Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Philippines

The Philippines has met all aspects of the terms of reference (OECD, 2021[1]) (ToR) for the calendar year 2024 (year in review), except for transmitting information on rulings to the Competent Authority without undue delay (ToR II.B.5). The Philippines receives one recommendation on this point for the year in review.

In the prior year report, as well as in the 2017-2022 peer reviews, the Philippines had received the same recommendation. As it has not been addressed the reccomandation remains in place, but it has been amended to reflect the correct ToR.

The Philippines can legally issue one type of rulings within the scope of the transparency framework.

In practice, Philippines issued rulings within the scope of the transparency framework as follows:

Type of ruling	Number of rulings
Past rulings	28
Future rulings in the period 1 April 2017 – 31 December 2017	4
Future rulings in the calendar year 2018	30
Future rulings in the calendar year 2019	10
Future rulings in the calendar year 2020	15
Future rulings in the calendar year 2021	54
Future rulings in the calendar year 2022	45
Future rulings in the calendar year 2023	64
Future rulings in the year in review	118

Peer input was received from four jurisdictions in respect of the exchanges of information on rulings received from Philippines. The input was generally positive, noting that overall information was complete and in a correct format. However, peer input indicated that exchanges on rulings were not timely.

Information gathering process (ToR I.A)

1.  The Philippines can legally issue the following type of rulings within the scope of the transparency framework: permanent establishment rulings.

2. For the Philippines, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2015 but before 1 September 2017; or (ii) on or after 1 January 2012 but before 1 January 2015, provided they were still in effect as at 1 January 2015.

3.  For Philippines, future rulings are any tax rulings within scope that are issued on or after 1 September 2017.

4. In the prior years’ peer review reports, it was determined that the Philippines’ undertakings to identify past and future rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. In addition, it was determined that the Philippines’ review and supervision mechanism was sufficient to meet the minimum standard. The Philippines’ implementation remains unchanged, and therefore continues to meet the minimum standard.

5. The Philippines has met all of the ToR for the information gathering process and no recommendations are made.

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

6. The Philippines has the necessary domestic legal basis to exchange information spontaneously. Philippines notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

7. The Philippines has international agreements permitting spontaneous exchange of information, including (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”) and (ii) bilateral agreements with 42 jurisdictions.1

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

8. In the prior years’ peer review reports, it was determined that the Philippines did not have a process for the completion of exchanges of information on rulings in accordance with the timelines. Therefore, the Philippines was recommended to continue its efforts to ensure that all information on past and future rulings is exchanged as soon as possible.

9. In the prior year’s peer review report, it was noted that the Philippines started to implement a process for the exchanges of information, taking into account the timelines under the transparency framework. The Philippines notes that the Rulings and MAP Section of the International Tax Affairs Division (ITAD) is responsible for ensuring that all templates are prepared and transmitted to the Exchange of Information (EOI) Section of ITAD within three months from the date of issuance of the ruling. In addition, the EOI Unit is responsible for facilitating the exchanges within three months from receipt of the templates. The Philippines, however, has undertaken exchanges, but still experienced delays. In addition, peer input indicated that exchanges of information on future rulings were not timely. The Philippines notes that information was exchanged timely after becoming available to the Competent Authority. However, several exchanges related to rulings that were issued in the previous year (2023), and several rulings issued in the year in review were not exchanged until the second half of the following year (2025). This indicates that there have been delays in transmitting the information on rulings to the Competent Authority. Therefore, this issue will be further reviewed next year, and the prior years’ recommendation has been amended to reflect the correct ToR.

10. For the year in review, the timeliness of exchanges is as follows:

 

Future rulings within the scope of the transparency framework	Number of exchanges transmitted within three months of the information becoming available to the competent authority or immediately after legal impediments have been lifted	Delayed exchanges
		Number of exchanges transmitted later than three months of the information on rulings becoming available to the competent authority	Reasons for the delays	Any other comments
	982	0	N/A	See endnote.

 

Follow-up requests received for exchange of the ruling	Number	Average time to provide response	Number of requests not answered
	0	N/A	N/A

Conclusion on section B

11. The Philippines has the necessary legal basis for spontaneous exchange of information. The Philippines has met all of the ToR for the information gathering process except for transmitting information on rulings to the Competent Authority without undue delay (ToR II.B.5). The Philippines is recommended to continue its efforts to ensure that all information on future rulings is transmitted to the Competent Authority as soon as possible (ToR II.B.5).

Statistics (ToR IV.D)

12. The statistics for the year in review are as follows:

Category of ruling	Number of exchanges	Jurisdictions exchanged with
Permanent establishment rulings	98	Australia, Canada, Czechia, Denmark, France, Germany, India, Indonesia, Israel, Japan, Korea, Malaysia, Netherlands, Singapore, Sweden, Switzerland, Thailand, Türkiye, United Kingdom, United States, Viet Nam

Matters related to intellectual property regimes (ToR I.A.1.3)

13. The Philippines does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

Summary of recommendations on implementation of the transparency framework

 

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
The Philippines experienced delays in transmitting information on rulings to the Competent Authority.	The Philippines is recommended to continue its efforts to ensure that all information on future rulings is transmitted to the Competent Authority as soon as possible. This recommendation remains unchanged since the 2017, 2018, 2019, 2020, 2021, 2022 and 2023 peer review reports, but has been amended for the year in review to reflect the correct ToR.

Notes

← 1.  Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Philippines also has bilateral agreements with Australia, Austria, Bangladesh, Belgium, Brazil, Canada, China (People’s Republic of), Czechia, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Korea, Kuwait, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Pakistan, Poland, Qatar, Romania, Russia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Türkiye, United Arab Emirates, United Kingdom, United States and Viet Nam.

← 2.  Even though these 98 exchanges took place within three months after they become available to the Competent Authority, 44 exchanges refer to rulings that were issued in 2023. In addition, out of the 118 rulings that were issued during the year in review (2024), 54 exchanges have taken place in 2024, a further 56 exchanges have taken place until July 2025, and the remaining exchanges will take place in the second half of 2025.