Six months into the Bureau of Internal Revenue’s (BIR) DARES reform program, Commissioner Charlito Martin Mendoza said early results suggest the agency’s push to make tax administration more predictable, digital and taxpayer-focused is beginning to translate into stronger revenue performance and improved public service.

The BIR commissioner said from January to May 2026, the BIR collected P1.434 trillion in gross revenues, surpassing its collection target and posting growth from the same period last year.

The agency was also recognized by the Anti-Red Tape Authority (ARTA) as one of the country’s most improved government agencies in reducing complaint volumes.

Speaking before business leaders recently, Mendoza said uncertainty in tax administration had long been a concern among taxpayers, prompting the bureau to prioritize reforms in audit procedures.

“While enterprises can adapt to most requirements, what is more difficult to manage is uncertainty,” Mendoza said.

Among the most significant changes introduced this year were the one-Letter of Authority-per-taxpayer-per-taxable-year policy, the rollout of a LoA verification system, stricter accountability mechanisms for revenue officers, and clearer safeguards governing tax audits.

“Audit and assessment should be about fairness, not fear. Compliant taxpayers should not feel that they are being treated as adversaries,” Mendoza said, adding that enforcement efforts against tax evasion and illicit trade continue alongside reforms.

The bureau has also accelerated its digital transformation agenda. It launched Digital Taxpayer Identification Number registration through the eGovPH platform, introduced QR-enabled Certificates of Registration for online businesses, and rolled out a Taxpayer Portal for large taxpayers that consolidates registration, filing, and payment records in a single platform.

For businesses winding down operations, the BIR simplified procedures through its Ease of Closing Business initiative, while qualified micro taxpayers were given access to a one-time tax abatement program aimed at helping them settle liabilities and return to compliance.

“During the first six months of BIR DARES, we looked at the taxpayer journey — from registration, to transactions with the Bureau, to the resolution of issues — and asked where processes could be simplified and made more accessible,” Mendoza said.

The commissioner said the reforms are intended to move the BIR away from a purely enforcement-driven approach toward one that balances revenue collection with service delivery and voluntary compliance.

“The willingness of stakeholders to participate in these discussions, provide feedback, and remain engaged throughout the reform process is itself a positive sign,” Mendoza said. “Taken together, these indicators suggest that reform and revenue performance can move together.”

Beyond tax administration, the BIR also continued measures supporting broader government priorities, including the publication of more than 2,200 VAT-exempt medicines, streamlined tax requirements for socialized housing projects, and clarifications on tax incentives involving education and energy-related programs.