How the Income Tax Holiday works under CREATE MORE, who can qualify, and why it relieves a registered enterprise’s own tax — not the cost of buying software.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

The Income Tax Holiday (ITH) relieves a registered enterprise of corporate income tax for a set period — a benefit on the enterprise’s own tax, not a payment for buying software.

What the scheme actually gives

  • 4 to 7 years of ITH under CREATE MORE, depending on location and the SIPP tier of the activity.
  • Granted to registered business enterprises through an Investment Promotion Agency (such as PEZA or the BOI) for a SIPP-listed activity.
  • Followed by the 5% SCIT or the Enhanced Deductions Regime once the ITH ends.

Does it fund buying AI software?

The ITH relieves tax on the registered activity; it does not refund a company the cost of an AI subscription. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax incentives, grants, rules and rates change, and only the relevant authorities (among them the National Privacy Commission, the Bureau of Internal Revenue, PEZA, the Board of Investments, the Bangko Sentral ng Pilipinas and the SEC) decide eligibility and awards. dgm is not a registered business enterprise, accredited incentive provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in the Philippines adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.