If you’ve been keeping an eye on economic developments in the Philippines, you’ve likely heard about the CREATE MORE Act. But what exactly is it, and how does it impact you as an investor? Let’s break it down in simple terms.
What is the CREATE MORE Act?
The CREATE MORE Act is officially known as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act—is an enhanced version of the earlier CREATE Act. Its main goal? To attract more investments, both locally and internationally, by providing better tax incentives and boosting the Philippines’ competitiveness on the global stage.
Key improvements include significant tax cuts, extended incentives for investors, and even allowing more flexibility for businesses in adopting remote work setups.
Key Provisions You Need to Know
Lower Corporate Income Taxes:
Companies now benefit from lower corporate tax rates. This means businesses have more money to reinvest, expand operations, and ultimately grow their profits.
Enhanced Tax Deductions:
Businesses, particularly in manufacturing and energy-intensive sectors, can claim bigger deductions on their energy costs. This helps reduce overall expenses, making businesses more sustainable and profitable in the long run.
Extended Tax Incentives:
If businesses commit to long-term investments, they can enjoy extended tax perks lasting up to 27 years. This provision encourages businesses to think long-term and invest significantly, boosting economic stability and growth.
Work-from-Home Flexibility:
Recognizing the new normal, the act permits certain companies to have up to 50% of their workforce work remotely without losing their tax incentives. This flexibility helps businesses remain competitive and adaptive in a changing work environment.
What Does This Mean for Investors?
As an investor, the CREATE MORE Act presents several exciting opportunities:
- Stronger Stock Market: With businesses becoming more profitable, their stocks often become more attractive investments.
- Increased Foreign Investments: Improved incentives are likely to attract foreign investors, strengthening industries such as manufacturing, infrastructure, and real estate.
- Higher Dividends: Lower corporate taxes mean companies may distribute more profits back to investors through dividends.
- Economic Growth: Overall economic growth, stimulated by increased investments, can raise demand for bonds, stocks, and other investment instruments.
How Unicapital Can Help You Navigate These Changes
Understanding new economic policies can be overwhelming, but that’s where Unicapital comes in. Specializing in Investment Banking and Treasury services, we help investors like you make the most of economic shifts:
- Expert Financial Solutions: Tailored strategies designed to maximize returns and manage potential risks.
- Market Insights: We provide comprehensive insights into current market trends, corporate finance strategies, and capital markets to help you spot lucrative opportunities.
- Trusted Partnership: Whether you’re an individual investor or running a business, we offer support and guidance to build long-term financial stability and success.
The CREATE MORE Act isn’t just another government policy—it’s your gateway to better investment opportunities. Let Unicapital help you unlock the potential of these changes.
Unicapital, Inc. is a full-service investment house licensed by the Philippine Securities and Exchange Commission and provides a wide array of finance and investment banking-related services.
