Understanding the CREATE MORE Bill (2024)

update: APRIL 11, 2025

The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill is a significant legislative effort aimed at revitalizing the Philippine economy. Recently passed by the Senate on September 10, 2024 and signed into law on November 11, 2024. This bill introduces several key measures designed to attract investments, support businesses, and create jobs. Let’s dive into the highlights, particularly focusing on the requirements for the BPO sector and the new tax reductions and incentives.

Bringing Back the BPO Workforce

One of the notable provisions of the CREATE MORE bill is the requirement for Business Process Outsourcing (BPO) companies to have at least 50% of their workforce back in the office. This move aims to balance the benefits of remote work with the need for in-person collaboration and office space utilization. Here are the key points:

• 50% Onsite Requirement: BPO companies are required to ensure that at least 50% of their employees work from the office. This provision is designed to support the office space market and foster a collaborative work environment1.

• Flexibility for BPOs: While the bill mandates a partial return to the office, it still allows BPOs to implement up to 50% work-from-home (WFH) arrangements. This flexibility helps companies adapt to modern work trends and employee preferences1.

  
  

New Tax Reductions and Incentives

The CREATE MORE bill also introduces several tax reductions and incentives to make the Philippines a more attractive destination for investments. Here are the key highlights:

• Lower Corporate Income Tax: The bill reduces the corporate income tax rate from 30% to 25% for large corporations and to 20% for micro, small, and medium enterprises (MSMEs). This reduction aims to ease the financial burden on businesses and encourage growth2.

• Enhanced Deductions: Businesses can benefit from additional deductions, such as a 100% additional deduction on power expenses and a 50% additional deduction for reinvestment in the tourism industry. These measures are designed to support specific sectors and promote reinvestment2.

• Simplified Tax Process: The introduction of the Registered Business Enterprise Local Tax (RBELT), capped at 2% based on gross income, simplifies the tax process for businesses. This means businesses will pay a single tax instead of multiple local taxes, reducing administrative burdens2.

• VAT Zero-Rating and Exemption: The bill provides clarity on VAT zero-rating for local purchases and VAT exemption on the importation of goods and services. This measure aims to reduce costs for businesses and attract more foreign direct investments (FDIs)2.
  

Economic Impact

The CREATE MORE bill is expected to create a ripple effect that includes job generation, improved living standards, lower prices for goods and services, and enhanced infrastructure. By making the Philippines a more attractive destination for investors, the bill supports the country’s economic growth and recovery.

This comprehensive approach of the CREATE MORE bill aims to strike a balance between supporting businesses and ensuring economic stability. By mandating a partial return to the office for BPOs and introducing significant tax reductions and incentives, the bill sets the stage for a more robust and resilient Philippine economy.

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