The Bureau of Internal Revenue (BIR) expects that the new rules simplifying the value-added tax (VAT) refund process under the CREATE MORE Act will help attract more foreign investors to the Philippines.
In a televised interview, BIR Commissioner Romeo Lumagui Jr. said the changes support President Ferdinand Marcos Jr.’s push to make the country more business-friendly.
“Ang expectation natin, makikita ng mga dayuhang investors na seryoso ang pamahalaan na pagbutihin ang pagnenegosyo at papadaliin ang pagnenegosyo dito sa ating bayan,” Lumagui said.
“So, we’re hoping that it will encourage foreign investors to do business here in the Philippines.”
The CREATE MORE Act, officially Republic Act No. 12066, aims to provide tax relief and better incentives, especially for exporters. As part of the law’s implementation, the BIR issued Revenue Memorandum Circular No. 37-2025, which reduces documentary requirements for VAT refund claims.
Key updates include allowing certified true copies of invoices instead of original documents, and removing the need for certain registration and import documents. Exporters are no longer required to submit actual proof of shipment; instead, the BIR will use certifications from the Department of Trade and Industry’s Export Marketing Bureau.
“Ngayon pinadali natin ang proseso sa pakikipag-coordinate sa DTI. So, may kanya-kanyang role ang bawat isa para hindi na rin magdoble-doble ang mga requirements at pag-iimbestiga kung talagang merong mga inexport ang isang entity,” Lumagui explained.
“Patuloy din ang pag-e-examine natin kung ano ang pwede nating i-streamline na mga proseso para mas mapadali pa ang pagnenegosyo sa ating bayan,” he added.
The law also reverts some transactions from 12% VAT to 0%, reinstating eligibility for refunds and easing the burden for qualified businesses.