RA 12253 expected to raise P25B in 2026-2029
President Ferdinand Marcos Jr. has signed the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, establishing a new framework to ensure the government collects a fair share of revenue from private mining companies.
The law–Republic Act 12253–which consolidates Senate Bill 2826 and House Bill 8937, requires mining firms within mineral reservations to pay a royalty of 5 percent of gross output to the government, the presidential palace announced on Thursday.
Payments may be made specifically to the Mines and Geosciences Bureau (MGB) and local government units, as well as to indigenous cultural communities (ICC/IPs) in affected areas.
Operators operating outside mineral reservations must pay a margin-based royalty ranging from 1 percent to 5 percent, with a minimum rate of 0.1 percent. Additional taxes apply if profit margins exceed 30 percent.
RA 12253 also retains the 25 percent corporate income tax, the 4 percent excise tax, the 1 percent royalty for indigenous peoples and applicable withholding taxes.
It introduces a per-project “ring-fencing rule” to prevent companies from offsetting losses in one site against profits in another, and imposes a 2:1 debt-to-equity limit on related-party borrowings.
“When collecting taxes, each mining contractor is recognized as a separate taxable entity. Gone are the days when profits can be buried under losses,” Marcos said in the statement.
He added that transparency and accountability will be the standard going forward.
The law also directs that 10 percent of royalties collected from mines inside reservations will be earmarked for exploration by the Mines and Geosciences Bureau and the Metals Industry Research and Development Center, as well as for Bureau of Internal Revenue tools and facilities.
Provisions include monitoring and auditing of mineral sales, public disclosure of mining data, and the creation of a multi-stakeholder accountability group. Local governments’ share of mining taxes will also be streamlined to address disbursement delays.
The government expects RA 12253 to raise P25.08 billion from 2026 to 2029, or about P6.26 billion annually.
Special Assistant to the President for Investment and Economic Affairs Frederick Go said the measure positions Philippine mining as a player in the global value chain.
“By modernizing the industry’s fiscal regime, we aim to drive economic growth in support of green technologies while protecting our environment and natural heritage,” Go said.
