Marcos signs ease of paying taxes law

MANILA, Philippines — President Ferdinand Marcos Jr. has signed into law a measure that aims to increase the efficiency and effectiveness of tax administration, and strengthen the rights of taxpayers, Malacañang said Sunday. 

The Presidential Communications Office said that Marcos signed Republic Act 11976, also known as “Ease of Paying Taxes Act,” on January 5. It is a key legislative priority of the administration."

The law “allows the government to capture as many taxpayers as possible into the tax net by streamlining the system and minimizing the burden on taxpayers, increasing the country’s revenue collection in the long run.”

Among the law’s key features were the classification of taxpayers into micro, small, medium and large; electronic or manual filing of returns and payment taxes either to the Bureau of Internal Revenue (BIR), authorized agent bank or tax software providers; and option to pay internal revenue taxes to the city or municipal treasurer.

The law eliminates the distinction between documentation and basis of sales of goods and services and classifies value-added tax refund claims into low, medium and high-risk. 

Other features of the measure include the availability of registration facilities to non-Philippine resident taxpayers; promotion and assistance in tax processes; reduced documentary requirements; and digitalization of BIR services. 

“It also mandates that in order to improve the performance and efficiency of the BIR, the agency must adopt an integrated digitalization strategy by providing end-to-end solutions for the benefit of taxpayers,” the Palace said. — Gaea Katreena Cabico