12 projects eligible for CREATE MORE incentives – BOI

MANILA, Philippines — Twelve projects with a capital investment of over P15 billion each are qualified to transfer their registration to CREATE MORE for availment of enhanced tax incentives, according to the Board of Investments (BOI).

“These 12 projects are already registered under CREATE,” said Trade Undersecretary Ceferino Rodolfo, head of the Investment Promotions Group overseeing the BOI, in a press conference yesterday.

CREATE MORE, which took effect last month, amends the CREATE Act, which was enacted in 2021 to provide economic relief to businesses affected by the pandemic and had previously introduced changes in the incentives system.

“The BOI is both an aggressive promoter of investments and a prudent administrator of fiscal incentives,” Rodolfo said.

He said if the registration of the 12 projects is transferred to CREATE MORE, they would receive extended tax availment periods of four to seven years and an extended enhanced deduction period of 24 to 27 years.

“In pursuing industrial development by using fiscal incentives as one of the tools for attracting investments, we have been a steadfast partner of the Department of Finance and the Fiscal Incentives Review Board in ensuring that we maintain the government’s fiscal health,” Rodolfo said.

Registered business enterprises with projects eligible for CREATE MORE may signify their intent to transfer by Dec. 31.

The government also allows existing pre-CREATE projects, including expansion projects, to have their registrations transferred to CREATE, which provides an income tax holiday ranging from four to seven years, along with enhanced deductions up to five years .

For exporters, the law offers an income tax holiday of four to seven years, along with a longer enhanced deduction of 10 years or a five percent special corporate income tax.

However, the transfer is only available for projects that have not yet been given tax incentives.

“Even if they are already operating, they can still transfer to CREATE and avail themselves of the incentives under the CREATE Act. However, once they start adhering to the regulations, they will no longer be allowed to transfer,” BOI director Elyjean Portoza noted.

Citing the latest BOI data, Portoza reported that 275 pre-CREATE projects were eligible to transfer their registrations to CREATE, 82 of which signified their interest in transfer.

Of the total qualified projects, 119 are already operational, while 156 are still in the pre-development stage.

Rodolfo said there will be no deadline for the transfer from pre-CREATE to CREATE.

“The BOI made sure that in implementing the CREATE provisions for the transfer, there will be no double-dipping across incentive regimes and only those who contemplated CREATE incentives and those who actually need these,” he added.