Joint Foreign Chambers cite law’s impact on investments
THE signing of CREATE More into law will strengthen the Philippines’s position as a competitive market for investments and business expansion, according to the Joint Foreign Chambers (JFC).
President Marcos Jr. signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE More) bill into law on Monday as part of the government’s bid to boost investments in the country.
“The enactment of the CREATE MORE Act is a significant milestone for the Philippines in its efforts to solidify its position as a competitive destination for investments and business expansion,” the JFC said in a statement.
It added that the legislation would “address the urgent need to review and revise the country’s investment incentive policies,” which would ensure that they remain aligned with international standards.
“We have been strongly supporting this bill to foster a business-friendly environment and spur economic growth. We commend the Philippine government for taking this important step, and look forward to the positive impact the CREATE MORE Act will have on the economy.”
According to JFC, key provisions of the CREATE More Act include the establishment of a simplified Value-Added Tax (VAT) refund system and a clarified VAT regime for registered businesses.
“The processing of claims for refund of taxes in the Philippines can take over 5 years. These measures are designed to streamline and reduce delays in tax processes and create a more attractive investment landscape,” it said.
The JFC also noted that the bill would lower the corporate tax rate to 20 percent from 25 percent for some categories of companies under the enhanced deductions regime to encourage investments.
German businesses
Meanwhile, the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) also expressed support for the law. It commended the government’s commitment to strengthening the business environment and promoting economic growth through comprehensive tax reforms.
“We share the goal of creating a more favorable business landscape to foster growth and job opportunities,” GPCCI President Marie Antoniette Mariano said in a statement.
“The German business community in the Philippines recognizes its potential, as demonstrated by our recent World Business Outlook survey, which reflects strong optimism in the Philippine market.”
According to the GPCCI, the latest World Business Outlook Fall 2024 survey showed that nearly 60 percent of German companies are optimistic about their growth prospects in the Philippines over the next year, projecting local investment and employment gains.
“The CREATE MORE Act complements this positive outlook, as it introduces a more predictable investment framework that fosters confidence.”
GPCCI is the official representation of German businesses in the Philippines; a bilateral membership organization with around 300 members; and a service provider to companies in their market entry and expansion.