The DoF says the investment climate is the ‘most open’ in PHL’s history
By Justine Irish D. Tabile, Senior Journalist
THE Department of Finance (DoF) said the current investment environment is the most “open and liberal” in history, as the government seeks to reduce costs and ease of doing business.
At Deloitte’s 2026 Tax Conference, Finance Secretary Michael Peter A. Alejandro, delivering a speech on behalf of Secretary Frederick D. Go, added: “For strategic investment to enter the country, the government will continue to actively pursue reforms that will reduce the cost of doing business, promote greater predictability in doing business,” and he said most importantly, it does not mean that it is too easy to do business.
“This means simplifying procedures, reducing approval times, and providing investors with transparency,” he added.
In particular, the DoF, along with the departments of Trade and Industry and Internal and Local Government (DILG), are looking to issue a joint memorandum circular (JMC) on local taxes, fees, and charges.
Mark Lester L. Aure, executive director of the office of the secretary of the Fiscal Incentives Review Board, National Center for Tax Research, said the JMC draft was signed by two parties.
“I expect it to come out in the first quarter … hopefully it will address the concerns of registered businesses about property taxes, charges, and fees,” he said. BusinessWorld on the sidelines of the event.
“Unfortunately, we are still hearing about problems with local government units (LGUs) regarding the payment of these fees… The JMC clarifies that once you have paid the special business income tax, it includes all national and local taxes, fees, and charges,” he added.
He said there are plans to discuss the JMC with cities and municipalities.
“The reason why we included the DILG in the JMC is to give it more teeth and ensure that the LGUs are compliant,” he added.
The IT and Business Process Association of the Philippines raised concerns on Monday over the continued imposition of local taxes, fees, and charges in some LGUs despite the supposed exemptions granted to registered businesses (RBEs).
The Business Recovery and Corporate Tax Recovery Act (CREATE MORE) exempts RBEs from local taxes, fees, and charges.
Meanwhile, Mr. Aure said the ministry’s directive seeking to clarify the guidelines for the enhanced withholding system is in its final stages.
“We are just finalizing a few issues with investment promotion companies and the Bureau of Internal Revenue. So we hope to issue guidelines before the end of March,” he said.
Mr. Alejandro said the government has been implementing radical and progressive reforms, including the CREATE MORE Act, the Public-Private Partnership Code, and the Amended Investors Lease Act.
Changes designed to ease doing business in the Philippines are also being implemented by the DoF and the Bureau of Internal Revenue, he added.
