The Philippines is making strides toward adopting the Global Minimum Tax (GMT), an international tax standard designed to curb revenue losses and foster fair competition. In a significant discussion yesterday, the Senate Ways and Means Committee and the Organisation for Economic Co-operation and Development (OECD) explored how the country can align itself with this global reform to enhance its fiscal sustainability.
The meeting was facilitated by Mon Abrea, founder and CEO of the Asian Consulting Group (ACG), and was attended 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. Their conversation focused on the necessity of implementing the GMT, especially as neighboring countries in Southeast Asia have already taken steps toward compliance.
Senator Gatchalian, while noting the complexity of the GMT, emphasized his commitment to advancing the reform in the Philippines. He highlighted his active role in engaging with key government agencies such as the Department of Finance (DoF) and the Bureau of Internal Revenue (BIR), ensuring the smooth passage of this important legislation. Mr. Gatchalian also expressed his intention to collaborate with Mr. Abrea and the Asian Consulting Group (ACG), seeking their expertise in further studying the Global Anti-Base Erosion (GloBE) rules to enact a law that will adopt and implement GMT in the Philippines.
John Peterson shared insights from the OECD, emphasizing that the GMT is more than a fiscal policy; it represents a commitment to fairness and global cooperation. The OECD reaffirmed its readiness to assist the Philippines in navigating the complexities of this reform.
This collaborative effort marks a significant step in the Philippines’ journey toward a more equitable and globally aligned tax system, ensuring the country remains competitive in the international landscape.
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