Philippine President Ferdinand Marcos Jr. enacted the law “Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act” on 11 November 2024, reducing corporate income tax rates and providing additional fiscal incentives for qualifying companies with the aim to attract foreign investors to establish operations and boost economic growth in the country.
The law reduces corporate income tax rates for registered business enterprises from 25% to 20%.
It provides tax or duty exemption on donations of capital equipment, raw materials, spare parts, or accessories to the government and also allows companies registered with investment promotion agencies or RBEs in the Philippines to receive extra deductions, including an additional 100% deduction for power expenses.
The new law clarifies the sales tax exemptions companies can claim as well as local taxation during the Income Tax Holiday and Enhanced Deductions Regime.
The legislation also extends the tax benefits for strategic investments from 17 to 27 years.
The government anticipates a tax revenue loss of PHP 5.9 billion (USD 100.89 million) from 2025 to 2028 due to this Act.
