The Department of Trade and Industry (DTI) and the Department of Finance (DOF) have issued interim rules for implementing Republic Act No. 12066 or the CREATE MORE Act, enabling businesses to access tax incentives while the final implementing rules and regulations (IRR) are being developed.
The CREATE MORE Act, which took effect on Nov. 28, 2024, updates provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to strengthen the Philippines’ investment framework.
The interim rules, published on Dec. 17, 2024, bridge the gap before the final IRR is issued within the mandated 90-day period.
These rules empower Investment Promotion Agencies (IPAs) to register new projects and offer incentives under CREATE MORE. Enterprises with pre-CREATE projects, including expansions, can transfer their registration to avail of enhanced incentives.
Businesses with investment capital exceeding PHP 15 billion under CREATE may also migrate to CREATE MORE by Dec. 31, 2024.
The interim rules clarify that liberalized incentives, including Value-Added Tax (VAT) exemptions on importation, zero-rating on local purchases, and a reduced 20% income tax rate for enterprises under the enhanced deductions regime, are retroactively effective as of Nov. 28, 2024.
“This demonstrates the government’s commitment to creating a conducive investment environment,” said Frederick Go, Special Assistant to the President for Investment and Economic Affairs.
“The policy supports domestic and foreign investments, generates quality jobs, and drives sustainable economic growth.”
DTI Secretary Cristina Roque expressed gratitude to Go for his leadership in advancing CREATE MORE.
“This law ensures that growth benefits reach the Filipino people, creating high-quality jobs and addressing poverty through inclusive development,” she said.
The interim rules build on policies established in BOI Memorandum Circular 2024-002, which outlined the transfer process for pre-CREATE projects.
With the issuance of the new interim guidelines, both pre-CREATE and CREATE projects are covered, ensuring a smooth transition for businesses.
The Board of Investments (BOI) is urging eligible businesses to submit applications promptly to maximize the benefits of the CREATE MORE Act.
