THE Fiscal Incentives Review Board (FIRB) has hiked the investment capital threshold for projects handled by investment promotion agencies (IPAs) from P1 billion to P15 billion.
Under the previous setup, IPAs were responsible for approving incentives for projects with investment capital below P1 billion, while the FIRB was tasked with selecting tax perks for projects exceeding P1 billion, as mandated by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
Those that exceed P15 billion will continue to fall under the FIRB’s purview, the Department of Finance said.
The recent adjustment aligns with policy proposals in Congress, which aim to empower IPAs with greater authority in granting incentives.
All pending applications for tax incentives previously referred to the FIRB but do not meet the investment capital threshold will be returned to the IPAs.
The move is expected to usher in more critical investments into the country.
Data showed that total investment capital from approved priority activities with incentives under the CREATE Law has reached P 1.1 trillion as of the end of 2023. (ABS-CBN News)
