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CREATE-ing the new office landscape: Clarifications and implications of the Implementing Rules and Regulations


The Implementing Rules and Regulations (IRR) of Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed last June 21, 2021. To further expound on how the incentives set under the CREATE Act will be administered, the IRR outlined provisions such as the scope of the enhanced deductions, the items considered in the gross income in relation to the special corporate income tax (SCIT), and the sunset period for currently registered business enterprises. The IRR also requires the establishment of a one-stop shop center for all investment promotion agencies within one year from its effectivity to encourage a more efficient and cost-effective registration for investors.

With the effectivity of the IRR, key tax incentives enjoyed by various locators have been further clarified. In summary, below are some of its highlights and implications to various stakeholders:

  • The income tax holiday (ITH) shall be limited to the income generated by registered business enterprises from a registered project or activity.
  • The 5% special corporate income tax (SCIT) shall be based on the gross income and remitted as 3% to the national government and 2% to the local government.
  • Export enterprises may avail of the enhanced deductions or the SCIT rate (in no case, shall enhanced deductions be granted simultaneously with the SCIT).
  • Qualified expansion or new projects registered prior to the effectivity of CREATE have the option to reapply under CREATE upon the expiration of the sunset period.
  • Projects or activities relocating from the National Capital Region will also be entitled to additional three years of ITH.

Collier View

Following the effectivity of the IRR and the Revenue Regulations (RRs) released by the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR), registered business enterprises shall follow the following tax schedule:

CREATEing the New Office Landscape image


The IRR will help occupiers consider their options for their existing or future registered projects/activities. For example, additional tax holidays for locators who will completely relocate from Metro Manila and longer duration incentives for market activities in the countryside will encourage certain locators to start exploring and growing in provincial locations. Occupiers may also review their existing schedule of tax incentives to determine what to expect in the coming years and what the best option to maximize the benefits under CREATE is.

Moreover, Colliers anticipates that locating in PEZA ecozones will still be a top consideration for many registered enterprises such as those in the IT-BPM sector due to the latter’s affinity towards PEZA. Colliers along with various industry stakeholders eagerly anticipates the contents of Strategic Investments Priority Plan (SIPP), which will more clearly define (a) the priority projects or activities that are eligible or qualified to be granted incentives under CREATE and (b) the IPAs that certain projects/activities fall under or may apply with. The potential impact of the SIPP on the office supply and ecozones such as those of PEZA will be explored further in the next installment of this series as more information on the SIPP becomes available.

For more information on the office real estate market, please feel free to reach out to our Tenant Representation team.

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Dom Fredrick Andaya

Senior Director

Office Services


Dom began his career in Colliers International as a Research Assistant for the Research and Consultancy Division in February 2007.  In that capacity, he was responsible in gathering and organizing of data needed to generate commissioned market reports and quarterly release of The Knowledge, Colliers’ Market Review publication. 

He moved to Tenant Representation – Office Services Department in 2013. As a manager, he was tasked to handle various office space requirements of multinational clients. He was promoted to Associate Director in 2016 leading the Office Services team to hit the revenue target in the midst of leadership
transition. He started heading the Tenant Representation business as the Director in 2017 in charge of ensuring the growth and profitability of this business line. He helped the team stabilize in 2017 amidst market slowdown due to geopolitical concerns that affected the offshoring and outsourcing growth in the country and still achieved 18% profitability.

In 2018, he led the Tenant Representation to exceed the revenue target by 60% and achieve a 48% profit margin.

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