BIR April collections top target, hit P422 billion

THE BUREAU of Internal Revenue (BIR) said its gross collections rose to P422.378 billion in April, exceeding its target for the month despite the extension of the annual income tax return (AITR) filing deadline.

In a statement on Thursday, the agency said collections last month were 3.12% higher than its target of P409.6 billion. Gross collections also inched up by 0.13% year on year in April.

However, the April haul was below the P499.1-billion monthly projection under the 2026 Budget of Expenditures and Sources of Financing (BESF).

“This strong April performance came even with the moved deadline for filing the 2025 AITR,” the BIR said.

Last month, President Ferdinand R. Marcos, Jr. ordered the extension of the filing deadline for 2025 AITRs to May 15 from the original April 15 cutoff “to give taxpayers more time to file properly and submit the required documents without penalties.”

Meanwhile, BIR Commissioner Charlito Martin R. Mendoza attributed the performance to intensified tax campaign efforts by the national office, revenue regions, revenue district offices, and the large taxpayer service in recent months.

“Even with the extension of the AITR filing deadline, the BIR sustained solid collection performance in April, reflecting the impact of higher taxpayer confidence, better digital services, and continuing reforms under the BIR DARES reform agenda,” he said.

DARES stands for “Digital and Data Transformation, Audit Reform and Accountability, Revenue Collection and Base Protection, Employee Empowerment and Welfare Promotion, Service Excellence, and Stakeholder Engagement.”

For the January-to-April period, BIR’s total gross collections reached P1.155 trillion, exceeding its target for the first four months of the year by 0.84% or P9.631 billion. Collections also rose 3.58% from the same period a year earlier.

“The Bureau’s collection performance for the first four months shows that it remains on track to meet this year’s revenue goal while continuing to improve taxpayer service,” Mr. Mendoza said.

“The Bureau is optimistic for May collections to be positive as well, with the remaining 2025 annual income tax payments due mid-month,” he added.

This month, the BIR expects collections to reach P264.68 billion under the BESF. However, the target was increased to P279.06 billion under Revenue Memorandum Order No. 009-2026, which set the agency’s emerging collection goal for the year.

For 2026, the BIR’s revenue collection target under the BESF is set at P3.58 trillion, while its emerging collection goal stands at P3.43 trillion, 4% lower than the original target.

Separately, the Bureau posted Department of Finance (DoF) Order No. 018-2025, which outlines the guidelines for accrediting value-added tax (VAT) refund system operators in line with the VAT refund mechanism for nonresident tourists.

To qualify for pre-accreditation, operators must provide VAT refund services in at least 20 countries, have a minimum of five years’ experience, and operate digital end-to-end VAT refund services in at least two geographical regions, among other requirements.

The order also listed financial and operational requirements, including a P500,000 accreditation fee, a P5-million performance bond, service level agreements, and a “traveler-pay” model, where operating costs are deducted from VAT refunds. — Justine Irish D. Tabile