CREATE MORE: A New Era for Philippine Investments
Finance Secretary Ralph Recto (PNA photo by Jess M. Escaros Jr.)
Well, well, well! If it isn’t our good friend, Finance Secretary Ralph Recto, turning the Philippines into an investment magnet with a sprinkle of charisma and a dash of tax incentives! Yes, you heard that right! The newly signed CREATE MORE Act isn’t just a fresh coat of paint—no, it’s a full-blown renovation, extravagant chandeliers included!
In the land known for its brilliant beaches and a penchant for karaoke, it seems we’re now gearing up for a corporate fiesta! Recto announced this initiative like a kid discovering ice cream for the first time: “CREATE MORE will open the floodgates to high-impact investments!” I don’t know about you, but that sounds like a party I want to RSVP for!
Now, let’s discuss what CREATE MORE actually means beyond delightful rhetoric. Officially known as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (catchy, right?), this act aims to make the Philippines a more attractive place for international investors. It’s set to, as Recto puts it, create “more high-quality jobs, increase our people’s income, and reduce poverty.” I mean, isn’t that just the cherry on top of the investment sundae?
Indeed, it’s not just about attracting investors; it’s about *keeping* them glued to their seats! By making tax incentives globally competitive and investment-friendly, the CREATE MORE Act is the equivalent of offering your guests both cake and a delightful choice of toppings. Who could resist that?
Recto, the chairperson of the Fiscal Incentives Review Board, has declared that “CREATE MORE will fast-track the entry of foreign investors.” Almost sounds like we’re opening the gates to a theme park, but with suits instead of roller coasters. Who needs amusement rides when you can go round and round in a carousel of tax benefits?
Now for the juicy bits: the law introduces some tantalizing options for registered business enterprises (RBEs). They can choose between a special corporate income tax (SCIT) of 5% or an enhanced deductions regime (EDR). Picture this: it’s like choosing between two fantastic desserts—both of which will keep you smiling for years to come! And if you thought 10 years of incentives was great, hold onto your wallets—those incentives have now been extended to an absurd 17 or 27 years! Long-term trips to investment paradise, anyone?
And let’s not forget the labor-intensive projects—because let’s be honest, who doesn’t love a chance to extend fun? They’ll be able to apply for an additional five or ten years of incentives. It’s the gift that keeps on giving, really. More jobs, more growth, and all that jazz—flipping through those yearly pages of economic success stories!
The Bureau of Internal Revenue (BIR) is getting in on the action too! They’re gearing up for a public information campaign to showcase these new benefits like they’re the latest fashion trends. “Hey, check out the CREATE MORE Act—it’s totally in this season!” says BIR Commissioner Romeo Lumagui Jr. It’s time to bring the spotlight to the Philippines as a prime spot for investment.
All in all, the CREATE MORE Act is more than just a piece of legislation; it’s a bold declaration of what the Philippines is ready to become. Of course, whether our esteemed government can deliver on this ambitious promise is another story—but let’s dream for now, shall we? Because dreaming is free, and who doesn’t want to picture their beautiful economic future?
In conclusion: If CREATE MORE reaches its full potential, we might just see the Philippines transform into the dazzling diamond of Southeast Asia’s investment landscape! Here’s to hoping Ralph Recto continues to lead with that energetic spirit and charm, turning policies into powerful realities! Who knows, we might actually see those floods of investment rolling in along with an economic renaissance! Here’s raising our glasses to more jobs, more opportunities, and fewer karaoke nights fretting over our finances!
With all the cheeky observation and sharp wit reminiscent of your favorite comedians, we’ve turned a government initiative into something lively and engaging. Cheers!
Finance Secretary Ralph Recto (PNA photo by Jess M. Escaros Jr.)
MANILA – The Philippine government’s new Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) aims to significantly bolster the country’s investment landscape, as articulated by Department of Finance (DOF) Secretary Ralph Recto.
Recto emphasized that “CREATE MORE will open the floodgates of more high-impact investments both from our international investors and domestic enterprises,” providing a clear pathway for economic growth and development.
He further elaborated that this legislative instrument is designed not just to attract new capital but also to enhance the prospects of existing businesses, ultimately leading to the creation of quality jobs and a reduction in poverty levels across the nation.
Republic Act No. 12066, referred to as the CREATE MORE Act, was officially signed by President Ferdinand R. Marcos Jr. on Monday, marking a transformative moment for the Philippines’ tax incentives framework by making it more globally competitive and predictable.
Through its implementation, CREATE MORE facilitates improved business operations within the Philippines, streamlining value-added tax laws and introducing appealing tax incentives that promise to bolster accountability and governance across the sector.
Recto noted that the law is set to accelerate foreign investments into the country, a sentiment echoed by the enthusiastic participation of nearly a thousand global investors during recent economic briefings abroad, which indicates a strong and growing interest in forming mutually beneficial partnerships and joint ventures with local firms.
The legislation outlines a robust incentive package aimed at attracting strategic and highly sought-after investments to the country.
For instance, registered business enterprises (RBEs) can now opt between two compelling schemes: a special corporate income tax (SCIT) of just 5 percent or an enhanced deductions regime (EDR) from the very commencement of their operations.
Additionally, the SCIT and EDR incentives can now extend from a previous maximum of 10 years up to a potential 17 or even 27 years, depending on the nature of the investments.
Labor-intensive projects are also poised to benefit, with the opportunity to request further extensions of five or ten years on their incentives.
Enterprises engaging in export or high-value domestic markets with investments surpassing PHP15 billion will enjoy enhanced incentives, particularly if they produced USD100 million in export sales the year prior.
The Bureau of Internal Revenue (BIR) is set to launch a comprehensive public information campaign regarding the tax incentives introduced by the CREATE MORE Act, promoting the Philippines as an attractive destination for investment.
BIR Commissioner Romeo Lumagui Jr. expressed strong commitment, stating that “The BIR fully supports PBBM’s thrust towards investments-led growth, through the CREATE MORE Act. It is time to make the Philippines into a prime investment destination.”
The BIR promises to implement these tax incentives swiftly to ensure the success of this initiative, positioning the Philippines as a key player in the global investment arena. (PNA)
**Interview: Finance Secretary Ralph Recto on the CREATE MORE Act**
**Interviewer:** Good day, Secretary Recto! Thank you for joining us to discuss the recently signed CREATE MORE Act. It’s an exciting time for the Philippines! Can you give us a brief overview of what this act entails?
**Ralph Recto:** Thank you for having me! The CREATE MORE Act is designed to revitalize our economy by attracting high-impact investments. Officially known as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, it aims to make the Philippines a more appealing destination for both international and domestic investors. Ultimately, we hope to increase job creation and reduce poverty.
**Interviewer:** It sounds like there are some significant benefits for businesses. How do the tax incentives work under this new legislation?
**Ralph Recto:** Absolutely! Businesses registered as registered business enterprises (RBEs) can choose between a special corporate income tax rate of 5% or an enhanced deductions regime, which offers more flexibility. Moreover, we’ve extended the duration of these incentives from 10 to either 17 or 27 years, depending on the type of investment. This long-term commitment is designed to keep companies invested in the Philippines!
**Interviewer:** That’s quite an incentive! How does this act contribute to long-term economic growth?
**Ralph Recto:** By creating a globally competitive tax environment, we expect to attract a broader range of investors looking for stable and predictable investment conditions. As more investments roll in, we anticipate a surge in job creation, which will improve the livelihoods of Filipino families and contribute to reducing poverty across the nation.
**Interviewer:** You mentioned foreign investors. Have you seen a positive response from them regarding the CREATE MORE initiative?
**Ralph Recto:** Indeed! Our recent economic briefings abroad featured nearly a thousand global investors, indicating a strong interest in what the Philippines has to offer. Their enthusiastic participation underscores the potential of CREATE MORE to make a significant impact.
**Interviewer:** What are your hopes for the future of the Philippines under this new initiative?
**Ralph Recto:** My hope is that the CREATE MORE Act will not only boost our economy but also position the Philippines as a leading investment hub in Southeast Asia. If we execute this effectively, I believe we’ll see a transformation in our investment landscape and, in turn, improve the overall quality of life for all Filipinos.
**Interviewer:** Thank you, Secretary Recto. It sounds like an exciting time ahead for the Philippine economy!
**Ralph Recto:** Thank you! We’re looking forward to making this vision a reality together.
**Interviewer:** Cheers to that!
