Department of Finance
The finance department has assured Singaporean investors that the enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill will enhance the ease of doing business in the Philippines.
In a statement on Thursday, the Department of Finance (DOF) said that the impending amendments to the country’s fiscal incentives framework will enhance the nation’s investment appeal, drawing more Singaporean investors to the Luzon Economic Corridor.
“This will be a perfect nexus for Singaporean investors involved in manufacturing, semiconductor supply chains, renewable energy and agribusiness,” Finance Secretary Ralph Recto said.
READ: Senate approves, ratifies CREATE MORE bill
Recto was in Singapore on Thursday, attending as one of the speakers at the fourth Philippine-Singapore Business and Investment Summit.
The finance chief said that the amendments that come with the bill, which is expected to become law within the year, will enhance both fiscal and nonfiscal incentives, resolve key investor concerns and respond to emerging global developments.
For instance, he said, business compliance will be streamlined by reducing documentary requirements.
When the bill has been enacted, the government will have a new Registered Business Enterprise Taxpayer Service that will offer personalized tax compliance assistance to investors, acting as a one-stop shop for services from the Bureau of Internal Revenue.
‘Just a fraction’
The bill also aims to exempt export-oriented enterprises from its payment of value-added tax.
Under the enhanced deductions regime, corporate income tax for registered business enterprises is set at 20 percent, from 25 percent previously.
The maximum duration for availing tax incentives will be extended to 27 years, longer than the previous 17 years, while another 10-year extension will be allowed for labor-intensive projects.
Further, Recto said the government is working to address bottlenecks and streamline processes to ensure seamless participation for Singaporean investors in key sectors, including clean energy, critical minerals, retail, digital technologies, food production, financial services, pharmaceuticals and others.
“These reforms are just a fraction of the transformative changes underway in the Philippines to make us stand out as the most hospitable economy for Singaporean enterprises,” he said.
After 55 years of diplomatic relations, Singapore has become the country’s eighth-largest trading partner, second-largest source of foreign direct investment, sixth major investor in the Philippine Economic Zone Authority, and the ninth-largest source of tourist arrivals, according to the DOF. INQ