By: Andrea Eleanor Cabaron
Photo by: Presidential Communications Office
President Marcos signed the CREATE MORE Law (Republic Act 12066), aiming to make the Philippines’ tax system more competitive and appealing to foreign and domestic investors, on Nov. 11.
CREATE MORE – the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy – would make the Philippines a “destination of choice for investments,” Marcos stated at the ceremony.
The law amends the 2021 CREATE Act (Republic Act 11534), which supported pandemic-affected businesses and altered incentive policies.
Key provisions of CREATE MORE include a simplified VAT refund system, a higher investment capital threshold of PHP 15 billion for incentive eligibility, and an extension of tax incentives to 27 years.
“CREATE MORE sets the stage for a business landscape that empowers our enterprises and enhances their growth prospects,” President Marcos said during the ceremonial signing of the new tax law in Malacañang on Monday.
Additionally, it introduces a reduced corporate tax rate of 20% for registered business enterprises (RBEs), a local tax of other charges, and flexible work arrangements within economic zones, and grants tax exemptions on donations of essential materials and equipment, further enhancing investment appeal.
The Philippine Economic Zone Authority (PEZA) and foreign business groups have welcomed the law, anticipating it will attract investments across sectors like electronics, steel, and renewable energy.
The Philippines' communications office prepared a report estimating that the CREATE More law would cost the country 5.9 billion pesos ($100.89 million) in tax revenue, corresponding to 0.0044 percent of the anticipated gross domestic product from 2025 to 2028.
Employment rate and inflation in Marcos Jr.’s term
Millions of fresh graduates for college and senior high school that entered the labor force, did not land jobs in July 2024, as per Philippine Statistics Authority (PSA).
PSA chief Claire Dennis Mapa said that the number of unemployed individuals, ages 15 and above, rose to 2.38 million.
With 50.40 million Filipinos in the labor force, the number of individuals concludes to an unemployment rate of 4.7% higher than the 3.1 % joblessness rate in June.
The PSA said that a large number of Filipino women who found work in the services sector led to the country's unemployment rate dropping to a two-month low of 4% in August.
Meanwhile, the underemployment rate—which represents the proportion of people who are already employed but seeking additional work or longer hours—rose slightly to 11.9 percent in September, from 11.2 percent in August and 10.7 percent in the same month last year.
Finance Minister Ralph Recto projected that the Philippines’ inflation rate may stabilize around 3.2% this year, in October.
"This gives the BSP more room to be aggressive in its monetary policy easing to help the economy grow at a faster rate and support the government in increasing its revenue collections," he stated.
Inflation was at 1.9% last September, marking as the slowest in more than four years.