Speech by President Ferdinand R. Marcos Jr. at the Ceremonial Signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act

Ceremonial Hall, Malacanan Palace in Manila Thank you to the Special Assistant to the President on Investment and Economic Affairs, Secretary Frederick Go. [Please, let’s be seated.]

Senate President Chiz Escudero and the honorable members of the Senate; Speaker Martin Romualdez and the honorable members of the House of Representatives; Executive Secretary Lucas Bersamin, other Cabinet members present, all of whom are smiling broadly because we finally got this bill passed; esteemed members the Excellencies of the Diplomatic Corps; BIR Commissioner Jun Lumagui; our key development partners and stakeholders; fellow workers in government; distinguished guests; ladies and gentlemen, good morning.

And it is a good morning because as I’ve said, this was a hard-fought and hard-won bill that really encompassed such a great scope of everything that we are trying to do in our economic transformation.

We have taken a decisive step towards our vision of a globally competitive and investment-led Philippine economy.

The signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy—a bit of a mouthful, so we’ll just refer to it as the CREATE MORE Act— is a resounding testament of our commitment to make the Philippines the destination of choice for investments.

This law stands as a symbol of the invaluable insights shared by our international partners, gathered during my trips abroad. Their feedback has enriched this legislation, a reflection of our resolve to foster a climate where businesses will flourish and continue to meaningfully contribute to the Philippine economy.

Our gross domestic product or GDP grew at an average of 5.8 percent in the first three quarters of 2024, and that showcases our potential as a dynamic, vibrant force in the region.

Despite our potential, we recognize the challenging road that still lies ahead. Through this law, we seek to attract both domestic – and this is an important point – both domestic and global investments, focusing on strategic industries that will shape our future.

CREATE MORE sets the stage for a business landscape that empowers our enterprises and enhances their growth prospects. By building on the reforms initiated through the CREATE Act, we have enhanced our tax regime [and] incentive framework, and making it more inviting for investment—while remaining steadfast in the principles of fiscal prudence and stability.

CREATE MORE clarifies the rules of availment of VAT and duty incentives, and further extends its coverage to include non-registered exporters and high-value domestic market enterprises.

We restore to our registered business enterprises (RBEs) a vital support they once knew—the eligibility for VAT incentives for costs that are directly attributable to the conduct of their business. This means that essential expenses—those reasonably necessary and incidental to their operations—may once again be enjoyed zero-rated, as they were prior to the CREATE Act.

In concert with this effort, we have championed reforms to ease the way of doing business in our country—starting with a more efficient VAT and excise tax refund process under this law.

Our partners in the Diplomatic Corps, this has been something that we have been discussing for a long time and here it is.

By establishing clear timelines and deadlines, and by limiting compliance requirements to those mandated by law, we are promoting transparency and predictability. And in so doing, we create a more reliable process that instills confidence in investors and in partners alike.

Through the CREATE MORE Act, we are also clarifying local taxation during the Income Tax Holiday and Enhanced Deductions Regime—areas previously unaddressed by the original CREATE Act.

This creates a fair and balanced system for local taxes, giving businesses greater certainty while ensuring that local communities also benefit from their presence.

With this law, we are establishing a more efficient approval process by raising the investment capital approval threshold for our Investment Promotion Agencies from 1 billion to 15 billion pesos, ensuring that only projects exceeding this amount will now require review by the Fiscal Incentives Review Board.

CREATE MORE expands the Enhanced Deductions Regime, offering greater tax relief to RBEs.

Key benefits include the reduction in the income tax rate to 20 percent from 25 percent, a doubling of additional deductions on power expenses which will significantly cut costs for the manufacturing sector, and an additional 50 percent deduction for tourism reinvestments and trade fair expenses.

Likewise, this law provides tax or duty exemption on donations of capital equipment, raw materials, spare parts, or accessories to the government, and GOCCs, TESDA, State Universities and Colleges, and DepEd or CHED-accredited schools as well.

CREATE MORE refines our incentive structure, empowering us to remain competitive and agile in the face of emerging global shifts.

It provides flexibility in the grant of fiscal and non-fiscal incentives, offering registered businesses the option to directly avail of the Special Corporate Income Tax Rate or the Enhanced Deductions Regime at the start of commercial operations.

In recognition of emerging work arrangements globally, this legislation also provides RBEs the flexibility to implement Work-from-Home arrangements for up to half of their workforce, all without jeopardizing their eligibility for incentives. By doing this, we position the Philippines as a forward-thinking, agile economy—one that is ready to meet the demands of the digital age.

Finally, to honor incentives previously granted, this law authorizes businesses established before the CREATE Act to continue enjoying their national and local benefits, including VAT and duty incentives, until 2034. They also have until the end of 2024 to register and avail of the incentives under the CREATE Act.

As we open new doors of opportunity, we drive businesses to reinvest their capital, build upon the workforce, and initiate a ripple effect that will be felt across generations.

This will not be possible without the expertise of our legislators who worked tirelessly to refine CREATE MORE’s provisions and to ensure its timely passage.

We cannot emphasize enough the important role of the business sector in shaping this law. Your feedback has been essential in our efforts to craft policies that make our country truly competitive on the global stage.

CREATE MORE is a tangible proof that we hear and respond to the voices of the business community. This reaffirms our commitment to work hand-in-hand with enterprise, continually seeking avenues to make your investments grow and prosper.

To our investors and development partners, let this be our pledge: The Bagong Pilipinas continues to foster an economy where businesses and investments remain at the heart of our progressive development.

Maraming, maraming salamat sa ating mga legislator. [applause]

Maraming, maraming salamat sa ating mga private sector stakeholders. [applause]

Maraming salamat sa lahat ng mga eksperto na nagbigay ng kanilang panahon at nagtrabaho upang maipasa natin itong napakahalaga na batas na ito. [applause]

Maraming salamat at mabuhay ang Bagong Pilipinas! [applause]

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