Marcos signs Ease of Paying Taxes law

Metro Manila, January 9 ------ President Ferdinand Marcos Jr. signed into law a measure that would update the taxation system of the Bureau of Internal Revenue (BIR). Listed as one of the Marcos administration’s priority bills, RA 11976 or the Ease of Paying Taxes Act aims to simplify the tax filing process for small and medium enterprises and modernize and improve the revenue collection system of the BIR. The new law introduces administrative tax reforms and amendments to several sections of the National Internal Revenue Code of 1997, the Presidential Communications Office said Sunday in a statement. 

Among the measure’s features include: 

-Classification of taxpayers into micro, small, medium, and large 

-Electronic or manual filing of returns and payment taxes either to the BIR, through any authorized agent bank, or authorized tax software provider 

-Option to pay internal revenue taxes removal to the City or Municipal Treasurer 

-Elimination of the distinction between documentation and basis of sales of goods and services 

-Classification of value-added tax refund claims into low-, medium-, and high-risk 

-Ensuring availability of registration facilities to non-Philippine resident taxpayers 

The Ease of Paying Taxes Act also enforces a 180-day process period on claims for refund of erroneous or illegal tax collection and increases the fees for the mandatory issuance of receipts for each sale and transfer of goods and services from ₱100 to ₱500. The new law also mandates the BIR to digitalize its services by adopting an integrated and automated system for facilitating basic tax services and setting up an electronic and online data and information system. “The law’s implementing rules and regulations shall be promulgated 90 days from the effectivity of the Act after the consultation of the Finance Secretary with the BIR, and the private sector,” the measure stated. 

House Ways and Means Chair Albay Rep. Joey Salceda said he was elated with the signing of the Ease of Paying Taxes Act, which exempts overseas Filipino workers, who do not acquire any income in the Philippines, from income tax. House Ways and Means Chair Albay Rep. Joey Salceda said he was elated with the signing of the Ease of Paying Taxes Act, which exempts overseas Filipino workers, who do not acquire any income in the Philippines, from income tax. “It brings our tax administration system to the digital world allowing the BIR to shift to a full digitalization,” Salceda said in a statement. 

Source: cnnphilippines.com