eBIRForms: Adapting to its changes

We have seen great leaps of changes from the Bureau of Internal Revenue (BIR) in improving our tax return filing system during the last several years.  This started from the change in physical layouts of the tax returns from excel to interactive bar-coded pdf tax returns, and then, from the conventional manual filing to electronic filing process.

The eBIRForms system was developed to provide taxpayers particularly non-eFPS filers with accessible and convenient service through easy preparation of tax returns. The use of eBIRForms improves the BIR’s tax return data capture and storage thereby enhancing efficiency and accuracy in the filing of tax returns.

As the BIR went online, it earned brickbats because of the glitches and timeouts on the BIR website making it difficult for taxpayers to timely file their tax returns. In response to this, the BIR issued Revenue Memorandum Circulars (RMC) providing an alternative mode in the filing of eBIRForms as enumerated and clarified in RMC 26-2015. During the time that online eBIRForms are not accessible to taxpayers, the alternative mode is by using the offline eBIRForms and sending the .xml file to a certain email address provided in the RMC.

However, problems are still being encountered by the BIR in its alternative filing process. Due to the numerous tax returns with invalid format as well as emails with no attachment sent to the eBIRForms email accounts, the BIR issued a Memorandum on July 30, 2015 disabling the eBIRForms email accounts and rendering the alternative mode of filing obsolete.

Those who continue to submit tax returns to the email accounts will receive the following email message:

“This tax return submission channel is now unavailable and your submitted tax return will be disregarded. Please download the eBIRForms Package v.5 and follow the procedures per RMC 31-2015 to submit your tax returns.”

The electronic service of the BIR has its benefits, but it also has its limitations. Last annual tax filing season, there have been congestions in the BIR website due to the immense volume of taxpayers trying to go online. In fact, other taxpayers tried to file early in the morning or late at night when fewer taxpayers were trying to access the online facility. 

In instances of unsuccessful filing attempts, the BIR provided for alternative steps such as calling the BIR helpdesk as per Annex D of RMC 14-2015. More importantly, taxpayers must print screen the proof of unsuccessful filing, call the BIR helpdesk and obtain a Trouble Ticket Log or report to BIR Contact Center and get the Reference Number of the call.

It must be noted that corresponding penalties will be imposed for failure to file and pay the tax returns on time such as 25 percent surcharge, interest of 20 percent per annum and compromise penalties. 

The BIR has also released the newest version of the eBIRForms Package version 5.0 in RMC 31-2015. The thirty-six (36) tax returns available in the package can be filed by clicking the “Submit” button, after which the taxpayer will be directed to eBIRForms log-in portal and the taxpayer will be asked to provide a username and a password.  A Filing Reference Number (FRN) will be generated as acknowledgment of receipt and the page will display a message that “The form has been successfully filed.”.

In case of unsuccessful submission, taxpayers may use the “Final Copy” button as an alternative mode of electronic submission of returns. Upon hitting the “Final Copy” button, a message window will be displayed to confirm if the taxpayer is a registered online eBIRForms user. If yes, it will ask for the username and password. Moreover, for those who are not yet enrolled to the eBIRForms System, the user will be directed to the Terms of Service Agreement (TOSA) page in which he will be required to fully and unconditionally agree to the TOSA. Upon confirmation, the system will automatically submit the accomplished tax return to the BIR. A message will then be displayed to notify the taxpayer that the submission is successful and an email confirmation will be received by the taxpayer in the email address that was provided in the tax return.

To be able to receive the email notification, the taxpayer’s email address encoded should be valid and active. Also, the BIR email should not be in the spam folder and “bir.gov.ph” should not be blocked by the email provider. Additionally, the mailbox should have enough space to be able to receive the Tax Return Confirmation Receipt email by the BIR. Taxpayers should print the same as evidence that the BIR received the e-filed return.

For tax returns with payment, taxpayers should print the tax return together with the FRN or e-mail notification with the FRN and proceed to manually pay through the authorized agent bank or Collection Agent. Alternatively, those enrolled to e-tax and iTax payment systems of The Landbank of the Philippines (LBP) and Philippine National Bank (PNB), respectively, may process their payments online.

The BIR’s electronic filing policy shows its intention to improve its service. In line with the continuous enhancement and development of electronic services by the BIR to provide faster, more reliable and more convenient services for the taxpayers, the BIR must be prepared to accommodate the seemingly endless questions of the taxpayers when their online facility does not work. And more importantly, prepare for the system’s full implementation.

Taxpayers should file as early as possible to comply with the tax filing deadlines in case the eBIRForms system does not work.  Let us hope that the BIR’s electronic filing facilities will get even better as the BIR faces the challenge to forge the system into an accessible gem that every taxpayer could use. 

Mary Rose P. de Leon is a supervisor from the Tax Group of R.G. Manabat & Co. (RGM&Co.), the Philippine member firm of KPMG International.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or RGM&Co. For comments or inquiries, please email [email protected] or [email protected].

For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.