IN BRIEF:
• The SGV 4th Tax Symposium highlighted the urgent need for trust and transparency in the economy, emphasizing that these elements are foundational for sustainable governance and economic progress.
• Leaders from both public and private sectors gathered to discuss strategies for transforming compliance into confidence, highlighting the significant losses due to corruption, and promoting initiatives that streamline processes and enhance accountability.
• The symposium showcased various reforms, including the Real Property Information System and the Investment Facilitation Network, which aim to create a more efficient and transparent tax ecosystem, ultimately positioning the Philippines as a premier investment destination.
In today’s world stage, trust is not just a virtue — it’s the foundation of progress, and transparency is essential for sustainable governance. As businesses navigate uncertainties and governments confront the realities of corruption, the need for transformation has never been more urgent.
In SGV’s 4th Tax Symposium, which had the theme “From Compliance to Confidence: Trust, Transformation, and Transparency,” leaders came together with a clear purpose: to turn compliance into a driver of confidence and to shape a future guided by integrity in every economic decision.
The symposium called on leaders from both public and private sectors to reduce inefficiencies and embrace digitalization.
INSIGHTS FROM CURRENT CORRUPTION ISSUES
The symposium discussed the impact of corruption, with an estimated P1.7 trillion or around $27.5 billion lost (based on various news reports) over the last decade, that could have built thousands of classrooms, modernized healthcare systems, and uplifted millions of lives.
True transformation starts with action. It is essential to move beyond mere observation and actively foster cultural and behavioral change. As I mentioned in my opening message, “No matter how small our effort may seem, we will not sit on the sidelines. We will help change culture. We will help shift behavior. We will pursue transparency so that trust and confidence — both domestic and foreign — can be earned and maintained. Because transformation is not passive. It demands courage.”
Embracing this challenge is vital for building a foundation of trust that can withstand the complexities of today’s interconnected world.
FISCAL RESPONSIBILITY AND DIGITAL TRANSFORMATION
In his keynote message, Undersecretary Charlito Martin R. Mendoza of the Department of Finance (DoF), who was recently appointed as the new Bureau of Internal Revenue (BIR) Commissioner, reaffirmed the government’s commitment to maintaining fiscal integrity and modernizing tax administration.
He acknowledged recent corruption scandals and assured the private sector of the administration’s sweeping reforms to restore trust in public institutions.
Emphasizing the commitment to fostering a business environment characterized by trust and transparency, he articulated a vision for a tax ecosystem that goes beyond mere compliance and is globally competitive, fundamentally fair, and perpetually stable.
He highlighted key initiatives that include a refined Medium-Term Fiscal Program aimed at reducing deficits while ensuring funding for essential services, the full implementation of the Electronic Invoicing System (EIS) designed to capture transactions in real time and help minimize audit delays, and an enhanced National Single Window System streamlining trade facilitation and reducing human intervention.
These initiatives aim to cut through bureaucratic obstacles, reduce compliance costs, and make compliance feel like a natural part of doing business.
ARTA AND THE INVESTMENT FACILITATION NETWORK
The Anti-Red Tape Authority (ARTA), a government agency tasked with streamlining government processes to promote the ease of doing business and deliver efficient government services, recognizes that visibility is fundamental to building trust.
To this end, ARTA has developed digital platforms such as the Philippine Business Regulations Information System and the Electronic Business One-Stop Shop, which are designed to empower stakeholders and streamline processes. This initiative signifies a clear transition from bureaucratic red tape to a more welcoming “red carpet” for investors.
Success stories in regulatory reform were highlighted, notably the significant reduction in the time it takes to grant permits for telecom towers, which decreased from approximately 300 days to just 59 days, representing an 80.33% drop attributed to Executive Order 32.
To reinforce the agency’s commitment to transparency and accountability, ARTA Director General Ernesto V. Perez introduced Transparency, Accountability, and Law in Action (TALA), an AI-powered complaint system and upcoming task force aimed at combating corruption. In his presentation, he emphasized the importance of collaboration, urging all stakeholders to remain proactive in ensuring integrity, transparency, and accountability in public service.
Similarly, the symposium showcased the Investment Facilitation Network (INFA-Net), a comprehensive government initiative launched in 2024 aimed at streamlining investment processes across 38 agencies and local government units (LGUs). The initiative aims to create a more agile and transparent investment climate aligned with the Bagong Pilipinas Vision. This is accomplished by establishing green lanes and implementing the 3-7-20 rule, which prescribes that simple transactions must be completed within three calendar days, complex transactions within seven days, and highly technical transactions within 20 days.
DRIVING GROWTH THROUGH INNOVATION AND TAX REFORM
As part of their efforts to modernize local fiscal management and enhance property valuation transparency, Executive Director (ED) Consolacion Q. Agcaoili of the Bureau of Local Government Finance (BLGF) discussed the Real Property Valuation and Assessment Reform Act (RPVARA) and the rollout of the Real Property Information System (RPIS).
Maintained by BLGF, the RPIS will serve as a comprehensive database for all real property transactions, enabling local government unit (LGU) assessors to develop more accurate and updated schedules of market values. This system is expected to enhance the efficiency and reliability of property assessments.
National Government agencies will have free access to the RPIS, while private sector users will pay a fee to cover maintenance costs, reducing the need for ongoing budget support.
Mr. Agcaoili said the RPIS is currently 90% complete, with development still ongoing. However, by 2026, the RPIS will be fully rolled out to local assessors, who will undergo training to effectively use both the RPIS and the Computer-Assisted Mass Appraisal (CAMA) system, which uses statistical models to value large numbers of properties for tax purposes.
By the same token, PEZA Director General Tereso O. Panga emphasized PEZA’s commitment to positioning the Philippines as a premier investment destination, extending to beyond merely providing incentives.
He highlighted the CREATE MORE Act as a landmark tax reform that gives investors confidence through competitive incentives, making the country more attractive compared to its ASEAN peers.
PEZA has automated most of its processes, introducing innovations such as the PEZA One-Stop Portal System and the EcoZone Transfer System. These initiatives are designed to simplify transactions, cut red tape, reduce transaction costs, and provide real-time visibility and accountability for both government and investors. This strategic focus on enhancing the investment environment is intended to foster a climate where compliance translates into confidence, ultimately fueling sustainable progress for the country.
SGV TAX VISION
As leaders from both the public and private sectors convened to address the pressing need for transformation, the discussions at the 4th Tax Symposium underscored the critical nature of trust in fostering a robust economic environment. This was reiterated with a reintroduction of the SGV Tax Vision, which aims to develop a tax ecosystem where compliance is encouraged, collaboration with regulators is prioritized, and integrity among tax practitioners is upheld. This vision serves as a guiding principle for achieving these goals.
By fostering an investment climate that not only attracts businesses but also nurtures them, the Philippines can emerge as a leading destination for investment in the region. This holistic approach to governance and fiscal management is essential for building a foundation of trust, facilitating the transformative changes needed to establish a sustainable and effective tax ecosystem that will support the nation’s growth and prosperity.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co. Jules E. Riego is the tax leader of SGV & Co.
Jules E. Riego is the tax leader of SGV & Co.