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Bureau of Internal Revenue

BIR FURTHER EXTENDS TAX DEADLINES TO AUGUST 18 IN HABAGAT-AFFECTED AREAS; EXPANDS COVERAGE TO TAXPAYERS AFFECTED BY eBIRFORMS TECHNICAL ISSUES

The Bureau of Internal Revenue (BIR), through Revenue Memorandum Circular (RMC) No. 95-2026, has further extended to August 18, 2026, the specified tax filing, payment, remittance, registration, and submission deadlines for taxpayers in Habagat-affected areas previously covered by RMC No. 89-2026. The new Circular also expands the extension to taxpayers affected by the technical unavailability of the eBIRForms Offline Package.

For taxpayers covered by RMC No. 89-2026, the specified deadlines previously extended to August 17 are moved one more day to August 18.

Taxpayers affected by the eBIRForms technical issues are likewise given until August 18 to comply with the specified obligations covered by RMC 95-2026, without the corresponding penalties.

“We recognize the difficulties faced by taxpayers affected by the rains, as well as those who are unable to comply because of the technical issues with eBIRForms. We are giving them additional time to complete their tax obligations without penalty,” Commissioner Charlito Martin R. Mendoza said.

The extension covers specified filing, payment, remittance, and submission requirements originally due from August 10 to 16, 2026, including applicable withholding tax returns, income tax returns, ONETT transactions, and other obligations enumerated in the Circular.

The BIR has likewise issued a Bank Bulletin directing Authorized Agent Banks (AABs) to accept covered tax returns and payments until August 18, 2026, without the corresponding penalties, from both taxpayers covered by the Habagat-related extension and those affected by the unavailability of the eBIRForms Offline Package.

The BIR clarified that taxpayers mandated to use the Electronic Filing and Payment System (eFPS) who are not covered by RMC No. 89-2026 are not included in the extension and must continue to use eFPS to file their returns and pay taxes due.

“We remind covered taxpayers to complete their filing and payment requirements by August 18. At the same time, we assure taxpayers that when circumstances beyond their control make compliance difficult, the BIR will continue to respond reasonably and give them a fair opportunity to comply,” Commissioner Mendoza said.

Read RMC No. 95-2026 here: https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.95-2026_redacted.pdf

Read RMC No. 89-2026 here: https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2089-2026_redacted.pdf

Read Bank Bulletin No. 2026-10 here: https://bir-cdn.bir.gov.ph/BIR/pdf/Bank%20Bulletin%20No.%202026-10_redacted.pdf

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BIR STRENGTHENS PERA RULES TO PROTECT RETIREMENT SAVINGS, SUPPORT INVESTOR FLEXIBILITY

The Bureau of Internal Revenue (BIR), through Revenue Memorandum Circular No. 91-2026 issued on August 11, 2026, clarified the rules on early withdrawals from Personal Equity and Retirement Accounts (PERA), providing clearer and fairer tax treatment while preserving PERA as a long-term retirement savings vehicle.

Under RMC No. 91-2026, the 20% Early Withdrawal Penalty (EWP) applies only to the gross income earned attributable to PERA assets actually withdrawn. Income, unrealized gains, and other PERA assets that remain invested are excluded from the penalty base. Proceeds from the sale or redemption of PERA investments that remain within the PERA custody account for reinvestment are likewise not considered an early withdrawal.

“Simply put, you can manage one part of your PERA without unnecessarily exposing the rest of your retirement portfolio to the early-withdrawal penalty. This gives investors more flexibility and greater certainty in managing their retirement savings,” Commissioner Charlito Martin R. Mendoza said.

For partial withdrawals, the EWP applies only to the income attributable to the portion actually withdrawn. The investor’s other PERA sub-accounts and investments remain unaffected.

“For investors, this means withdrawing from one part of your PERA will not unnecessarily affect the rest of your portfolio. The remaining PERA investments stay intact, while the 20% early-withdrawal penalty and the recovery of the 5% tax credit apply only to the assets actually withdrawn,” Commissioner Mendoza said.

The RMC further clarifies the scope of PERA tax exemptions. Taxes not expressly covered by the PERA exemptions—including stock transaction tax, value-added tax, documentary stamp tax, applicable percentage taxes—continue to apply under existing law. PERA administrators remain responsible for computing, withholding, reporting, and remitting the applicable EWP.

The clarification forms part of the BIR’s taxpayer-centric approach to reform under BIR DARES, particularly its push for clearer rules, more predictable tax administration, and improved taxpayer service.

“This is consistent with the direction of President Ferdinand R. Marcos Jr. and Finance Secretary Frederick Go to improve the ease of doing business and strengthen investor confidence. Under BIR DARES, we are reviewing our rules with a taxpayer-centric approach—clarifying requirements, removing unnecessary uncertainty, and making tax administration more predictable,” Commissioner Mendoza said.

Read the full Revenue Memorandum Circular here:
https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2091-2026%20corrected.pdf

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𝗦𝗘𝗖𝗥𝗘𝗧𝗔𝗥𝗬 𝗚𝗢 𝗟𝗘𝗔𝗗𝗦 𝗝𝗢𝗜𝗡𝗧 𝗕𝗜𝗥-𝗕𝗢𝗖 𝗗𝗘𝗦𝗧𝗥𝗨𝗖𝗧𝗜𝗢𝗡 𝗢𝗙 𝗦𝗘𝗜𝗭𝗘𝗗 𝗜𝗟𝗟𝗜𝗖𝗜𝗧 𝗧𝗢𝗕𝗔𝗖𝗖𝗢 𝗜𝗡 𝗖𝗘𝗕𝗨

The Bureau of Internal Revenue (BIR) Revenue Region No. 13–Central Visayas, together with the Bureau of Customs (BOC) Port of Cebu, destroyed seized illicit tobacco products and manufacturing materials on August 13, 2026, in an activity led by Finance Secretary Frederick D. Go.

The destruction covered 170,052 packs of illicit cigarettes, 1,567 boxes and sacks of cigarette raw materials, and two production machines seized from various enforcement operations in Cebu, involving around P240 million in unpaid taxes and administrative penalties.

“I would like to commend the Bureau of Internal Revenue and the Bureau of Customs for all their efforts. It is not easy, but in the two months of June and July of this year, they were able to apprehend P1.7 billion worth of illicit products,” Secretary Go said, assuring both agencies of the Department of Finance’s full support in strengthening enforcement and holding those engaged in illegal activities accountable.

Secretary Go stressed that the campaign against illicit tobacco is driven by both revenue protection and public health.

“There are really two reasons why we do this. First is that we have foregone revenues that could be used to help the programs of the government and help the people of the country. Second is also the health angle: when illicit tobacco enters our shores, and our citizens unknowingly use these illicit products, there could be serious consequences to their health,” Secretary Go said.

BIR Commissioner Charlito Martin R. Mendoza commended the joint destruction activity and the efforts of Revenue Region No. 13–Central Visayas, led by Regional Director Douglas Rufino, together with the Bureau’s inter-agency enforcement partners. He also directed concerned BIR offices to ensure the swift and proper disposal of seized illicit tobacco products as soon as seizure and forfeiture proceedings are completed.

“Once the proceedings are final, there should be no unnecessary delay in disposing of these illicit products. We will also continue working closely with the Bureau of Customs and our other enforcement partners to strengthen the campaign against illicit tobacco, keep these products off the market, and hold those responsible accountable,” Commissioner Mendoza said.

The Bureau will pursue the filing of appropriate criminal cases arising from its enforcement operations. These enforcement actions form part of the Revenue Collection and Base Protection pillar of BIR DARES and the Bureau’s continuing campaign against illicit trade.

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BIR FACILITATES PNOC EMERGENCY FUEL IMPORTATION, READIES EXPEDITED PROCESSING OF FUTURE FUEL IMPORTS

The Bureau of Internal Revenue (BIR) has facilitated the emergency importation of petroleum products by PNOC Exploration Corporation (PNOC-EC) through the issuance of a special permit by the Bureau’s Large Taxpayers Service (LTS).

This forms part of the government’s response under Executive Order No. 110, s. 2026, “Declaring a State of National Energy Emergency and Authorizing the Unified Package for Livelihoods, Industry, Food, and Transport.”

PNOC-EC had earlier informed the BIR that it would immediately undertake the importation of petroleum products as an emergency measure. In response, the Bureau, through the LTS, worked with PNOC-EC on the documentary and procedural requirements for issuing the special permit and processing the import transaction.

In anticipation of future fuel importation by PNOC, the BIR is working with the company on the documentary requirements to support expedited processing on the Bureau’s end.

“The BIR, through its Large Taxpayers Service, will continue to work closely with PNOC to ensure the timely processing of requirements for current and future emergency fuel importations, in support of the whole-of-government response authorized under Executive Order 110 to help safeguard the country’s energy supply,” Commissioner Charlito Martin R. Mendoza said.

BIR Commissioner Lumagui Obtains Harvard Kennedy School Executive Certificate in Public Leadership

The Bureau of Internal Revenue (BIR) proudly announces that Commissioner Romeo D. Lumagui, Jr. has successfully obtained his Executive Certificate in Public Leadership from the prestigious Harvard Kennedy School (HKS) – marking a significant achievement in his commitment to continuous learning and principled public service. HKS is also known as the John F. Kennedy School of Government.

The Harvard Kennedy School Executive Certificate in Public Leadership is awarded to individuals who complete three intensive executive education programs under the HKS Public Leadership track. Commissioner Lumagui fulfilled this requirement after completing the programs on Comparative Tax Policy and Administration, Strategic Management of Regulatory and Enforcement Agencies, and Leadership Decision Making.

These programs are designed to equip high-performing public officials with the tools and frameworks to lead with integrity, navigate complex governance challenges, and deliver impactful results.

Commissioner Lumagui’s completion of the final course on Leadership Decision Making earned him a place among a global network of accomplished public leaders committed to transformative governance.

“Obtaining a Harvard Kennedy School Executive Certificate in Public Leadership, is another step towards developing the BIR into a more professional and internationally-competitive agency. The BIR will continue implementing its good governance programs, including that of Integrity and Professionalism of the Institution and its Employees. I thank all the stakeholders, professors, and employees of Harvard for offering their knowledge and expertise on Public Leadership to Filipinos,” Commissioner Lumagui said.

The BIR considers this accomplishment a testament to the Commissioner’s resolve to lead by example and to embody the values of excellence, integrity, and innovation in public administration. It also affirms the Bureau’s continuing thrust to strengthen institutional capacity through progressive and high-impact leadership. ###

BIR commends DOJ: Chong’s of World Balance indicted for ₱178M Tax Deficiencies; 34 Criminal Charges filed before the CTA and the Courts of Caloocan City

The Bureau of Internal Revenue (BIR) commends the Department of Justice (DOJ) for the successful filing of 34 criminal charges before the Court of Tax Appeals (CTA) and the Courts of Caloocan City against World Balance, also registered as CHG Global Inc. (CHGGI), in connection with its ₱178.8 million basic tax deficiencies.

On July 9, 2025, the DOJ filed before the CTA thirty (30) criminal Informations against World Balance and its corporate officers for violations of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code). And on July 16, 2025, additional four (4) criminal Informations were filed before the Regional and Metropolitan Trial Courts of Caloocan City for violations of Sections 254, 255, and 267 of the Tax Code.  The BIR uncovered these fraudulent practices through its Run After Fake Transactions (RAFT) Program, which targets the use of fictitious receipts issued by non-existent or ghost companies. The scheme used by World Balance to evade the correct payment of taxes constitutes willful tax evasion and deliberate misrepresentation in its tax filings, covering taxable years 2018, 2019, 2020 and 2021.  

The Informations therefore impleaded the officers of World Balance, Barnaby L. Chong and Bradley L. Chong. Their criminal liability is expressly provided under Sections 253(d) and 256 of the Tax Code.  The DOJ also indicted Barnaby L. Chong, Bradley L. Chong and Audrey Suzanne L. Chong for violation of Section 267 for making untruthful declaration, return, and other statement in the Annual Income Tax returns of World Balance.  Aside from criminal penalties, the respondents are also liable for the payment of ₱178,838,936.00 in basic tax liabilities. Upon a finding of probable cause by the courts, warrants of arrest will be issued.

 “We thank Secretary Remulla and the entire DOJ prosecution team for their swift and decisive action against World Balance and their use of Ghost Receipts. By working shoulder-to-shoulder with the DOJ, we are defending honest taxpayers and leveling the playing field against those who use ghost transactions to cheat the system,” Commissioner Romeo D. Lumagui, Jr. stated.

Lumagui: Government Contractors have to present an Updated Tax Clearance before Final Settlement of Government Contracts

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. has issued Revenue Regulation No. 17-2024 (RR No. 17-2024) which requires government contractors to secure from the BIR an updated tax clearance certifying that the contractor does not have any outstanding tax liabilities, and that the contractor has duly filed its latest income and business tax returns and paid the corresponding taxes due, prior to the final settlement of a government contract.

“Government Contractors have to show that they do not have any outstanding tax liabilities before the final settlement of a government contract. The BIR will require an updated tax clearance. Otherwise, the Government has the power to suspend the final settlement of the government contract” Commissioner Lumagui stated.

Before the issuance of RR No. 17-2024, a BIR tax clearance is submitted by a government contractor during the procurement process as an eligibility requirement.

“Part of our commitment to Excellent Taxpayer Service is ensuring that before Government Contractors are paid, they are cleared of any tax liabilities. In this way, the BIR will be able to protect the taxes collected from our hardworking taxpayers against Government Contractors who do not even pay their taxes” Commissioner Lumagui stated.

RR No. 17-2024 also provides that the amount of final settlement on the government contract which was suspended for failure to present an updated BIR tax clearance will be subject to a tax lien in favor of the government to satisfy the contractor’s outstanding tax liabilities.

Commissioner Lumagui also issued Revenue Memorandum Order No. 002-2025 prescribing the policies, guidelines, and procedures in the processing and issuance of tax clearance certificate for final settlement of government contracts. ###

Lumagui: Government Contractors have to present an Updated Tax Clearance before Final Settlement of Government Contracts

Before the issuance of RR No. 17-2024, a BIR tax clearance is submitted by a government contractor during the procurement process as an eligibility requirement.

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October 24, 2024

Lumagui: BIR Raids Large-Scale Illicit Cigarette Factory and Warehouse in Cebu with ₱107M Tax Liability

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports another win in the fight against illicit trade with the recent raid of an illicit cigarette factory and warehouse located in Cebu last October 3 and 5. The BIR estimates around Php 107,756,900.45 in tax liability after seizing 32,545 counterfeit internal revenue stamps, 44, 310 packs of illicit cigarettes, 13 machines used for manufacturing cigarettes and raw materials for cigarettes.

“The BIR raided another large-scale illicit cigarette factory and warehouse. This raid in Cebu uncovered an estimate of 107M in tax liability. The BIR will not stop raiding all illicit trade activities, wherever they may be located. We will protect the legitimate agricultural sector and the thousands of jobs it produces for our Filipino farmers,” Commissioner Lumagui stated.

Several violations of the National Internal Revenue Code (NIRC) were committed by the operators of this illicit cigarette factory and warehouse. These include Section 265(C) Possession of Counterfeit Internal Revenue Stamps, Section 263 Unlawful Possession or Removal of Articles Subject to Excise Tax, Section 265-B Violations Committed by Manufacturers, Importers, Indentors, and Wholesalers of Any Apparatus or Mechanical Contrivance Specially for the Manufacture of Articles Subject to Excise Tax and Importers, Indentors, Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette Tipping Paper or Cigarette Filter Tips, Section 260 Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Etc., Section 236 Registration Requirements of the NIRC, Section 254 Attempt to Evade or Defeat Tax, and Section 255 Failure to File Return, Supply Correct and Accurate Information.

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BIR Commissioner Romeo D. Lumagui Jr. (center), BIR Deputy Commissioner Ma. Rosario Charo E. Curiba (left), and a USAID official engage in a discussion during the awarding ceremony held by the United States Agency for International Development (USAID) on October 3, 2024, where the BIR received the Cybersecurity Vanguard Award.

BIR Commissioner Romeo D. Lumagui Jr. (holding plaque) and BIR Deputy Commissioner Ma. Rosario Charo E. Curiba, and USAID officials along with BIR personnel proudly pose after receiving multiple cybersecurity awards, including Cybersecurity Vanguard, Cybersecurity Ironman, and Cybersecurity Champion, from USAID through its Better Access and Connectivity (BEACON) Project.

BIR Commissioner Lumagui & BIR Personnel received Cybersecurity Awards from United States Agency for International Development during Cybersecurity Month

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. received the Cybersecurity Vanguard award from the United States Agency for International Development (USAID) through the latter’s Better Access and Connectivity (BEACON) Project last October 3, 2024. Several BIR personnel also received awards from the USAID.

“The Cybersecurity Vanguard, Cybersecurity Ironman, and Cybersecurity Champion awards given by the United States Agency for International Development to the BIR is an international recognition of our efforts in strengthening our cybersecurity. The BIR values data security, and recognizes the importance of safeguarding sensitive taxpayer information,” Commissioner Lumagui stated.

The BIR was honored with three distinguished awards. These accolades celebrate the BIR and its personnel who have excelled in embodying cybersecurity initiatives and best practices, serving as exemplary models for others.

CYBERSECURITY VANGUARD – is given in honor of the Bureau’s outstanding leadership and exceptional commitment to the Cybersecurity Capacity Building Initiative. This is a testimony to the Bureau’s strategies to safeguard data and avert breaches that could compromise public confidence, as evidenced by having the most number of employee participations in the said cybersecurity trainings.
CYBERSECURITY IRONMAN – is given to an individual participant in honor of their remarkable achievement in completing the most number of cybersecurity trainings/workshops hours. USAID-BEACON awarded CYBERSECURITY IRONMAN to five BIR personnel who have demonstrated exceptional skills in cybersecurity defense through their extensive training participation.
CYBERSECURITY CHAMPION – is presented to two BIR personnel who have played a vital role in upholding cybersecurity best practices, recognized for their significant training hours. The awardees have completed the most number of cybersecurity trainings/workshops sessions under the Cybersecurity Capacity Building Initiative.

“The BIR is grateful to USAID for these awards. We look forward to future cybersecurity trainings,” Commissioner Lumagui stated.