President Marcos’ chief economic manager said that streamlined taxes imposed by local government units (LGUs) on businesses enjoying tax perks encourage easier compliance and attract more investments to the Philippines.

This comes on the heels of issuing the first joint memorandum circular (JMC) in 2026, where the government affirmed that the Local Government Code (LGC) of 1991 mandates a uniform taxation procedure.

Finance Secretary Frederick D. Go said in a June 1 statement that with “clear guidance and coordinated implementation, we are making compliance easier, providing greater predictability, and encouraging more investments into the country.”

Go, alongside the secretaries of the departments of trade and industry (DTI), and the interior and local government (DILG), signed the JMC in March.

“Our goal is to translate policy into practice—ensuring that reforms are delivered, translated, and felt by our investors,” Go said, noting that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act aims to make the country a more investment-friendly destination.

“Our responsibility now is to ensure that its provisions are implemented clearly, consistently, and effectively,” Go said.

What this measure aims to address is a long-standing point of friction between LGUs and the private sector. 

For years, business groups have raised concerns that some LGUs were sidestepping the LGC to exploit their autonomy and extract excessive funds from the Registered Business Enterprises (RBEs) they host. 
Such practices were viewed as counterintuitive to the national government’s goal of cutting red tape and attracting global capital.

As such, the JMC reminds LGUs that the LGC requires the imposition of taxes to be equitable, based on a taxpayer’s ability to pay, and never “unjust, excessive, oppressive, or confiscatory.”
To resolve these ambiguities arising from varying interpretations of the CREATE and CREATE MORE Acts, the JMC introduced the Registered Business Enterprise Local Tax (RBELT).

Under this new framework, LGUs may impose the RBELT at a rate of not more than two percent of the gross income of a registered project. 

To note, the RBELT serves as a consolidated payment “in lieu of all other local taxes, fees, and charges,” including local business and real property taxes. Once an LGU adopts this framework through an ordinance, it is barred from imposing separate taxes on the incentivized project.

Additionally, the guidelines also clarify that these exemptions apply specifically to registered activities while non-registered projects remain subject to standard local taxes. 
To ensure these reforms are felt on the ground, the Fiscal Incentives Review Board (FIRB) held nationwide town hall meetings in May to brief stakeholders on the standardized application of these rules. 


By providing a uniform roadmap for local tax administration, the government intends to strengthen investor confidence and solidify the Philippines' standing as a competitive destination for business. (Derco Rosal)