of this year to take advantage of the enhanced benefits.
“Projects with significant capital investments should act now to avoid missing out on these lucrative incentives,” Rodolfo said, highlighting the government’s commitment to fostering large-scale investments through this policy shift.
