Department of Finance (DOF) Secretary Ralph Recto has ordered the creation of a multi-sectoral working group, led by the department and including private sector partners, to address tax and non-tax concerns through digital solutions to strengthen the country’s investment climate and generating more jobs.
The directive came during an Oct. 14, 2025 dialogue with the Makati Business Club (MBC), where business leaders discussed key policy concerns and offered insights to support the Marcos Jr. administration’s efforts to improve the investment environment.
The working group is intended to identify potential digital solutions to make tax assessment more transparent and efficient for stakeholders. Recto affirmed the government’s commitment to work with the private sector in reviewing existing tax circulars.
Among the key issues raised was the implementation of Revenue Memorandum Circular (RMC) No. 5-2024, which clarifies the taxation of cross-border services involving non-resident foreign corporations.
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. agreed with Recto’s proposal for the MBC and the BIR to collaborate on proposed amendments to clarify key provisions of the RMC.
Recto assured business leaders that the government is intensifying its digitalization efforts across the board to eliminate corruption and increase efficiency in public service delivery, specifically encouraging the private sector’s participation in accelerating the DOF’s digital transformation program in the BIR, the Bureau of Customs (BOC) and the Bureau of the Treasury (BTr).
“We want to support the government in its quest to make this a very good business environment and investment destination,” said MBC executive director Rafael Ongpin.
“Whatever support you think we can provide—inputs, technology, we’d be more than happy to do that,” said MBC chairman Edgar Chua.
Recto cited the private sector’s critical role, as the government accounts for only 20 percent or 25 percent of the economy, while the private sector represents 75 percent.
He pointed out that more than 50.1 million people are working, with more than 32 million in the private sector.
Companies present at the dialogue included Mondelez Philippines, Unilever, SGV & Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines (AmCham), Texas Instruments and Shopee.
