To attract investments
MANILA, Philippines — Foreign business groups are pushing for tax certainty to enhance the country’s investment environment and competitiveness.
“For the Joint Foreign Chambers of the Philippines, tax certainty is an important component of the investment environment, affecting how companies plan operations, structure transactions and make investment decisions,” the JFC said.
The JFC, composed of American, Canadian, European, Japanese and Korean chambers and the Philippine Association of Multinational Companies Regional Headquarters Inc., convened a policy dialogue on Revenue Memorandum Circular (RMC) 5-2024, which covers tax on cross-border services.
RMC 5-2024 has implications for companies providing or receiving services across borders, including tax treatment, documentation, reporting, contracts and internal compliance systems.
The dialogue brought together representatives from the Bureau of Internal Revenue, the Department of Finance, the Presidential Legislative Liaison Office, the business community, the tax and legal professions and academe.
During the policy dialogue, stakeholders discussed how clearer implementation can help businesses meet their obligations and guide them in their investment and business decisions.
The dialogue also highlighted the importance of translating tax policy into clear, consistent implementation as companies assess compliance requirements and the potential impact of tax treatment on cross-border transactions.
The policy dialogue forms part of JFC’s advocacy initiative Arangkada Philippines, which aims to promote reforms to enhance the country’s investment climate, competitiveness and sustainable economic growth.
JFC said that it would consolidate the issues and recommendations raised during the dialogue and follow through with relevant government agencies and stakeholders to ensure action.
“Arangkada serves as a vital bridge between government and business, creating a platform where practical policy concerns can be openly discussed and translated into clear, actionable implementation that supports both compliance and competitiveness,” Arangkada project director Matthew Scalin said.
Beyond discussions, he emphasized that Arangkada would continue to push for engagement to ensure the business community’s policy concerns are addressed.
JFC represents more than 3,000 member companies in the country.