Pope Leo XIV | Screenshot from Vatican Media Livestream
VATICAN CITY — Pope Leo XIV signaled on Saturday he would continue with the vision and reforms of Pope Francis, telling the world’s Catholic cardinals the late pontiff left a “precious legacy” that must carry on.
In his first meeting with all the cardinals since his election as pontiff on May 8, Leo also asked the senior clerics to renew their commitment to major Church reforms enacted by the landmark Second Vatican Council in the 1960s.
Leo said Francis, who died on April 21, broadly had a vision of opening the staid 1.4-billion-member Church to the modern world, had left an “example of complete dedication to service.”
“Let us take up this precious legacy and continue on the journey,” the new pope told the cardinals.
The pontiff also asked the clerics to “renew together our complete commitment” to the reforms enacted by the Council, which included celebrating the Mass in local languages rather than Latin and pursuing dialogue with other religions.
He cited Francis’ focus on “courageous and trusting dialogue with the contemporary world in its various components and realities.”
Francis was pope for 12 years and often garnered criticism from conservative cardinals, who said he was watering down the Church’s doctrine on issues such as inclusion of LGBT Catholics and women’s leadership.
Leo, the former US Cardinal Robert Prevost, was a relative unknown on the global stage before his election as pontiff. He had spent most of his career as a missionary in Peru before serving as a senior Vatican official for the past two years.
The new pope said on Saturday he had taken his papal name partly to honor Pope Leo XIII (1878-1903), who was known as an advocate for social justice and pushed for fair pay and treatment of workers during the industrial revolution.
Leo said the Church must now take the lead in facing newer threats to workers, such as artificial intelligence. He said artificial intelligence posed “new challenges for the defense of human dignity, justice and labor.”
Leo’s two-hour meeting with the cardinals took a different format to that used by previous popes, who would typically offer a speech and expect the clerics only to listen.
This time, Leo gave a prepared address and then opened the floor to any cardinal who wanted to make a comment — allowing the clerics to voice their opinions and concerns about the main issues facing the global Church.
“He listened very carefully, but he knows he’s going to have to make the decisions,” Irish Cardinal Sean Brady told Reuters. “But we’re here to help him.”
Spanish Cardinal Aquilino Bocos Merino described the meeting as “very cordial and communal.”
CHINA DEAL COMES UP Leo greeted each of the cardinals individually as they left the meeting, which was held in the same small Vatican auditorium where the cardinals had been gathering in the days before the conclave to discuss who should be the next pope.
Czech Cardinal Dominik Duka said one topic that came up was the situation of Catholics in communist China.
The Vatican and China in 2018 signed a controversial deal on the appointment of bishops in the country, which gives Beijing some input into their selection.
Conservatives have attacked the still-secret deal as a sell-out, but Duka told Reuters it was necessary to keep a dialogue open in places where the Church is oppressed, comparing it to dialogue between the Vatican and eastern European countries during the Cold War.
German Cardinal Gerhard Mueller, who openly clashed with Francis on issues concerning Catholic moral teaching, told Reuters that Saturday’s encounter was “very good and harmonious.”
To be elected as pope during the May 7-8 secret conclave at the Sistine Chapel, Leo required a two-thirds majority of 89 of the 133 voting cardinals.
Madagascar Cardinal Désiré Tsarahazana told Reuters that Leo received more than 100 votes at the final ballot on the afternoon of May 8. — Reuters
WASHINGTON — The US House committee in charge of taxes released on Friday evening a partial text of its part of President Donald J. Trump’s proposed tax agenda that would make his 2017 tax cuts permanent, leaving out contentious issues before a planned vote on Tuesday.
The 28-page proposal by the House Ways and Means Committee would increase the child tax credit from $1,000 to $2,500 through 2028 and to $2,000 after, and adds a requirement for recipients to have a Social Security number and reduces some taxes for multinational companies and unincorporated businesses.
But it does not address more hotly contested issues like what to do with the current $10,000 deduction limit for state and local taxes, which is important to states with high taxes like New York, California and New Jersey.
It also does not address the fate of Medicaid, which covered about 35 million people in states Mr. Trump won in last year’s presidential election and clean energy tax credits that benefit some Republican states.
“Ways and Means Republicans have spent two years preparing for this moment, and we will deliver for the American people,” said Ways and Means Committee Chair Jason Smith of Missouri.
US congressional Republicans are struggling over how to pay for what Trump has called his “big, beautiful bill” — a multitrillion-dollar tax-cut and immigration reform agenda, with the fate of the Medicaid healthcare program and the nation’s debt ceiling hanging in the balance.
The party is torn between hardliners who want tax cuts to be scaled back to achieve a goal of $2 trillion in spending reductions over the next decade and moderates pushing back against large-scale slashing of the Medicaid healthcare program.
Ways and Means is scheduled to hold a meeting to debate and advance the legislation on Tuesday afternoon. — Reuters
THE number of measles cases in the United States has crossed 1,000 for the first time in five years, federal data showed on Friday, as the country battles one of its worst outbreaks of the childhood disease.
The US Centers for Disease Control and Prevention (CDC) reported 1,001 measles cases in 31 jurisdictions, as of Thursday.
The CDC count does not reflect the latest data from Texas, the epicenter of the current measles outbreak, where cases have increased by seven to a total of 709.
Researchers have warned that the United States is at a tipping point for the return of endemic measles, a quarter century after the disease was declared eradicated in the country.
Infections only previously surpassed the 1,000 mark in 2019 when the country reported 1,274 cases.
“I think we are still at risk of seeing these numbers at least stay steady, if not continue to increase over time,” said Lisa Maragakis, senior director of infection prevention at Johns Hopkins Medicine.
The outbreak in Texas, which has led to the deaths of two children and hundreds more being infected, is centered in a Mennonite community and has spread to neighboring states including New Mexico, Oklahoma and Kansas.
The CDC said 13% of those infected with the disease this year have been hospitalized. There have been three confirmed deaths so far.
There have been 14 outbreaks, defined as three or more related cases, reported in 2025, the CDC said.
US pediatricians and infectious disease experts say that the fight against rising measles cases nationwide is being hampered by a lack of forceful advocacy for vaccination by government health officials and by misleading statements about unproven treatments that confuse parents.
The measles vaccine is 97% effective after two doses, according to the CDC. — Reuters
Search engine platform Google and video streaming application YouTube highlighted specific features for the midterm elections on Monday to help promote reliable information on their platforms.
“Supporting the elections is important to Google and YouTube,” Google Philippines Head of Public Policy and Government Relations Yves Gonzalez said in a press release.
“As Filipinos prepare for the May 12 elections, we are committed to robust collaboration with the government, industry, media, and civil society,” Mr. Gonzalez added.
A study by the market research firm Kantar revealed that YouTube is the number one platform for accessing a wide variety of content types (e.g., short, long, and live videos). With over 50 million users aged 18 and above, Google said it expects users to turn to the platform for the latest election news.
On May 12, live coverage from authoritative news organizations, in both English and Filipino, will be placed on YouTube’s homepage to help ensure that viewers are following the latest news and results from reliable sources.
Apart from the livestreams, the “How to vote” playlist of the Commission on Elections (COMELEC) will be promoted on the platform during the election day to provide relevant materials, requirements, and a step-by-step guide for first-time voters.
“A well-informed electorate is fundamental to COMELEC’s mission for credible elections,” COMELEC Chairperson George Erwin M. Garcia said.
“We thank and commend Google for their continued, valuable contributions in ensuring Filipinos have accessible and reliable election information online, empowering them to make informed choices for the midterm elections,” he added.
Information and labels
YouTube is set to introduce an information panel above search results when users look up content related to 2025 senatorial candidates. This panel will display key details such as the candidate’s name, political affiliation, and a direct link to Google Search for additional information.
In an effort to maintain transparency, YouTube has announced that AI-generated content must be disclosed by creators. Videos featuring election-related material altered by artificial intelligence will carry a label on the video player, informing viewers of modifications.
Meanwhile, Google Search is reinforcing its commitment to accuracy by prioritizing authoritative sources in its ranking system, ensuring voters receive reliable election-related information. Additionally, its “About this Image” feature will help users evaluate the credibility and context of online images.
Further strengthening efforts against misinformation, Google has pledged that all AI-generated images produced by its platforms will be embedded with a watermark using DeepMind’s SynthID technology.
Removed videos
To further protect voters during the election, YouTube prohibited content that “misleads voters on how to vote or encourages interference in the democratic process.” It also vowed to “quickly remove content that incites violence, encourages hatred, promotes harmful conspiracy theories, or threatens election workers.”
On the latest transparency report of YouTube, the Philippines, with over 153,000 videos removed, ranked eighth between October and December 2024 on the highest number of videos removed globally for violating the platform’s policies. – Almira Louise S. Martinez
According to a study by travel booking platform Klook, 89% of Filipinos select their travel destinations based on social media popularity, surpassing the regional average of 79%.
“We know that social media is a huge factor in really driving people to book their travel purchases,” Klook Philippines General Manager Michelle Ho said in a press briefing.
The 2025 Travel Pulse research, which has 7,000 respondents, showed that Filipinos use Facebook (84%) as their top source of information for travel inspiration, followed by YouTube (73%), TikTok (69%), and Instagram (63%).
The study added that quick travel content in the form of photos (67%) and short-form videos (62%) is the type of posts that attract most Filipinos. On the other hand, travelers use long-form videos (48%) and in-depth blog posts (45%) for deeper research on the destination and tours.
Ms. Ho noted that although TikTok is the third most popular application among travelers, Filipinos are two times more likely to engage with the platform’s videos.
Klook also reported a 20% increase in Q1 2025 versus Q4 2024 on its Kreator-generated sales.
Vietnam, for example, has experienced a 157% increase in revenue for tourism services and products made on Klook after content creators posted their travels.
“Social media has played a huge role in elevating the popularity of Sapa,” Ms. Ho said. “We’ve seen a triple-digit growth for Filipinos travelling to Vietnam these days.”
Apart from Vietnam, the study revealed that Taiwan and Thailand are also experiencing a rise in Filipino tourists, with 120% and 78% growth in 2024 versus 2023, respectively.
For domestic travel, Ms. Ho shared that Manila remains the top destination for weekend getaways, while Tagaytay, Boracay, Cebu, and Bohol are popular destinations.
Surigao and Siargao have also been gaining traction and popularity recently, the Klook executive said.
“What’s interesting is that you’ve got your core destinations, rising in terms of popularity, and at the same time, lesser-known destinations are being talked about,” Ms. Ho said.
“And we’re actually paying close attention to that, because we feel that in the next few months, this could really rise in the tourism industry,” she added. – Almira Louise S. Martinez
From pandemic challenges to business growth. The success of Leslie’s small business showcases how digital payment solutions opened new customer channels, helping her earn more.
GCash bridges financial gaps for women nationwide, driving economic independence and community growth
GCash, the Philippines’ leading finance super app and largest cashless ecosystem, continues to promote gender-inclusive finance. It recently showcased the transformative power of digital financial services and technology in the lives of Filipino women nationwide, from everyday individuals to small business owners, students to heads of household. Beyond the eight out of 10 Filipinos who have tried using GCash, and with five out of 10 Filipino[1] women using the mobile wallet and its other financial features, the app’s real impact lies in the individual stories of empowerment, resilience, and growth.
“GCash is committed to breaking down financial barriers through innovative technology and deep customer insights,” shares Rowena Zamora, Chief Strategy Officer of Mynt, the holding company of GCash. “We recognize that Filipino women are often the financial stewards of their households, making everyday decisions about spending, budgeting, and savings. Our platform is designed to empower them by putting powerful financial tools directly in their hands.”
For many Filipino women, traditional banking frameworks pose significant obstacles due to the need for documentation and credit history that many do not possess. Through AI-powered solutions that utilize alternative data based on users’ digital footprints, GCash has revolutionized this landscape, unlocking previously unattainable opportunities for many.
Real Stories, Real Impact: Women Empowered by GCash
The transformative impact of GCash is best illustrated by the stories of women whose lives have been changed by having the right financial tools at their fingertips. Leslie, a single mom and carinderia owner from Manila, shares her experience: “During the pandemic, we had a hard time selling to customers. It’s a good thing that some of them encouraged us to try GCash; it helped us cater to more people and enabled us to triple our sales and even purchase our e-vehicle.”
With access to the mobile wallet, Leslie, as well as other unbanked women, can easily access tools such as GSave, which democratizes investment opportunities with low entry points, and GCoach AI, which provides interactive financial advice and insights for building wealth.
For Lyn, a virtual assistant from Batangas, GCash provided crucial support during a family emergency: “My husband and I had to rush our child to the hospital because he contracted pneumonia. I had purchased insurance previously through GInsure; within the same day, our claim was approved, which allowed us to buy the medicines our son needed.”
When seconds count. How Lyn’s foresight in securing digital insurance became her family’s lifeline during her child’s health crisis, demonstrating technology’s role in modern financial safety nets.
By providing affordable and accessible insurance options with streamlined claims processing, GInsure gives users peace of mind, knowing that they have finances they can rely on during emergencies.
Mabel, a college professor, likewise found GCash to be useful during a medical emergency. “I needed a loan quickly, and, thankfully, GCash was able to grant us P40,000 easily through its lending arm, Fuse Financial, Inc.,” says Mabel, who availed herself of a GLoan to ease her financial worries. GLoan offers credit options for those without traditional banking relationships, making it accessible to more Filipinos.
Financial solutions at critical moments. Professor Mabel discovered how digital loans could support immediate medical emergencies, leaving out unnecessary paperwork and collateral.
“Not only is it convenient, it’s also not difficult to repay,” Mabel adds.
Claire, an office worker from Cebu, highlights how GCash enabled her to support her family. As one of only two members of her family with a college degree, Claire promised herself that she would do whatever it takes to achieve a better life for all of them. “When I discovered the high interest rates on savings via GSave, I did not think twice about opening an account,” shares Claire. “Now I can easily put aside money for my family’s needs.”
Building generational progress. Claire’s commitment to her family’s future found an ally in digital savings tools, turning consistent small deposits into meaningful security.
Through GSave, users enjoy higher interest rates on their savings, with no minimum balance requirements, making it easier for women, the stewards of their families’ finances, to set aside funds for the rainy days.
Because GCash believes financial inclusion goes beyond access, it also offers platforms that open up economic opportunity. One such platform is the job marketplace, GJobs, which has already connected over 3M Filipinos with more than 417,000 job listings.
For Lhynels from Caloocan, who found herself looking for new work while starting a new family, GJobs provided relief at a crucial time. “Last year, I got married, bought my own house, and had a baby, which is why I decided to look for new work closer to home that could give us more allowance,” shares the new mother. “I found it hard to look for work until a friend told me I could find job openings on the GCash app through GJobs. It was able to filter job openings by location and allowed me to apply online, which meant I did not have to leave home [or my baby] to look for work.”
Job opportunities in just one tap. Lhynels turned her smartphone into a tool for self-empowerment, matching her with credible employers and building a better future on her terms.
Powered by PasaJob, the job referral platform of GCash, GJobs today presents an easy, seamless, and safe way to explore career opportunities. With over 50,000 blue-collar job openings and a robust referral feature, GJobs helps workers earn a steady wage and explore earning additional income.
Leveling the Playing Field for Women
The statistics tell a powerful story of inclusion: Seven out of 10 GInsure users are women, now protected by diverse insurance products covering life, health, business, and more. Five out of 10 GSave users are women, most of whom reside outside Metro Manila.
Additionally, six out of 10 GLoan users are women, demonstrating how GCash has transformed access to capital. “While many define a super app as a multi-feature platform, our approach positions GCash as an indispensable daily companion in our users’ lives,” says Zamora. “We’re focused on innovation that responds to real customer needs, constantly understanding user behaviors to identify opportunities that have impact.”
GCash’s advocacy spans both its user base and its organizational structure, as women make up almost half of the company’s leadership team. With women like Zamora, Chief Executive Officer Martha Sazon, Chief Technology and Operations Officer Pebbles Sy, Chief Risk Officer Ingrid Beroña, and Chief Data Officer Sara Venturina at the helm, GCash embodies its commitment to gender equality in the tech industry.
“We don’t just celebrate mothers, and women—we invest in their success,” Zamora emphasizes. “Women are leaders, innovators, and changemakers, and they drive not just our company but entire communities forward.”
Recently, both Sazon and Sy represented the Philippines at the 2025 Mobile World Congress in Barcelona, bringing GCash’s mission of “Finance for All” to a global audience and sharing how fintech innovations can promote women’s economic empowerment.
“When we expand financial inclusion, we directly boost Filipino women’s economic power,” says Zamora. “Our work at GCash is deeply connected to building a stronger nation. The Philippines can only truly progress when women have equal financial opportunities, because when women thrive economically, we’ve seen how entire communities benefit and grow alongside them.”
[1] Based on 2024 gender disclosure: Five out of 10 GCash registered users are women; five out of 10 GSave users are women, with the majority residing outside of Metro Manila; seven out of 10 GInsure users are women; and six out of 10 GLoan users are women.
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The Department of Transportation has launched cashless payments at the 13 stations of the MRT-3, in line with its mandate of providing train passengers with a more convenient and faster commute.
In collaboration with the Philippines’ leading finance Super App GCash, passengers can now make cashless QR payments using any e-wallet or bank via QRPH when purchasing single-journey tickets at MRT-3 stations.
“This is a turning point for public transportation in the Philippines. By embracing cashless systems, we are not just modernizing — we are revolutionizing how Filipinos move. This partnership between the public and private sector is in compliance with the President’s directive to provide faster, safer, and more convenient travel for every Filipino,” Transportation Secretary Vince Dizon said.
With over 350,000 daily commuters expected to benefit, this initiative facilitates faster payments across the key system of the MRT-3.
Oscar Enrico Reyes, Jr., President and CEO of G-Xchange, Inc., the mobile wallet operator of GCash, said, “By working hand in hand with the Department of Transportation, we are simplifying commutes and empowering Filipinos through accessible and secure digital payment solutions. Together, we are shaping a more connected and digitally-enabled Philippines.”
To experience convenient and more secure payments for their MRT-3 commute, passengers can just look for ticket counters that offer QRPH cashless options when purchasing their single journey tickets.
In the coming months, the DOTr is working closely with the private sector along with GCash in further modernizing how commuters pay in more public transportation options.
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FORMER PRESIDENT Rodrigo R. Duterte — OFFICIAL FACEBOOK ACCOUNT OF THE SENATE OF THE PHILIPPINES
DAVAO CITY, Philippines – Former Philippine President Rodrigo Duterte spends his days in a small, spartan room in detention at the Hague, awaiting trial for a bloody war on drugs that killed thousands during his time in office.
But halfway around the world, in his hometown of Davao City, Duterte is on the ticket for mayor in midterm elections on Monday that he is widely expected to win, riding on support in the family stronghold, though it may not translate nationwide.
“I’ve seen what he accomplished as both mayor and president, from his fight against drug lords to what he did for the country,” said Jennifer Maumbas, 28, a worker in a small cafe that displayed Duterte’s visage on a banner.
“No matter what happens, we’re solidly for Duterte.”
Duterte’s arrest in March, following a request by the International Criminal Court, was a major blow to his powerful family, whose popularity surged after he swept to power in 2016 from his position as a maverick, crime-busting mayor.
As president, the tough-talking Duterte upended Philippine foreign policy and launched a “war on drugs” that rights groups say killed significantly more than a police estimate of 6,000, for which he is being tried in the Netherlands.
Yet his influence beyond Davao is far less certain, as the polls shape as a test of how far incumbent President Ferdinand Marcos Jr has managed to subdue the Dutertes’ political machine, born in the southern city.
The Duterte name has a kind of mythic status in Davao, but perhaps less nationwide, said Ederson Tapia, a specialist in public administration at the University of Makati.
“All indications are that they still have a solid base,” he added. “Whether that’s enough to carry a serious campaign in 2028 remains to be seen – especially with the vice president now facing an impeachment complaint.”
Duterte’s daughter, Vice President Sara Duterte, is seen as a potential contender in the 2028 presidential elections, but is besieged by political woes of her own.
She faces an impeachment trial on charges including a threat to assassinate Marcos, whose key ally she was in a 2022 team hailed as a powerhouse union of political dynasties.
But policy disagreements, power struggles and competing ambitions shattered the alliance, raising the stakes for both camps ahead of Monday’s elections, in which more than 18,000 positions are up for grabs.
These include 317 congressional seats and thousands of local posts, but the fiercest contest centers on a dozen spots in the upper house Senate, which wields outsize influence on national affairs, its 24 members being jurors in impeachment proceedings.
Marcos’ candidates remain ahead in polls and appear poised to dominate the Senate race, despite the sympathy generated for the Duterte camp by his arrest and detention.
DRAMATIC ARREST
As president from 2016 to 2022, Duterte has long defended his drugs crackdown, saying it was meant to make the Philippines safer and that police were ordered to shoot only in self-defense.
His arrest only cemented support for him in Davao, a city of 1.8 million, where he was mayor for more than two decades before becoming the first president from the Mindanao region.
“We cried. We could not sleep for three days,” said Joel Sagosoy Valles, who runs a small restaurant plastered with pictures documenting Duterte’s career, while he recounted how he and his family watched footage of the arrest.
A win on May 12 could prove a critical asset in achieving Sara Duterte’s ambitions, as a strong regional base ensures a loyal bloc of voters, offering leverage in power struggles and a launchpad for national ambition.
“Duterte would then continue to have power from which to launch his attacks against the Marcos administration,” Jean Franco, a professor of political science at the University of the Philippines, said of the former president.
“They can use their power in Davao and the Mindanao area to help elect the next president.”
If he does win, however, Duterte would be unable to take office, Philippine officials say, so the role would pass to the winning vice mayor, probably his youngest son, Sebastian.
Some in Davao wear T-shirts with slogans demanding Duterte’s return.
“We believe he still has much to offer, not just for Davao, but for the country,” said Dennis Archie Jabutay, 38, who travelled 300 km (186 miles), to join Duterte’s 80th birthday rally in March.
Not all residents want Duterte to return as mayor, however, with some turning to his main rival, Karlo Nograles, a former cabinet secretary and Davao congressman who hails from another Philippine political dynasty.
“We need some change,” said Arlene Noyney, 50. “I just want things to be peaceful. No fights, no killings.” – Reuters
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Buds Wenceslao, D.M. Wenceslao and Associates, Inc. President and CEO
In an era where fast and reliable connectivity is no longer a luxury but a necessity, Delfin Angelo “Buds” C. Wenceslao is redefining what it means to build an intelligent, connected city.
As President and CEO of D.M. Wenceslao and Associates, Inc., Wenceslao sees digital infrastructure as an absolute necessity to urban development, as essential as roads and utilities.
His commitment to integrating advanced connectivity solutions in his projects, particularly Aseana City— a 107-hectare mixed-use district along Manila Bay envisioned as the Philippines’ premier entertainment and lifestyle hub— has earned him the Connectivity Visionary Award in Globe’s inaugural Connectivity Champions initiative.
The award recognizes real estate developers who advocate for connectivity as a basic service, implement internet-ready infrastructure, and support policy reforms.
“Our vision for Aseana City is to create a connected urban space where technology enhances the quality of life of our residents. From digital homes, and innovative office buildings, to real-time traffic management and energy-saving systems, we want residents to experience the benefits of connectivity in their daily lives. Our goal is a city that is not only smart but also centered on the needs and well-being of its people,” he shared.
Building an intelligent city, he added, requires an ecosystem that prioritizes seamless communication, digital access, and modern infrastructure. The importance of this approach became even clearer during the pandemic when connectivity proved to be a lifeline.
“By investing in resilient and inclusive connectivity infrastructure today, we ensure that these benefits are accessible to everyone, creating a healthier, more efficient, and convenient environment for the future,” Wenceslao said.
As a developer, he also understands the value of strong partnerships to meet evolving consumer needs.
“Connectivity is a non-negotiable requirement for tenants and customers. A strong telco partner like Globe helps us deliver on this expectation by providing robust and scalable solutions and ensuring that our developments remain attractive and competitive,” he noted.
A Master of Science in Real Estate Development (MSRED) graduate from the Massachusetts Institute of Technology, Wenceslao continues to drive urban development, highlighting the important role infrastructure and technology play in creating connected, resilient communities.
He recently served as a Global Governing Trustee of the Urban Land Institute (ULI), is an executive council member of the Filipinos in Institutional Real Estate (FIIRE), a member of the Philippine Association of Real Estate Boards (PAREB), and the MIT Education Council.
Globe’s Connectivity Champions recognizes individuals and groups who promote equitable internet access and digital inclusion. It also supports Globe’s push for the removal of fees charged by developers and building owners for the installation of in-building solutions and telecom infrastructure, ensuring more accessible and affordable telco services.
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The great American baseball pitcher Satchel Paige once said, “Don’t look back. Something might be gaining on you.” That’s great advice for life — but not when it comes to increasing our competitiveness in comparison to ASEAN peers.
There, the Philippines is always wise to look back, look around, and find ways to expand our international trade in goods and services, and attract foreign investment, all to drive economic growth. Sometimes, even highly technical issues can have an outsized impact in promoting — or deterring — our country’s growth. Here’s one example that can be easily solved to show the Philippines treats its foreign partners fairly.
As with most countries, the Philippines has a series of treaties with our major trading partners designed to avoid the payment of double tax. Among other provisions, the treaties typically provide that payments made by customer residents here in the Philippines for services rendered by a foreign company should not be subject to Philippine tax, specifically, a withholding tax. That is fair and a standard provision in these tax treaties.
Right now, though, the process of receiving this treaty benefit is cumbersome, burdensome, and exceptionally slow. Under Revenue Memorandum Circular (RMC) No. 77-2021, domestic taxpayers must file a Request for Confirmation (RFC) if the treaty rate has been applied, or a Tax Treaty Relief Application (TTRA) if the regular rate has been used — then apply for a refund. The documentation burden is heavy, and refund claims can take years to resolve.
The solution is simple: the BIR should follow international best practices by removing the need for prior approval to access tax treaty benefits. Countries like Thailand and Australia require no approval. Alternatively, the process could be moved online and replaced with a straightforward notification (rather than approval) system, similar to the approaches used in Singapore and Indonesia. These streamlined systems reduce barriers for investors — a model the Philippines urgently needs to adopt.
The current manual approval process in the Philippines requires numerous documents — some requiring notarization — in-person meetings, and other requirements as provided in Revenue Memorandum Order No. 14-2021— and then doing the process all over again customer-by-customerrather than having one certificate for one foreign taxpayer for all income payments, all to obtain a benefit that the foreign company should be automatically entitled to under the tax treaty. It discourages companies from investing here when the treaty benefits can be obtained automatically elsewhere. An upside with simple notification is it highlights precisely who is claiming the benefits.
The Philippines stands out in ASEAN for imposing an excessively burdensome and documentation-heavy process to access tax treaty benefits. This not only delays legitimate claims but can also trigger additional audits, discouraging investment. While safeguards against abuse are necessary, entitled taxpayers should be able to access treaty benefits simply and efficiently.
Our tax treaty partners, including the United States and Japan, deserve straightforward access to the benefits of the treaties they have signed with the Philippines.
These onerous requirements harm both foreign investors and their Filipino partners, many of whom choose to absorb the tax rather than endure a slow, complex process or face potential audits. This uncertainty denies them rightful benefits and raises the cost of doing business in the country for everyone involved.
Indonesia is now experiencing record levels of foreign investment, with Thailand’s applications rising sharply. In the digital sector, our English-speaking competitor Malaysia is reaching new heights. The Philippines did see an increase in overall investment in 2024, but this followed a decline in 2023 — a sign there’s still room for improvement. In today’s competitive landscape, removing barriers for investors is more important than ever.
The BIR should act quickly through new regulations to simplify access to treaty benefits. Withholding tax relief should be automatic for those entitled — just as Philippine companies enjoy abroad. Streamlining this process will support local firms, attract technology investment, and strengthen the broader economy.
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Daniel A. Witt is the President of the International Tax and Investment Center (ITIC), a global organization promoting pro-investment tax and economic reforms in over 85 countries. With more than 30 years of experience, he has led policy dialogues across frontier markets and co-founded major regional tax forums in Asia, Africa, and the Middle East. Recognized for his work in Kazakhstan and other transitioning economies, he continues to advise governments, industry leaders, and global institutions on tax and investment policies.
Mon Abrea, CPA, MBA, MPA is the Founder and CEO of the Asian Consulting Group (ACG) and the Philippines’ foremost advocate of genuine tax reform. A Harvard graduate who also completed an executive program on Climate Policy at Oxford, he advises governments, multinational corporations, and global institutions on tax policy, governance, and sustainable investment. He has delivered investment and tax briefings in over 50 countries and states across Asia, North America, Europe, Australia, and the Middle East. He also hosts the podcast Thought Leaders and Game Changers, where he speaks with global experts on taxation, sustainability, and innovation. Follow him: @askthetaxwhiz.
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