The signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the subsequent issuance of its Implementing Rules and Regulations (IRR) are pivotal milestones in strengthening the Philippine business environment and enhancing the global competitiveness of the country’s IT and Business Process Management (IT-BPM) industry.
The IT and Business Process Association of the Philippines (IBPAP), in a statement, also said this landmark reform directly addresses key industry concerns, particularly by providing a long-term legal basis for work-from-home (WFH) and hybrid work arrangements for Registered Business Enterprises (RBEs) located in ecozones and freeports and addressing challenges on ease of doing business in the country encountered by RBEs that resulted from the promulgation of CREATE Law.
With CREATE MORE, IBPAP expects a more stable, cost-efficient, and investor-friendly ecosystem through more streamlined and clearer regulations that can reduce administrative burdens on IT-BPM RBEs.
READ ALSO: 5 important things to know about the CREATE MORE Law
IBPAP was heavily involved during the amendment process having been given adequate opportunities to present and discuss the industry’s views and insights on sections of the law that needed to be strengthened.
“We therefore laud this important development and recognize the invaluable collaboration among government leaders, Investment Promotion Agencies (IPAs), and industry stakeholders in refining the law,” the industry group said.
“We extend our deepest appreciation to Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go, Finance Secretary and Fiscal Incentives Review Board (FIRB) Chair Ralph Recto, Department of Trade and Industry (DTI) Secretary and FIRB Vice Chair Ma. Cristina Roque, whose leadership and commitment have been instrumental in ensuring that the CREATE MORE Act strengthens the ease and cost of doing business in the country. We also recognize the steadfast support of Senator Sherwin Gatchalian and Congressman Joey Salceda, listening to the industry’s views and sifting through our numerous position papers.”
BOI, PEZA
The IBPAP also commended the BOI and PEZA, for their “tireless efforts in advocating for the needs of IT-BPM companies, including the FIRB for ensuring wide consultation, during the drafting of the IRR—particularly in addressing longstanding challenges of IT BPM companies, not only about WFH, but more particularly with the BIR and LGUs related to availment of incentives and imposition of taxes, fees and other charges.”
“As the voice of the industry, IBPAP remains fully committed to supporting the proper implementation of CREATE MORE and ensuring that its provisions translate into tangible benefits for investors, enterprises, and the workforce. We will continue to work closely with government partners and stakeholders to make sure that the intent of the law is consistently interpreted and implemented on the ground and to operationalize this reform effectively, drive sustainable growth, and further solidify the Philippines’ position as a global leader in IT-BPM,” the group said.
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