The Market Monitor Minding the Nation's Business
Finance Secretary Ralph Recto has ordered the creation of a multi-sectoral working group that will develop digital solutions to address tax and non-tax concerns and help strengthen the country’s investment climate.
The Department of Finance (DOF) said the group, which will include private sector partners, aims to boost investor confidence and generate more jobs for Filipinos. The directive was issued following a dialogue with the Makati Business Club (MBC) on Tuesday, where business leaders discussed key policy concerns and offered insights to improve the Marcos administration’s investment agenda.
Among the companies that joined the discussion were Mondelez Philippines, Unilever, SGV & Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines, Texas Instruments, and Shopee.
One of the main issues raised was the implementation of Revenue Memorandum Circular No. 5-2024, which clarifies the taxation of cross-border services involving non-resident foreign corporations. Recto assured participants that the government would work closely with the private sector to review existing tax circulars and explore digital tools to make tax assessment more transparent and efficient.
BIR Commissioner Romeo Lumagui Jr. also addressed concerns on the circular and agreed to collaborate with MBC on proposed amendments to clarify key provisions.
Recto said the government’s ongoing digitalization initiatives across the Bureau of Internal Revenue, Bureau of Customs, and Bureau of the Treasury aim to eliminate corruption and improve efficiency in public service delivery.
MBC chairperson Edgar Chua pledged the group’s full support by providing inputs and technology to accelerate the DOF’s digital transformation program.