New Leadership at the BIR: What It Means for Taxpayers & Businesses

Yasser Aureada
Nov 12
3 min read

The tax landscape in the Philippines is seeing a major shift: Charlito Martin R. Mendoza has been announced as the new Commissioner of the Bureau of Internal Revenue (BIR), replacing Romeo “Jun” Lumagui Jr.

For businesses, taxpayers, and tax professionals, this is a development worth monitoring.

As a leading CPA-law firm, Aureada CPA Law Firm examines who Commissioner Mendoza is, the context behind this leadership change, and its possible implications for compliance, audits, and tax policy going forward.

Who Is Charlito Mendoza?

Charlito Mendoza previously served as Undersecretary at the Department of Finance (DOF), overseeing the Revenue Operations Group, which includes both the BIR and the Bureau of Customs.

His strong background in revenue operations and policy oversight gives him solid credentials for the top BIR position.

He succeeds Romeo “Jun” Lumagui Jr., who had led the BIR since November 2022.

Why the Change Now?

This leadership transition comes as the administration of President Ferdinand “Bongbong” Marcos Jr. continues to evaluate the performance of key agencies and signal readiness for reform in how tax-revenue operations are managed and delivered.

Lumagui reportedly submitted his resignation earlier this year—along with other top officials—as part of a broader leadership review. Sources indicate that these resignations were meant to provide the President with room to assess performance and appoint new leaders aligned with current priorities.

What It Means for Taxpayers & Businesses

1. Renewed Focus on Collections, Enforcement, and Operational Efficiency

With Commissioner Mendoza’s background in revenue operations, expect continued or even heightened emphasis on collection performance, audit intensity, and compliance enforcement.

Now is an ideal time for businesses and taxpayers to review their tax records, filings, and internal compliance procedures.

2. Possible Shifts in Administrative Practice or Priority Areas

Leadership changes often lead to adjustments in policy implementation, audit focus, or taxpayer service delivery.

Taxpayers should stay alert to new BIR circulars, memoranda, or revenue regulations that may define the direction of Mendoza’s administration.

3. Enhanced Taxpayer Service and System Improvements

Given the administration’s focus on accountability and service improvement, the BIR may prioritize:

Strengthening digital and e-filing systems
Streamlining transaction processing
Enhancing taxpayer communication and support

Taxpayers are encouraged to engage early with their advisers to align with these potential changes.

4. Strategic Review and Risk Management Are Timely

This leadership change presents an opportunity for taxpayers and businesses to strengthen their compliance posture. We recommend:

Ensuring all tax filings are current, accurate, and well-documented
Reviewing internal controls and record-keeping systems
Conducting a compliance and audit risk assessment
Coordinating with your accountant or tax lawyer to update audit risk profiles and strategies

How Aureada CPA Law Firm Can Help

At Aureada CPA Law Firm, we’re here to support you through this transitional period in the tax administration environment. Our services include:

Pre-Audit Readiness Reviews — Assess your tax filings, documentation, and compliance for audit preparedness.
Impact Monitoring — Track new BIR issuances and enforcement priorities under Commissioner Mendoza and interpret their impact on your business.
Dispute & Representation Support — Assist with assessments, appeals, and negotiations with the BIR when necessary.

Looking Ahead

The appointment of Charlito Mendoza marks a significant moment for tax administration in the Philippines.

While many fundamentals remain the same, this transition provides a timely opportunity for businesses and individuals to reinforce compliance, anticipate new directions, and prepare for evolving enforcement dynamics.

Aureada CPA Law Firm will continue to monitor developments at the BIR and provide practical insights tailored to your business needs.