NextGen Day

MANILA, Philippines — The Philippine government is providing considerable tax incentives for new technology investments through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

Department of Trade and Industry (DTI) Undersecretary Rafaelita Aldaba said the CREATE Law is aligned with the agency’s industrial policy by promoting investments that will push for a fourth industrial revolution at a forum hosted by the European Chamber of Commerce of the Philippines (ECCP) on Friday.

“The Corporate Recovery and Tax Incentives for Enterprises Act provides support measures for innovative projects that businesses can use as part of their industrial transformation plans,” she explained.

Tier 3 activities, according to Aldaba, are given the longest income tax holiday (ITH), a special corporate income tax (SCIT) of 5% for export firms, and greater deductions under the CREATE Law.

Export firms that invest in tier 3 activities within Metro Manila are eligible for six years of ITH and seven years of ITH outside Metro Manila, as well as an additional ten years of increased deductions and SCIT.

The government grants six years of ITH for investments in the National Capital Region (NCR), seven years for investments outside the NCR, and five more years for improved deductions and SCIT for domestic market activities.

Tier 3 investments include those that adopt advanced fourth-industrial-revolution digital production technologies, produce equipment, parts, and services that embed new technologies, and engage in research and development (R&D) activities and commercialization of R&D, all of which help to accelerate innovation and “increase the added value on products and services.”

Robotics, industrial biotechnology, additive manufacturing, photonics, advanced materials, nanotechnologies, advanced manufacturing, artificial intelligence, mobility, blockchain, cybersecurity, satellite technology, big data, Internet of Things, augmented and virtual reality, micro and nanoelectronics, and cognitive technology are among the areas in which investments are being made.

Aldaba also urged businesses, particularly micro and small businesses, to use new technologies to better their operations.

“As expected,” she continued, “micro and small businesses had the lowest technology utilization scores.”

Barriers to small-scale enterprises investing in new technologies, according to the trade official, include a lack of financial capabilities, market conditions, weak digital infrastructure, and a lack of skills, knowledge, and competence.

“New technologies like AI are here to create new employment, transform the way work appears, augment human intelligence and talents, and make our workplaces safer,” Aldaba continued.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---