Press Releases

The European Chamber of Commerce of the Philippines (ECCP), among others, participated in a high-level dialogue with Senator Sherwin Gatchalian at the Philippine Senate on 19 May 2025. The discussion revolved around the wide-reaching effects of the Bureau of Internal Revenue’s (BIR) Revenue Memorandum Circular (RMC) No. 5-2024 on the business environment, particularly for companies that engage with non-resident foreign service providers. Attending the meeting from the ECCP were Atty. Kathyrin Pioquinto, ECCP Director for Advocacy and Government Affairs, and Atty. Alden C. Labaguis of SGV & Co., who is also the Vice Chair of the ECCP’s Tax and Financial Services Committee.

The ECCP has been vocal about how RMC 5-2024 potentially broadens the application of the Supreme Court’s decision in the Aces Philippines case, which result to an almost automatic assessment for final withholding tax and final withholding VAT on services purchased from non-resident foreign corporations.

Senator Gatchalian, who filed Senate Resolution No. 955, acknowledged these concerns and the need to review whether the RMC reflects the intent of the law and the realities of modern, cross-border business. The resolution calls for the Senate Committee on Ways and Means to conduct a formal inquiry into the RMC’s scope and application, especially in relation to services rendered abroad and the principle of tax situs.

For ECCP members, this engagement underscores the value of collaborative, constructive advocacy, bringing real business scenarios into the policy dialogue to help shape outcomes that are balanced, evidence-based, and globally aligned.

The ECCP will continue working with legislators and regulators to advocate for tax rules that promote clarity, predictability, and sustainable economic growth while ensuring the Philippines remains a competitive and attractive destination for investment and innovation.