BUSINESSES and stakeholders have called for clearer and more consistent implementation of tax rules covering cross-border services, saying greater certainty would help companies comply with regulations and make investment decisions.
The concerns were raised at a policy dialogue on Wednesday regarding Revenue Memorandum Circular (RMC) 5-2024, which stipulates that income earned by foreign service providers may be taxable in the Philippines when the economic benefit of the service is realized locally.
The dialogue was organized by Arangkada Philippines — the advocacy initiative of the Joint Foreign Chambers of the Philippines (JFC) — along with R.G. Manabat & Co. (KPMG in the Philippines) and SyCipLaw.
It gathered representatives from the Bureau of Internal Revenue, Department of Finance, Presidential Legislative Liaison Office, business community, tax and legal professions, and the academe.
Arangkada said RMC 5-2024 has practical implications for companies providing or receiving services across borders, particularly in tax treatment, documentation, reporting, contracts, and internal compliance systems.
The discussions highlighted the importance of translating tax policy into clear implementing rules as companies assess compliance requirements and the potential tax implications of international transactions.
The JFC said tax certainty influences how businesses structure their operations and transactions and make investment decisions.
“Arangkada serves as a vital bridge between government and business, creating a platform where practical policy concerns can be openly discussed and translated into clear, actionable implementation that supports compliance and competitiveness,” Arangkada project director Matthew Scalin said.
The initiative would continue engaging government agencies to ensure that concerns raised by businesses are addressed, Scalin added.
The dialogue forms part of Arangkada’s efforts to promote government-business discussions on policies affecting investment and competitiveness.
