MANILA, (PIA) — The proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) is on the verge of becoming law, with expectations that it will attract more foreign direct investments (FDI) to support the country’s economic growth, according to Senator Win Gatchalian.
The Senate approved the measure on its third and final reading on Wednesday. Gatchalian, the bill’s principal author and sponsor, said, “With the expected enactment of the measure, CREATE MORE is anticipated to draw in more foreign direct investments, creating a ripple effect that includes job generation, improved living standards, lower prices for goods and services, and enhanced infrastructures.”
He elaborated that the measure aims to enhance the tax incentives regime for registered business enterprises, clarify existing rules and policies on the grant and administration of fiscal incentives, and foster an investment climate favorable for FDIs.
Once enacted, CREATE MORE will provide vital clarity regarding VAT zero-rating on local purchases and VAT exemptions on the importation of goods and services.
This means that VAT zero-rating and exemptions will apply to goods and services directly linked to registered projects or activities, including essential services such as janitorial, security, financial, consultancy, marketing, and administrative functions such as human resources, legal, and accounting services.
Additionally, the proposed measure introduces a Registered Business Enterprise Local Tax (RBELT) of no more than 2 percent based on gross income, simplifying the tax process for businesses.
“Instead of paying various taxes to different local governments, businesses will now only pay a single tax,” Gatchalian noted.
The bill also includes provisions for a 100 percent additional deduction on power expenses for businesses and corporations, along with a 50 percent additional deduction for reinvestments in the tourism industry.
“CREATE MORE offers enhanced and targeted incentives to further drive investment and economic recovery in the country,” Gatchalian concluded.
The measure is poised to play a significant role in reinvigorating the Philippine economy as it emerges from the challenges posed by the pandemic. (JCO/PIA-NCR)
