Reine Juvierre S. Alberto and Andrea E. San Juan | February 17, 2025
The signing of the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Act sends a message to the world that the Philippines means business, according to Finance Secretary Ralph G. Recto.
“We are ready to compete. We are a dependable economic ally. We offer stability amid uncertainty. And yes—we are Trump 2.0-ready,” the Finance chief said in his opening remarks at the signing ceremony on Monday.
Recto and Trade Secretary Ma. Cristina Aldeguer-Roque signed the IRR, which clarifies and refines the provisions in the Create More Act for its implementation.
After the signing of the IRR, the Philippine government will kickstart its investment roadshows in March to April, particularly to Korea and then the United States, among others, to attract more capital primarily into the semiconductor space as it is the largest goods exports of the Philippines, according to the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPEIA).
“Our job now is to announce it to the world. To be clear, the goal of Create More is really to generate investments, which is to generate jobs for Filipinos. So as long as we’re very clear with the goal, to generate investments, to generate jobs,” Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, told reporters at a briefing on Monday.
The IRR provides guidelines on the transitory rules for pre-Create registered business enterprises (RBEs) to continue enjoying their previously granted tax incentives. Additionally, RBEs may benefit from additional incentives or measures under the Create More Act.
The IRR also directly addresses investor concerns over the issuing of the value-added tax (VAT) zero-rating certificate by providing clear guidelines on eligibility and compliance criteria and clarifying the certificate’s covered period.
Moreover, the IRR maintains fiscal prudence in the administration of tax incentives. The Fiscal Incentives Review Board (FIRB) is tasked to conduct impact evaluations to guide the President in deciding whether to give fiscal and non-fiscal incentives for highly desirable projects.
Additionally, the IRR prohibits double registration of projects, preventing redundant incentives and ensuring responsible fiscal management.
“On the part of the government, we are committed to making Create More not just a tool to attract more investments—but a magnet to keep them here, grow them here, and give every reason for investors to place their trust in the Philippines. Again and again,” Recto said.
The Finance chief added that the government will ensure the Create More Act achieves its ultimate objective of creating more high-quality jobs for Filipinos, increasing their incomes, reducing poverty and securing a better future for them.
“Together, let us make Create More happen. Let us make it deliver. Let us ensure that its gains are felt by every Filipino and build a lasting impact on future generations to come,” Recto said.
Enacted on November 8, 2024, the Create More Act aims to transform the Philippines into an attractive business destination by making the tax incentives regime more globally competitive, investment-friendly, predictable and accountable.
‘Let investors know’
Osapiea Secretary Go said the government’s responsibility now is to let investors know about Create More, how it will benefit them, how it will improve the ease of doing business, and how it will reduce cost of doing business.
“We have scheduled trips to Korea, to the United States, Japan, Europe, the Middle East and China.
“I think we’re looking at March or April. Korea will be our first stop,” added Go.
The president’s economic czar said Korea will be the first stop, calling it, “a very responsive market.”
He added: “So the Koreans are very active in our market and we would like to pitch to them. And of course there’s also this event now that’s taking place in Korea that I think the Board of Investments is also attending.”
Playing on strengths
With the focus on the semiconductor industry, the top commodity export of the Philippines, Go said his office will place under the microscope the chips industry.
“My strategy is to play on our strengths. So if the largest sector is semiconductor, microelectronics, electronic sector, that’s the one we really want to push,” the president’s economic czar underscored.
As for its investment mission to the United States, which he said may occur in April as the government’s second stop, Go said, “Our main agenda there would still be to pitch to the semiconductor, microelectronics sector.”
Go noted that some of the Philippines’s largest investors in the country remain to be American companies like Texas Instruments, Analog Devices, among others.
“Based on all expectations, these companies will continue to expand and will need to continue building capacity,” added the economic czar.
He said the OSAPIEA is scheduling a trip to the US to meet all these semiconductor firms “independent of any possible meeting of our president.”
Data from the Philippine Statistics Authority (PSA) showed that electronic products is the Philippines’s top export of goods, with earnings from this commodity hitting $39.08 billion in 2024.
This accounts for 53.38 percent of the Philippines’s $73.21 billion in exports earnings from goods.
Source: https://businessmirror.com.ph/2025/02/17/create-more-irr-signed-investment-roadshows-set/