- The CREATE MORE law has been in effect for six months, attracting foreign investors.
- It introduced an incentive framework for Registered Business Enterprises (RBEs) under Investment Promotion Agencies (IPAs).
- RBEs are classified into three categories: Registered Export Enterprises (REEs), High Value Domestic Market Enterprises (HVDMEs), and Domestic Market Enterprises (DMEs).
- REEs and HVDMEs registered with an IPA receive VAT and duty-free importation incentives, while DMEs only receive duty-free importation.
- DMEs cater to the domestic market and do not meet the export or capital investment thresholds of REEs and HVDMEs.
- CREATE MORE dissolved the previous “cross-border” zone incentives, now granting them based on actual economic contribution.
- RBEs can sell to the domestic market, and these sales are subject to VAT.
- For business-to-business transactions, the buyer is responsible for remitting VAT.
- For business-to-consumer transactions, the seller remains responsible for VAT remittance.
Source: businessmirror.com.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
