Mining reform IRR to boost investments, public revenue – DOF

MANILA — Department of Finance (DOF) Secretary Frederick D. Go has officially issued the Implementing Rules and Regulations (IRR) for Republic Act (RA) No. 12253, also known as the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, which aims to attract more investments in the mining sector while ensuring that Filipinos receive a fair share of revenues from the country’s mineral resources.

The reform is part of President Ferdinand R. Marcos Jr.’s agenda to establish a “fairer, clearer, and more accountable fiscal regime” for managing natural resource wealth.

“This is a critical step forward in unlocking the full economic potential of the mining sector while maintaining safeguards for transparency, accountability, and protection of the environment,” Secretary Go said.

Signed into law on September 4, 2025, RA 12253 overhauls the previous mining tax structure by removing complex distinctions among different mining agreements.

The simplified fiscal system is intended to improve tax compliance and encourage new investments in the industry.

The DOF projects that the enhanced fiscal regime will generate an average of PHP 6.3 billion in additional annual revenues from existing mining operations.

With increased investor confidence, the agency expects even higher revenue potential from future mining projects.

The IRR clearly defines how to compute the tax base for royalty and windfall profit taxes, including specific provisions on allowable deductions and the treatment of gross output.

It also establishes procedures for the filing, payment, and reconciliation of royalties, designating the Bureau of Internal Revenue (BIR) as the primary collecting agency. Further, the IRR enforces project-level compliance under the ring-fencing rule, which separates each mining project’s tax obligations.

To bolster accountability, the IRR strengthens audit and monitoring systems, mandates public disclosure of compliance documents, and formalizes coordination among the BIR, Bureau of Customs (BOC), and other government agencies.

Secretary Go affirmed that the Department of Finance will work closely with the Department of Environment and Natural Resources, BIR, BOC, Bureau of Local Government Finance, local governments, and industry stakeholders to ensure successful implementation.

The rules were developed through broad consultation with both public and private sector representatives and are designed to ensure a transparent and just framework for the mining industry.

The full IRR is available at: https://www.dof.gov.ph/wp-content/uploads/2025/12/MINING-IRR.pdf.