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Photo by The Daily Tribune |
Manila, Philippines—The Implementing Rules and Regulations (IRR) for the Republic Act No. 12066, also known as the CREATE MORE Act, were officially signed on February 17, 2025. This critical development provides clear and comprehensive details on how businesses can claim enhanced tax incentives and implement flexible work arrangements, particularly within economic zones across the Philippines. The signing involved key government agencies including the Fiscal Incentives Review Board (FIRB), the Department of Finance (DOF), and the Department of Trade and Industry (DTI).
The CREATE MORE Act itself builds upon the existing Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, aiming to further refine and improve the country's investment incentive system. The newly signed IRR is designed to eliminate ambiguities and provide a stable policy environment for both local and foreign investors, ensuring predictable application of tax benefits.
Finance Secretary Ralph G. Recto, who also chairs the FIRB, underscored the importance of the IRR's finalization. As quoted by the FIRB, Secretary Recto stated, "The signing of the CREATE MORE IRR sends a clear message to the world—the Philippines means business. We are committed to fostering a more competitive and investor-friendly environment that will generate more jobs and propel our economy forward." This statement highlights the government's strategic intent to attract and retain investments.
Among the key provisions clarified by the IRR are the processes for availing of various tax incentives, including income tax holidays and enhanced deductions. Furthermore, the rules provide a framework for eligible registered business enterprises (RBEs) operating within economic zones to implement flexible work arrangements for their employees, addressing the evolving landscape of work models. This flexibility is expected to enhance operational efficiency and attract a modern workforce.
Businesses, especially those registered with investment promotion agencies (IPAs), are strongly encouraged to study the newly finalized IRR to fully understand the scope of incentives available and the compliance requirements for both tax benefits and flexible work provisions. The full implementation of the CREATE MORE Act through its IRR is expected to significantly boost the Philippines' appeal as a prime investment destination.
