Finance Secretary Frederick D. Go has issued the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 12253 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, which will spur more investments in the sector and ensure Filipinos’ fair share of the country’s natural resources.

The effort is in line with President Ferdinand R. Marcos, Jr.’s call to establish a fairer, clearer, and more accountable fiscal regime for harnessing the country’s mineral resources.

“This is a critical step forward in unlocking the full economic potential of the mining sector while maintaining safeguards for transparency, accountability, and protection of the environment,” Secretary Go said.

Enacted on September 4, 2025, the law simplifies the fiscal system for mining by removing complex tax distinctions among different agreements. Thus, promoting tax compliance and encouraging investment in the sector.

The Department of Finance (DOF) expects to generate an average of PHP 6.3 billion in additional annual revenues from existing mining projects, with even greater gains expected as new investments come in.

Specifically, the IRR clarifies the computation of the tax base for both royalty and windfall profits taxes, including allowable deductions and the treatment of gross output.

Moreover, it outlines the filing, payment, and reconciliation procedures for royalties, confirms the Bureau of Internal Revenue (BIR) as the primary collecting agency, and sets rules for project-level compliance under the ring-fencing provision.

The IRR also strengthens audit and monitoring, mandates public disclosure of requirements, and establishes coordination between the BIR, Bureau of Customs (BOC), and other relevant agencies to ensure effective enforcement and transparent governance in the mining sector.

Secretary Go expressed his commitment to ensure the effective implementation of the law, in close coordination with the Department of Environment and Natural Resources (DENR), BIR, BOC, Bureau of Local Government Finance (BLGF), local government units, and industry stakeholders.

The IRR was crafted in consultation with both public and private stakeholders, and sets a well-defined mechanism for just and transparent implementation.

Read the full IRR: https://www.dof.gov.ph/wp-content/uploads/2025/12/MINING-IRR.pdf