Manila, Philippines – [January 11, 2025] – The Philippines is moving closer to adopting the Global Minimum Tax (GMT) as key officials from the Senate and the OECD convened yesterday to discuss its implementation. This reform is seen as a crucial step in boosting the country’s revenues and leveling the playing field for local and global businesses alike.
The meeting was spearheaded by Senator Win Gatchalian, Chair of the Senate Ways and Means Committee, and John Peterson, Head of the OECD’s Cross-Border and International Taxation Division, facilitated by Mon Abrea of the Asian Consulting Group (ACG). The discussion centered on how the GMT can address gaps in the current tax framework and capture revenues currently lost to tax havens.
The OECD’s John Peterson emphasized that adopting the GMT is not only about fairness but also about safeguarding the country’s fiscal health. He noted that this reform could generate additional revenues to fund education, healthcare, and infrastructure without imposing new taxes on ordinary citizens.
He also outlined the global benefits of the GMT, sharing success stories from countries that have adopted the framework. He assured stakeholders that the reform can be tailored to suit the Philippines’ unique economic landscape, ensuring a smooth transition.
Senator Gatchalian reaffirmed his commitment to advancing the Global Minimum Tax in the Philippines. He emphasized that his office will actively engage with the OECD, as well as key government agencies such as the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR), to ensure the successful implementation of the law. In addition, Senator Gatchalian will collaborate closely with Mon Abrea and the Asian Consulting Group (ACG) to provide technical support with their tax expertise, ensuring the GMT’s effective rollout and integration into the country’s tax system.
With this initiative, the Philippines is setting the stage for reforms that will strengthen its economy and assert its position in the global tax arena.
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