Tax mapping 2025: Some reminders for taxpayers

As the busy tax season winds down and the April 15 deadline has passed, businesses in the Philippines must remain vigilant about their tax compliance obligations. The Bureau of Internal Revenue regularly conducts tax compliance verification drives, more commonly known as “tax mapping,” to check that businesses are compliant with the latest tax laws, rules and regulations.

A tax mapping, in contrast to a regular tax assessment or audit for a particular taxable year, is an opportunity for the BIR and the taxpayer to evaluate that a business is compliant with basic tax registration requirements and the basic administrative regulations. The tax mapping is a refresher on the basic administrative requirements taxpayers should be familiar with upon registration of the business.

Prior to the tax mapping visit, the respective revenue district office shall issue a reminder letter enumerating what the taxpayer is required to do, a short list of BIR requirements and commonly filed BIR forms and deadlines for filing and payment.

Under Revenue Memorandum Order 9-2006, as amended, a revenue officer will verify compliance in key areas during the tax mapping process, including:

• Registration: Ensuring the business is properly registered with the BIR and has a valid Certificate of Registration (BIR Form 2303).
• Invoicing: Confirming businesses are issuing proper invoices and receipts, with new regulations on invoicing thresholds and permit requirements in mind.
• Books of accounts and record-keeping: Checking that businesses maintain updated and accurate books of accounts and ensuring proper retention of records for the required period.
• Notice to issue invoice/receipt: Verifying that businesses display the required signage informing customers of their right to receive an invoice or receipt.
• Registration of machines/systems: Confirming that cash registers, point of sale systems and/or computerized accounting systems are properly registered and functioning.

In case of any violation on the part of the taxpayer, a checklist will be prepared and a copy thereof will be provided to the taxpayer.

Tax compliance is an ongoing responsibility. Hence, businesses should be on top of recent changes on tax requirements and stay compliant to avoid penalties.

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Renee Francesca del Rosario is an Associate under the Tax Group of R.G. Manabat & Co. (KPMG in the Philippines), a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The firm has been recognized as a Tier 1 in Transfer Pricing Practice and in General Corporate Tax Practice by the International Tax Review. For more information, you may reach out to Renee Francesca del Rosario or Mary Karen Quizon-Sakkam through [email protected], social media or visit www.home.kpmg/ph.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.