BIR Tax Refunds Hit ₱23.67B in 2026 | What Accountants Need to Know

BIR Tax Refunds Nearly Double to ₱23.67 Billion: What Philippine Businesses and Accountants Need to Know

The Bureau of Internal Revenue (BIR) released ₱23.67 billion in tax refunds from January to September 2026, up 90.6 percent from the same period last year. For CPAs, finance managers and business owners, the number says a lot about how fast the BIR is now paying out approved claims.

BIR Tax Refunds at a Glance

Indicator	Figure
Refunds released, Jan–Sept 2026	₱23.67 billion
Refunds released, Jan–Sept 2025	₱12.42 billion
Increase	₱11.25 billion (90.6%)
BIR collections, Jan–Aug 2026	₱2.238 trillion (up 4.60%)

Refunds rose from ₱12.42 billion in the first nine months of 2025. BIR collections from January to August 2026 reached ₱2.238 trillion, up 4.60 percent from ₱2.139 trillion a year earlier. Refunds therefore grew far faster than collections.

Why Did Refunds Almost Double?

The BIR said the jump comes from faster release of claims that were already evaluated and approved. It did not describe a change in refund eligibility.

Faster releases: Commissioner Charlito Martin R. Mendoza said the agency is working to release approved claims without unnecessary delays so businesses can recover funds for operations and cash flow.
Energy crisis relief: The BIR tied the releases to higher operating costs and a prolonged energy crisis.
Government policy push: The agency said the faster processing supports President Marcos Jr.’s directive and Finance Secretary Frederick Go’s push to make government transactions easier, faster and less costly for businesses.
Taxpayer-service message: Mendoza said tax administration involves returning funds properly due to taxpayers as well as collecting the correct amount. He also reiterated an “assistance first to comply, enforcement only when necessary” approach.

Source coverage names the BIR statement of Friday, September 25, 2026 as the origin of these figures.

What Taxes Can Be Refunded?

Refundable taxes include value-added taxes, withholding taxes, income tax, excise taxes and other internal revenue taxes. The BIR has not published a breakdown of the ₱23.67 billion by tax type in the coverage found. Ask your BIR contact or watch for a formal release before quoting a breakdown to clients.

Why This Matters for Accountants and CPAs

Cash flow planning. Refunds are money legally owed to taxpayers. Mendoza said returning it helps businesses cover operating expenses and keep operations moving.
Refund claims are worth pursuing. If clients have unclaimed excess credits, such as excess creditable withholding tax or unutilized input VAT, a review now may be worthwhile. Faster payouts only help claims that were filed correctly and approved.
Audit readiness. Refund processing and audit overlap. Under the BIR’s RMO No. 22-2026, audit cases that are required before processing a refund or credit claim fall under “Mandatory Cases.” Complete, well-organized records can prevent delays.

How to Claim a BIR Tax Refund: Key Rules

The general rules below come from legal commentary and BIR material. Check them against current BIR regulations before advising a client.

Refund Type	Filing Deadline	BIR Processing Period
Ordinary refunds (Sections 204 and 229)	Within two years from payment of the tax or penalty	Generally 180 days from submission of complete documents
VAT refunds (Section 112)	Within two years after the close of the taxable quarter when the sales were made	Generally 90 days from submission of complete documents

Late VAT claims: The BIR will still accept a VAT refund claim filed beyond the two-year period, but it recommends outright denial.
Remedy if denied or ignored: For general Section 229 claims, the taxpayer generally has 30 days to appeal to the Court of Tax Appeals after receiving a denial or after the 180-day period lapses without action.
Documents: The BIR uses revised checklists of mandatory requirements for VAT refund claims, and duly certified copies of invoices and receipts form part of the case docket.

Practical Tips for Filing Faster

Calendar the two-year deadline the day a payment is made or a taxable quarter closes.
Reconcile creditable withholding tax certificates (BIR Form 2307) against your ledgers before filing.
Use the right legal basis. Do not apply the 180-day ordinary process to a Section 112 VAT claim.
Submit complete documents once. Deficient filings are not processed and restart the clock.
Prepare for e-invoicing. The BIR has set a December 31, 2026 deadline for covered taxpayers to adopt electronic invoicing. Clean invoicing will support future claims.

Frequently Asked Questions

How much did the BIR release in tax refunds in 2026?

The BIR released ₱23.67 billion from January to September 2026.

How much higher is that than last year?

It is ₱11.25 billion, or 90.6 percent, higher than the ₱12.42 billion released in the same period of 2025.

Does this mean refunds are now easier to get?

Not necessarily. The BIR said it accelerated the release of claims that were already evaluated and approved. Eligibility rules and documentary requirements still apply.

How long does the BIR have to process a refund?

Generally 180 days for ordinary refund claims and 90 days for VAT refund claims under Section 112, counted from submission of complete documents.

Conclusion

Almost double last year’s refunds is good news for business cash flow. The practical lesson for accountants is to file complete, timely claims and keep records audit-ready, because the BIR is paying approved claims faster.