Tax reform law rolls out red carpet for investors
(UPDATE) PRESIDENT Ferdinand Marcos Jr. on Monday signed into law Republic Act 12066, also known as Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Law.
The law amends RA 11534, or the original Create Act, which was crafted to help enterprises recover from the impact of the pandemic by lowering corporate income tax rates and making the country more appealing to businesses by rationalizing fiscal incentives.
“The reforms we have instituted in Create More are a testament to our firm resolve to roll out the red carpet for investors, usher in critical investments, and foster a conducive and robust environment for businesses to thrive,” Marcos said during the ceremonial signing held in Malacañang.
SIGNED President Ferdinand Marcos Jr. holds a copy of the Create More Act which he signed on Nov. 11, 2024, at the Malacañan Palace. PPA POOL
“The Philippines is open for business, and the Filipino people mean business,” he added.
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The law further streamlined the value-added tax (VAT) refund process by limiting the documentary requirements and addressing the VAT concerns raised by export-oriented enterprises.
To address investors’ pain points and cultivate an investment-friendly climate, RA 12066 also introduced various reforms, such as the rationalization and streamlining of incentives-related processes.
It also simplifies taxation by imposing a local tax on registered business enterprises (RBEs) in lieu of all other local taxes, fees, and charges.
The law is guided by five overarching objectives: improving ease of doing business, increasing the competitiveness of tax incentives, strengthening governance and accountability, and clarifying value-added tax rules and transitory provisions for pre-Create RBEs.
It also addresses local taxation during the income tax holiday and enhanced deductions regime, clarifying areas previously unaddressed by the Create Act. This aims to create a fair and balanced local tax system, giving businesses “greater certainty” while ensuring local communities benefit from their presence.
President Ferdinand Marcos Jr. signs the CREATE MORE Act or theCorporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act on Monday, November 11, 2024 in Malacañang. PHOTOS BY YUMMIE DINGDING / PPA POOL
President Ferdinand Marcos Jr. signs the CREATE MORE Act or theCorporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act on Monday, November 11, 2024 in Malacañang. PHOTOS BY YUMMIE DINGDING / PPA POOL
