Philippines Gazettes Law on Enhanced Fiscal Regime for Large-Scale Metallic Mining Operations

The Philippine Official Gazette Sept. 5 published Republic Act No. 12253, on an enhanced fiscal regime for large-scale metallic mining operations. The law includes measures: 1) prohibiting deductions for interest incurred on the related-party debts of metallic mining contractors or operators, in excess of allowable interest, based on a quarterly related-party 2:1 debt-to-equity ratio; 2) introducing an excise tax, from 1 percent to 5 percent, in the form of a royalty on gross output for large-scale operations, with a return and payment deadline of within 60 days following the end of the calendar quarter when the products were mined; and ...