THE Department of Trade and Industry (DTI) said on Tuesday that the amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law will make doing business in the Philippines more transparent and predictable.
In a statement, the DTI said that the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, signed into law by the President on Monday, will also make the business landscape more globally competitive.
“The CREATE MORE Law is game-changing legislation aimed at transforming the Philippine economy. It will boost investor confidence and drive long-term growth by making the business environment more transparent, efficient, and predictable,” the DTI said.
“The DTI is dedicated to working with all stakeholders to ensure the success of this law and establish the Philippines as an economic powerhouse in the region,” it added.
The law, which amends the National Internal Revenue Code, seeks to attract more foreign investment through incentives, reduced corporate income tax rates, and enhanced deductions that may increase profitability for investors.
The DTI also noted that the law is expected to reduce administrative burdens and provide value-added tax (VAT) zero-rating and duty exemptions for export-oriented businesses.
“Together, these incentives are designed to stimulate foreign direct investment, leading to job creation, infrastructure development, and technological advancement,” the DTI said.
“The CREATE MORE law sends a clear signal to the international business community that the Philippines is open for business and committed to providing a supportive and rewarding environment for investors,” it added.
Separately, the Bases Conversion and Development Authority (BCDA) said that the law will help position Clark as an investment destination in the Asia-Pacific.
“CREATE MORE… sends a strong message … that the Philippines is among the best investment destinations in the region,” Joshua M. Bingcang, BCDA president and chief executive officer, said in a statement on Tuesday.
“We at BCDA promise to work closely with the public and private sectors in unlocking the full potential of the special economic zones we own and operate to continue boosting economic growth and progress,” he added.
The Management Association of the Philippines (MAP) welcomed the passage of the law, saying that it will improve competitiveness by addressing ease of doing business (EoDB) concerns.
“CREATE MORE will certainly help improve the global competitiveness of the Philippines by improving EoDB, sustaining an enabling business environment, and attracting greater and more diverse job-creating investment,” the MAP said on Tuesday.
“EoDB has always been a top concern of MAP and we are glad that CREATE MORE will be addressing EoDB issues pertaining to VAT refunds, local taxes, the investment approval process, and flexible work,” it added. — Justine Irish D. Tabile