BIR Targets ₱3.23 Trillion Tax Collection in 2025

MANILA – After exceeding its revenue goal for the first time in 20 years, the Bureau of Internal Revenue (BIR) aims to collect ₱3.23 trillion in tax revenues for 2025, relying on stricter compliance enforcement, taxation of online sellers, and key legislative measures.

Tax Compliance Push

BIR Commissioner Romeo Lumagui Jr. emphasized that improving taxpayer compliance will be crucial in meeting the target.

“When taxpayers are compliant and well-informed, reaching our target becomes easier,” Lumagui said during a tax compliance verification drive (TCVD) in Quezon City.

Running from February 10 to 14, the TCVD is a nationwide initiative aimed at educating businesses on tax obligations and identifying compliance issues—without imposing penalties.

Focus on Online Sellers

Withholding tax collections from e-commerce transactions are expected to generate billions in additional revenue.

Under Revenue Regulation No. 16-2023, effective July 15, 2024, e-marketplace operators and digital financial service providers must withhold 1% of half the gross remittances to online sellers.

However, exemptions apply if:
✔ The seller’s total gross remittances from the previous year did not exceed ₱500,000.
✔ The seller’s cumulative gross remittances for the current year have not yet reached ₱500,000.

BIR will assess overall compliance after the April 15 income tax deadline.

Pending Tax Measures

The revenue target also assumes the passage of new tax laws, including:
📌 Levy on single-use plastics
📌 Fiscal reforms for the mining industry

“When the ₱3.23 trillion target was set, it assumed these laws would be passed,” Lumagui noted.

With a stronger push for digital taxation and compliance initiatives, the BIR is determined to sustain its record-breaking collection performance in 2025.