Philippine President Ferdinand Marcos Jr. has enacted Republic Act 11976, known as the “Ease of Paying Taxes Act,” a significant step in reforming the country’s tax system. The new law, signed on January 5, is part of the administration’s legislative agenda focused on enhancing tax administration efficiency and strengthening taxpayer rights.
According to the Presidential Communications Office, this law aims to broaden the tax base by simplifying the tax system and reducing taxpayer burdens, ultimately boosting national revenue. It introduces a new classification system for taxpayers, dividing them into micro, small, medium, and large categories. This categorization is expected to streamline the tax filing and payment process.
The law allows both electronic and manual filing of returns. Taxpayers have the flexibility to pay taxes through the Bureau of Internal Revenue (BIR), authorized agent banks, or approved tax software providers. Additionally, the option to pay internal revenue taxes at local city or municipal offices has been introduced.
A notable change in the legislation is the elimination of the distinction between documentation for sales of goods and services, simplifying the value-added tax refund process by categorizing claims based on risk levels.
The “Ease of Paying Taxes Act” also addresses the needs of non-resident taxpayers, offering registration facilities and promoting assistance in tax processes. The law aims to reduce documentary requirements and fully digitize BIR services.
The Malacañang Palace highlighted that the law mandates the BIR to implement an integrated digitalization strategy. This strategy includes providing end-to-end digital solutions, enhancing both the performance and efficiency of the agency, and making tax processes more taxpayer-friendly.
The new law represents a strategic move towards modernizing the Philippines’ tax system, reflecting the administration’s commitment to fostering a more efficient and equitable fiscal environment.
PhilippinesToday.ph