The Presidential Communications Office announced that President Ferdinand Marcos Jr. on Thursday signed the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act at the Malacañan Palace, establishing a new tax and royalty system aimed at modernizing the country’s mining industry.
Under the new law, mining companies operating within the government’s designated mineral reservations must pay royalty equivalent to 5% of their gross output. Companies operating outside these areas will instead pay a margin-based royalty tied to their income from metallic mining operations.
In addition, the measure imposes an extra tax in companies whose profit margins exceed 30%. It also includes a ring-fencing rule, which prevents companies from offsetting losses in one project against profits in another, and limits interest deductions from related-party loans to reduce tax avoidance. Firms will be required to publicly disclose financial, tax, and environmental information.
By removing the old distinctions among mining agreements, the law aims to create a simpler, fairer, and more predictable system for both government and industry.
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