Philippine Department of Finance Launches Nationwide Consultations on ProGRESS Tax Reform Bill, Including Global Minimum Tax

The Philippine Department of Finance has announced the launch of nationwide public consultations on the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability (ProGRESS) Bill. The key proposals include:

• Introducing a 15% Global Minimum Tax (GMT) on large multinational enterprises;
• Exempting micro and small enterprises from the minimum corporate income tax;
• Increasing the annual exemption threshold from PHP 250,000 to PHP 350,000 to increase the disposable income of middle-income earners;
• Imposing higher excise taxes on non-essential goods, private aircraft, sea vessels, and vehicles valued over PHP 8 million;
• Updating the Motor Vehicle Road Users' Charge (MVUC) rates, taking into account inflation and the rising costs of maintaining the country's road infrastructure; and
• Enhancing taxes on products with social, environmental, or health costs to support the Universal Health Care Act.

Further details of the proposals will be published once available.

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