McDonald’s recognized for exemplary tax compliance in Manila
In the recent Gawad Manileno 2024, George T. Yang’s Golden Arches Development Corporation or McDonald’s in Philippines, was recognized as one of the “Natatanging Tagapagbayad ng Buwis Para sa Negosyo.” This accolade highlights McDonald’s commitment to responsible business practices, particularly in its diligent tax compliance.
This recognition, given on a ceremony held June 17 at the Metropolitan Theater, showcases the company’s dedication to operating responsibly and in full compliance with the country’s laws.
McDonald’s sees this award as a significant milestone that reflects its dedication to corporate responsibility. The company believes in partnering with local communities where its stores operate, aiming to spur economic growth through employment and other community partnerships. Such recognitions help build trust among stakeholders, reinforcing McDonald’s reputation as a valued community partner.
To ensure diligent tax payment, McDonald’s employs several key strategies. These include understanding business tax obligations and their deadlines, prompt filing and payment of business taxes, and considering tax savings or discounts. These stringent processes help the company maintain its commitment to being a responsible taxpayer.
Paying taxes diligently not only strengthens McDonald’s reputation but also promotes stronger relationships with the local community in Manila. Being recognized as a responsible taxpayer builds trust, which in turn allows for sustainable business operations. This mutual trust is essential for reinforcing McDonald’s role as a valued partner in the community.
Despite the recognition, maintaining compliance with tax regulations is not without its challenges. For instance, some local government units (LGUs), excluding Manila, use a presumptive income level assessment approach. This can pose difficulties in timely tax payments.
However, McDonald’s addresses these challenges by presenting supporting documents and sales machine reports to demonstrate accurate sales data for their business tax calculations. This proactive approach ensures compliance and promotes good relationships with various LGUs.
McDonald’s tax contributions play an important role in local development and public services in Manila. These contributions provide the government with necessary resources to fund infrastructure projects and public service programs, which benefit the community at large.
Beyond tax contributions, McDonald’s engages in numerous corporate social responsibility initiatives aimed at improving the lives of Filipinos. In every McDonald’s store that opens, the company is able to serve employment opportunities—from directly hiring its crew, to partnerships with the government on hiring marginalized youth through SPES, and hiring of senior citizens and PWDs.
Aside from employment generation, McDonald’s is committed to supporting children’s well-being through education. Notable programs include McClassroom, which turns McDonald’s party areas into conducive study spaces for students and teachers; and ReClassified, which upcycles delisted store furniture into desks and chairs for public schools
Other programs include Tulong Brigada, which supports the Department of Education’s annual Brigada Eskwela by sending employee volunteers to help prepare public schools for the coming school year; and finally, the McDonald’s Kindness Kitchen which provides hot meals to a community in need and supports families during difficult times, such as typhoons; and supporting programs of the Ronald McDonald House Charities.
To ensure transparency and accountability in its financial practices, McDonald’s implements clear and accurate financial reporting per branch, strong internal controls, and regular audits. These practices are crucial for building brand trust and maintaining the company’s integrity.
For other companies striving to improve their tax compliance and corporate responsibility, McDonald’s advises staying updated on guidelines is also essential to ensure accuracy and compliance.
Looking ahead, McDonald’s plans to continue its commitment to diligent tax payment by partnering with local government units for initiatives like automating permits applications and digital tax payments. Additionally, the company remains dedicated to supporting local communities through impactful initiatives and programs that promotes the growth and well-being of Filipino families.
