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What is CREATE MORE (RA 12066)?
CREATE MORE is Republic Act No. 12066, a major update to the Philippines' tax incentives regime aimed at making the country more competitive and attractive to both domestic and foreign investors. It builds on the original CREATE Act and provides enhanced and extended fiscal incentives for strategic industries to drive investment, job creation, and economic growth.
Key Features
- Expanded Incentive Options: Registered Business Enterprises (RBEs) can choose from:
- Income Tax Holiday (ITH)
- 5% Special Corporate Income Tax (SCIT), or
- Enhanced Deductions Regime (EDR) with a reduced 20% corporate income tax rate
- Extended Incentive Periods: Incentives can run up to 27 years depending on the project's strategic value and location.
- VAT and Duty Benefits: VAT zero-rating and import duty exemptions for qualified goods directly attributable to registered projects.
- Local Tax Simplification: Optional local tax of up to 2% gross income may replace all other local taxes and fees during ITH/EDR.
- Work Flexibility: Certain work-from-home or flexible work arrangements are now recognized without loss of incentives.
Republic Act No. 12066 What is the Strategic Investment Priority Plan (SIPP)?
The SIPP is a three-year blueprint developed primarily by the Board of Investments (BOI) that identifies priority industries and economic activities eligible for fiscal and non-fiscal incentives under CREATE MORE.
SIPP's Role in Incentives
- Eligibility Anchor: Only projects listed in the SIPP qualify for the enhanced incentive packages under CREATE MORE.
- Priority Sectors Include: (current and draft lists vary, but generally include)
- Modern basic needs industries (agriculture, healthcare, infrastructure, food production)
- Export and sustainability-driven sectors
- Innovation and technology-intensive industries
Furthermore, BOI periodically revises the SIPP to respond to economic priorities.
