The Department of Finance (DOF) has assured Singaporean investors that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law will simplify doing business in the Philippines, streamline processes and reduce red tape.
“The new amendments to the country’s fiscal incentives regime—known as CREATE MORE—are designed to attract even more Singaporean investors to lay down roots and flourish in the Philippines,” Finance Secretary Ralph G. Recto said during the 4th Philippine-Singapore Business and Investment Summit (PSBIS).
Recto emphasized that the anticipated passage of the CREATE MORE bill will improve investment incentives, address key investor concerns, and adapt to global changes in the Philippines.
In a statement, the DOF said the bill will streamline business compliance by reducing documentary requirements. It will create a Registered Business Enterprise Taxpayer Service (RBETS) for personalized tax support and efficient Bureau of Internal Revenue’s (BIR) services.
The CREATE MORE bill exempts export-oriented enterprises from value-added tax (VAT) and offers enhanced incentives for projects with investments over P15 billion.
Registered business enterprises (RBEs) will see their corporate income tax rate cut from 25 percent to 20 percent under the new deductions rules.
Tax incentives will be extended to 27 years, with an additional 10 years for labor-intensive projects.
RBEs will also receive a full 100 percent deduction on power expenses, significantly reducing costs for manufacturers.
The tourism sector will receive an extra 50 percent deduction for reinvestment allowances on priority tourism projects.
The finance chief stressed that the bill will enhance the Philippines' appeal to Singaporean investors in manufacturing, semiconductors, renewable energy, and agribusiness, particularly in the Luzon Economic Corridor.
“True to the bill’s name, we envision this new policy to CREATE MORE thriving economic corridors in every corner of the Philippine archipelago, with Singapore taking a leading role,” Recto said.
He noted that the new Public-Private Partnership (PPP) Code simplifies and speeds up PPP projects, urging Singaporean investors to submit proposals and explore joint ventures with the government’s 186 major infrastructure projects.
Recto also called for more involvement from top Singaporean partners to help modernize Philippine airports and boost regional tourism.
According to the DOF, the government is improving processes to facilitate Singaporean investors' involvement in key sectors like clean energy, digital technologies, and pharmaceuticals.
Recto said the Philippines is set to be a tech hub with the Digital Infrastructure Project and National Broadband Program, attracting businesses in data centers, smart manufacturing, and high-tech agriculture.
“We are eager to team up with Singapore’s start-up visionaries to unlock new frontiers in emerging technologies,” he said.
He also said that the government is creating an AI roadmap and strategy to upskill the Filipino workforce, preparing a new generation of scientists and engineers for digital transformation.
“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,” the finance chief stressed. (Derco Rosal)