THE Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to enhance the competitiveness of the information technology and business process management (IT-BPM) industry, an industry association said.
“This landmark reform directly addresses key industry concerns,” according to an IT and Business Process Association of the Philippines (IBPAP) statement issued Thursday, in response to the signing of the law’s implementing rules and regulations (IRR).
In particular, the industry group said that the law provides “a long-term legal basis for work-from-home (WFH) and hybrid work arrangements for registered business enterprises (RBEs) located in economic zones (ecozones) and freeports.”
It added that CREATE MORE and its IRR will help address ease of doing business challenges encountered by RBEs following the passage of CREATE MORE’s precursor, the CREATE Law.
“With CREATE MORE, the IBPAP expects a more stable, cost-efficient, and investor-friendly ecosystem through more streamlined and clearer regulations that can reduce administrative burdens on IT-BPM RBEs,” it said.
Earlier this week, Secretary Frederick D. Go, the Special Assistant to the President for Investment and Economic Affairs said CREATE MORE allows investment promotion agencies (IPAs) that oversee ecozones to allow up to 50% WFH for their locators.
“IBPAP should be very happy with that outcome. And I have to tell you that when CREATE MORE was being drafted, there were many stakeholders who contributed their comments to the law. I would say that IBPAP was definitely one of the more active associations,” he added.
Prior to CREATE MORE, RBEs overseen by IPAs administering ecozones or freeports, such as the Philippine Economic Zone Authority (PEZA), were not entitled to incentives if their project or activity is conducted outside the geographical boundaries of the ecozone.
This has resulted in the transfer of some of the IT locators of PEZA to the Board of Investments (BoI), which allows 100% work flexibility.
“From a zero WFH baseline, I am sure our IT locators will be happy with the 50% allowable WFH arrangement under the CREATE MORE,” PEZA Director General Tereso O. Panga told BusinessWorld.
“The IT developers will benefit as well from this new policy given the expected increase in the take-up of office space by new and expanding PEZA RBEs,” he added. — Justine Irish D. Tabile