STA. ROSA CITY, Laguna (PIA) – The Tourism Infrastructure and Enterprise Zone Authority (TIEZA), in partnership with the Department of Tourism (DOT), gather tourism stakeholders from Laguna and Batangas as an avenue to better explain the reforms made for investment and tax incentives for tourism players.
Donaldo Maldonado, manager of TIEZA’s Evaluation and Registration Division, provided an in-depth discussion on how tourism enterprises can register to avail themselves of the incentives under the new Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
He detailed the priority investment activities that qualify for these incentives and the potential savings for businesses that choose to invest in designated Tourism Enterprise Zones (TEZs).
”The law has two parts. The first part covers several amendments in the national Internal Revenue Code. If you are going to ask me what the most substantial amendment is, well, for me it’s the reduction of corporate tax from the regular 30% to this time 25%. And if you are a micro and small enterprise, you can even pay at a lower rate of 20%, provided that you can comply with the criteria for you to be eligible to pay the lower rate of 20%,” Maldonado said.
The CREATE Act, a cornerstone of the government’s economic recovery efforts, offers significant tax relief and incentives to businesses, making it a key focus of the event. Under this legislation, registered tourism enterprises can benefit from various tax incentives, including an Income Tax Holiday (ITH) of up to six years, enhanced deductions on critical business expenses, duty-free importation of capital equipment, and exemptions from local taxes.
These incentives are designed to reduce operational costs and encourage the development of world-class tourism facilities in the Philippines.
The event also featured presentations from the Development Bank of the Philippines (DBP) and the Small Business Corporation (SBC), which discussed their respective loan programs tailored for tourism-related projects, and how their financing options could support the growth and development of tourism enterprises, particularly small and medium-sized businesses.
Ninay Manzana, one of the attendees and former mayor of Pakil, Laguna lauds the initiative of TIEZA, saying that the program is an excellent opportunity to connect with various investors and learn strategies to expand their business.
“Many small towns like ours face similar challenges. As a 4th class municipality, we see significant opportunities in attracting investment and receiving support from TIEZA. They have indicated their ability to connect us with potential investors and assist with marketing. It’s inspiring to learn about TIEZA’s extensive programs, and we are grateful for the opportunity to participate in this forum,” Manzana said.
Over 150 participants from the public and private sectors attended the roadshow, which also served as a platform for networking and collaboration. The event likewise allowed stakeholders to explore potential partnerships and align their initiatives with TIEZA’s mission to enhance local tourism in CALABARZON. (JL,CH/PIA-4A)
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