President Ferdinand Marcos Jr. signs into law the ‘Enhanced Fiscal Regime for the Mining Industry Act’ in a ceremony at Malacañang on Thursday, September 4, 2025. — Screengrab from Bongbong Marcos/Facebook
MANILA, Philippines — President Ferdinand Marcos Jr. on Thursday signed into law the “Enhanced Fiscal Regime for the Mining Industry Act,” establishing a fair, transparent, and accountable fiscal framework for large-scale metallic mining to ensure the government’s equitable share of revenues.
The law, to be officially known as Republic Act (RA) No. 12253, was signed by Marcos in a ceremony at Malacañang.
READ: Simplified, rationalized mining fiscal regime set
Among its features is the imposition of a 5-tier, margin-based royalty of 1 to 5 percent on income from metallic mining outside mineral reservations, with a minimum 0.1 percent royalty on gross output for mines below the margin threshold.
It also introduces a 5-tier, margin-based windfall profits tax of 1 to 10 percent on mining income and enforces a 2:1 debt-to-equity ratio or a thin capitalization rule, to limit tax-deductible related-party borrowing costs.
This measure is projected to generate P25.08 billion in revenues from 2026 to 2029, averaging P6.26 billion per year. /das
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