DOF forms working group to fix tax issues

Finance Secretary Ralph G. Recto has ordered the creation of a multi-sectoral working group with private sector participation to address tax and non-tax issues through digital innovations.

The Department of Finance (DOF) will lead the initiative, which aims to improve the country’s investment climate and generate more employment opportunities for Filipinos.

The directive was announced during a dialogue with the Makati Business Club (MBC) held on October 14, 2025, where business leaders shared policy concerns and offered recommendations to support the Marcos Jr. administration’s investment agenda.

Representatives from major corporations attended the meeting, including Mondelez Philippines, Unilever, SGV & Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines (AmCham), Texas Instruments, and Shopee.

“We want to support the government in its quest to make this a very good business environment and investment destination,” said MBC Executive Director Rafael Ongpin.

“That’s our overall aim. We’re here to support you,” Ongpin added.

He further commended the administration’s openness, saying, “We’re here because this government has been very open and very collaborative, and we really see the value of that. Thank you very much for listening to us.”

One of the key concerns raised was the implementation of Revenue Memorandum Circular (RMC) No. 5-2024, which outlines the tax treatment of cross-border services involving non-resident foreign corporations.

Secretary Recto welcomed the private sector’s input and reaffirmed the government’s readiness to collaborate on reviewing existing tax circulars and finding digital solutions for more transparent and efficient tax assessments.

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr. addressed the issues surrounding the RMC and agreed to work with MBC on drafting proposed amendments to clarify its provisions.

Secretary Recto also reiterated the administration’s broader push to digitize government operations in order to fight corruption and streamline public service delivery.

He called for the private sector’s involvement in the digital transformation of key agencies, including the BIR, Bureau of Customs (BOC), and Bureau of the Treasury (BTr).

“Whatever support you think we can provide––inputs, technology, we’d be more than happy to do that,” said MBC Chairman Edgar Chua.

Secretary Recto thanked the business community for its cooperation, emphasizing its essential role in economic development.

“The government is only 20% or 25% of the economy––you’re 75%,” he said.

“Today, you have more than 50.1 million people working, with more than 32 million in the private sector,” Recto added.

Also present during the meeting were MBC Trustee Cosette Canilao and Australian Embassy Economic Counselor Luke Villiers.

Secretary Recto was joined by DOF Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco, Privatization and Partnerships Group Undersecretary Catherine Fong, Corporate Sector and Strategic Infrastructure Group Undersecretary Rolando Tungpalan, Revenue Operations Group Undersecretary Charlito Mendoza, and Revenue Operations Group Assistant Secretary Euvimil Asuncion.