The government expanded its digital revenue collection network through a new partnership with UnionBank of the Philippines, aiming to streamline how citizens and corporations settle their financial obligations to the state.

The Bureau of Internal Revenue, the Bureau of the Treasury, and UnionBank signed a supplemental memorandum of agreement on Tuesday, Feb. 24, to integrate the lender’s UPay facility into the national collection system.

The deal provides taxpayers with a wider array of web- and mobile-based channels to remit internal revenue taxes and customs duties.

The move comes as the Marcos administration pushes for the digitalization of government services to curb bureaucracy and plug leakages in revenue collection. By consolidating previous agreements, the new framework reinforces UnionBank’s role as an authorized agent bank responsible for the collection and prompt remittance of funds to the national government.

BIR Commissioner Charlito Martin R. Mendoza said the partnership is a central component of the bureau’s modernization program. The integration of UPay is designed to reduce the reliance on manual processing and physical queues, which have historically slowed down the collection cycle.

“The UPay facility provides taxpayers with enhanced web and mobile options to settle their obligations,” Mendoza said.

He noted that the initiative aligns with the bureau’s “Service Excellence” pillar, intended to improve the ease of doing business in the Philippines.

Under the terms of the agreement, the system will leverage various electronic payment rails including InstaPay, the Philippine Clearing House Corp. (PCHC), and PayGate.

UnionBank President and CEO Ana Maria Aboitiz Delgado said the bank would continue to offer over-the-counter payments at its branches alongside these digital options to ensure no taxpayer is left behind by the shift to electronic platforms.

Delgado noted that the facility is built to ensure collections are remitted to the Treasury Single Account in a timely manner. This central account system is critical for the government’s liquidity management and overall public financial health.

National Treasurer Sharon P. Almanza said the modernization of the payment system makes tax compliance more accessible while strengthening the oversight of public funds.

The use of the UPay facility is expected to provide a more cost-effective solution for both the government and the public, accelerating the velocity of money moving from the private sector into the state’s coffers.

The partnership builds on the BIR’s existing ePayment Project, which seeks to migrate a significant portion of the country's tax filings to digital platforms.

As of the latest fiscal reporting, the government continues to prioritize digital infrastructure to meet its ambitious revenue targets for 2026.