Duterte OKs list of economic activities eligible for tax perks

President Rodrigo Duterte has approved the country’s first list of economic activities that can avail of tax incentives under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Law.,Dubbed the 2022 Strategic Investment Priorities Plan, the list was contained in Memorandum Order 61 which was signed by Executive Secretary Salvador Medialdea last Tuesday on behalf of the President.,Copies of the order were sent to reporters Thursday afternoon.,Included in the list of priority activities eligible for government tax and fiscal incentives were those related to pandemic response, like manufacturing medical supplies and tools, as well as essential services like quarantine and test facilities, health waste treatment, and crematoriums.,Activities related to employment opportunities can also avail of tax perks like the creation of industrial goods and processing of agricultural and fishery products, as well as strategic services like integrated circuits design, creative and knowledge-based services, maintenance, repair and overhaul of aircraft, charging and refueling stations for alternative energy vehicles, industrial waste treatment, telecommunications, and state-of-the-art engineering, procurement, and construction.,Other items included in the plan were healthcare and disaster risk reduction management services like the establishment of hospitals, drug rehabilitation, and evacuation centers; mass housing; infrastructure and logistics including public-private partnerships implemented by local governments; inclusive business models like the activities of medium and large enterprises in agribusiness and tourism sectors.,Also eligible for tax perks were activities related to the creation of environmentally-friendly products, support for vaccine self-reliance programs, defense, and food security.,Research and development activities that were seen to attract technology investments may also avail incentives.,The items under research and development activities include the adoption of advanced digital production technologies such as robotics, data analytics, and artificial intelligence; highly technical manufacturing and production of innovative products, and commercialization of intellectual property.,It also includes activities related to aerospace, internet of things devices and systems, full-scale water fabrication, and advanced materials; and the establishment of innovation support families like research and development hubs and science and technology parks.,The CREATE Act signed by Duterte in 2021 mandates agencies administering tax perks and the private sector to formulate the strategic investment priority plan and submit it to the President for approval.,Under the new memorandum, Duterte directed all agencies to issue the necessary regulations to ensure the implementation of the plan.,He also instructed investment promotion agencies to facilitate and expedite the setting up and conduct of registered projects or activities through a one-stop action center.,Local governments and other agencies are expected to coordinate with investment promotion agencies to comply with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, Duterte added.,The President said his order would take effect 15 days after its publication in a newspaper of general circulation or the Official Gazette.