Philippine Finance Minister Ralph Recto recently revealed that the government is preparing a "comprehensive tax amnesty program" that is expected to allow a large amount of unpaid taxes to be exempted, significantly reducing the tax burden on businesses, especially Chinese merchants.
The plan will cover all back taxes collected by the Bureau of Internal Revenue and the Customs Bureau. The scheme will be simpler and more strictly regulated than the version vetoed by former President Duterte in 2019 to prevent excessive leniency. Recto emphasized that this is a fundamental comprehensive amnesty aimed at helping taxpayers clear up historical tax issues.
The Ministry of Finance is also studying new regulations to prohibit government and its holding companies from investing in online gambling companies, in order to curb electronic gambling activities and maintain market order.
The bill is expected to be submitted to Congress for review within 2025. Recto stated that he is closely consulting with the Presidential Office and various cabinet departments to strive to complete the legislation within the year. The proposed content may also include inheritance tax amnesty provisions, allowing eligible heirs to pay inheritance tax at a 6% single rate, exempting late fees and fines, facilitating the smooth succession of Chinese merchant family businesses.
The Chinese merchant community generally welcomes this measure, believing that the new policy will effectively reduce tax burdens, improve the business environment, and boost confidence in continuing to invest in the Philippine market.
