DoF says investment climate ‘most open’ in PHL history

By Justine Irish D. Tabile, Senior Reporter

THE Department of Finance (DoF) said the investment environment is currently the most “open and liberal” in history, with the government still actively seeking to reduce the cost and enhance the ease of doing business.

At the Deloitte Tax Summit 2026, Finance Undersecretary Michael Peter A. Alejandro, delivering a speech on behalf of Secretary Frederick D. Go, added: “For strategic investments to enter the country, the government will continue to actively pursue reforms that will reduce the cost of doing business, promote greater predictability in doing business, and most importantly, enhance the ease of doing business,” he said.

“This means streamlining processes, shortening approval times, and giving investors clarity,” he added.

In particular, the DoF, along with the departments of Trade and Industry and Interior and Local Government (DILG), is looking to issue a joint memorandum circular (JMC) on local taxes, fees, and charges.

Mark Lester L. Aure, executive director of the Fiscal Incentives Review Board’s secretariat, the National Tax Research Center, said that the draft JMC has been signed by two agencies.

“I expect it to come out within the first quarter … Hopefully it will address concerns of registered business enterprises regarding local taxes, charges, and fees,” he told BusinessWorld on the sidelines of the event.

“Unfortunately, up to now we still hear of issues with the local government units (LGUs) regarding the payment of these charges … The JMC clarifies that once you are paying the special corporate income tax, it covers all national and local taxes, fees, and charges,” he added.

He said plans are in place to discuss the JMC with the cities and municipalities.

“The reason why we included the DILG in the JMC is to give it more teeth and ensure that the LGUs comply,” he added.

The IT and Business Process Association of the Philippines raised concerns on Monday about the continued imposition of local taxes, fees, and charges by some LGUs despite the supposed exemptions granted to registered business enterprises (RBEs). 

The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act exempts RBEs from local taxes, fees, and charges.

Meanwhile, Mr. Aure said a department order seeking to clarify the guidelines for the enhanced deductions regime is in its final stages.

“We are just finalizing a few issues with the investment promotion agencies and the Bureau of Internal Revenue. So we hope to issue the guidelines before the end of March,” he said.

Mr. Alejandro said that the government has been implementing decisive and progressive reforms, including the CREATE MORE Act, the Public-Private Partnership Code, and the Amended Investors Lease Act.

Reforms meant to ease doing business in the Philippines are also being implemented by the DoF and the Bureau of Internal Revenue, he added.