By Liezelle Soriano

MANILA — President Ferdinand Marcos Jr. has signed into law Republic Act No. 11976, also known as “Ease of Paying Taxes Act,” which will modernize and increase the efficiency and effectiveness of tax administration and strengthen taxpayer rights.

It will also allow 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.

“The new law, introduces administrative tax reforms and amendments to several sections of the National Internal Revenue Code of 1997, also eyes to update the Philippine taxation system, adopt best practices, and replace antiquated procedures,” Presidential Communications Office (PCO) said.

The salient features are the following:

  • 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 (VAT) refund claims into low, medium, and high-risk

The law’s implementing rules and regulations (IRR) shall be promulgated 90 days from the effectivity of the Act after the consultation of the Finance Secretary with the Bureau of Internal Revenue (BIR) and the private sector.

Republic Act No. 11976 takes effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.

(el Amigo/MNM)