The Philippines is moving toward implementing the Global Minimum Tax (GMT), an international tax standard designed to curb revenue losses and promote fair competition. Yesterday, in an important discussion, the Senate Committee on Ways and Means and the Organization for Economic Co-operation and Development (OECD) explored how the country can join this global reform to increase fiscal sustainability.
The meeting was facilitated by Mon Abrea, Founder and CEO of the Asian Consulting Group (ACG), and attended by Senator Win Gatchalian, Chairman of the Senate Committee on Ways and Means; and John Peterson, head of the OECD’s Cross-Border and International Tax Division. Their conversation focused on the need for implementation of the GMT, especially as neighboring countries in Southeast Asia have already taken steps toward compliance.
While highlighting the complexity of the GMT, Senator Gatchalian emphasized his commitment to advancing reforms in the Philippines. He emphasized his active role in working 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 work 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 GMT will adopt and implement in the future. Philippines.
John Peterson shared insights from the OECD and emphasized that the GMT is more than a fiscal policy; it represents a commitment to fairness and global cooperation. The OECD reaffirmed its willingness to assist the Philippines in navigating the complexities of this reform.
This joint effort marks an important step in the Philippines’ journey toward a more equitable and globally aligned tax system, keeping the country competitive in the international landscape.
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