BIR tax reform roadmap vows fairer, more predictable system

The Bureau of Internal Revenue (BIR) is pursuing a tax reform roadmap aimed at making the Philippine tax system more predictable, transparent and investor-friendly while sharpening enforcement against deliberate tax evasion.

BIR Commissioner Charlito Martin “Charlie” Mendoza laid out the agency’s strategic priorities during the European Chamber of Commerce of the Philippines’ inaugural 2026 Tax Forum on Aug. 13, which brought together government officials, tax experts and business leaders to discuss tax administration, compliance and reforms affecting the Philippine business environment.

Mendoza said the BIR’s agenda is anchored on four commitments — relatability, simplicity, fairness,  and partnership — alongside a five-point reform program covering revenue enhancement and digitalization.

Among the reforms is Revenue Memorandum Order No. 1-2026, which revised procedures for tax audits and assessments to strengthen transparency, due process and accountability.

The BIR has also established the Registered Business Enterprise Taxpayer Service under the CREATE MORE Act to provide registered enterprises with a more centralized and responsive tax administration service.

PHOTO FROM ECCP

“We want honest tax payers to have confidence in the system, and we want deliberate tax evaders to know that enforcement is becoming more targeted, data-driven, and harder to avoid,” Mendoza said.

“That is the balance we are pursuing: clear against evasion, but fair to tax payers who comply,” he added.

The BIR chief stressed that maximizing collections should not come at the expense of taxpayer trust.

“Fairness demands credible enforcement. Effective tax administration is not simply about collecting the highest amount possible. It is about building a system capable of generating sustainable revenues over the long term. And that requires trust. It requires all-time compliance. […] That is why revenue collection and tax payer service are not competing objectives. They reinforce each other,” he said.

Mendoza also linked improvements in tax administration to the country’s investment environment.

“The BIR cannot determine every factor affecting investment, but we can certainly do our part. And our part is to make the Philippine tax system more predictable, more efficient, more transparent, and easier to navigate.”

The forum, themed “From Preparation to Protection: Navigating Tax Compliance in a Changing Landscape,” is part of the ECCP’s efforts to facilitate dialogue between policymakers and businesses on regulations affecting investment and ease of doing business.