The recently signed CREATE MORE law is poised to make the Philippines a top destination for high-impact investments, aiming to create more jobs and boost the economy by enhancing the tax incentives system.
Finance Secretary and Fiscal Incentives Review Board (FIRB) Chairperson Ralph G. Recto described the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) as a “win-win for both local and international businesses and the Filipino people.”
Republic Act No. 12066, or the CREATE MORE Act, aims to make the country’s tax incentives more competitive, predictable, and investment-friendly.
“CREATE MORE will open the floodgates of more high-impact investments both from our international investors and domestic enterprises,” Recto said.
He explained that the law’s goal is not only to attract investments but also to create more jobs, raise incomes, and reduce poverty nationwide.
“Through CREATE MORE, we will secure a brighter future for every Filipino,” he added.
President Ferdinand R. Marcos Jr., who led the ceremonial signing, said the law “drives businesses to reinvest their capital, build upon the workforce, and initiate a ripple effect that will be felt across generations.”
The CREATE MORE law offers Registered Business Enterprises (RBEs) a choice between a Special Corporate Income Tax (SCIT) of 5% or an Enhanced Deductions Regime (EDR) from the beginning of their operations.
These incentives, previously limited to 10 years, may now extend up to 17 or 27 years for certain projects, with additional benefits for labor-intensive enterprises.
High-value domestic enterprises and export-focused businesses investing over PHP 15 billion, or those meeting significant export thresholds, can qualify for extended benefits.
To support industries like manufacturing and tourism, the law introduces a 100% additional deduction on power expenses and a 50% deduction on trade fairs and tourism investments until 2034.
The law also simplifies tax rules, including expanded VAT incentives and exemptions on capital equipment donations to government institutions and educational agencies.
In another provision, CREATE MORE allows zero-rated VAT on local purchases and VAT exemptions on imports for export-oriented businesses to ease cash flow burdens.
Recto noted strong interest from international investors, with nearly a thousand expressing interest in the Philippine market at recent economic briefings.
“CREATE MORE will certainly fast-track the entry of more foreign investors into the Philippines,” Recto said.
The law also strengthens accountability by setting a 20-working-day processing period for tax incentive applications once documents are complete.
CREATE MORE raises the investment approval threshold from PHP 1 billion to PHP 15 billion, placing more responsibility on Investment Promotion Agencies (IPAs) to maintain fiscal prudence.
In addition, IPAs will operate under FIRB oversight to uphold the principles of fiscal responsibility.
The CREATE MORE law signals a shift toward sustainable, investment-led economic growth aimed at benefiting both business and the Filipino workforce.
