NEWS UPDATE | BIR puts online tax badge requirement on hold over privacy concerns

The Bureau of Internal Revenue (BIR) has suspended the mandatory online display of its Registration Seal Badge until further notice, following concerns from online sellers, content creators and other taxpayers over data privacy, technical issues and the scope of the requirement.

The suspension, formalized under Revenue Memorandum Circular (RMC) No. 113-2026 on Oct. 26, also puts on hold the Oct. 31 compliance deadline. Taxpayers who have already secured their badges may continue displaying them voluntarily, and no penalties will be imposed solely for failure to display the badge during the suspension.

BIR Commissioner Charlito Martin R. Mendoza announced the decision after meeting with the National Privacy Commission (NPC) to discuss privacy safeguards for the registration verification initiative.

“We have heard the concerns of online sellers, content creators, and other taxpayers regarding data privacy, technical issues, and the scope of the BIR Registration Seal Badge requirement,” Mendoza said in his statement.

The BIR introduced the badge under RMC No. 38-2026 on April 29 as an alternative to publicly displaying the full Certificate of Registration (COR), or its electronic version, on websites, e-commerce platforms and social media accounts used for business.

The requirement covers online sellers, e-commerce merchants, freelancers, digital service providers, vloggers, influencers and other individuals earning through online activities. The badge uses a quick response (QR) code to allow verification of a taxpayer’s registration without requiring the full registration document to be posted publicly.

However, concerns emerged over the personal information that could be disclosed through the QR-code verification system, particularly when taxpayers use digital platforms to conduct business.

“We recognize that protecting personal information online presents different and more complex challenges than displaying a COR at a physical business establishment,” Mendoza said.

The commissioner said the suspension would give the BIR time to review the policy and address privacy and technical issues while consulting affected taxpayers and other stakeholders.

“When BIR issued RMC 38-2026 last April 29, 2026, the Seal Badge was introduced as an alternative to posting the full Certificate of Registration (COR) online, as required under Revenue Regulations Nos. 7-2024 and 15-2024, issued pursuant to the Ease of Paying Taxes Act,” Mendoza said.

NPC seeks privacy safeguards

In a separate statement dated Oct. 26, the NPC confirmed that it met with Mendoza at the BIR National Office in Quezon City to discuss the implementation of the Registration Seal Badge and the data privacy implications of the initiative.

The NPC was represented by Deputy Privacy Commissioner Jose Sutton Belarmino II and Privacy Policy Office Director Reinier Jeffrey Abdon.

The meeting followed a Notice to Explain issued by the privacy regulator to the BIR on Oct. 21 in response to privacy concerns raised by stakeholders. The NPC said the BIR explained the legal basis and purpose for processing personal information under the initiative, while the two agencies discussed relevant privacy considerations and possible safeguards.

The NPC also acknowledged the BIR’s decision to suspend the deadline prescribed under the relevant circular.

The regulator said the discussions form part of its continuing engagement with the BIR to ensure government initiatives involving the processing and disclosure of personal information comply with Republic Act No. 10173, or the Data Privacy Act of 2012.

“The Commission remains committed to constructive interagency engagement while independently exercising its regulatory mandate under the DPA,” Privacy Commissioner Johann Carlos Barcena said.

The NPC emphasized that legitimate government objectives must be pursued alongside appropriate safeguards for personal information, consistent with the principles of transparency, legitimate purpose and proportionality.

The two agencies will continue coordinating as the BIR reviews the registration badge requirement.

Compliance remains under review

The suspension does not mean the BIR has abandoned its registration verification initiative. Instead, the agency will review how the requirement can be implemented while addressing the privacy concerns associated with displaying taxpayer information online.

The BIR said taxpayers may continue to display their badges voluntarily while the suspension remains in effect. It has not announced a new compliance deadline.

Before the suspension, the BIR had reported that more than 52,700 Certificates of Registration carrying the badges had been secured by online sellers, service providers and content creators as of Oct. 14, according to the Philippine News Agency.

The issue highlights the challenge of balancing tax compliance and public verification with the protection of personal information in an increasingly digital economy. While online registration checks can help customers establish whether a business is registered, the information made accessible through such systems must be limited to what is necessary for that purpose.

The BIR said it would work with the NPC and consult affected taxpayers and stakeholders as it reviews the implementation of the requirement.

“Our commitment remains the same: to protect taxpayers, make compliance easier, and deliver the quality of service you deserve,” Mendoza said.

Full disclosure: All news articles published on the TechSabado website are written by human journalists, unless otherwise specified. Final text editing is also performed by human editors, with artificial intelligence (AI) used only to assist with additional grammar and style guide corrections..

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