The Bureau of Internal Revenue announced its readiness to implement the government’s tax relief proposals, citing modernized systems and simplified compliance procedures. The agency aims to deliver efficient service as the measures move through the legislative process.
Commissioner Charlito Martin R. Mendoza affirmed support for the President’s tax reform agenda presented in the recent State of the Nation Address. He pledged that the bureau will faithfully and efficiently execute any measures enacted by Congress.
The President urged lawmakers to raise the annual income‑tax‑exempt threshold from ₱250,000 to ₱350,000 and to eliminate the minimum corporate income tax for micro and small enterprises. These changes are intended to reduce the tax burden on low‑income earners and small businesses.
Legislative action has begun, with a Senate bill proposing to set the exemption threshold at ₱600,000, exceeding the President’s suggestion. The bill reflects an effort to broaden the scope of tax relief.
Mendoza emphasized that the BIR will be fully prepared once the measures become law while maintaining ongoing initiatives to strengthen tax administration. The bureau also seeks to enhance the overall taxpayer experience.
Internal reforms will continue, focusing on simplifying compliance, modernizing information systems, and reviewing outdated regulations. These steps aim to make tax processes more responsive to taxpayer needs.
Stakeholder consultations will be conducted to align BIR initiatives with the most pressing concerns of businesses and individuals. Engagement with the private sector and civil society is a priority in the reform agenda.
The Department of Finance estimates that the two tax proposals could reduce government revenue by about ₱66 billion annually. The estimate reflects the expected impact of the proposed exemptions and corporate‑tax changes.
The higher exemption threshold is projected to benefit roughly 3.13 million workers, including an additional 1.2 million who would no longer owe income tax, and to relieve about 78 000 micro and small enterprises from the minimum corporate tax. These figures illustrate the broad reach of the proposed relief.
Workers earning between ₱250,000 and ₱350,000 could see annual take‑home pay rise by up to ₱15,000, while those earning above ₱350,000 may receive up to ₱17,500 more per year. The increase aims to improve disposable income for middle‑income earners.
