Bureau of Internal Revenue
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 90-2025, dated 07 October 2025, to circularize Republic Act (RA) No. 12253 or the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act” which was signed into law by President Ferdinand R. Marcos Jr. on 04 September 2025.
Among the key amendments to the National Internal Revenue Code of 1997 (Tax Code) under RA No. 12253 are as follows:
- Section 34(B): - Interest on related-party debts of metallic mining contractors/operators exceeding at any time during a taxable year the allowable quarterly 2:1 related-party-debt-to-equity ratio shall be non-deductible. Debt and equity are defined per international financial reporting standards.
- Section 151-A: Introduction of a royalty system for large-scale metallic mining, with specific rates for operations within and outside mineral reservations:
- Within Mineral Reservations: 5% royalty on gross output.
- Outside Mineral Reservation: Margin-based royalty on income from mining operations (minimum of 1/10 of 1% royalty on gross output if margin is < 0%):
| Margin | Rate |
| >0% to ≤15% | 1% |
| >15% to ≤30% | 2% |
| >30% to ≤45% | 3% |
| >45% to ≤60% | 4% |
| >60% | 5% |
- Section 151-B: Implementation of a windfall profits tax on net income from metallic mining operations, with tiered rates based on profit margins (Note: The windfall profits tax is not deductible for income tax purposes.):
| Margin | Rate |
| 30% to ≤40% | 1% |
| >40% to ≤55% | 3% |
| >55% to ≤65% | 5% |
| >65% to ≤75% | 7% |
| >75% | 10% |
- Section 151-C: Establishment of a "ring-fencing" approach for tax reporting, treating each mining agreement as a separate taxable entity.
- Section 151-D: Authorization for tax audits and monitoring of sales and exportation of minerals.
- Revenue Sharing (Sections 287 and 287-A):
- Local government units receive a 40% share of the national government's gross collection from mining-related taxes and royalties.
- 10% share of the royalty derived from mining operations within mineral reservations are allocated to the Mines and Geosciences Bureau and the Metals Industry Research and Development Center for development projects.
RA No. 12253 mandates the establishment of mechanisms for data collection and public disclosure regarding the extractive industry-related data, exempting such mining operations-related data from certain confidentiality clauses in the Tax Code and in RA No. 11232 (Revised Corporation Code of the Philippines).
The law will take effect 15 days after publication in the Official Gazette or in a newspaper of general circulation. The Implementing Rules and Regulations (IRR) will be issued within 90 days from the effectivity of the law. Large-scale metallic mining contractors/operators shall be subject to the fiscal regime under RA No. 12253 after 150 days from the effectivity of the law.
(RGM&Co. Note: RA No. 12253 was uploaded to the Official Gazette website on 5 September 2025.)
Here are the links to the full text of the issuances: RMC No. 90-2025 and RMC No. 90-2025 Annex A.