The Financial Executives Institute of the Philippines (FINEX) expects the country to be in a strong position to attract both local and foreign investment this year, following the government’s reforms to the audit system.

In a statement, FINEX said it welcomed the issuance of Revenue Memorandum Order (RMO) No. 1-2026, which introduced revised policies, controls, and procedures governing tax audits.

“The stated objectives—strengthening audit integrity, preventing misuse of authority, and ensuring due process—address long-standing concerns raised by taxpayers,” the group said.

The Bureau of Internal Revenue (BIR) issued RMO No. 1-2026 to coincide with the resumption of all tax audits and field operations, which were suspended for two months due to potential abuse and irregularities.

FINEX said the changes outlined in the order are a crucial step toward greater transparency and equitable enforcement of tax regulations.

The group said one of its most significant reforms is adopting the single-instance audit framework, which prohibits issuing multiple electronic letters of authority (eLAs) for the same taxpayer and taxable year.

By reducing redundant audits, the FINEX said taxpayers can dedicate more time to growing their businesses instead of “constantly monitoring multiple ongoing audit processes.”

Under the RMO, the BIR also rolled out the system-assisted audit selection, which establishes defined criteria and centralized approval process for audit selection.

This is meant to address long-standing concerns that audits are concentrated on a limited pool of taxpayers, further ensuring objectivity and integrity in the taxpayer selection process

FINEX said the government is ushering in a predictable and transparent tax regime through these reforms—a critical driver of investment.

“When tax administration is perceived as arbitrary or negotiable, it raises the cost of doing business and deters long-term capital,” the FINEX said.

“The reforms introduced by the BIR strengthen investor confidence and help in making the Philippines a more competitive destination for foreign direct investment,” it added.

Even then, FINEX said the BIR can still implement additional reforms to address implementation gaps affecting businesses nationwide.

The group said there remains an inconsistency in the application and interpretation of tax rules and memoranda across Revenue District Offices, creating opportunities for irregularities.

“True integrity in tax administration depends on consistent nationwide enforcement, uniform interpretation of tax rules, and accountability at all levels,” it said.

By building a fair and credible tax system, FINEX emphasized that the country will attract more investment critical to sustaining inclusive economic growth.

“Both domestic enterprises and foreign investors place a premium on certainty, fairness, and the consistent application of tax laws,” the group said.