The Bureau of Internal Revenue (BIR) closed 2025 with a strong year-end recovery that pushed full-year collections beyond ₱3 trillion, reversing a mid-year slowdown and reinforcing confidence in its shift toward a trust-based tax system.
Preliminary data show total collections reached ₱3.105 trillion, net of refunds, representing an 8.62 percent increase over 2024. While slightly below the ₱3.232-trillion program target, the performance was widely seen as a strong outcome given the Bureau’s deliberate suspension of audit operations during a major institutional reform phase.
The year had opened with double-digit growth, but momentum weakened sharply in the second semester. Revenue expansion slowed beginning in July and dropped to nearly 1 percent in October.
When the new leadership assumed office in mid-November, only two weeks remained in the month. Despite this, revenue growth rebounded to 2.7 percent in November and accelerated further to 8.62 percent in December, signaling a rapid restoration of taxpayer confidence.
December collections reached ₱199.55 billion, producing one of the strongest monthly performances of the year and lifting fourth-quarter revenues to ₱782.68 billion.
BIR Commissioner Charlito Martin R. Mendoza said the rebound was driven not by pressure on taxpayers but by the restoration of credibility.
“Even while audits were paused, taxpayers continued to pay. That tells us that predictability, fairness, and institutional trust are now driving compliance,” Mendoza said.
He added that the Bureau’s transition from enforcement-heavy methods to credibility-based administration is now delivering measurable results.
The improved trajectory also provides a firm base for the Bureau’s 2026 reform rollout, which includes audit restructuring, legal safeguards, and expanded digital systems under the BIR DARES framework.
