Philippines prepares for global minimum tax as it updates tax system
rappler.com — January 10, 2025, 12:00 PM UTC
The global minimum tax (GMT) requires multinational corporations with revenues over €750 million to pay a minimum effective corporate tax rate of 15%. In the Philippines, local subsidiaries may face additional taxes if their effective rates fall below this threshold. Adopting the GMT could increase government revenue and promote fair competition between local businesses and foreign firms. It aligns the Philippines with global tax standards, enhancing its reputation as a compliant tax jurisdiction. The GMT will impact existing tax incentives in the Philippines, which may need to shift from tax reductions to performance-based incentives. This change aims to maintain competitiveness while adhering to international tax regulations.