President Ferdinand R. Marcos Jr. on Monday, November 11, signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, aimed at positioning the Philippines as a prime investment destination.
The CREATE MORE Act, or Republic Act (RA) 12066, signed by Marcos during a ceremony at Malacañang Palace in Manila, builds on the groundbreaking reforms introduced under the CREATE law. It enhances the country’s tax incentives system, making it more globally competitive, investment-friendly, predictable, and accountable.
In his speech, Marcos emphasized that the signing of RA 12066 underscores his administration’s unwavering commitment to “promote and boost businesses” for stronger, more inclusive economic growth.
“The reforms we have instituted in CREATE MORE are a testament to our firm resolve to roll out the red carpet for investors, usher in critical investments, and foster a conducive and robust environment for businesses to thrive,” the President said.
The CREATE MORE Act extends the maximum duration for tax incentive availment by 10 years, from 17 to 27 years, to attract strategic and high-quality investments.
Registered business enterprises (RBEs) benefiting from the enhanced deductions regime will enjoy a reduced corporate income tax rate of 20%.
The new law also provides a 100% additional deduction on power expenses to reduce costs for the manufacturing sector and further streamlines the value-added tax (VAT) refund process by simplifying documentary requirements and addressing concerns raised by export-oriented enterprises.
RA 12066 introduces several other reforms, including the rationalization and streamlining of incentive-related processes to eliminate investors’ pain points and foster a more investment-friendly climate. It also simplifies local taxation by imposing a single local tax on RBEs in lieu of multiple taxes, fees, and charges.
Additionally, the law strengthens the mandates of the Fiscal Incentives Review Board (FIRB) and the various investment promotion agencies (IPAs). It institutionalizes flexible work arrangements as a viable business model for RBEs operating within economic zones and freeports, ensuring they continue to enjoy tax incentives without disruption.
Marcos noted that the passage of the CREATE MORE Act will bring significant benefits to the Filipino people, particularly through the creation of more and better economic opportunities, including high-quality jobs.
“Ang paglagda natin sa batas na ito ay higit pa sa pagbubukas ng pinto ng oportunidad para sa mga mamumuhunan at mga negosyo. Tayo rin ay namumuhunan tungo sa isang mas maliwanag, panatag, at maunlad na kinabukasan para sa bawa’t Pilipino,” Marcos said.
The signing of the CREATE MORE law aligns with the Marcos administration’s 8-point socioeconomic agenda.