BIR tax refunds nearly double to PHP 23.67 billion

The Bureau of Internal Revenue released PHP 23.67 billion in tax refunds from January to September 2026, nearly twice the PHP 12.42 billion returned to taxpayers during the same period last year.

Refund releases increased by PHP 11.25 billion, or 90.6%, from the first nine months of 2025 as the BIR accelerated payments on claims that had already been evaluated and approved.

The faster releases matter to businesses because tax refunds represent money legally due to taxpayers that can be returned to company cash flows rather than remain tied up while awaiting government payment.

For businesses facing higher operating and energy costs, quicker refunds can provide additional liquidity for expenses, payroll, investment and other operating requirements without requiring new borrowing.

“These are lawful refunds due to our taxpayers. Once a refund has been properly evaluated and approved for release, we see no reason to unnecessarily delay it. We want to put that money back in the hands of our businesses so they can use it for operating expenses, preserve cash flow, and keep their businesses moving, especially during this energy crisis,” BIR Commissioner Charlito Martin R. Mendoza said.

The increase in refunds comes as the government seeks to simplify tax administration and reduce the cost of complying with tax rules.

The Ease of Paying Taxes Act, or Republic Act No. 11976, introduced changes intended to speed up the processing of tax refund claims.

For value-added tax refund applications, BIR rules implementing the law provide a 90-day period to process and decide claims once complete documentary requirements have been accepted.

For other covered tax refund claims, the law introduced a 180-day processing period, including claims involving erroneously or illegally collected taxes.

The law also introduced a risk-based approach to the verification of VAT refund claims, allowing the BIR to classify applications according to risk while requiring supporting documents from claimants.

The BIR said its faster release of approved refunds supports President Ferdinand R. Marcos Jr.’s direction to promote a more business-friendly environment and Finance Secretary Frederick D. Go’s push to make government transactions easier, faster and less costly for businesses.

The government has also been pursuing broader reforms intended to simplify tax administration and improve the investment environment, including measures under the Ease of Paying Taxes Act and subsequent BIR regulations.

Mendoza said the agency’s responsibility extends beyond maximizing government revenues to ensuring taxpayers also receive money properly owed to them.

“Tax administration is not only about collecting what is properly due to government. We must also return what is properly due to the taxpayer once the claim has been evaluated and approved,” Mendoza added.

The BIR’s PHP 23.67 billion in refunds through September represents a sharp acceleration from the PHP 12.42 billion released during the comparable period in 2025, with the agency emphasizing that the faster payments cover claims that have completed evaluation and approval.