CREATE law attracts US investors

Foreign investors, especially those from the US, have expressed interest to do business in the Philippines following the passage of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) this year, according to Trade and Industry (DTI) Undersecretary Ceferino Rodolfo.

During the virtual Philippines-United States Business Dialogue “Cooperation for Post-Pandemic Recovery” Tuesday, Rodolfo said the CREATE law is one of the most-awaited reform efforts of the business sector from the government.

In the past months, the Board of Investments (BOI) received interest from US firms engaged in the sectors of infrastructure, telecommunications, artificial intelligence and manufacturing.

“It took us two years (to pass the CREATE), but it’s all worth the wait,” said Rodolfo, who is also the managing head of the BOI.

The CREATE law lowers corporate income tax rate from 30 percent to 25 percent, while providing performance-based, targeted, and time-bound fiscal incentives to investors.

Rodolfo said the second package of the comprehensive tax reform program can attract more investments from the US as the US government pivots to a more resilient supply chain by adding manufacturing bases in other parts of the world.

He said the Philippines could be an alternative or complementary manufacturing base for US factories in Asia. (PNA)