PHILIPPINES Trends and Developments Contributed by: Patricia A. O. Bunye and Christianne Grace F. Salonga, Cruz Marcelo & Tenefrancia
tal solutions and opportunities for international engagement to help them navigate the increas - ing complexity of global trade. Legislation to Improve the Economy On 11 November 2024, Philippines’ President Ferdinand R Marcos Jr signed into law Repub - lic Act No 12066, also known as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. This land - mark legislation aims to enhance the Philip - pines’ attractiveness as a business destination by introducing a globally competitive, invest - ment-friendly and more predictable tax incen - tives regime with heightened transparency and accountability. A key feature of the CREATE MORE Act is the provision of a more competitive and generous package of fiscal incentives for strategic and highly desirable investments. Registered busi - ness enterprises may now opt, at the onset of their commercial operations, between a special corporate income tax of 5% or an enhanced deductions regime (EDR). The duration of these incentives has also been significantly extended, from the initial ten-year cap to up to 17 or even 27 years for qualified projects. Labour-intensive investments may further apply for an additional extension of five to ten years. The law provides enhanced benefits for regis - tered export enterprises and high-value domes - tic market enterprises with investment capital exceeding PHP15 billion, particularly those engaged in import-substituting activities or with export sales of at least USD100 million in the preceding year. Furthermore, the EDR framework now allows a corporate income tax rate of 20% reduced from the previous 25%, together with a 100% additional deduction on power expenses,
up from the prior 50%, which is expected to sig - nificantly reduce operating costs (especially in the manufacturing sector). In addition, on 10 April 2025, President Marcos Jr signed Republic Act No 12145 (RA No 12145), or the Economy, Planning, and Development Act, which reorganises the National Economic and Development Authority (NEDA) into the Department of Economy, Planning, and Devel - opment (DEPDev). Through the years, NEDA has served as secre - tariat to key policymaking bodies such as the NEDA board and its subcommittees, the Region - al Development Councils, the Legislative-Execu - tive Development Advisory Council, the National Innovation Council and the Economic Develop - ment Group. Its reorganisation into the DEP - Dev and the creation of the DEPDev’s charter strengthens its institutional independence and enhances its capacity as the government’s cen - tral policy, planning, co-ordinating and monitor - ing agency for national economic development. RA No 12145 institutionalises the use of futures thinking and scenario planning to help the gov - ernment anticipate technological shifts, eco - nomic disruptions and global uncertainties. The DEPDev is further tasked with ensuring coher - ence between national and regional develop - ment plans, integrating long-term strategies into the national budget process, and promoting pro - active, forward-looking governance. On 29 May 2025, President Marcos Jr enacted Republic Act No 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), which intro - duces comprehensive reforms aimed at democ - ratising access to capital market investments.
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