DOF set to form group to ease investor tax, nontax concerns
The Department of Finance (DOF) will establish a multisectoral working group with private sector partners to tackle tax and nontax issues that have unsettled investors, part of a broader effort to improve the country’s business climate.
The initiative was a product of a dialogue on Oct. 14 between Finance Secretary Ralph Recto and members of the Makati Business Club (MBC), one of the country’s most influential business groups, the DOF said Wednesday.
Executives from Mondelez Philippines, Unilever, SGV & Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines, Texas Instruments and Shopee were among those who attended. One of the main concerns raised was Revenue Memorandum Circular No. 5-2024, which clarifies tax rules on cross-border services involving nonresident foreign corporations.
Recto welcomed the group’s feedback and reaffirmed the government’s commitment to reviewing existing tax circulars and exploring digital tools to make tax assessments more transparent and efficient.
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. also addressed the participants’ concerns about the circular and supported Recto’s proposal for the business community and the BIR to collaborate on potential amendments to clarify key provisions.
Recto assured business leaders that the government was ramping up digitalization efforts to curb corruption and streamline public service delivery. He also urged the private sector to take part in accelerating digital transformation at key agencies, including the BIR, the Bureau of Customs, and the Bureau of the Treasury.
Commitment
“The government is only 20 percent or 25 percent of the economy—you’re 75 percent,” Recto said of the private sector. “Today, you have more than 50.1 million people working, with more than 32 million in the private sector.”
The MBC, meanwhile, expressed support for Recto’s plans.
“We want to support the government in its quest to make this a very good business environment and investment destination. That’s our overall aim. We’re here to support you,” MBC executive director Rafael Ongpin said.
“We’re here because this government has been very open and very collaborative, and we really see the value of that. Thank you very much for listening to us,” he added.
