CREATE MORE law seen to boost exports

Special Assistant to the President for Investments and Economic Affairs (SAPIEA) Frederick Go said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) will make the Philippines as a favorable exports hub as the law eases doing business and reduces cost of operating in the country, according to a report by Philippine News Agency.

At the National Export Congress 2024 in Pasay City Thursday, Go said this landmark legislation is a catalyst to reinvigorate the exports industry.

The amendments in the CREATE MORE that are favorable to exporters include the availment of value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases.

These tax perks can be granted by the government to exporters whether registered with the investment promotion agencies (IPAs) or not as long as the annual export sales is at least 70 percent of the enterprise’s total production.

Go also said the CREATE MORE has restored the applicability of VAT zero-rated on essential expenses.

“We have also restored the period of availment of VAT and duty incentives for the entire registration period of registered business enterprises (RBEs), removing the application of the sunset clause on this incentive. CREATE MORE also simplified and increased transparency in the VAT and excise tax refund process, providing businesses with predictability and certainty,” the economic czar said.

On the investment side, Go said CREATE MORE streamlines approval processes as projects amounting to up to PHP15 billion can be approved by IPAs without going through the Fiscal Incentives Review Board (FIRB).

It also extended the maximum period of incentives to 17 years if the RBEs are under IPAs and up to 27 years if under FIRB approval.

“CREATE MORE empowers our Philippine businesses, especially exporters, to thrive and compete with the global markets,” Go said.