The Philippines could generate about P24.4 billion in additional annual revenue starting in 2029 under a proposed global minimum tax, the Department of Finance (DOF) said.
The estimate is based on revenues that the government could have collected from 2021 to 2024 had the global minimum tax rules been in place, Finance Assistant Secretary Euvimil Nina Asuncion said.
‘If we pass it this year and the law is effective by Jan. 1. We can start collecting by (2029). There’s a gap. So that you’re able to set your compliance,’ Asuncion told reporters.
The proposed qualified domestic minimum top-up tax (QDMTT) is a coordinated international framework that ensures large multinational groups pay at least a 15 percent effective tax rate in each jurisdiction by imposing a top-up tax where the effective tax rate falls below 15 percent.
The measure will not apply to ordinary domestic businesses, including ordinary domestic businesses or small and medium-sized enterprises.
About 1,001 multinational enterprise groups operating in the Philippines, covering around 4,037 local subsidiaries, could fall within the scope of the global minimum tax, according to a DOF presentation.
The DOF is also proposing higher excise taxes on sweetened beverages, tobacco and alcohol, single-use plastics and certain high-end goods, as well as measures targeting the wealthy.
Finance Undersecretary Rolando Ligon Jr. said the department is targeting September for the filing of the proposed Progressive Tax Reform (Progress) Act.
‘Dapat September ma-file na sana,’ Ligon said in a chance interview when asked about the target filing date.
Under this measure, the DOF is also proposing to increase excise tax on automobiles priced at P8 million and above. The bill also seeks to raise the excise tax rate on non-essential goods to 25 percent and expand its coverage to other high-end products.
The expanded coverage would include private aircraft, such as planes, jets and helicopters, as well as private or recreational vessels such as jet skis, speedboats, sailboats and motorboats intended for pleasure, private use or sport.
The government collected P307 million from excise tax on non-essential goods in 2025.