Philippines: New laws boost jobs, tax incentives for WFH

MANILA – The Philippines has enacted two laws that aim to bolster local talent and businesses.

First, the EBET Act formalises a national training framework for upskilling underemployed Filipinos. Second, the CREATE MORE Act is an enhanced tax regime and incentive system for businesses, including those offering work-from-home options.

Better training. Better employment?

Republic Act 12063, or the EBET Act, is designed to “strengthen apprenticeship programmes,” which seek to close the gap between available jobs and the competencies of the local workforce, the government news agency PNA first reported.

EBET, which stands for enterprise-based education and training, offers practical skills training to jobseekers looking for immediate entry-level or mid-career employment.

Philippines President Ferdinand Marcos Jr. said the government will collaborate with the private sector “to align our training programmes with real-world industry needs”.

Also Read: Job satisfaction among Filipinos rises 25%

At the ceremonial signing, Marcos expressed confidence that the framework will address the current mismatch in workers’ skills and job opportunities to ensure “every Filipino can contribute and benefit from our nation’s growth”.

A unified training and development programme will streamline a variety of approaches to apprenticeship, employee training, and career development.

“By opening pathways to professional growth, employment opportunities, and entrepreneurship, we are answering the call for quality employment and fostering a globally competitive workforce,” Marcos said.

Tax incentives for businesses, including those with work-from-home setups

The Marcos administration has also introduced a new set of business tax incentives under Republic Act 12066, also known as the CREATE MORE tax framework.

CREATE MORE, which stands for Corporate Recovery and Tax Incentives for Enterprises to Maximise Opportunities for Reinvigorating the Economy, supersedes the earlier CREATE law, which aimed to cut down the tax rates of businesses affected by the COVID pandemic.

Also Read: Philippine pension fund CEO resigns

Under CREATE MORE, registered businesses can opt for either a special corporate income tax of 5% or an enhanced deductions regime.

The new law also supports employers within established “special economic zones” in the Philippines who offer a remote work setup for their staff.

“In recognition of emerging work arrangements globally, this legislation also provides registered business enterprises the flexibility to implement Work-from-Home arrangements for up to half of their workforce, all without jeopardising their eligibility for incentives,” Marcos said.

“By doing this, we position the Philippines as a forward-thinking, agile economy – one that is ready to meet the demands of the digital age.”

The president believes CREATE MORE makes the Philippines more attractive to investors “while remaining steadfast in the principles of fiscal prudence and stability”.