An empowered Tax Incentive that will boost Work-from-Home flexibility for companies.

The House of Representatives is aiming to forward its endorsed version of proposed changes to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to the Senate by the conclusion of November, according to a House leader's statement on Tuesday.

Joey Salceda, chair of the House Ways and Means Committee, mentioned during the hearing that the proposed amendments embodied in the CREATE MORE bill aim to "enhance the tax incentives system's adaptability to the global market and boost global competitiveness."

This proposal, Salceda noted, aligns with President Ferdinand R. Marcos' instruction to address concerns raised by investors regarding the existing law and its implementation.

"We plan to send our version to the Senate by the end of November. We will also greenlight this in the Committee next week. We were set to do it today, but the Office of the President requested a bit more time to finalize its comments," he stated.

Salceda shared that the House's bill would address concerns related to the value-added tax (VAT) rate and refunds, particularly for exporters.

Among the key enhancements are the reduction of the corporate income tax to 20 percent for those under the enhanced deduction regime, a 200 percent deduction for power costs, which can be accumulated during an income tax holiday (ITH), a 200 percent deduction for trade fair and trade mission expenses, and the application of Net Operating Loss Carryover five years after the ITH period.

He added that the proposal includes a uniform 1.5 percent registered business enterprise local tax (RBELT) to be collected by investment promotion agencies "instead of all local impositions" to streamline interactions with local government units.

The plan also introduces a special skills visa for highly technical personnel employed in registered business enterprises, while allowing the Information Technology Business Process Outsourcing sector to fully embrace work-from-home schemes.

Salceda emphasized that the committee "wholeheartedly supports" the President's directive to "wind down" the power of the Fiscal Incentives Review Board, shifting it back to Investment Promotion Agencies to grant and approve incentives.

"The President wants to make the approval process more responsive. And we agree fully. So, the Committee has reverted the power to grant and approve incentives to the Investment Promotion Agencies," he explained.

The panel is contemplating the removal of the proposed motu proprio power of the President to grant tax incentives, aiming to maintain the spirit of a performance-based and standards-based tax incentives system.

Salceda also expressed the committee's intention to strengthen the Fiscal Incentives Review Board's power to recommend policies against the misuse of fiscal incentives for smuggling and tax evasion.

Source: PNA

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