Marcos Signs CREATE MORE Into Law: A Game Changer for Investment in the Philippines

Understanding CREATE MORE The CREATE MORE Act is designed to build upon the initial CREATE law, which was implemented to lower corporate income tax rates and streamline tax incentives for businesses. This new law expands the range of incentives available to investors, particularly in sectors identified as critical for economic development. By offering more attractive tax incentives, the government hopes to draw in foreign capital and stimulate domestic industries. Key Features of the Law One of the most notable aspects of the CREATE MORE Act is the introduction of enhanced tax incentives for priority sectors such as renewable energy, manufacturing, and technology. These sectors are seen as vital for sustainable growth and job creation. The law also establishes a more transparent and predictable incentive system, which is crucial for foreign investors who seek stability in their operations abroad. Moreover, the CREATE MORE Act emphasizes the importance of local employment, mandating that companies benefiting from these incentives prioritize hiring and training local workers. This provision not only supports the local economy but also ensures that the benefits of foreign investment are felt at the grassroots level. Potential Impact on the Philippine Economy The CREATE MORE legislation is expected to have a profound impact on the Philippine economy. By attracting more foreign investors, the government anticipates an increase in job creation, technology transfer, and infrastructure development. These factors can lead to a more resilient economy that is better equipped to withstand future global economic challenges. Additionally, as more companies set up operations in the Philippines, the country can expect a boost in local entrepreneurship as well. The influx of foreign investment often leads to the establishment of partnerships with local businesses, fostering a more dynamic and diverse economic landscape.