Philippines President Ferdinand (Bongbong) Marcos signed the CREATE MORE Act on Monday (November 11), outlining investment incentives for businesses such as a lower corporate tax rate. Marcos hopes the reforms will spur economic growth in the country.
“We have taken a decisive step towards our vision of a globally competitive and investment-led Philippine economy,” Marcos said in a speech to legislators.
Go deeper with GlobalData
The legislation will lower the corporate tax rate from 25% to 20%, aligning itself with the rates of neighboring Asian economies. According to a study conducted by the Philippine Senate, prior to the legislation the country had the highest corporate tax rate among the continent’s six biggest economies in the Association of Southeast Asian Nations (ASEAN).
It will also allow businesses to lower their power expenses, which have been cited as a hurdle to foreign investors, to zero through additional tax deductions and extends the maximum duration of incentives to 27 years.
Other major reforms in the legislation include allowing businesses to implement work-from-home arrangements for up to half of their workforce while qualifying for incentives, raising the capital approval threshold of investment promotion agencies and simplifying local taxation through the application of a local tax in place of an array of taxes, fees and charges.
“CREATE MORE refined our incentive structure, empowering us to remain competitive and agile in the face of emerging global shifts […] The Bagong Pilipinas continues to foster an economy where businesses and investments remain at the heart of our progressive development,” President Marcos emphasised in his remarks.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAccording to UNCTAD data, the Philippines reached an FDI intake of $6.2b in 2023. However, this pales in comparison to its neighbours. Singapore received $159.67b, Indonesia $21.6b and Vietnam $18.5b in the same period.
Obstacles for foreign businesses have included high power costs, ownership restrictions and poor infrastructure.
