The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 020-2026, dated March 16, 2026, prescribing the procedures for filing Annual Income Tax Returns (AITR) and payment of taxes for calendar year 2025. The filing deadline is April 15, 2026. This circular enforces the Ease of Paying Taxes Act (Republic Act No. 11976) and Revenue Regulations (RR) No. 4-2024, emphasizing electronic filing and payment systems to simplify compliance and reduce administrative burdens.
The issuance reflects the government’s broader initiative to modernize tax administration, improve efficiency, and encourage taxpayers to embrace digital platforms. By streamlining processes, the BIR aims to minimize manual errors, reduce congestion in district offices, and ensure faster validation of returns.
Key Filing Procedures
Taxpayers are reminded that filing must be done through approved channels:
- Electronic Filing and Payment System (eFPS): Mandatory for large taxpayers and those specifically required by law. Voluntary enrollment is permitted for others who wish to benefit from the convenience of online filing.
- Offline eBIRForms v7.9.5: Designed for non-eFPS users, including individuals filing “No Payment” returns. This system allows taxpayers to prepare returns offline and submit them electronically.
- Certified Tax Software Providers (TSPs): Authorized third-party providers may be used for specific returns, offering flexibility and additional support.
- Manual Filing: Permitted only under exceptional circumstances, such as system downtime or when certain forms are not yet supported electronically.
eLounge Assistance
To support taxpayers, the BIR has expanded the use of eLounge facilities in Revenue District Offices (RDOs). These centers provide direct assistance with electronic filing and payment.
- Priority Access: Senior citizens, persons with disabilities, and individual taxpayers filing their own returns are given priority.
- Usage Limits: Tax practitioners, bookkeepers, and accountants are restricted to three transactions per day and a maximum of one hour of use, ensuring fair access for all.
- Extended Service: Taxpayers present before 5:00 PM will be accommodated until their filing is completed, even beyond official working hours.
Payment Channels
Taxpayers must settle their tax liabilities electronically, using any of the following platforms:
- eFPS-AABs (Authorized Agent Banks enrolled in eFPS)
- Land Bank Link.Biz Portal – for BancNet ATM/Debit/Prepaid card holders and PESONet users
- UnionBank Online/UPAY – for account holders and non-account holders via InstaPay
- DBP PayTax Online – for VISA/MasterCard credit card holders and BancNet ATM/Debit card users
- MyEG and Maya apps – for payments via credit card or e-wallets such as GCash, GrabPay, and ShopeePay
Manual payments are permitted only in cases of system unavailability or when eFPS enrollment is pending.
Micro and Small Taxpayers
Special provisions apply to micro and small taxpayers:
- They may file using Form 1701-MS, 1701, or 1701A, regardless of what is indicated in their Certificate of Registration.
- Form 1701-MS is currently available only in manual format and must be filed physically.
- Those who file electronically using 1701 or 1701A are not required to file 1701-MS separately.
- To simplify compliance, taxpayers may accomplish only the minimum required fields when filing electronically.
Submission of Attachments
Supporting documents must be submitted electronically via the electronic Audited Financial Statements (eAFS) system within 15 days of filing. These include:
- Filing Reference Number (FRN) or Tax Return Receipt Confirmation (TRRC)
- Financial Statements and Notes
- Certificates of Creditable Tax Withheld (e.g., BIR Form 2307, 2316)
- Proof of Payment
- CPA Certificates and other required schedules
Manual submission is allowed only when eAFS is unavailable, and stamping will be limited to key financial documents such as the Audit Certificate, Balance Sheet, and Income Statement.
Penalties
The BIR has clarified that:
- No penalties will be imposed for wrong venue filing.
- Micro and small taxpayers are exempt from penalties if they filed electronically (1701/1701A) or manually (1701-MS).
This provision reflects the government’s recognition of the challenges faced by smaller taxpayers and its commitment to easing compliance.
Advisory Note
Taxpayers are strongly encouraged to:
- File and pay early to avoid last-minute congestion in electronic systems.
- Maximize electronic filing options to simplify compliance and reduce manual processing.
- Ensure timely submission of attachments via eAFS to avoid delays in validation.
Early compliance not only reduces stress but also ensures smoother processing and minimizes the risk of penalties or rejected filings.
Conclusion
Revenue Memorandum Circular No. 020-2026 represents a significant step toward modernized tax administration in the Philippines. By emphasizing electronic filing, digital payment systems, and simplified compliance for micro and small taxpayers, the BIR continues to align tax processes with global best practices.
Taxpayers are urged to comply with the April 15, 2026 deadline and take advantage of the available electronic platforms to ensure efficient and timely filing. For further assistance, consult your tax advisor or visit your nearest BIR Revenue District Office.
🔗 You can view the official BIR Tax Reminder Calendar here: BIR Tax Calendar – Bureau of Internal Revenue. RMC 20-2026.pdf
Article written by: Laurence Philip P. Manlapaz
