CREATE to spur knowledge-based industries—DOF

Published February 15, 2021, 1:10 PM

by Chino S. Leyco

The soon-to-be enacted Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) will strengthen the culture of research, development, and innovation in the country, the Department of Finance (DOF) said.

Finance Secretary Carlos G. Dominguez III said that CREATE has the tool to promote a regime that rewards innovation and the creation of new knowledge while opening numerous doors of opportunities for the Philippines.

Finance Secretary Carlos G. Dominguez III

Dominguez said that CREATE, once enacted, will prioritize industries that make use of the knowledge economy in their activities.

“The COVID-19 pandemic has magnified the need for us to rapidly modernize our processes and transition to the New Economy,” Dominguez said during the launching of Kwoledge, Innovation, and Science Technology (KIST) park in Batangas State University (BatStateU).

“This accelerated trend towards an economy driven by technology and innovation will continue to flourish. The Philippines must evolve and take advantage of this trend,” he added.

Owing to technology and innovation’s favorable prospects, Dominguez said CREATE grants a 100 percent additional deduction or incentives on research and development expenses for enterprises that create new knowledge and products.

“Technological innovations will build new industries and create many employment and investment opportunities. These will allow us to bounce back stronger from the pandemic and help ensure the long-term recovery of our economies,” Dominguez said.

“The types of investments that will be pursued are activities consistent with the Fourth Industrial Revolution,” he added.

Meanwhile, Dominguez lauded the BatStateU for its “visionary leadership” in venturing to establish the KIST  inside its campus, and thanked the Embassy of India for supporting the initiative.

He said the rise of a science and technology park in BatStateU could clear the way for startups from India and other countries to establish their presence in the Philippines and accelerate the country’s shift to the new knowledge economy. 

“CREATE will open up numerous doors of opportunities for the Philippines and India to collaborate in the knowledge economy. This momentous event is just the start of our close partnership in this field,” Dominguez said.

“I wish this partnership success and hope to see this technology park flourish in the near future,” he added.

BatStateU and India cooperation on the initiative was formally launched Monday, Feb. 15.

“We need more forward-looking innovative projects such as the KIST Park. We are moving towards an economy where knowledge is the main driver of growth,” Dominguez said.

“The next generation must be trained in cutting edge science and technology to support our aspirations for a truly inclusive and competitive economy,” he added.