Subic sees more business, jobs with CREATE MORE Act

February 23, 2025 | 5:55pm

SUBIC BAY FREEPORT, Philippines — The Subic Bay Metropolitan Authority (SBMA) expects to generate more investments and employment in this free port following the signing of the implementing rules and regulations (IRR) of Republic Act 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. 

“CREATE MORE will create more investments, more jobs and definitely more opportunities for all of us,” said SBMA Senior Deputy Administrator for Business and Investment Renato Lee III on Thursday.

“We are open for business, globally!” Lee also exclaimed in a social media post, as he welcomed the landmark signing and recalled lobbying by the SBMA for more than two years to have the law passed.

The IRR of RA 12066, or the CREATE MORE Law, was signed on Monday, February 17, by Department of Finance Secretary Ralph Recto and Department of Trade and Industry Secretary Ma. Cristina Roque, who are also co-chairs of the Fiscal and Incentives Review Board.

Recto said the government is committed to making CREATE MORE “not just a tool to attract more investments, but a magnet to keep them here, grow them here, and give every reason for investors to place their trust in the Philippines.”

In Subic, Lee pointed out, the CREATE MORE Act is seen to bring about “a more attractive investment destination by giving better tax incentives to high impact investments.” This will make Subic’s tax incentives regime “more globally competitive, investment-friendly, predictable, and accountable,” he added. 

Lee also said Subic investors will mostly benefit from RA 12066 because of the following:

• the option to choose either the special corporate income tax of 5% or enhanced deductions;
• more incentives to high-value investments with a capital of more than P15 billion and in sectors considered import-substituting or export sales;
• additional relief to registered business enterprises by reducing the corporate income tax rate to 20% from 25%;
• increased deduction on electricity expenses to 100% from 50%;
• additional 50% deduction for expenses related to trade fairs and tourism reinvestments until 2034;
• flexible work arrangements for call centers, without compromising their tax incentives; 
• zero VAT rating for local purchases and VAT-exempt importations for export-oriented enterprises; and
• tax and duty exemption on donations to public schools and government-owned and controlled corporations.

Aside from these, the CREATE MORE Law also maximized the benefits of the net operating loss carry-over by changing the reckoning period from “year of loss” to the “last year of the project’s income tax holiday entitlement period,” Lee explained.

“VAT incentives will also be liberalized by shifting from “direct and exclusive use” to “directly attributable” requirements for goods and services,” he noted. 

“This broadens the scope of VAT incentives covering necessary services such as janitorial, security, financial consultancy, marketing, and administrative services,” Lee added.

The SBMA is expecting to cash in on increased foreign investments this year. Last month, SBMA Chairman and Administrator Eduardo Jose Aliño said Subic is anticipating to create more jobs because of President Ferdinand Marcos Jr.’s “aggressive efforts to bring more foreign companies to invest in the country.”

In December last year, Lee noted that the 1,909 companies in Subic with aggregate investments amounting to P577.99 billion now provided employment to 162,891 workers. 

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