BIR to educate business establishments in Nationwide Tax Compliance Verification Drive (TCVD); No Penalties to be imposed during Nationwide TCVD

Wazzup Pilipinas!?

BIR’S FRIENDLY TAX COMPLIANCE VERIFICATION DRIVE

 

In celebration of Tax Awareness Month, the Bureau of Internal Revenue (BIR) launched the Friendly Tax Compliance Verification Drive (TCVD) to promote taxpayer education and encourage voluntary compliance. This initiative focuses on helping taxpayers understand their tax obligations, identify common issues, and guide them in correcting these to ensure proper compliance with tax laws.

"The BIR will conduct a tax education campaign, through a nationwide TCVD. The purpose of this TCVD is solely to educate businesses on their tax obligations. No penalties will be imposed" Commissioner Lumagui stated.

The Friendly TCVD, which runs from February 10 to 14, 2025, takes an educational and supportive approach. Instead of imposing penalties, the BIR aims to assist taxpayers by explaining their obligations and how they can comply with tax regulations.

On its first day alone, more than 24,000 establishments across the entire Philippines were visited as part of the drive. Some of the most common issues found included businesses not being officially registered, not keeping their books of accounts at their place of business, and not displaying their certificate of registration. Additionally, some taxpayers had not yet converted their official receipts into the required sales or service invoices under the Ease of Paying Taxes (EOPT) Act.

The top five types of establishments visited were retail stores, restaurants, healthcare providers, automotive shops, and construction supply stores. These businesses received practical advice on how to address their compliance issues and were given time to make the necessary corrections.

During the visits, BIR officers made sure to explain the issues clearly and provide guidance on how to fix them. Taxpayers were encouraged to ask questions and seek clarifications about their tax responsibilities. The focus was to help them understand their obligations and support them in becoming fully compliant.

"We are here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services leads to compliance. Our revenuers from Luzon, Visayas, and Mindanao will be visiting businesses to explain the fundamentals of taxation to everyone" Commissioner Lumagui stated.

The Tax Compliance Verification Drive (TCVD) reflects the BIR’s goal of creating a culture of voluntary compliance. Beyond addressing immediate concerns, the TCVD aims to build lasting awareness and improve cooperation between the BIR and the business community.

Through education and continuous guidance, the BIR is committed to helping taxpayers comply with ease and confidence. The Friendly TCVD is a step toward ensuring that businesses understand their tax responsibilities while contributing to the growth and development of the nation.