Bilyonaryo.com, October 24, 2024
President Ferdinand R. Marcos Jr. is expected to sign the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill next month, which aims to reduce the tax rate for both domestic and foreign companies from 25 percent to 20 percent.
“It’s scheduled for signing in November, specifically on the 11th, barring any typhoons or calamities,” Senate President Francis Escudero said at the 13th Arangkada Philippines Forum held at the Marriott Hotel in Pasay City.
The CREATE MORE bill seeks to attract greater foreign investment into the Philippines by creating a more predictable and sustainable business environment, which, in turn, is expected to generate job opportunities for Filipinos and encourage local employment rather than seeking work abroad.
Escudero expressed a high degree of confidence, saying he is “90 percent sure” that the bicameral version of the bill will be approved.
Recognized as a “top priority” by the Legislative-Executive Development Advisory Council, the CREATE MORE initiative also proposes the elimination of value-added tax (VAT) on essential services. It will allow large domestic enterprises to take advantage of VAT zero rating, exemptions, and duty waivers.
The Senate has adopted the House of Representatives’ recommendations to apply the new 20-percent corporate income tax rate to both CREATE and CREATE MORE beneficiaries, allow local government units to set the registered business enterprise local tax below 2 percent, and provide tax refunds to petroleum suppliers for all tax-exempt entities.
“I am 90% confident that it will remain as is, as it was specifically coordinated with the Office of the President,” Escudero said.
“We’re working closely with the Office of the Executive Secretary and the Office of the President on the versions we’re approving to ensure there’s no back and forth.”
