The Joint Foreign Chambers (JFC) released the following statement after President Ferdinand R. Marcos, Jr. signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill into law, legislation to enhance the investment climate in the Philippines:
“The enactment of the CREATE MORE Act is a significant milestone for the Philippines in its efforts to solidify its position as a competitive destination for investments and business expansion. This legislation addresses the urgent need to review and revise the country’s investment incentive policies, ensuring they remain aligned with international standards. We have been strongly supporting this bill to foster a business-friendly environment and spur economic growth. We commend the Philippine government for taking this important step, and look forward to the positive impact the CREATE MORE Act will have on the economy.”
Key provisions of the CREATE MORE Act include the establishment of a simplified Value-Added Tax (VAT) refund system and a clarified VAT regime for registered businesses. The processing of claims for refund of taxes in the Philippines can take over 5 years. These measures are designed to streamline and reduce delays in tax processes and create a more attractive investment landscape. The bill would also lower the corporate tax rate from 25% to 20% for some categories of companies under the enhanced deductions regime to encourage investments.
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