BIR to waive collection of smaller delinquent amounts

THE Bureau of Internal Revenue (BIR) said it raised the threshold for writing off delinquent tax accounts, citing the need to save on administrative costs it would have incurred for going after relatively small receivables.

Revenue Memorandum Order No. 11-2026 raised the write-off threshold for Accounts Receivable/Delinquent Accounts that are final, executory and demandable to P80,000 from P20,000.

The order, which takes effect immediately, allows delinquent accounts below the threshold to qualify for write-off.

“This order is issued to rationalize the collection enforcement efforts when continued collection is no longer economically feasible,” the BIR said.

The revised threshold will serve as the statutory basis for the write-off of tax cases, consistent with existing laws, rules and procedures.

The order also said that all existing rules, regulations and rulings inconsistent with the new policy are deemed repealed, amended or modified accordingly.

In March, the BIR reported P198.755 billion in gross collections, up 11.87% from a year earlier.

For 2026, the BIR’s revenue collection target outlined in the 2026 Budget of Expenditures and Sources of Financing was set at P3.46 trillion. — Justine Irish D. Tabile