The Philippines Resumes Tax Audits
Diego 29 Jan 2026 07:41ENCopy link & title
The Bureau of Internal Revenue (BIR) of the Philippines has announced the resumption of tax audits and introduced several reform measures to improve regulatory effectiveness, reduce discretionary power, and address long-standing concerns from businesses regarding "aggressive tax assessments."
Following the public-private sector consultation on January 21, the BIR has clearly implemented a "single audit" system: in principle, each taxpayer will only receive one electronic authorization letter (eLA) per year, covering all domestic taxes. Multiple authorizations will be automatically merged, with exemptions available in special circumstances.
The selection of audit targets has shifted entirely to a risk-oriented model, reducing human intervention through anonymous system analysis.
Simultaneously, the BIR will standardize document management, unify inspection checklists, strengthen hierarchical supervision, and severely punish violations.
Following the public-private sector consultation on January 21, the BIR has clearly implemented a "single audit" system: in principle, each taxpayer will only receive one electronic authorization letter (eLA) per year, covering all domestic taxes. Multiple authorizations will be automatically merged, with exemptions available in special circumstances.
The selection of audit targets has shifted entirely to a risk-oriented model, reducing human intervention through anonymous system analysis.
Simultaneously, the BIR will standardize document management, unify inspection checklists, strengthen hierarchical supervision, and severely punish violations.
