CLARK FREEPORT— Clark Development Corporation (CDC) led by its President and CEO Atty. Agnes VST Devanadera expressed optimism on the signing of the country’s game-changing tax reform law, Republic Act No. 12066 considering the present and future Clark locators who will benefit from it.
During the ceremonial signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, Implementing Rules and Regulations (IRR), the law is described as globally competitive, investment-friendly, predictable, and accountable.
Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs (SAPIEA) is optimistic that the IRR’s signing will sustain the strong investment approvals in 2024, which rose 33 percent to PhP 1.95 trillion.
“The mere discussion of the CREATE MORE Act, was already enough to spark a wave of optimism in the market,” Sec. Go said.
“Of course, this was led by the big three [investment promotion] agencies, namely the Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), and Clark Development Corporation (CDC),” the Economic Czar emphasized.
The 2024 committed investments of CDC amounted to PhP 77 billion.
The IRR, which was signed by Finance Secretary Ralph Recto and Department of Trade and Industry (DTI) Secretary and Fiscal Incentives Review Board (FIRB) Co-Chair Ma. Cristina Aldeguer-Roque, “clarifies and refines the provisions in the CREATE MORE Act for its smooth implementation”.
This includes clarifying the transitory rules for pre-CREATE registered business enterprises (RBEs) to continue enjoying their previously granted tax incentives. Meanwhile, RBEs under the CREATE Act may avail of additional incentives or measures under the CREATE MORE Act.
It also directly addresses investor concerns regarding the issuance of the value-added tax (VAT) zero-rating certificate by providing detailed guidelines on eligibility and compliance criteria and clarifying the certificate’s covered period.
Beyond enhancing incentives, the CREATE MORE IRR upholds fiscal prudence in the administration of tax incentives. The IRR of R.A. 12066 was signed on February 17 at the Department of Finance Building on Roxas Boulevard, Manila.
