RA No. 12066 (CREATE MORE) – New Growth Opportunities for PH

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The Philippines is entering a new era of business growth and investor confidence with the recent passage of Republic Act No. 12066, also known as CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy). This new law builds upon the original CREATE Act and is designed to further strengthen the country’s competitiveness as a business destination—particularly for industries such as manufacturing, data centers, and tourism.

What is RA No. 12066?

Signed into law on November 11, 2024, the Republic Act (RA) No. 12066 or CREATE MORE Act aims to position the Philippines as a premier investment destination. According to the Presidential Legislative Liaison Office “the law builds on the game-changing economic reforms introduced under the CREATE law by making the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.” 

Key Provisions of CREATE MORE:

1. Extended Incentive Periods

Under the CREATE MORE Act, the government grants Registered Business Enterprises (RBEs) longer durations to avail of tax incentives. Specifically, it extends the periods for the Special Corporate Income Tax (SCIT) and Enhanced Deduction Regime (EDR):

• SCIT and EDR durations:
  • Up to 17 years for projects approved by Investment Promotion Agencies (IPAs).
  • Up to 27 years for projects approved by the Fiscal Incentives Review Board (FIRB).​

These extensions aim to attract and retain investments in strategic and export-oriented industries. ​

2. Additional Enhanced Deductions

The Act introduces increased and new deductions to encourage business growth:​

• Power Expenses: The additional deduction for power expenses has been increased from 50% to 100%, benefiting energy-intensive industries. ​
• Reinvestment Allowance: Previously limited to the manufacturing sector, this allowance is now extended to the tourism industry, promoting reinvestment in tourism-related projects.
• Trade Promotions: An additional 50% deduction is available for expenses related to exhibitions, trade missions, and trade fairs, supporting businesses in expanding their market reach. ​
• Net Operating Loss Carry-Over (NOLCO): Businesses can now carry over net operating losses as deductions for up to five consecutive taxable years. This carry-over period begins immediately after the final year of the Income Tax Holiday (ITH), offering greater flexibility in tax planning.

3. Improved Ease of Doing Business in the Philippines

Additionally, the CREATE MORE Act not only builds on corporate tax reductions and tax incentives but also enhances the overall business environment. Key improvements include:

• Streamlined VAT regulations to simplify compliance.
• More attractive tax incentives to attract investment.
• Strengthened governance and accountability to ensure transparency.
• Clear transitional guidelines for both local and foreign companies recognized as Registered Business Enterprises (RBEs).

These changes create a more predictable and efficient environment for businesses to thrive in the Philippines.

Your Business, Our Expertise

The CREATE MORE Act offers significant opportunities for businesses aiming to expand or establish operations in the Philippines. At Santos Knight Frank, we leverage our deep knowledge of the local market to provide businesses with prime locations that support growth and success. 

With a diverse portfolio of commercial and residential properties, including office spaces in sought-after districts and retail locations in vibrant commercial hubs, we provide tailored solutions to help your business thrive. From site selection to lease negotiations, Santos Knight Frank is your trusted partner in ensuring a smooth and successful expansion.

Reach us at +63 917 806 6315 or email at inquiry@santos.knightfrank.ph.

• Tags:
• office space
• Investment & capital markets
• Real Estate Investment
• investment and portfolio management
• market analysis real estate
• Commercial Real Estate Philippines

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About Santos Knight Frank

The world of real estate can be a difficult place to navigate. Whether property is your investment or a tool that drives your business success, you need a partner who can guide you in every step of the way.

Since 1994, Santos Knight Frank has been guiding Fortune 1000 companies, BPOs, private clients, and institutions in all facets of real estate. We advise companies on their best office, retail, and industrial location, oversee commercial fit-out projects, and manage facilities. We have facilitated over 4 million sqm of office transactions on behalf of clients and managed over 40 million sqm of real estate under our property & facilities management arm.

Our residential brokerage platform and wide collection of bespoke homes allow our private clients to buy, lease, and sell properties within their budget, timeline, and lifestyle.

For landlords and investors, we provide valuations and appraisal, consultancy and research, sales and leasing, and property management services across the Philippines.

Santos Knight Frank is part of the global Knight Frank network of over 384 offices in 51 markets, including the strategically important U.S. partnerships with Cresa (commercial real estate) and Douglas Elliman (residential real estate).

We are locally expert and globally connected, end-to-end and best-in-class – as any great partner in property should be.