The Philippine Chamber of Commerce and Industry (PCCI), the largest business organization today lauded the signing into law of the Corporate Recovery and Tax Incentives for Enterprises-Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. CREATE MORE, which builds on the CREATE Act of 2021 marks an important milestone in the country’s journey toward the envisioned dynamic, diversified and globally competitive economy.
PCCI President Enunina V. Mangio in a statement said, “CREATE MORE is a crucial step toward further enabling local businesses, empowering small and medium enterprises (SMEs), and enhancing the country’s attractiveness as an investment destination.”
PCCI welcomed in particular the simplification of tax administration, clearer guidelines for applying for tax incentives and the refinements made in the tax exemption system that offer performance-based tax holidays depending on an enterprise’s specific economic contributions.
“These provisions significantly improve tax certainty and create a more sustainable incentive framework. Under a more favorable and predictable tax environment, businesses can better plan for long-term growth. We can likewise expect to foster more foreign direct investments to come in,” Mangio said.
In addition to boosting investment, the introduction of VAT exemptions for a variety of essential services such as janitorial, security, financial consultancy, marketing, and human resources services is expected to reduce costs for businesses.
A feature of CREATE MORE that PCCI emphasized will boost the expansion of key industries is the deduction for power expenses to 100% from 50%.
“One of the major considerations for investing in energy-intensive industries such as manufacturing and data centers where our country is emerging as a preferred destination is high cost of power. The increased deduction on power expenses is one way of addressing such concern,” Mangio said.
Mangio said the Private Multi-Sectoral Group (PMSG) led by PCCI will be working closely with the Department of Finance and the Bureau of Internal Revenue to ensure that the CREATE MORE Act will be fully and consistently implemented according to the intent of the law.
