The Department of Finance (DOF) is targeting December to finalize the implementing rules and regulations (IRR) for the new mining tax system under Republic Act 12253, a key step toward operationalizing the Enhanced Mining Fiscal Regime Act.
Finance Undersecretary Karlo Fermin Adriano said the DOF will hold stakeholder consultations next month before approving the draft IRR, PhilStar reports.
“The Department of Finance (DOF) is committed to implementing this law swiftly, efficiently and with full transparency. We will also continue to engage with all stakeholders,” Adriano told participants at the Mining Philippines 2025 Conference and Exhibition.
Chamber of Mines of the Philippines (COMP) chairman Michael Toledo highlighted the importance of clarifying how the reforms can support both responsible resource governance and national development goals.
Adriano also said the DOF is expediting the release of shares for local government units (LGUs) hosting mining operations. A joint administrative order is being prepared with the Bureau of Local Government Finance (BLGF) and the Department of the Interior and Local Government (DILG) to clarify the process.
“The BLGF and probably DILG will soon be issuing this clarification,” he added.
The DOF is coordinating with the Bureau of Internal Revenue (BIR) on business tax matters for mining companies, which are recognized as government contractors subject to a five percent business tax. Adriano said the department will develop a roadmap for major mineral commodities, including gold, copper, and silver.
“We will need to determine our place in this global economy. We must be able to identify what our competitiveness is and determine what we are lacking,” he said.
Under the law, mining firms operating within government-designated mineral reservations must pay a royalty equivalent to 5 percent of gross output. Companies outside these areas will pay royalties based on profit margins. The law also mandates additional taxes on firms with profit margins exceeding 30 percent, allowing the government to capture a share of excess earnings.
The rollout of the IRR and related administrative clarifications is seen as a pivotal step for the sector, affecting both corporate planning and local government revenues.
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