MANILA, Philippines – The Department of Finance (DOF) said the implementing rules and regulations (IRR) of a new corporate tax incentive law will make the Philippine economy ready for the second term of US President Donald Trump.

Finance Secretary Ralph Recto said this during the ceremonial signing of the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act on Monday, February 17.

Under the CREATE MORE Act, corporate income taxes for registered businesses will be slashed to 20% from 25%.

The law also exempts registered businesses from being charged with value-added tax (VAT) for costs directly related to their business. This includes security, marketing and administrative services.

The CREATE MORE Act is a follow-up to the CREATE Law signed four years prior, which aimed to help local businesses recover from the COVID-19 pandemic by lowering high corporate income tax rates.

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Trump’s protectionist policies are expected to send shockwaves across the global trade market. Economists earlier warned that these policies could dampen the Philippines’ economic growth in 2025.

The Bangko Sentral ng Pilipinas also paused the cutting of key interest rates to further assess the impact of new global policies on the Philippine economy.

For Recto, the IRR sends a message to the world that the Philippines is ready to compete in the global market.

“With the signing of this IRR, we now send a clear message to the world: The Philippines means business. We are ready to compete. We are a dependable economic ally. We offer stability amid uncertainty. And yes — we are Trump 2.0-ready,” he said.

According to Recto, the IRR contains clearer guidelines on transitory rules first issued under the CREATE Law. This allows businesses to continue enjoying tax incentives granted under the predecessor of CREATE MORE. In addition, businesses will also be allowed to avail of more incentives under the new CREATE MORE Act.

Recto also said that the IRR addresses investors’ concerns over the issuance of VAT certificates as it contains detailed guidelines on the certification’s covered period and eligibility and compliance criteria.

The IRR also tasks the Fiscal Incentives Review Board with conducting impact evaluations that will guide the President when granting fiscal and non-fiscal incentives for highly desirable projects.

Experts earlier raised concern over provisions in the CREATE MORE Act that gives the President powers to hand out tax holidays or special tax rates to select businesses.

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“On the part of the government, we are 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,” Recto said.

Special Assistant to the President for Economic Affairs Frederick Go also said the country’s economic officials will be holding roadshows in South Korea, Japan, Europe, and the Middle East to woo potential foreign investors. – Rappler.com