If your business is operating in the Philippines and you receive a notice from the Bureau of Internal Revenue (BIR) for a tax audit, don’t panic. This is a routine process that typically happens within the first three years of your business operations. The reason for this timing is that, generally, the BIR"‘s right to collect taxes expires after three years. As a result, tax audits are a regular matter and should not automatically be seen as a sign of wrongdoing.

By understanding the audit process and planning with your accountant, you can navigate it smoothly and even use it as an opportunity to improve your tax compliance.

Here’s a step-by-step guide to what you can expect and how to manage the situation effectively.