DTI opens exporters’ certification for CREATE MORE incentives

MANILA, Philippines — The government is extending incentives under the CREATE MORE Act to export-oriented enterprises (EOE), according to the Department of Trade and Industry.

In a social media post, the DTI – Export Marketing Bureau (EMB) said that it is now accepting applications for the EOE certification under Republic Act 12066.

Under the CREATE MORE Act, an EOE engaged in export activities and with export sales accounting for at least 70 percent of their total annual production for the preceding taxable year may apply for certification from the DTI-EMB to avail themselves of fiscal incentives such as the value-added tax (VAT) zero-rating on sales and services and VAT exemption on imports of goods.

Signed into law last year, the CREATE MORE Act enhances the country’s incentives system.

“Application and issuance of the EOE certificate is free,” the DTI-EMB said.

Under DTI Department Administrative Order 25-03 signed on March 28, the exporters should submit documentary requirements including copies of the Bureau of Internal Revenue (BIR) certificate of registration; interim financial statement for the first nine-month period; audited annual financial statement with annual income tax return; Bureau of Customs (BOC) certificate of registration as an exporter; original copy of bank of certification of inward remittance; summary of export remittances; summary of export sales; schedule of offsetting of receivables and payables including agreements or correspondences; export documents; and notarized affidavit executed by the EOE owner or president or finance officer attesting that the export sales for the preceding taxable year are at least 70 percent of the total annual production.

The CREATE MORE certificate will be valid until the end of the applicable taxable year adopted by the EOE.

The DTI-EMB may revoke the CREATE MORE certificate should the EOE fail to submit the certified true copy of the audited financial statement on or before five working days after the last day of filing of income tax return with the BIR.

Failure to meet the 70 percent export sales threshold is also a ground for revocation of the CREATE MORE certificate.

A master list of all EOEs issued with the CREATE MORE certificate will be submitted by the DTI-EMB to the Department of Finance, BIR and BOC.

The master list will be updated every month.