MAPping the Future

For decades, the relationship between taxpayers and the tax collector has been marked by caution, complexity, and mistrust. Strict regulations, evolving compliance requirements, and inconsistent implementation have often made tax administration feel burdensome for businesses. In recent years, however, a quiet but meaningful shift has begun to take shape—one anchored on dialogue, cooperation, and shared responsibility between the public and private sectors.

 

Over the past two years, 12 private sector organizations and the Bureau of Internal Revenue (BIR) have come together to form a regular working group that discusses proposed laws, regulations, and administrative challenges. The objective is clear: to make tax compliance in the Philippines simpler, fairer, more transparent, and more business-friendly, while strengthening revenue administration.

 

This collaboration—formally known as the BIR–Private Multi-Sectoral Group (PMSG) Partnership—was established in August 2023 under the leadership of then BIR Commissioner Romeo D. Lumagui Jr., with the Philippine Chamber of Commerce and Industry (PCCI) leading the private sector. The partnership brings together major business groups and professional organizations that regularly assist taxpayers, including MAP, FINEX, PICPA, ACPACI, ACPAPP, TMAP, FFFCCCI, and the Joint Foreign Chambers, among others.

 

At the heart of the partnership is a shared commitment to address long-standing taxpayer concerns through structured and continuous engagement. It serves as a venue for regular dialogue, allows the private sector to provide inputs on proposed tax issuances, and ensures that taxpayer perspectives are considered in crafting and implementing rules and regulations. Throughout 2025, both sides actively engaged to turn these commitments into practice.

 

What makes this model effective is its structure. Technical working groups from the private sector were formed to mirror the BIR’s functional offices—such as Legal, Operations, Information Systems, and the Large Taxpayer Service. Issues raised are referred to the appropriate functional group with the authority and technical expertise to address them. These teams, composed of assistant commissioners, chiefs of offices, lawyers, and technical staff, are able to deliberate and recommend solutions subject only to the approval of the Commissioner, significantly streamlining the decision-making process.

 

This structure allows subject-matter experts from both sides to engage directly. Digital system concerns are addressed by information technology specialists, while legal and policy questions are discussed by tax practitioners and the BIR’s Legal Service. More importantly, this approach enables the co-creation of practical solutions with the participation of actual decision-makers, rather than merely elevating concerns through layers of bureaucracy.

 

In 2025 alone, the partnership identified 71 various issues. 15 have already been resolved, while the remaining items continue to undergo active technical discussions. While the number of resolved items is modest, the greater achievement lies in the institutionalized channel it created—one that gives taxpayers a credible forum to raise concerns and see them addressed through a transparent and consultative process.

 

Concrete wins achieved in 2025

 

Digitalization and System Reforms. Discussions focused on improving digital systems, documentation processes, and electronic channels. One significant concern raised was the recognition of electronic receipts issued by online platforms—such as accommodation apps, transport intermediaries, and booking websites—for expense deduction purposes. In response, the BIR conducted inter-office consultations and reviewed alternative frameworks addressing platform–merchant relationships and invoicing responsibilities. A clarificatory issuance is expected to align documentation rules with the realities of digital commerce.

 

eFPS and eBIRForms Modernization. The private sector submitted detailed recommendations to improve system stability and usability, including browser compatibility, autosave features, multi-user access, attachment uploads, and real-time payment validation. These inputs have been endorsed to the BIR’s Information Systems Group and incorporated into the design of the forthcoming unified Taxpayer Portal, which aims to consolidate filing, payment, and digital submissions. The BIR is likewise reviewing validation timelines and email confirmations to enhance reliability and user experience.

 

Tax Audits, Collection, Policy Clarifications, and Implementation of Rules. The partnership also reviewed key regulations on de minimis benefits, due process in assessments, premature collection, and the implementation of Supreme Court rulings. As a result, a BIR issuance increasing the thresholds for de minimis benefits was released last December 22, 2025, while audit and collection manuals are undergoing review to ensure compliance with due process requirements under the Tax Code and prevailing jurisprudence.

 

Efforts were likewise directed toward harmonizing withholding tax rules, promoting consistent implementation across revenue district offices, and simplifying registration and transfer procedures. The BIR has begun an in-depth review of internal processes—covering RDO transfers, open-case handling, and verification requirements—to reduce administrative friction for taxpayers.

 

Reducing the Compliance Burden. Persistent concerns on system downtimes, lack of autosave functions, limited multi-user capabilities, and delayed validation emails were formally raised and endorsed for inclusion in future system upgrades. The partnership also highlighted the prolonged and difficult closure of businesses, particularly affecting small and medium enterprises impacted by the pandemic. These discussions contributed to a renewed push for tax amnesty, which is now part of the Department of Finance’s priority agenda.

 

Looking Ahead to 2026

 

As the partnership moves into 2026, its value lies not only in specific policy or system improvements but in the trust built between the BIR and the private sector. Through open communication, technical collaboration, and a shared commitment to modernization, long-standing issues that once seemed immovable are now being constructively addressed.

 

The PMSG remains committed to supporting the BIR in building a tax administration that is fair, efficient, business-friendly, and responsive to economic realities. Sustaining and deepening this collaboration will be crucial in ensuring that tax policy and administration continue to evolve in step with the needs of both government and taxpayers.

Mabuhay!

 

(The author is Overall Chair of the BIR–PMSG Partnership.  She is Past President of the Management Association of the Philippines and the Founding Partner and CEO of Du-Baladad and Associates or BDB Law. Feedback at <map@map.org.ph> and <dick.du-baladad@bdblaw.com.ph>).