SENATE President Francis G. Escudero said President Ferdinand R. Marcos, Jr. is due to sign the bill that will amend the Corporate Recovery and Tax Incentives for Enterprises (CREATE) in less than three weeks.
“The President is due to sign it on Nov. 11, barring any typhoons and calamities,” Mr. Escudero said at the 13th Arangkada Philippines Forum in Pasay City on Thursday.
The measure “seeks to encourage more investors to actually come into the Philippines by providing a level, more predictable, and sustainable playing field, (thereby generating) jobs here in the Philippines,” he added.
The bill amending CREATE is known as CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE).
Saying that he expects no veto from the Palace, Mr. Escudero said: “We are 90% sure that it will be signed as is because it was coordinated with the office of the President.”
He added that the 10% accounts for the possibility of last-minute adjustments.
He noted that a veto is unlikely because the Senate is closely coordinating with the Office of the Executive Secretary and the Office of the President in the legislative process.
Congress passed the CREATE MORE bill in September. It seeks to lower corporate taxes to 20% from 25% and set a local tax of 2% for registered business enterprises (RBEs).
It will also grant RBEs a VAT zero rating on local purchases, a VAT exemption on imports, and duty exemptions on imports of capital equipment, raw materials, spare parts, and accessories.
American Chamber of Commerce of the Philippines (AmCham)Executive Director Ebb Hinchliffe said that the impending signing of the CREATE MORE bill is a positive development.
“We have been advocating for that ever since the CREATE Act left gaps. And then CREATE MORE, finally, four years later, closes that gap,” Mr. Hinchliffe told BusinessWorld.
“It did not have everything we wanted, but it did clarify the tax refund and a little bit more about the work from home situation. We would prefer to make it equal with BoI to the other investment promotion agencies (IPAs). But 50-50 (onsite work share) is better than nothing,” he added.
He said AmCham had been pressing for a 100% work-from-home option, subject to a ruling by the investment promotion agencies such as the Philippine Economic Zone Authority on whether such a policy is suitable. — Justine Irish D. Tabile