THE Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is anticipated to reinforce the competitiveness of the data technology and business process management (IT-BPM) industry, an industry association said.
“This landmark reform directly addresses key industry concerns,” in accordance with 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).
Particularly, 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) situated 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 may 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 permit as much as 50% WFH for his or her locators.
“IBPAP must be very completely happy with that consequence. And I actually have to inform you that when CREATE MORE was being drafted, there have been many stakeholders who contributed their comments to the law. I’d say that IBPAP was definitely one in every of the more energetic associations,” he added.
Prior to CREATE MORE, RBEs overseen by IPAs administering ecozones or freeports, similar to the Philippine Economic Zone Authority (PEZA), weren’t entitled to incentives if their project or activity is conducted outside the geographical boundaries of the ecozone.
This has resulted within the transfer of a few of the IT locators of PEZA to the Board of Investments (BoI), which allows 100% work flexibility.
“From a zero WFH baseline, I’m sure our IT locators will probably be completely happy with the 50% allowable WFH arrangement under the CREATE MORE,” PEZA Director General Tereso O. Panga told BusinessWorld.
“The IT developers will profit as well from this latest policy given the expected increase within the take-up of office space by latest and expanding PEZA RBEs,” he added. — Justine Irish D. Tabile
