BIR prepares for rollout of global minimum tax regime (opens original article in a new tab)

The Bureau of Internal Revenue (BIR) is preparing for the implementation of a global minimum tax regime to ensure multinational companies pay at least 15% tax on income earned in the Philippines, with a proposed effective date of January 1, 2027.

• BIR is building personnel capability and systems for the global minimum tax regime.
• Philippines joined OECD's Inclusive Framework in 2023 to adopt the two-pillar tax reform solution.
• The QDMTT aims to collect revenue from multinational companies paying below 15% tax rate in the Philippines.
• Multinational enterprises are prepared to comply with the GMT domestically rather than abroad.