BIR RR No. 18 - South Central Mindanao

04/09/2026

04/09/2026

𝗕𝗜𝗥 𝗥𝗢𝗟𝗟𝗦 𝗢𝗨𝗧 𝗡𝗘𝗪 𝗔𝗨𝗗𝗜𝗧 𝗣𝗥𝗢𝗚𝗥𝗔𝗠, 𝗦𝗧𝗥𝗘𝗡𝗚𝗧𝗛𝗘𝗡𝗦 𝗥𝗜𝗦𝗞-𝗕𝗔𝗦𝗘𝗗 𝗔𝗨𝗗𝗜𝗧𝗦 𝗔𝗡𝗗 𝗔𝗖𝗖𝗢𝗨𝗡𝗧𝗔𝗕𝗜𝗟𝗜𝗧𝗬

The Bureau of Internal Revenue (BIR), under Commissioner Charlito Martin R. Mendoza, has released the new BIR Audit Program, further institutionalizing its audit reforms under a uniform nationwide audit framework for risk-based taxpayer selection, standardized audit procedures, and stronger accountability.

Under Revenue Memorandum Order (RMO) No. 22-2026, signed by Mendoza and issued on August 24, 2026, the BIR consolidated its previous audit programs and built on the reforms introduced under RMO No. 1-2026 earlier this year, establishing uniform policies, guidelines, and procedures for tax audits across investigating offices nationwide.

“This new BIR Audit Program strengthens both sides of the process—fairness for taxpayers and accountability within the BIR. Audits must follow clear rules and proper procedures, and our revenue officers must be able to support the assessments they issue with facts and law,” Commissioner Mendoza said.

For taxpayers, the new BIR Audit Program reinforces the Single-Instance Audit Framework, generally limiting audit authority to one electronic Letter of Authority per taxpayer per taxable year, subject to specified exceptions. Audits are also limited to the tax types and taxable period covered by the authority issued.

For Priority Cases, taxpayers are selected through system-assisted, risk-based processes using verifiable data. To reduce discretion, taxpayer identities are kept anonymized during selection and assignment, as far as practicable, while workload and eligibility controls govern case distribution.

The Program also provides separate rules for Mandatory Cases and institutionalizes the Revalida or “Audit of Auditors,” under which audit reports and assessments may undergo technical and quality review to determine whether findings are supported by facts and law and whether due process was observed.

Revenue officers and officials must follow prescribed audit procedures, timelines, documentation, and monitoring requirements. Unauthorized audits, improper case classification, unjustified delays, and other violations may result in administrative sanctions and other liabilities under existing laws and rules.

The strengthened audit framework advances the BIR DARES agenda on Audit Reform and Accountability and Digital and Data Transformation. It also supports the Bureau’s broader taxpayer-centric approach by using data and clearer controls to focus audit resources on higher-risk cases while strengthening safeguards for taxpayers.

The reforms support President Ferdinand R. Marcos Jr.’s direction to restore trust in government and improve public service, and Finance Secretary Frederick D. Go’s drive to improve the ease of doing business by making government processes more predictable and reducing unnecessary uncertainty for taxpayers and investors.

“When we began our comprehensive audit reforms at the start of the year, we committed to clearer rules, stronger safeguards, and greater accountability in the conduct of audits. This new BIR Audit Program delivers on that commitment and advances our taxpayer-centric approach to tax administration. Fair treatment of taxpayers and firm enforcement of the tax laws have to go together. A credible audit system requires both,” Commissioner Mendoza said.

Read the full Revenue Memorandum Order here:https://bir-cdn.bir.gov.ph/BIR/pdf/RMO%20No.%2022-2026_redacted.pdf

04/09/2026

02/09/2026

𝗕𝗜𝗥 𝗣𝗥𝗘𝗣𝗔𝗥𝗘𝗦 𝗩𝗔𝗧 𝗥𝗘𝗠𝗢𝗩𝗔𝗟 𝗢𝗡 𝗔𝗟𝗟𝗢𝗪𝗔𝗕𝗟𝗘 𝗦𝗬𝗦𝗧𝗘𝗠 𝗟𝗢𝗦𝗦 𝗖𝗛𝗔𝗥𝗚𝗘 𝗧𝗢 𝗛𝗘𝗟𝗣 𝗟𝗢𝗪𝗘𝗥 𝗘𝗟𝗘𝗖𝗧𝗥𝗜𝗖𝗜𝗧𝗬 𝗕𝗜𝗟𝗟𝗦

BIR Commissioner Charlito Martin R. Mendoza announced that the Bureau of Internal Revenue is preparing the issuance that will remove the Value-Added Tax (VAT) on the allowable system loss charge in electricity bills, in line with President Ferdinand R. Marcos Jr.’s directive to review and clarify tax rules that can provide immediate relief to consumers.

The BIR will issue the corresponding Revenue Memorandum Circular after the lapse of fifteen (15) days from the publication of Energy Regulatory Commission (ERC) Resolution No. 26, Series of 2026, which classifies the system loss charge as a government-mandated pass-through cost.

“As Finance Secretary Frederick Go has consistently guided us, our reforms should deliver results that people can immediately feel. When there is a clear basis under the law to provide tax relief, we should act on it. We are preparing the BIR issuance now so that after the required period has lapsed, we can immediately implement the VAT removal and pass the benefit on to electricity consumers,” Commissioner Mendoza said.

Under ERC Resolution No. 26, Series of 2026, the allowable system loss charge is treated as a cost recovered through electricity bills rather than income earned by generation companies, the National Grid Corporation of the Philippines (NGCP), and distribution utilities.

“In simple terms, consumers should not be paying VAT on electricity that never actually reaches their homes or businesses. A pass-through charge is a cost collected from consumers and passed on to the proper recipient. Removing VAT from that charge means a lower amount will be passed on to electricity consumers,” Commissioner Mendoza said.

The forthcoming issuance builds on earlier BIR action clarifying the tax treatment of government-mandated electricity charges. Under RMC No. 60-2026 released in June, the BIR clarified that the Lifeline Subsidy, Green Energy Auction Allowance, and other specified government-mandated charges are not subject to output VAT and related creditable withholding taxes.

“We will continue reviewing our tax rules for areas where their proper application can provide practical relief to taxpayers. Where the law allows it, we want that relief to be clear, immediate, and felt by our people,” Commissioner Mendoza said.

01/09/2026

📢 AVAIL THE ONE-TIME TAX ABATEMENT PROGRAM (RR No. 4-2026)

A chance to settle your tax liabilities. A step toward better tax compliance!

Eligible micro taxpayers may take advantage of the BIR One-Time Tax Abatement Program and settle qualified tax liabilities with the relief provided under the program.

Here’s what you need to know:

✅ Who Qualifies: Micro taxpayers with less than ₱3 million in annual gross sales and ₱80,000 or less in covered basic tax or penalties per taxable year.

💰 Abatement Fee: Only ₱5,000, payable through BIR Form No. 0605.

📅 Deadline: Applications may be filed until December 31, 2026.

📌 Important Reminders:
• This is a one-time program and is not an automatic tax amnesty.
• One application covers one taxable year.
• Be sure to review the qualifications, covered cases, documentary requirements, fees, and filing procedures before applying.

For complete details, please carefully read the following BIR issuances:

📖 RR No. 004-2026
📖 RMC No. 084-2026
📖 RMO No. 19-2026

Take this opportunity to address eligible tax liabilities and move one step closer to full tax compliance!