THE Department of Trade and Industry (DTI), through the Board of Investments (BOI), and the Department of Finance (DOF) have released interim rules to facilitate the immediate application of some provisions under Republic Act (RA) No. 12066 or the CREATE MORE Act, which updates certain provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. This measure is meant to bridge the gap while waiting for the issuance of its Implementing Rules and Regulations (IRR).
The CREATE MORE Act took effect on November 28, 2024. It mandates the Secretaries of the Trade and Industry and Finance to work together to release the necessary IRR within 90 days of the law’s effectivity. The process of drafting these rules has included consultations with key government agencies such as the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), the BOI, and other Investment Promotion Agencies (IPAs), as well as private stakeholders.
The interim rules, published on December 17, 2024, allow IPAs to register projects and offer incentives under the new law while waiting for the CREATE MORE IRR. It also provides the process for transferring existing pre-CREATE projects, including expansion projects, to enable them to avail of CREATE incentives. Further, registered projects under CREATE with investment capital exceeding P15 billion may transfer their registration to CREATE MORE. Transferring projects may signify their intent by 31 December 2024.
The interim rules also clarify that the application of liberalized incentives such as Value-Added Tax (VAT) exemption on importation and zero-rating on local purchases, and 20-percent income tax rate for enterprises availing of the enhanced deductions regime shall take effect on 28 November 2024. This allows registered business enterprises with incentives granted prior to the CREATE MORE Act to already enjoy the liberalized incentives while the IRR is still pending.
According to Special Assistant to the President for Investment and Economic Affairs Frederick Go, CREATE MORE demonstrates the government’s strong commitment to creating a conducive investment environment. He stressed that the policy’s regionally competitive incentive framework will support both domestic and foreign investments, generate quality jobs, boost incomes, and drive sustainable economic growth for the country.
“The DTI-BOI extend its deepest gratitude to SAP Frederick Go for his relentless support in advancing CREATE MORE,” said DTI Secretary Cristina Roque. “Beyond improving business conditions, this law is a crucial step in ensuring that the benefits of growth reach the Filipino people—creating more high-quality jobs, advancing economic mobility, and addressing poverty through inclusive growth and development.”
The interim rules are designed to ensure a smooth transition and support investor confidence as the government moves forward with the updated tax incentive laws.
The policy for transferring pre-CREATE projects to the CREATE Act was initially established under BOI Memorandum Circular (MC) 2024-002 dated May 9, 2024. With the issuance of the interim rules that cover the transfer of both pre-CREATE and CREATE projects, the BOI has issued the advisory for the applicable process and forms to implement the measure.
The BOI encourages all eligible businesses to submit their applications as soon as possible to take advantage of the benefits available under the new law.
