September 5, 2025 | 12:00am
Miners laud extra constant guidelines
MANILA, Philippines — President Marcos yesterday signed into regulation a measure that seeks to simplify the nation’s mining fiscal regime and guarantee a fairer authorities share from pure sources, a transfer seen to advertise a fairer and extra clear mining tax system whereas defending the setting.
A precedence measure of the administration, Republic Act 12253 or the Enhanced Fiscal Regime for Massive-Scale Metallic Mining Act establishes a simplified and uniform fiscal framework for the mining sector and enhances environmental safeguards.
It additionally goals to supply fiscal predictability and stability for traders by way of clear tax pointers, present incentives to long-term investments and enhance the mining sector’s competitiveness.
“With the signing of the Enhanced Fiscal Regime for Massive-Scale Metallic Mining Act, we’re placing into place a system that’s fairer, that’s clearer and extra attentive to the wants of each our individuals and the setting,” Marcos stated throughout the signing ceremony for the regulation at Malacañang.
“With this regulation, we ship a really clear and highly effective message: progress shall by no means come at the price of our individuals, nor our planet. Minerals are finite. As soon as extracted, they’re gone eternally. But when we use them properly – tax them pretty, defend our surroundings as we mine, and be certain that revenues return to the individuals – then their worth will outlive all of us,” he added.
The mining sector welcomed the newly signed fiscal regime regardless of the imposition of upper taxes, saying the reform gives stability because the Philippines seeks an even bigger function within the world marketplace for vital minerals.
The Chamber of Mines of the Philippines (COMP) stated larger taxation was “inevitable,” however emphasised that what issues most to traders is the consistency of the principles.
“The brand new tax regime aligns the Philippines with world mining jurisdictions, making us extra aggressive and engaging to traders, particularly at a time when the demand for vital minerals is rising worldwide,” COMP president Michael Toledo stated in an announcement.
The regulation supplies the federal government larger income from the nation’s mineral sources by introducing a five-tier, margin-based royalty at charges starting from one to 5 p.c on earnings from metallic mining operations exterior mineral reservations and a minimal royalty price of 0.1 p.c on gross output for mines beneath the margin threshold.
It additionally imposes a five-tier, margin-based windfall earnings tax at charges starting from one to 10 p.c on earnings from metallic mining operations and implements a 2:1 debt-to-equity ratio or a skinny capitalization rule relevant to related-party debt, to restrict the quantity of tax-deductible borrowing prices arising from the debt.
The estimated income from the mining fiscal regime is at P25.08 billion from 2026 to 2029 or an annual common of P6.26 billion.
The measure likewise adopts a ring-fencing rule on a per-project foundation to forestall the consolidation of mining venture earnings and bills by the identical taxpayer. The characteristic prevents corporations from offsetting losses from extra worthwhile mining tasks.
“When accumulating taxes, every mining contractor is acknowledged as a separate taxable entity. This prevents the consolidation of earnings and bills of all mining tasks by the identical taxpayer,” Marcos stated.
“Gone are the times when a mining contractor (might) bury its earnings beneath the burden of losses. Not can we use the one venture’s failure to hide one other venture’s success,” he added.
The regulation additionally clarifies that the relevant native enterprise tax price on mining contractors is 0.5 p.c and retains the imposition of the 5 p.c royalty for mines inside mineral reservations; 25 p.c company earnings tax; 4 p.c excise tax; one p.c minimal indigenous individuals royalty and relevant withholding taxes, amongst different taxes.
To uphold transparency and accountability, the regulation institutes mechanisms for the monitoring and auditing of mineral gross sales and exports, public disclosure of mining information and the institution of a multi-stakeholder accountability group. The mechanisms goal to reduce income leakages, maximize collections and enhance sector governance whereas defending the setting and communities by way of pure capital accounting information in accordance with the Philippine Ecosystem and Pure Capital Accounting System.
“Transparency is now the rule, accountability our customary, and equity the measure by which we transfer ahead,” Marcos stated.
“In mild of this, the Bureau of Inner Income (BIR) and the Bureau of Customs will look at and audit all gross sales and exports of minerals and examine mining firm information, in coordination with the Mines and Geosciences Bureau.”
The disbursement of native governments’ shares from mining taxes may also be streamlined to deal with delays. The regulation additionally allocates 10 p.c of mining royalty from inside mineral reservations to the exploration efforts of the MGB, institution of mineral valuation laboratories and amenities by the Metals Trade Analysis and Growth Middle and the acquisition of BIR instruments.
“That is completed to ensure that a part of the revenues is reinvested in exploration, in analysis, above all, environmental safety and sustainable practices,” the President stated.
On high of the allotted nationwide income collections, native governments may also be given 40 p.c of the gross collections from excise taxes on mineral merchandise, royalties and different taxes or charges.
“This ensures that the communities who bear the brunt of mines may also expertise their advantages,” the President stated.
Particular Assistant to the President for Funding and Financial Affairs Frederick Go stated the brand new regulation would create jobs, enhance authorities revenues for important providers and entice accountable traders.
“This marks a big milestone in selling the Philippine mining sector as a key participant within the world chain,” Go stated in an announcement.
COMP counseled Congress and the Division of Finance (DOF) for his or her “pragmatic” and consultative strategy, and credited President Marcos for what it referred to as management in pushing by way of the long-overdue reform.
The group famous that the timing of the coverage shift is essential because the Philippines, residence to considerable nickel and copper reserves, seeks to place itself as a dependable provider for the worldwide clear power transition.
Regardless of its modest share within the economic system, the mining sector continues to contribute meaningfully.
In 2023, the business’s gross worth added in mining reached P170.3 billion, accounting for about 0.70 p.c of the nation’s gross home, in accordance with the MGB’s quarterly statistics.
Additionally, mineral exports comprised roughly 9.62 p.c of whole exports, and the sector generated taxes, charges and royalties totaling P48.8 billion for the 12 months. – Alden Monzon
