The BoI says 12 projects are eligible to switch to the CREATE MORE principle

The Board of Investment (BoI) said it lists 12 registered projects as eligible to be transferred to the incentive program provided by the Corporate Recovery and Tax Incentives for Enterprises to Expand Opportunities for Economic Recovery (CREATE MORE) Act.

In an advisory dated December 18, the BOI said 12 eligible registered enterprises (RBEs) with current projects with an investment capital of more than P15 billion registered during the operation of the CREATE Act, a precursor to MORE CREATION.

BoI Managing Head and Trade Undersecretary Ceferino S. Rodolfo said the law requires RBEs to submit an affidavit of intent to transfer and apply before December 31.

“In our records there are 12 companies with investments of more than P15-billion registered and now they can transfer to the CREATE MORE government,” said Mr. Rodolfo in an online forum on Thursday.

“We do not yet have the numbers of those who want to move from CREATE to CREATE MORE, but discussions are still ongoing,” he added.

He said the enhanced CREATE MORE incentives will have a major impact on those projects that cost more than P15 billion, as they will have to go through the Fiscal Incentives Review Board (FIRB).

Under the law, projects approved by the FIRB can enjoy a long period of incentives ranging from 24 to 27 years depending on the level of industry and location of the project.

The advisory also set a similar deadline for pre-CREATE projects seeking to transfer to the CREATE Act program. According to the BOI, there are 275 pre-CREATE projects that may be eligible to receive the CREATE regime.

Out of the 275 RBEs, 119 are working but have not yet received the income tax holiday (ITH) compensation, while 156 RBEs have not started working and therefore have not received the ITH incentive.

Meanwhile, 82 RBEs registered before CREATE have indicated an intention to transfer as of Dec. 19.

In a memorandum circular in May, the BOI said that pre-Creation projects with approved referrals for registration in the CREATE program will have to meet performance standards that include investment capital, job creation, export limits, and technical requirements.

Other performance obligations include related sales limits, minimum tax payments, home purchase requirements, service quality, and other standards to be set by the investment promotion agency or FIRB.

Meanwhile, Mr. Rodolfo said that the BOI, despite it strong investment pressure, it will always be prudent to provide financial incentives.

“In the pursuit of industrial development through the use of financial incentives as one of the tools to attract investors, we have been strong partners of the Ministry of Finance and FIRB in ensuring that we maintain the health of government funds,” he said.

“In this case, the BoI makes sure that in implementing CREATE transfer provisions, there will be no double dipping in all incentive regimes, and only those who are considering CREATE incentives and those who really need these will be allowed to transfer,” he added.

According to the BOI, applications with affidavits of intent submitted after the deadline will not be considered. It said that scanned copies can be emailed to lcssubmission@boi.gov.ph, pending the original copies being sent. – Justine Irish D. Tabile