Philippines join OECD/G20 Inclusive Framework on BEPS

    

Through its membership, the country has committed to participating in the Two-Pillar Solution to reform the international taxation rules and to ensure that multinational enterprises pay a fair share of tax wherever they operate. 

     

The Philippines will participate in the implementation of the BEPS package of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.

     

Under Pillar One it is expected to allocate taxing rights on about USD 200 billion in profits to market jurisdictions annually. This is expected to lead to annual global tax revenue gains of between USD 17‑32 billion, based on 2021 data. 

    

Pillar Two introduces a global minimum Corporate Tax rate set at 15 percent. The new minimum tax rate will apply to companies with revenues above EUR 750 million, and is estimated to result in annual global revenue gains of around USD 200 billion. Further benefits will also arise from the stabilization of the international tax system and the increased tax certainty for taxpayers and tax administrations.