Engr. Romualdo D. Aguilos, Chief of the Mineral Economics, Information and Publication Division, Mines and Geosciences Bureau (MGB), participated in the Training Course on International Taxation and the Extractive Sector last 22-26 May 2023 at the Asian Development Bank, Ortigas Center, Pasig City.
The training course was organized by the Asian Development Bank (ADB), in collaboration with the Organization for Economic Cooperation and Development (OECD) and the Intergovernmental Forum on Mining, Metals, Minerals and Sustainable Development (IGF), which aims to address critical extractive taxation issues using a whole of government approach.
The training was delivered by world class experts on international and extractive industry taxation from the IGF, the OECD, and the ADB. The activity was conducted in a hybrid manner where participants can attend via face-to-face or zoom videoconferencing.
91 government officials coming from tax administrations, mining ministries and finance ministries in19 resource-rich countries in Asia-Pacific. Among the countries which participated are Armenia, Bhutan, Cambodia, Indonesia, India, Fiji, Georgia, Kazakhstan, Kyrgyz Republic, Lao PDR, Mongolia, Pakistan, Papua New Guinea, People’s Republic of China, Philippines, Tajikistan, Thailand, Uzbekistan, and Viet Nam.
Aside from the MGB, among the Philippine local agencies present in the workshop are the Department of Finance, Bureau of Internal Revenue and the Philippine Extractive Industries Transparency Initiative.
Among the main topics presented and discussed during the course are the following:
- International tax issues and risks that the Philippines is currently experiencing, with a specific focus on the extractive industry;
- Transfer pricing fundamentals;
- Identifying international tax risks along the mining value chain;
- Critical minerals in the Asia-Pacific Region and the future of resource taxation; and
- Pricing and selling of a mineral
Case studies on the abovementioned topics were also delivered to the participants, in order to discuss the needs and requirements of the individual countries and to identify the opportunities for additional support. In the case of the Philippines, the comparison between the Mineral Production Sharing Agreement (MPSA) & Financial or Technical Assistance Agreement (FTAA) was presented as an example, together with the computation of additional government share based on the DENR Administrative Order No. 2007-12 or the “Revised Guidelines Establishing the Fiscal Regime of FTAA.”
The training course provided the attendees with an opportunity to catch up on recent international tax developments applicable to the mining industry, gave practical ideas to improve mining revenue collection in their respective countries, and foster open discussions with government officials from other resource-rich countries.