The government signed on Monday the Implementing Rules and Regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, indicating the Philippines means business, Finance Secretary and Fiscal Incentives Review Board (FIRB) Chairman Ralph Recto said.
“(W)e are ready to compete. We are a dependable economic ally. We offer stability amid uncertainty. And yes—we are Trump 2.0-ready,” Recto said in his opening remarks at the signing ceremony on February 17 at the Department of Finance (DOF) office in Manila.
Recto and Trade Secretary and FIRB Co-Chair Ma. Cristina Aldeguer-Roque signed the IRR, the department said in a statement.
The IRR clarifies and refines the provisions of the law for its smooth implementation.
Enacted on Nov. 8, 2024, CREATE MORE “envisions to transform the Philippines into an attractive business destination by making its tax incentives regime more globally competitive, investment-friendly, predictable and accountable.”
The IRR provides guidelines on the transitory rules for pre-CREATE registered business enterprises (RBEs) to continue enjoying their previously granted tax incentives, the DOF said.
Meanwhile, RBEs under the CREATE Act may avail themselves of additional incentives or measures under the CREATE MORE Act, the Finance department added.
The IRR directly addresses investor concerns regarding the value-added tax zero-rating certificate by providing detailed guidelines on eligibility and compliance criteria and clarifying the certificate’s covered period.
The IRR upholds fiscal prudence in the administration of tax incentives, the DOF said.
The Review Board is tasked to conduct impact evaluations to guide the President in deciding when to grant fiscal and non-fiscal incentives in favor of highly desirable projects, and determine whether the benefits outweigh the costs of incentives.
Additionally, the IRR prohibits double registration of projects, preventing redundant incentives and ensuring responsible fiscal management, the DOF said.
“On the part of the government, we are committed to making CREATE MORE not just a tool to attract more investments – but a magnet to keep them here, grow them here, and give every reason for investors to place their trust in the Philippines. Again and again,” Recto said.
The Finance head stressed that the government will ensure that the law fulfills its ultimate goal of creating more high-quality jobs for Filipinos, increasing their incomes, reducing poverty, and securing a brighter future for them.
He also called for strong support from all stakeholders, particularly the business sector, to continue the robust partnership they have forged in crafting the law up to its execution.
“Together, let us make CREATE MORE happen. Let us make it deliver. Let us ensure that its gains are felt by every Filipino, and build a lasting impact on future generations to come,” Recto said.
