The Bureau of Internal Revenue (BIR), the Bureau of the Treasury (BTr), and UnionBank have officially signed a memorandum of agreement (MOA) to integrate UnionBank's UPay Facility into the national collection system. This strategic partnership, announced on Wednesday, February 25, 2026, marks a significant step forward in modernizing tax payment processes across the Philippines.
Expanding Digital Channels for Tax Payments
According to a statement released by the BIR, this agreement expands web- and mobile-based channels for paying taxes and other government obligations. The integration aims to enhance efficiency, transparency, and security in electronic payments while ensuring timely remittances to government coffers. By leveraging digital platforms, the initiative seeks to streamline financial transactions and reduce bureaucratic hurdles for taxpayers.
Consolidation of Previous Agreements
The MOA was signed on February 24, 2026, at UnionBank Plaza in Pasig City. It consolidates previous agreements that covered UnionBank's role as an Authorized Agent Bank for collecting and remitting national internal revenue taxes and customs duties. This consolidation simplifies the legal framework and operational procedures, providing a more cohesive approach to tax collection.
Driving Modernization and Compliance
BIR Commissioner Charlito Martin Mendoza emphasized that this move supports the agency's modernization drive to improve taxpayer experience and boost voluntary compliance. By offering more accessible and secure payment options, the BIR aims to foster a culture of timely tax payments and reduce evasion. Mendoza highlighted that digitalization is key to adapting to evolving financial landscapes and meeting public expectations.
Bank and Treasury Perspectives
UnionBank president and CEO Ana Maria Aboitiz Delgado stated that the bank will continue to offer over-the-counter and digital payment options, including UPay via InstaPay, PCHC, and other electronic rails. This commitment ensures that taxpayers have multiple avenues to fulfill their obligations, catering to both traditional and tech-savvy users. Treasurer Sharon Almanza underscored the critical role of digitalization in strengthening public financial management, noting that efficient payment systems contribute to better fiscal oversight and resource allocation.
The collaboration between these government agencies and a leading financial institution is expected to set a precedent for future digital initiatives in the public sector, promoting innovation and reliability in national financial operations.
