CREATE MORE (RA 12066): What Changed for Registered Businesses
Editor's note: This article covers a field in which the site's operating company has business interests. It is compiled from publicly available and primary sources.
The law
Republic Act No. 12066, known as CREATE MORE, was approved on 8 November 2024 (the ceremonial signing on 11 November 2024 is a separate, later date — both circulate in reporting, but the approval date on the enrolled bill is 8 November). It amends Title XIII of the National Internal Revenue Code (NIRC), tightening and clarifying the incentive package that followed the original CREATE Act.
A citation trap worth knowing: CREATE MORE is itself an amending law. Its own sections (§17, §18, §20, §21, §25, §29...) are not where the substantive incentive rules live — they renumber and rewrite specific NIRC sections. For example, CREATE MORE §29 amends NIRC §311 (extending the 5% Gross Income Tax option for pre-CREATE registered enterprises to 31 December 2034). Citing "CREATE MORE §311" is a category error that appears often even in professional commentary — the correct citation is "RA 12066 §29, amending NIRC §311."
What registered business enterprises (RBEs) actually get
| Incentive | Terms |
|---|---|
| Income Tax Holiday (ITH) | 4–7 years, extendable to a maximum of 10 years depending on conditions |
| Special Corporate Income Tax (SCIT) / Enhanced Deductions Regime (EDR) | Export enterprises: up to 14–17 years total; FIRB-approved projects: up to 24–27 years |
| Enhanced Deductions | 50% additional deduction on labor cost, 100% on R&D, plus deductions for training, domestic inputs, power expense, and a reinvestment allowance (up to 50% over 5 years) for manufacturing |
| Local business tax (RBELT) | Local government units may charge a consolidated local tax capped at 2% of gross income, replacing the previous patchwork of local taxes |
| VAT and customs | Zero-rated VAT on local purchases and VAT/duty exemption on imports during the registration period, subject to a 70% export-ratio requirement |
A common misreading: a registered enterprise that elects the Enhanced Deductions Regime pays 20% corporate income tax on registered activity income, instead of the standard 25% — but this is not a general corporate tax cut. Outside of that specific EDR election (or the separate small-domestic-corporation bracket), the standard rate remains 25%. "CREATE MORE brought corporate tax down to 20%" is a frequent but incorrect simplification.
What's unresolved as of August 2026
The Philippines has not yet enacted a Pillar Two global minimum tax (15%) or a Qualified Domestic Minimum Top-up Tax (QDMTT). The BIR is reportedly preparing groundwork (BusinessWorld, 12 June 2026; PNA, 11 June 2026), and commentary suggests multinationals may increasingly find paying the 15% floor more attractive than chasing Philippine incentives once such a tax exists — but as of August 2026 no such legislation has passed. Treat this as a live risk factor, not a settled rule.
Primary sources: Republic Act No. 12066 full text (LawPhil, "Approved: NOV 08 2024"); National Internal Revenue Code Title XIII as amended; PwC Philippines tax summaries (last confirmed 1 August 2026).
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