By Mon Abrea

The article of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) marks another turning point in the Philippines’ ongoing effort to modernize its tax system, make it more investor-friendly, and align it with global standards. Building on the foundational reforms introduced through CREATE, this new legislation not only rationalizes incentives and improves clarity but also responds directly to the main concerns of foreign investors and multinational corporations (MNCs).

In our series of international roadshows last year — covering over 15 countries and engaging hundreds of business leaders, embassies, and chambers of commerce — two persistent themes emerged: the need for better taxpayer support for registered business enterprises (RBEs) and the urgent resolution of VAT refund issues. CREATE MORE addresses, thanks to the collective insight of our global partners.

As part of this continuing effort, the Asian Consulting Group (ACG) actively collaborates with key government agencies, especially the Senate Ways and Means Committee and the Senate Tax Study and Research Office, to shape responsive and strategic tax policy reforms. The roadshow’s success was made possible through the strong support of the Department of Trade and Industry (DTI), Board of Investments (BoI), Philippine Economic Zone Authority (PEZA), and Philippine Trade and Investment Centers (PTIC) across Asia, Oceania, the Middle East, Europe, the United States, and Canada, along with our Philippine Embassies and Consulate General Offices. It was also driven by partnerships with foreign chambers and leading business organizations in Manila and across the globe. This unprecedented collaboration demonstrates the Philippines’ unified commitment to enhancing investor confidence and creating a globally competitive tax environment.

1. Establishment of the RBE Taxpayer Service

One of the most welcomed features of CREATE MORE is the institutionalization of a dedicated RBE Taxpayer Service. For years, foreign investors and locators in Philippine economic zones voiced their frustration over inconsistencies in tax administration, delays in rulings, and a lack of a centralized point of coordination with the BIR.

The RBE Taxpayer Service is a direct response to this concern. It creates a specialized unit within the Bureau of Internal Revenue (BIR) tasked exclusively with handling the tax-related needs of registered business enterprises, particularly their filing and payment obligations. This service will:

• Provide streamlined support and guidance for compliance with tax and incentive regulations;
• Facilitate prompt resolution of interpretative or procedural issues;
• Ensure a consistent application of laws and policies across all regional BIR offices;
• Improve coordination with investment promotion agencies (IPAs) to reduce red tape and regulatory ambiguity.

This measure ensures that investors who bring capital, innovation, and employment to the country are treated as partners in economic development, not as adversaries in a complex bureaucracy.

2. Creation of a VAT Refund Center

Another breakthrough under CREATE MORE is the creation of a centralized VAT Refund Center within the BIR and Bureau of Customs (BOC) that will handle the electronic processing and granting of cash refunds for creditable input VAT. This addresses the issue of delayed, denied, or excessively burdensome VAT refund processes, which have long been cited by foreign chambers and companies as a deterrent to investing in the Philippines. This was one of the most frequently raised concerns during our 2024 international engagements.

The VAT Refund Center aims to:

• Centralize and fast-track the processing of VAT refund claims, especially for REEs and RBEs;
• Adhere to a strict 90-day processing timeline, with accountability mechanisms to prevent undue delays;
• Ensure transparency and automation in claim tracking, reducing discretionary power and opportunities for corruption.

This reform brings the Philippines closer to global best practices, where a functioning VAT refund system is standard. It also improves cash flow for exporters and MNCs, helping them reinvest more efficiently into operations and job creation.

A Responsive, Investor-Centered Reform

CREATE MORE is more than just a tax measure. It is a reflection of the Philippine government’s responsiveness to the business community, particularly foreign investors, who have shown continued confidence in the country’s potential despite global headwinds.

As we continue to champion good governance and global competitiveness, we must listen to stakeholders on the ground. The inclusion of the RBE Taxpayer Service and VAT Refund Center in CREATE MORE proves that meaningful reform happens when dialogue, data, and direction converge.

For investors looking to do business in the Philippines, this is a strong signal: We hear you, and we are building a better investment climate — with you as partners.

If you have tax issues in the Philippines, CONSULT ACG — email us at consult@acg.ph or visit www.acg.ph for more tax updates. You may also follow ACG on LinkedIn and social media: @consult.acg!

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Mon Abrea, CPA, MBA, MPA, is the Chief Tax Advisor of the Asian Consulting Group (ACG) and the Philippines’ foremost advocate of genuine tax reform. A Harvard graduate who also completed an executive program on Climate Policy at Oxford, he advises governments, multinational corporations, and global institutions on tax policy, governance, and sustainable investment. He has delivered investment and tax briefings in over 50 countries and states across Asia, North America, Europe, Australia, and the Middle East. He also hosts the podcast Thought Leaders and Game Changers, where he speaks with global experts on taxation, sustainability, and innovation. Follow him: @askthetaxwhiz.

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