CREATE MORE passes final Senate hurdle: Gatchalian says bill to attract more FDIs
September 9, 2024
CREATE MORE passes final Senate hurdle: Gatchalian says bill to attract more FDIs
Now that it is close to becoming a law, the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) is expected to bring in more foreign direct investments (FDI) that will support the country's economic growth, Senator Win Gatchalian said.
The Senate approved the proposed measure on third and final reading on Wednesday. "With the expected enactment of the measure, CREATE MORE is anticipated to draw in more foreign direct investments, creating a ripple effect that includes job generation, improved living standards, lower prices for goods and services, and enhanced infrastructures," said Gatchalian, the bill's principal author and sponsor.
"To achieve this, the measure focuses on enhancing the tax incentives regime for registered business enterprises, clarifying existing rules and policies on the grant and administration of fiscal incentives, and fostering an investment climate favorable for FDIs," he explained.
Specifically, once enacted, CREATE MORE will provide much-needed clarity regarding VAT zero-rating on local purchases and VAT exemption on the importation of goods and services. In simple terms, VAT zero-rating and exemption will now apply to goods and services clearly linked to the registered project or activity, including essential services like janitorial, security, financial, consultancy, marketing, and even administrative functions such as human resources, legal, and accounting services.
The proposed measure also introduces not more than 2% Registered Business Enterprise Local Tax (RBELT) based on gross income to simplify the tax process for businesses. "Sa halip na magbayad ng iba't ibang buwis sa bawat lokal na pamahalaan, ngayon ay iisang buwis na lang ang babayaran ng mga negosyo," he said.
The bill also provides for a 100 percent additional deduction on power expenses of businesses and corporations and seeks to grant a 50 percent additional deduction for reinvestment in the tourism industry.
"CREATE MORE offers enhanced and targeted incentives to further drive investment and economic recovery in the country," Gatchalian concluded.
CREATE MORE pasado na sa Senado; Gatchalian umaasang makakaakit ito ng mas maraming mamumuhunan
Ngayong malapit nang maging batas, ang panukalang Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) ay inaasahang magdadala ng mas maraming foreign direct investments (FDI) na susuporta sa paglago ng ekonomiya ng bansa, ayon kay Senador Win Gatchalian.
Inaprubahan na ng Senado ang panukala sa ikatlo at huling pagbasa ngayong Miyerkules. "Sa inaasahang pagsasabatas ng panukala, ang CREATE MORE ay inaasahang makakakuha ng mas maraming dayuhang direktang mamumuhunan sa bansa na mag-iiwan ng magandang epekto tulad ng paglikha ng trabaho, pinahusay na pamantayan ng pamumuhay, mas mababang presyo para sa mga kalakal at serbisyo, at pinahusay na mga imprastraktura," sabi ni Gatchalian, ang pangunahing may-akda at sponsor ng bill.
"Upang makamit ito, ang panukala ay nakatuon sa pagpapahusay ng tinatawag na tax incentives regime para sa mga rehistradong negosyo, paglilinaw ng mga umiiral na alituntunin at patakaran sa pagbibigay at pangangasiwa ng fiscal incentives, at pagpapaunlad ng investment climate na paborable sa mga foreign direct investment," paliwanag niya.
Oras na maisabatas, ang CREATE MORE ay magbibigay ng kalinawan pagdating sa VAT zero-rating sa local purchases at VAT exemption sa pag-import ng mga produkto at serbisyo. Sa madaling salita, ang VAT zero-rating at exemption ay ipapatupad na sa mga produkto at serbisyo na may kinalaman sa anumang nakarehistrong proyekto o aktibidad, kabilang ang essential services tulad ng janitorial, security, financial, consultancy, marketing, pati na mga trabahong administratibo tulad ng human resources, legal, at mga serbisyo sa accounting.
Ang panukala ay nagpapakilala din ng hindi hihigit sa 2% na Registered Business Enterprise Local Tax (RBELT) batay sa gross income upang pasimplehin ang proseso ng pagbubuwis para sa mga negosyo. "Sa halip na magbayad ng iba pang buwis sa bawat lokal na pamahalaan, ngayon ay iisang buwis na lang ang babayaran ng mga negosyo," aniya.
Ang panukalang batas ay nagbibigay din ng 100 porsiyentong karagdagang bawas sa mga gastusin sa kuryente ng mga negosyo at korporasyon at naglalayong magbigay ng 50 porsiyentong karagdagang bawas para sa gustong mamuhunan muli sa industriya ng turismo.
"Ang CREATE MORE ay nag-aalok ng mga targeted incentives upang higit pang humimok ng pamumuhunan na siyang magpapaunlad sa ekonomiya ng bansa," pagtatapos ni Gatchalian.
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