Swift passage of CREATE MORE bill seen to help PHL attract more investments

AS THE PHILIPPINES steps into 2024, a swift enactment of amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is highly anticipated by business groups to attract a surge in foreign investments.

Speaking to BusinessWorld, Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon expressed optimism about the potential impact of changes under the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill, which is currently being taken up in the House of Representatives.

He said companies considering relocation are likely to appreciate the flexibility the Philippines would offer in encouraging foreign direct investments (FDI). “Let’s say an operation from China,” he said, could be enticed to relocate once it sees the advantages of new incentives and policies in the country.

These companies are typically exportoriented, said Mr. Barcelon, so they tend to choose to be located in any area they are entitled to the full benefit of such incentives under CREATE MORE. “That would definitely help make our country more attractive,” he added.

Based on a Fiscal Incentives Review Board (FIRB) report released last October, the bill focuses on key reforms that include streamlining the tax refund process for registered business enterprises and implementing a risk-based classification system for claims and audits.

But one of its salient features is to boost the country’s foreign market presence by expanding the enhanced deduction regime.