The Philippine Chamber of Commerce and Industry (PCCI) today expressed strong support for the Bureau of Internal Revenue’s (BIR) issuance of Revenue Memorandum Circular (RMC) No. 8-2026 and Revenue Memorandum Order (RMO) No. 1-2026. These landmark issuances lift the suspension on enforcement activities and introduce a modernized audit framework designed to strengthen transparency, predictability, and fairness in tax administration.
RMC 8-2026 signals the resumption of audit and field operations, including Electronic Letters of Authority (eLAs), Mission Orders, and Tax Verification Notices. PCCI, however, emphasized that the real breakthrough lies in the safeguards and procedural reforms introduced under RMO 1-2026.
“The adoption of the Single Instance Audit Framework—‘One LOA per taxpayer per year’—is a game-changer,” said PCCI President Perry Ferrer. “This policy consolidates all internal revenue tax types, including VAT, into a single authority. It rationalizes the audit process, minimizes disruption to business operations, and ensures efficiency through the automatic consolidation of multiple eLAs into one LOA.”
Among the key reforms welcomed by PCCI are:
– Objective Selection Criteria: Transitioning to a risk-based, data-driven audit selection process, reducing subjective discretion.
– Rationalization of Enforcement Authority: Abolishing Task Forces and shutting down VAT Audit Sections (VATAS) and Large Taxpayers VAT Audit Units (LT-VAU), returning assessment functions to regular BIR offices.
– Protection of Due Process: Ensuring audit notices are anchored strictly on unresolved issues with clear factual and legal bases, prohibiting unreasonable assessments, and mandating documentation of audit events through signed minutes.
“These reforms strengthen the principles of fairness and accountability,” noted PCCI Director for Taxation, Mr. Alfredo Yao. “By requiring transparency in taxpayer interactions and eliminating redundant audit units, the BIR is sending a strong signal that it values both efficiency and integrity.”
PCCI underscored that the reforms will foster a climate of mutual trust between government and the private sector.
“A predictable and transparent tax environment encourages voluntary compliance and builds confidence among businesses,” added PCCI Tax Committee Chairperson Benedicta Du-Baladad. “We believe these measures will contribute to a more stable and competitive business climate in the Philippines.”
The Chamber looks forward to the consistent implementation of these policies and reaffirmed its commitment to working closely with the BIR to ensure that reforms translate into tangible improvements in the ease of doing business.
