BIR has new programs Bicolano taxpayers should know

BUSINESS owners, self-employed professionals, and individual taxpayers in the country can expect easier access to Bureau of Internal Revenue (BIR) services as the agency rolls out reforms aimed at simplifying tax compliance while offering relief to qualified micro taxpayers.

BIR Commissioner Charlito Martin Mendoza said the agency is expanding its digital services and implementing a one-time tax abatement program that allows eligible micro taxpayers to settle outstanding tax liabilities under more favorable terms.

The abatement program, which took effect on July 7, is open to micro taxpayers with gross annual sales of not more than P3 million and total basic tax liabilities and/or penalties not exceeding P80,000 for a taxable year.

Mendoza said many taxpayers have already availed themselves of the program, which forms part of the administration's effort to ease the burden on small businesses.

The BIR is also preparing to expand the use of its taxpayer portal, which allows users to view registration details, monitor filed tax returns, track tax payments, and receive automated reminders for filing and payment deadlines. The online system, currently being tested with taxpayers under the Large Taxpayers Service (LTS), is expected to be rolled out to other taxpayers nationwide beginning next month.

According to Mendoza, the digital initiative is intended to reduce paperwork, minimize personal visits to BIR offices, and make tax compliance more convenient for businesses and individual taxpayers.

“My priority is to help our taxpayers voluntarily comply. We want to make compliance easier by simplifying the rules and the process, streamlining procedures, and continuing our digitalization efforts. At the end of the day, our goal is to make it easier for taxpayers to comply,” he said.

Mendoza said the BIR collected P1.6 trillion in revenues during the first half of the year, more than 5 percent higher than collections during the same period last year, putting the agency on track to achieve its P3.393-trillion revenue target for 2026.

At the same time, the commissioner warned that while the BIR is making compliance easier for honest taxpayers, it is also strengthening its campaign against tax evasion. He said cases have already been filed against 14 contractors allegedly involved in the flood control controversy.

Mendoza also assured taxpayers that the BIR is prepared to implement President Ferdinand R. Marcos Jr.’s proposed tax reform measures, including income tax exemptions and the removal of the minimum corporate income tax for qualified small businesses once these are enacted into law.