Mendoza vows to fix 'unpredictable' tax rules for local businesses
By Jun Ramirez
BIR Commissioner Charlito Martin R. Mendoza
The head of the Bureau of Internal Revenue (BIR) vowed to streamline tax enforcement and eliminate regulatory uncertainty for businesses, framing predictable rules as crucial to improving the Philippines’ overall investment climate.
Speaking at the European Chamber of Commerce of the Philippines Tax Forum, BIR Commissioner Charlito Martin R. Mendoza outlined a reform strategy built around fairness, simplicity, predictability, and partnership. The effort will be anchored by the tax agency’s reform framework, known as the BIR DARES agenda.
Mendoza stressed that inconsistent rules pose a far greater challenge to private enterprise than strict regulations, noting that unpredictable administrative processes create friction for companies operating in the country.
The tax chief said the bureau aims to refine audit procedures, reduce bureaucratic discretion, and focus enforcement specifically on genuine compliance risks rather than routine operations.
Digital transformation will play a central role in the overhaul, according to the commissioner. The BIR plans to automate core services to trim processing times, cut unnecessary paperwork, and increase transparency across taxpayer transactions.
Beyond internal upgrades, Mendoza emphasized the need for sustained collaboration with the private sector. Engaging with businesses, he said, allows regulators to identify operational bottlenecks and overlapping requirements that may not be apparent to public officials. Tax certainty and regulatory consistency remain central to maintaining foreign and local investor confidence.
The conference brought together senior corporate executives, tax specialists, and government officials to navigate regulatory shifts, digital compliance, and dispute resolution. Presenting alongside Mendoza were key BIR executives, including Deputy Commissioners Larry M. Barcelo and Marissa O. Cabreros, Assistant Commissioners Raquel Cristina V. Baltazar and Mariza R. Uy, and Collection Programs Division Chief Glenn Alde.
Discussions centered on policy changes impacting commercial operations, including preliminary implementation steps for the Qualified Domestic Minimum Top-Up Tax under global minimum tax standards.