Philippines Begins Drafting Global Minimum Tax Legislation

The Philippine government, through the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR), has officially begun drafting legislation to implement the Global Minimum Tax (GMT), a move aimed at protecting the country's tax revenues from being shifted to foreign jurisdictions. In a statement on Friday, the BIR said the Joint Technical Working Group (TWG) held its first meeting on July 7, 2026. The TWG will draft the legislative and administrative framework needed to implement the new global tax standard. The GMT is part of the Organization for Economic Co-operation and Development/Group of 20 (OECD/G20) international tax reform. It requires multinational enterprises (MNEs) with annual global revenues of at least €750 million (approximately P45 billion) to pay a minimum effective tax rate of 15% in every jurisdiction where they operate. Tasked with reviewing and coordinating all legislative, regulatory, and administrative measures related to the GMT, the TWG is chaired by DOF Undersecretary Rolando Ligon Jr., with BIR Commissioner Charlito Martin Mendoza serving as vice chair. Its members include DOF Undersecretary Karlo Fermin Adriano; DOF Assistant Secretaries Juvy Danofrata and Euvimil Nina Asuncion; BIR Deputy Commissioners Larry Barcelo, Marissa Cabreros, and Vener Baquiran; and National Tax Research Center Executive Director Mark Lester Aure. "As a member of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, the Philippines must undertake the necessary policy and technical preparations for the possible implementation of the Global Minimum Tax through appropriate domestic legislation," Ligon said. "Our task is to thoroughly address the legal, tax, administrative, and operational issues involved and ensure that key policy decisions and recommendations are carefully studied before they are advanced," he added. To support the rollout, the TWG formed five specialized subgroups focused on the legal framework, tax administration, capacity development, stakeholder engagement, and post-implementation monitoring. According to the BIR, the TWG also identified key areas where the country will need international technical assistance, including strengthening the BIR's audit capabilities, upgrading IT systems for secure international data sharing, and conducting legislative workshops. The group also discussed joining international networks for the exchange of Global Anti-Base Erosion (GloBE) Information Returns and incorporating Country-by-Country Reporting requirements into domestic law. "More than drafting legislation, the work ahead involves preparing the administrative processes, digital systems, technical capabilities, and institutional arrangements needed to implement the framework effectively and provide clear guidance to affected taxpayers," Mendoza said. "The DOF and BIR will continue working closely with partner agencies, Congress, development partners, and stakeholders to develop a Philippine Global Minimum Tax framework that aligns with international standards, is administratively workable, and supports the country's fiscal and investment policy objectives," he added. —VBL, GMA News