Manila: Finance Secretary Ralph Recto has announced the formation of a multi-sectoral working group aimed at addressing both tax and non-tax issues through digital innovations. This initiative is part of a broader effort to enhance the investment climate in the Philippines and create additional employment opportunities.

According to Philippines News Agency, the Department of Finance (DOF) will lead this collaborative effort, partnering with private sector entities. The directive for this initiative emerged from a dialogue with the Makati Business Club (MBC), where business leaders shared their concerns and suggestions to bolster the Marcos administration’s investment strategies.

Representatives from companies such as Mondelez Philippines, Unilever, SGV and Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines (AmCham), Texas Instruments, and Shopee participated in the discussions. A significant issue highlighted was the implementation of Revenue Memorandum Circular (RMC) No. 5-2024, which addresses the taxation of cross-border services by non-resident foreign corporations.

During the meeting, Recto reiterated the government’s commitment to collaborating with the business sector to review existing tax regulations and explore digital solutions for a more transparent and efficient tax assessment process. BIR Commissioner Romeo Lumagui Jr. addressed concerns related to the RMC and supported Recto’s suggestion for collaboration between MBC and the BIR on amendments to clarify key provisions.

Recto also emphasized the government’s dedication to digitalization to reduce corruption and improve public service efficiency. He urged the private sector to actively participate in accelerating the DOF’s digital transformation, particularly within the Bureau of Internal Revenue, the Bureau of Customs, and the Bureau of the Treasury.

According to the DOF, MBC chairperson Edgar Chua committed to supporting the government’s efforts by providing insights and technology advancements.