Be updated on our latest insights

Taxation is one of the inherent powers of the State. The famous dictum of the US Supreme Court Chief Justice John Marshall in McCulloch v. Maryland that “the power to tax involves the power to destroy” has long illustrated the breadth of the taxing power of the State. Taxes are the lifeblood of the government and, therefore, should be collected without unnecessary hindrance. However, if exercised arbitrarily, the power to tax can become oppressive.

In investment decisions, tax incentives should not be treated as an afterthought. They influence pricing, capital allocation, financing assumptions, workforce planning, supply chain strategy, and ultimately, the expected return on a registered project.

The Philippines, one of the oldest allies of the U.S government, has signed the Declaration of Inclusion last April 2026 and is eyeing for the signing of the Agreement in November 2026.

Taxpayers often focus on tax laws and regulations that directly affect their liabilities and compliance obligations, while administrative issuances are generally viewed as having limited impact.

One of the most overlooked assets on a company's balance sheet is an unutilized Value Added Tax (VAT) input balance. For export-oriented businesses and other taxpayers entitled to VAT refunds, these amounts can represent significant cash recovery opportunities.

The BIR’s move toward digital taxation is not merely changing how transactions are reported. It is placing greater visibility on how both businesses and regulators capture, process, and manage information.

Rising electricity costs have once again become a pressing issue for households and businesses across the Philippines.

The closure of business and cancellation of tax registration with the Bureau of Internal Revenue (BIR) has historically been one of the most complex and compliance-heavy aspects of doing business in the Philippines.