PH adds shipbuilding sector in CREATE Act to attract investors
The Philippine government included the shipbuilding sector among the industries that could enjoy the economic benefits of the newly implemented Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
This move was created as the country rolls out various measures to revive the shipbuilding and ship repair sector in the Philippines and attract foreign investors.
In a recent Philmarine 2021 virtual conference, the Department of Trade and Industry (DTI) Chief Investments Specialist on Shipbuilding Reynaldo Lignes has explained the industry benefits of the law.
Under the CREATE Act, foreign-owned shipbuilding companies could now cater to the domestic market, are entitled to a reduced corporate income tax rate of 25% for both foreign and domestic shipyards, and will be exempted from import duties for capital equipment, raw materials, spare parts, accessories, and Value Added Tax (VAT).
The application of these incentives to the industry is “timely” as the Philippines is under significant domestic demand for ships due to a decision by the Maritime Industry Authority (MARINA) to phase out wooden-hulled boats.
