The IRR puts into effect the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, in line with President Ferdinand R. Marcos Jr.’s push for a clearer, fairer, and more accountable framework for resource development.
Why it matters
Mining remains a capital-intensive industry sensitive to policy risk. By removing fiscal ambiguity, the government hopes to encourage long-term investments while improving compliance and revenue collection.
“This is a critical step forward in unlocking the full economic potential of the mining sector while maintaining safeguards for transparency, accountability, and environmental protection,” Go said.
What’s changing
Enacted on Sept. 4, 2025, RA 12253 simplifies the mining fiscal system by eliminating multiple tax treatments across different mining agreements. The move standardizes obligations and levels the playing field for operators.
Under the IRR, the computation of royalties and windfall profits taxes is clearly defined, including allowable deductions and the treatment of gross output.
Revenue expectations
The Department of Finance estimates the new regime will generate an average of P6.3 billion in additional revenues annually from existing mining operations. Revenue gains are expected to increase further as new projects come online.
How it will be enforced
The IRR confirms the Bureau of Internal Revenue as the primary collecting agency and spells out filing, payment, and reconciliation procedures. It also enforces project-level compliance through ring-fencing provisions.
Audit and monitoring rules were strengthened, with mandatory public disclosures and enhanced coordination among the BIR, Bureau of Customs, and other government agencies.
What’s next
Go said the DOF will work closely with the Department of Environment and Natural Resources, local governments, and industry stakeholders to ensure effective implementation.
The IRR was crafted through consultations with both public and private sector groups. —Ed: Corrie S. Narisma
