DOF: CREATE law pulls in P1 T in investments

As of October 2023


At a glance

  • The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act has attracted P1.02 trillion in investment capital and gained pledges of P572.98 billion in foreign direct investment.

  • There are 910 approved CREATE projects covering priority sectors listed in the Strategic Investment Priority Plan (SIPP), with incentives including income tax holidays, enhanced deductions, and a preferential five percent corporate income tax rate.

  • Of the 910 projects, 49 major tax incentive applications worth P817 billion were approved by the Fiscal Incentives Review Board (FIRB), while the remaining 861 projects represented an investment capital of P203 billion from IPAs.

  • These projects are expected to create approximately 99,400 jobs within their incentivized period.


The Department of Finance (DOF) announced that the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act has already attracted over a trillion pesos in investment capital. 

According to a Facebook post by the DOF, projects approved under the CREATE Act, which aims to address incentive-related issues for eligible businesses, have amassed a total investment capital of P1.02 trillion as of October 2023.

“This monumental achievement is a testament to the continuous efforts of the PBBM [President Bong Bong Marcos] administration to promote the Philippines as a sound investment destination,” the DOF stated.

Enacted during the Duterte administration, the CREATE law lowered the regular corporate income tax rate from 30 percent to 20 percent for domestic enterprises with a taxable income of P5 million and below, as well as total assets not exceeding P100 million. 

For larger corporations with assets surpassing P100 million, the rate was set at 25 percent. Additionally, CREATE introduced an improved incentives package characterized by being performance-based, time-bound, targeted, and transparent.

The DOF disclosed that CREATE has also attracted foreign direct investment (FDI) pledges amounting to P572.98 billion. 

Furthermore, the department reported the approval of 910 CREATE projects spanning various priority sectors listed in the Strategic Investment Priority Plan (SIPP), which covers industries considered vital for the country's progress. 

Incentives offered in the SIPP include income tax holidays, enhanced deductions, and a preferential five percent corporate income tax rate.

Of these 910 projects, the Fiscal Incentives Review Board (FIRB) has given the green light to 49 big-ticket tax incentive applications, with a combined investment capital of P817 billion. 

The remaining 861 projects, with a collective investment capital of P203 billion, were from investment promotion agencies (IPAs).

The DOF projected that these initiatives will create around 99,400 jobs within the duration of their incentivized period.

"With the Philippines poised toward economic transformation, CREATE continues to play a crucial role in positioning the country as a global investment hub," the DOF said.

However, despite these positive developments, there are ongoing efforts in Congress to amend the CREATE law with the aim of making the tax incentives system more adaptable to the global market and enhancing global competitiveness.

Specifically, Congress aims to tackle issues related to the value-added tax (VAT) rate and refunds, particularly for exporters. 

Other proposed improvements encompass reducing the corporate income tax to 20 percent for those under the enhanced deduction framework, implementing a 200 percent deduction for power costs that can be accumulated while availing of an income tax holiday, introducing a 200 percent deduction for trade fair and trade mission expenses, and allowing the application of the Net Operating Loss Carryover five years after the end of the ITH period.

The proposal also entails the imposition of a uniform 1.5 percent registered business enterprise local tax to be collected by investment promotion agencies "in lieu of all local impositions," aiming to streamline interactions with local government units.

Furthermore, the proposal includes the provision of a special skills visa for highly technical personnel employed in registered business enterprises.