DOF Touts CREATE Bill’s Role in Attracting Renewable Energy Investments in the Philippines
The Department of Finance (DOF) Secretary Carlos Dominguez III praises the role of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill in attracting investments for renewable energy in the Philippines.
According to Dominguez, the incentives offered in the pending tax reform legislation increases the probability of investments in clean energy production in the country as it is in line with the government’s recent ban on new coal-powered plants.
Dominguez states, “This, in conjunction with CREATE’s performance-based fiscal incentives, will steer private capital towards new investments in renewable energy.”
The bill aims to lower the corporate income tax rate by 25%, from its current 30%, while reforming the incentives regime by making them more performance-based and time-bound. The bill is part of the government’s efforts for economic recovery, which is currently held pending in the Senate.
The bill has several provisions that give generous and performance-based tax incentives under the Strategic Investment Priorities Plan which will soon include the renewable energy sector. The sector’s existing incentives will also be retained even after the approval of the bill.
Dominguez added that the bill will benefit companies involved in renewable energy through income tax deductions for research and development as well as deductions for training high-skills jobs.
Finance Assistant Secretary Maria Teresa Habitan also added that the bill offers double deductions against income for investments in training and research and development.
At present, DOF is reviewing the Philippine Energy Plan for the next two decades.