Press Release - CREATE MORE passes final Senate hurdle: Gatchalian says bill to attract more FDIs

Now that it is close to becoming a law, the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) is expected to bring in more foreign direct investments (FDI) that will support the country's economic growth, Senator Win Gatchalian said.

The Senate approved the proposed measure on third and final reading on Wednesday. "With the expected enactment of the measure, CREATE MORE is anticipated to draw in more foreign direct investments, creating a ripple effect that includes job generation, improved living standards, lower prices for goods and services, and enhanced infrastructures," said Gatchalian, the bill's principal author and sponsor.

"To achieve this, the measure focuses on enhancing the tax incentives regime for registered business enterprises, clarifying existing rules and policies on the grant and administration of fiscal incentives, and fostering an investment climate favorable for FDIs," he explained.

Specifically, once enacted, CREATE MORE will provide much-needed clarity regarding VAT zero-rating on local purchases and VAT exemption on the importation of goods and services. In simple terms, VAT zero-rating and exemption will now apply to goods and services clearly linked to the registered project or activity, including essential services like janitorial, security, financial, consultancy, marketing, and even administrative functions such as human resources, legal, and accounting services.

The proposed measure also introduces not more than 2% Registered Business Enterprise Local Tax (RBELT) based on gross income to simplify the tax process for businesses. "Sa halip na magbayad ng iba't ibang buwis sa bawat lokal na pamahalaan, ngayon ay iisang buwis na lang ang babayaran ng mga negosyo," he said.

The bill also provides for a 100 percent additional deduction on power expenses of businesses and corporations and seeks to grant a 50 percent additional deduction for reinvestment in the tourism industry.

"CREATE MORE offers enhanced and targeted incentives to further drive investment and economic recovery in the country," Gatchalian concluded.

CREATE MORE pasado na sa Senado;