Good investment ambiance better than CREATE MORE

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What foreign corporate decision-makers look for in deciding whether to make a direct investment in a developing country is the country’s overall

investment ambiance.

CREATE’s most important provision was the reduction to 25 percent from 32 percent of the corporate income tax ; its other provisions with intended to simplify the availment and computation of tax incentives, such as corporate tax reductions. CREATE MORE, enrolled as R.A. No. 12066, offers many more perks to business enterprises registered with the Board of Investments and the Philippine Economic Zone Authority . To facilitate the capital investment approval process, only projects exceeding P15 billion henceforth will undergo review by the Fiscal Incentives Review Board ; the previous threshold was P1 billion.

CREATE and CREATE MORE are generous pieces of legislation. Together, they greatly enhance the prospects of RBEs’ being able to operate profitably. Indeed, offering RBEs many more fiscal perks will bring the government close to the point of giving away the store.

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