Document background
A Tax Abatement Agreement is a key instrument in the Philippine investment promotion framework, used to formalize tax incentives granted to qualifying investors and businesses. This document type is particularly relevant when local government units or national investment promotion agencies seek to attract significant investments in priority sectors or areas. The agreement typically follows the provisions of the CREATE Law, Local Government Code, and relevant investment regulations, detailing specific tax relief measures, duration of benefits, and performance requirements. The Tax Abatement Agreement serves as a legally binding contract that protects both the interests of the government in ensuring economic development goals are met, and the investor in securing promised tax benefits, while establishing clear compliance and monitoring mechanisms.
