With a vote of 23-0-0, the Senate on Monday passed on third and final reading Senate Bill 2762 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Bill.
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 foreign direct investments (FDI),” Senator Sherwin Gatchalian, the bill’s principal author and sponsor, said in a statement.
“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,” Gatchalian added.
Under CREAT MORE, goods and services of essential services such as janitorial, security, financial consultancy, marketing, and human resources are exempted from value-added tax (VAT).
To simplify the tax process for businesses, the measure also introduces not more than 2% Registered Business Enterprise Local Tax (RBELT) based on gross income.
“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,” said Gatchalian, who chairs the Senate Committee on Ways and Means, the committee in charge of passing tax measures.
(Instead of paying different taxes to each local government, businesses can now pay a single tax.)
The bill also increased the additional deduction on power expenses of businesses from 50% to 100% 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 said.
The CREATE MORE Act is among the Legislative-Executive Development Advisory Council’s (LEDAC) 28 priority measures. — DVM, GMA Integrated News
