Asian Consulting Group’s (ACG) Founding Chairman and CEO Mon Abrea discussed the implications of the newly signed CREATE MORE Act (RA 12066).
As a technical consultant on the CREATE MORE Act, Abrea stressed the importance of streamlining systems to attract foreign investment, emphasizing opportunities for ESG (environmental, social, and governance) investments in the Philippines.
“Now that we are all working towards the sustainability of the environment, social and governance (ESG) investment, we can see that there is so much investment coming from our European counterparts in terms of renewable energy,” noting that future investments would hopefully extend beyond Metro Manila to generate jobs in other regions.
The CREATE MORE Act introduces several new incentives and clarifies previously legislated incentives in the original CREATE law to enhance the Philippines’ competitiveness as an international destination.
Under the law, these incentives include reduced income tax options and enhanced deductions for power expenses, and reinvestments into the tourism industry.
Export-oriented enterprises are entitled to zero-rated VAT and are eligible for VAT refunds, with CREATE MORE making a separate VAT refund center under the Department of Finance.
Abrea emphasized the need to show investors and domestic businesses that their concerns regarding corruption or bureaucratic issues are addressed.
“We need to make sure that we do not just guarantee or reassure them [foreign investors] and our domestic businesses and taxpayers that there is really no more bureaucracy or corruption when it comes to dealing with the government, particularly in paying taxes.”
To know how the CREATE MORE Act can affect your business, consult ACG at consult@acg.ph
