Gov’t issues IRR for investment incentives law

Department of Finance Secretary Ralph Recto, chairman of the Fiscal Incentives Review Board, said the signing of the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act sends a message that the Philippines is open for business.

"We are ready to compete. We are a dependable economic ally. We offer stability amid uncertainty. And yes—we are Trump 2.0-ready," he said in opening remarks at the signing ceremony Monday.

The CREATE MORE Act, enacted Nov. 8, 2024, aims to make the Philippines a more attractive business destination by making the tax incentives regime more globally competitive, investment-friendly, predictable and accountable.

The IRR, signed by Recto and Department of Trade and Industry Secretary Ma. Cristina Aldeguer-Roque, the board's co-chair, clarifies and refines the act's provisions for implementation.

It provides guidelines on the transitory rules for pre-CREATE registered business enterprises to continue receiving previously granted tax incentives. Registered business enterprises under the CREATE Act can avail additional incentives or measures under the CREATE MORE Act.

It also addresses investor concerns about the issuance of the value-added tax zero-rating certificate by providing guidelines on eligibility and compliance criteria and clarifying the certificate’s covered period.

The CREATE MORE IRR requires the board to conduct impact evaluations to guide the president in granting fiscal and non-fiscal incentives for projects to determine if the benefits outweigh the costs.

The IRR prohibits double registration of projects, preventing redundant incentives.

"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.

He said the government would ensure the law creates high-quality jobs for Filipinos, increases incomes, reduces poverty and secures a brighter future.

Recto also called for support from stakeholders, particularly the business sector.

"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," he said.