Manila: The Bureau of Internal Revenue (BIR) has begun preparations for the possible implementation of the proposed Qualified Domestic Minimum Top-Up Tax (QDMTT). In a social media post on Thursday, the BIR stated that the QDMTT is a measure being pushed by the Department of Finance (DOF) to ensure that large multinational enterprise groups pay a minimum level of tax on income earned in the Philippines.
According to Philippines News Agency, as part of its preparations, BIR Commissioner Charlito Martin Mendoza met with the DOF's QDMTT team and the Fiscal Incentives Review Board on June 3 for a presentation of the key features and framework of the draft "Qualified Domestic Minimum Top-Up Tax of 2026" bill. Discussions focused on tax administration considerations for the measure's implementation, including compliance, reporting, audit readiness, and institutional capacity.
Among the key action points identified during the meeting were the conduct of specialized training programs for BIR personnel, the development of new tax forms and compliance mechanisms, and the establishment of organizational arrangements to support the administration of the proposed QDMTT. "As global tax rules evolve, we have to make sure that income earned in the Philippines remains taxable in the Philippines. At this stage, our immediate priority is to build the capability of our personnel and prepare the systems, processes, and organizational structures needed to administer the proposed regime effectively," Mendoza said.
Mendoza stated that the BIR remains committed to working closely with the DOF in preparing for the proposed QDMTT regime as part of its Revenue Collection and Revenue Base Protection agenda under BIR DARES, ensuring that the country's taxing rights are protected amid ongoing developments in international taxation. Finance Assistant Secretary Euvimil Nina Asuncion mentioned that the DOF is pursuing the measure after receiving feedback from multinational enterprises operating in the Philippines.
"We have been informed that many of our multinationals would rather comply with the GMT domestically rather than comply with unfamiliar rules of other jurisdictions or pay top-up taxes abroad," Asuncion said. "The primary considerations are simplifying domestic compliance and ensuring that implementation is strictly in accordance with international standards," she added.
