House approves CREATE MORE bill to reduce corporate tax, enhance VAT exemptions

The House of Representatives approved on second reading the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill, which aims to enhance tax incentives in the Philippines.

House Bill 9794 seeks to harmonize the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act with its implementing rules and regulations while addressing concerns about VAT refund processes.

The bill proposes reducing corporate income tax rates from 25 percent to 20 percent for corporations under enhanced deductions, broadening VAT exemptions on imports, and zero-rating local purchases for export enterprises accredited by the Export Marketing Bureau.

Philippine Chamber of Commerce and Industry President George T. Barcelon welcomed the development, stating that it enhances the ease of doing business and attracts more foreign direct investment.

The bill also reverts the authority to grant incentives back to Investment Promotion Agencies while retaining oversight functions with the Fiscal Incentives Review Board.