Plugging the leaks: Curbing fraud and boosting government revenue with the enhanced eDST System

The issuance of Revenue Regulation 28-2025 by the Bureau of Internal Revenue (BIR) on Dec. 22, 2025, represents a significant leap toward the modernization of a long-outstanding tax requirement that had historically been paper-based, time-consuming and prone to inefficiencies.

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This regulation implements the enhanced version of the Electronic Documentary Stamp Tax (eDST) System, which not only provides convenience to users but also serves as a strong measure against tax evasion and a blueprint for maximizing government revenue collection. The transition of traditional tax compliance to digitalization will help tax authorities curb tax evasion by increasing transparency, traceability and real-time oversight across economic transactions. It also aligns with the Ease of Paying Taxes Act that aims to modernize tax administration, enhance taxpayer experience and encourage compliance.

This regulation expands the list of industries mandated to use the enhanced version of the eDST System and thereby captures a larger share of DST revenue in a format or medium that is 100 percent auditable. The covered industries include:

• Bank, quasi-bank or non-bank financial intermediary, finance companies, or insurance, surety, fidelity or annuity companies.

• Shipping and airline companies

• Pre-need companies on sale of pre-need plans, as provided under Section 186 of the Tax Code

• Educational Institutions, with respect to the issuance of the taxable certificate, such as Diploma, Transcript of Records and other documents as certificates under Section 188 of the NIRC of 1977, as amended.

• National Government Agencies and their instrumentalities, including Government-Owned or Controlled Corporations (GOCCs), Local Government Units (LGUs) except barangays, with respect to the documents taxable as certificates under Section 188 of the NIRC of 1977, as amended.

• Notaries public, including those employed in law firms and other offices, whether public or private.