Pasay City: Special Assistant to the President for Investments and Economic Affairs (SAPIEA) Frederick Go announced that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) is set to transform the Philippines into a competitive exports hub by simplifying business operations and lowering operational costs in the country.

According to Philippines News Agency, Go emphasized at the National Export Congress 2024 that this significant legislation serves as a key driver in revitalizing the exports sector. The favorable amendments in CREATE MORE for exporters include the option to avail of value-added tax (VAT) exemptions on imports and VAT zero-rating on domestic purchases. These tax incentives are available to exporters, regardless of whether they are registered with investment promotion agencies (IPAs), provided that their annual export sales constitute at least 70 percent of their total production.

Go also highlighted that CREATE MORE
has reinstated the use of VAT zero-rating on essential expenses. The law has extended the duration of VAT and duty incentives throughout the registration period for registered business enterprises (RBEs), eliminating the sunset clause previously applicable. Additionally, CREATE MORE has simplified the process for VAT and excise tax refunds, enhancing transparency and providing businesses with greater predictability and certainty.

On the investments front, Go noted that the initiative streamlines approval processes, allowing projects valued up to PHP15 billion to be approved by IPAs without involving the Fiscal Incentives Review Board (FIRB). Furthermore, the maximum duration for incentives has been extended to 17 years for RBEs under IPAs and up to 27 years with FIRB approval.

Go concluded, ‘CREATE MORE empowers our Philippine businesses, especially exporters, to thrive and compete with the global markets.’