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Marcos Jr. Signs Major Tax Reforms for Mining and Real Estate

President Ferdinand Marcos Jr. has signed two important tax reform laws aimed at improving how the Philippines collects taxes from the mining and real estate sectors. These changes are designed to make the system fairer, clearer, and more beneficial for both the government and local communities.

New Rules for Mining: RA 12253
Signed in September 2025, the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act (Republic Act No. 12253) simplifies and updates how the government taxes large mining companies.
Main Features:

  • Unified Tax System: All large-scale metallic mining operations now follow the same tax rules.

  • Royalties Based on Profit:

    • Mines in government-declared areas pay a fixed 5% royalty on their gross output.

    • Mines outside those areas pay 1% to 5%, depending on how profitable they are.

  • Windfall Profits Tax: If a mining company earns big profits (over 30% margin), it pays an extra tax of 1% to 10%.

  • Ring-Fencing Rule: Each mining project is taxed separately, so companies can’t use losses from one project to reduce taxes on another.

  • More Funds for LGUs: 40% of the mining taxes and royalties will go to local governments where the mining happens.

  • More Government Revenue: The new system is expected to bring in over PHP 6 billion more per year.

Although taxes are higher, the law gives mining companies more predictability, which can attract long-term investment—especially in key minerals needed for clean energy.


Fixing Property Valuation: RA 12001

The Real Property Valuation and Assessment Reform Act (Republic Act No. 12001) took effect in July 2024. It addresses the confusing and outdated system used to assess the value of land and buildings for tax purposes.
Main Features:

  • One Standard Value: All properties will now be assessed based on market value, making the system clearer and more consistent.

  • Philippine Valuation Standards (PVS): All property valuations must follow these national standards, aligned with global practices.

  • BLGF in Charge: The Bureau of Local Government Finance (BLGF) will manage and check local property valuations.

  • More Power to LGUs: Local governments must update property values every three years, helping them collect fairer taxes without raising rates.

  • Tax Amnesty: There’s a two-year amnesty for unpaid property tax penalties and interest to help people catch up and comply.


A Step Toward Better Governance

These two new laws are part of the government’s push to modernize the tax system, make rules more transparent, and ensure that wealth from natural resources and property is shared more fairly.
While businesses and property owners may need to adjust, the long-term goal is to support stronger local governments, better public services, and a more competitive Philippine economy.


Source/Reference:

RA 12253 – Enhanced Fiscal Regime for Large-Scale Metallic Mining

 RA 12001 – Real Property Valuation and Assessment Reform Act (RPVARA)