Arangkada Philippines is pressing the government to clarify tax rules on cross-border services, warning that uncertainty in implementation could complicate business decisions and undermine the Philippines’ pitch as an investment destination.
The Joint Foreign Chambers of the Philippines (JFC) advocacy initiative convened government, business, legal, tax, and academic stakeholders on Aug. 19 to tackle implementation concerns surrounding Revenue Memorandum Circular No. 5-2024 and identify ways to improve tax certainty.
The dialogue at the Asian Institute of Management brought together representatives from the Bureau of Internal Revenue, Department of Finance, and Presidential Legislative Liaison Office, along with private-sector and academic experts.
RMC No. 5-2024 affects companies providing or receiving services across borders, with implications for tax treatment, documentation, reporting, contracts, and internal compliance systems.
At the center of the discussion was a familiar investment concern: companies can manage higher taxes, but uncertainty over how rules will be interpreted and applied can make costs harder to predict.
For the JFC, which represents more than 3,000 member companies, predictable tax administration is essential to the country’s competitiveness, particularly as businesses assess where to locate regional operations and structure cross-border transactions.
“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 both compliance and competitiveness,” Arangkada Project Director Matthew Scalin said.
Arangkada said it will consolidate the concerns and recommendations raised during the dialogue and pursue follow-through with relevant government agencies.
The push comes as Philippine companies become more integrated into regional supply chains and multinational firms increasingly rely on cross-border services, making tax treatment a bigger factor in investment planning.
For Arangkada, the issue is not simply about easing compliance. Clearer rules and more consistent implementation could reduce the regulatory friction that businesses factor into investment decisions, while giving the government a stronger framework for enforcing tax obligations.
