FIVE Japanese firms are waiting on the passage of a bill that will amend the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act before making expansion decisions, the Department of Trade and Industry (DTI) said.
Speaking via Viber, Acting Trade Secretary Cristina A. Roque said five Japanese companies she met on a business mission to Tokyo last week were eager to know the final details of the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill.
“They expressed that the Philippines is very important for them now, and that their business with the Philippines is growing. They look forward to more investments in our country,” Ms. Roque said.
She identified the five companies as the Japan Institute of Design and Promotion, Itochu Corp., MinebeaMitsumi, Inc., AEON Retail Co., Ltd., and Marubeni Corp.
“The CREATE MORE bill’s passage is a significant step towards improving the ease of doing business in the Philippines. We are confident that it will boost investor confidence and attract more foreign direct investment,” Ms. Roque said.
The Senate last week adopted and ratified a bicameral conference committee report on the CREATE MORE bill, which seeks to lower taxes on domestic and foreign companies to 20% from 25%.
Apart from lowered taxes, the bill also seeks to return to investment promotion agencies the power to approve or deny tax incentives up to a certain threshold and to provide a 100% deduction on power expenses incurred in a taxable year to address high power costs.
The bill will also impose a cap of 2% on registered business enterprise (RBE) local taxes based on gross income. RBEs will also be allowed to have a work-from-home setup for up to half of their workforce without losing their incentives.
In a separate statement, the DTI said that Itochu was encouraged to explore the development of new Philippine products for export, such as processed foods, fresh fruit, and Halal-certified products.
Itochu expressed plans to increase production and procurement of Philippine food products like dried mango, banana puree, and other processed fruits. — Justine Irish D. Tabile