By Justine Irish D. Tabile, Senior Reporter
THE Department of Finance (DoF) said the investment environment is currently essentially the most “open and liberal” in history, with the federal government still actively searching for to cut back the associated fee and enhance the convenience of doing business.
On the Deloitte Tax Summit 2026, Finance Undersecretary Michael Peter A. Alejandro, delivering a speech on behalf of Secretary Frederick D. Go, added: “For strategic investments to enter the country, the federal government will proceed to actively pursue reforms that can reduce the associated fee of doing business, promote greater predictability in doing business, and most significantly, enhance the convenience of doing business,” he said.
“This implies streamlining processes, shortening approval times, and giving investors clarity,” he added.
Specifically, the DoF, together with the departments of Trade and Industry and Interior and Local Government (DILG), is trying to issue a joint memorandum circular (JMC) on local taxes, fees, and charges.
Mark Lester L. Aure, executive director of the Fiscal Incentives Review Board’s secretariat, the National Tax Research Center, said that the draft JMC has been signed by two agencies.
“I expect it to come back out inside the first quarter … Hopefully it can address concerns of registered business enterprises regarding local taxes, charges, and costs,” he told BusinessWorld on the sidelines of the event.
“Unfortunately, to this point we still hear of issues with the local government units (LGUs) regarding the payment of those charges … The JMC clarifies that after you’re paying the special corporate income tax, it covers all national and native taxes, fees, and charges,” he added.
He said plans are in place to debate the JMC with the cities and municipalities.
“The explanation why we included the DILG within the JMC is to provide it more teeth and be certain that the LGUs comply,” he added.
The IT and Business Process Association of the Philippines raised concerns on Monday in regards to the continued imposition of local taxes, fees, and charges by some LGUs despite the supposed exemptions granted to registered business enterprises (RBEs).
The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act exempts RBEs from local taxes, fees, and charges.
Meanwhile, Mr. Aure said a department order searching for to make clear the rules for the improved deductions regime is in its final stages.
“We are only finalizing a couple of issues with the investment promotion agencies and the Bureau of Internal Revenue. So we hope to issue the rules before the top of March,” he said.
Mr. Alejandro said that the federal government has been implementing decisive and progressive reforms, including the CREATE MORE Act, the Public-Private Partnership Code, and the Amended Investors Lease Act.
Reforms meant to ease doing business within the Philippines are also being implemented by the DoF and the Bureau of Internal Revenue, he added.