The Philippines Expands the Number of Taxpayers Included in its e-Tax Filing Program
The Philippines’ Bureau of Internal Revenue (BIR) has announced that it has expanded the number of taxpayers who must now use e-filing to pay their taxes. This action is intended to make filing tax returns simpler and encourage more tax compliance from taxpayers.
According to Kim Jacinto-Henares, BIR Commissioner, selected taxpayers will now have to enroll, file returns, and pay taxes early using the BIR Electronic Filing and Payment (eFPS) System or use electronic BIR Forms (eBIRforms).
In response to the actions from the BIR, Philippine Finance Secretary, Cesar Purisima, has stated that “E-filing and e-payment are critical to the success of any modern tax administration…In this way, paying taxes will be truly as easy as RFP – register, file, and pay. Through e-filing and e-payment, more people can contribute to building the nation through proper tax contributions.”
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The new changes have made eFPS mandatory for taxpayers who are included in the Taxpayer Account Management Program. These include the following taxpayers:
- Those who have been identified by the BIR’s District Offices as accounting for at least 80 percent of the tax collected in their areas
- Accredited importers
- National government agencies
- Enterprises enjoying tax incentives, such as those from the Board of Investment
- The top 5,000 individual taxpayers
- Companies with paid-up capital of PHP10m (US$226,000) or more
In recent months, the Philippines has made a number of changes to its tax system. Beginning in September of last year, the BIR made it mandatory that non-eFPS filers (as well as certain other taxpayers) must use eBIR forms in order to prepare and file 36 BIR forms, including those related to income tax, excise duties, value-added tax, withholding tax, and documentary stamp duty.
Additionally, eBIR forms are now required from the following:
- All accredited tax agents/practitioners and all their client-taxpayers
- All one-time transaction taxpayers
- Taxpayers filing a “no payment” tax return
To learn more about the changes taking place in the Philippines’ tax system and how these could affect your business, please contact Philippines@dezshira.com.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
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