The Subic Bay Metropolitan Authority (SBMA) anticipates increased global investments following the signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, or Republic Act 12066.
SBMA Chairman and Administrator Eduardo Jose L. Aliño expressed optimism that Subic Bay Freeport (SBF) will become a prime investment hub with the implementation of the law. This statement came after Finance Secretary Ralph Recto and Department of Trade and Industry Secretary Ma Cristina Roque signed the implementing rules and regulations (IRR) of the CREATE MORE Act on February 17, 2025.
Senator Sherwin Gatchalian, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, and National Economic and Development Authority Secretary Arsenio Balisacan witnessed the signing.
Aliño welcomed the signing of the IRR, noting that it would help attract more foreign companies to invest in Subic Bay Freeport by clarifying provisions for smoother implementation. The law provides investors with the option of a 5% Special Corporate Income Tax or Enhanced Deductions and offers more incentives for high-value investments with capital over P15 billion, particularly in sectors like import-substitution or export sales.
Additionally, the CREATE MORE Act reduces the Corporate Income Tax rate for Registered Business Enterprises (RBEs) from 25% to 20% and increases the additional deduction for electricity from 50% to 100%. It also includes a 50% deduction for tourism-related investments in SBF for trade fairs and tourism reinvestments until 2034.
The law also introduces a new framework for the Net Operating Loss Carry-Over, changes VAT policies, and provides tax and duty exemptions for donations to public schools and government entities. Furthermore, it offers flexible work arrangements for call centers within economic zones without compromising tax incentives.
With these provisions, SBMA expects substantial growth in investments and economic activity in Subic Bay Freeport.
