Tax Advisory - Revenue Memorandum Circular No. 107-2025

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 107-2025, ordering the suspension of all audit and field operations until further notice. This includes the issuance of new Letters of Authority (LOAs), Mission Orders, and other directives authorizing examinations of taxpayers.

This advisory summarizes what taxpayers and businesses need to know:

• Scope of suspension — All operating units of the BIR conducting field audits are covered, including LTS, Revenue Regions, RDOs, VAT Audit Units, Assessment Divisions, and other investigation arms.

• What continues during the suspension — Issuance of Assessment Notices, Warrants, and Seizure Notices under specific exceptions; voluntary payments of known tax deficiencies; and processing of returns such as estate tax, donor’s tax, capital gains tax, and withholding tax on property or share transactions.

• Exceptions to the suspension — Cases nearing prescription, active criminal probes, refunds requiring LOAs, retiring businesses, and other matters covered by Commissioner orders.

• Directives to BIR units — Submission of LOA inventories, strict prohibition of LOA revalidation unless within exceptions, and development of strengthened audit protocols.

• Compliance reminder — Taxpayers with existing LOAs issued before the RMC are still required to comply with ongoing audits.

Download the PDF to see the complete details, including coverage, exceptions, directives, and compliance reminders.