President Ferdinand Marcos Jr. authorized the Ease of Paying Taxes Act, Republic Act 11976, to help the economy and safeguard tax payers.
Labeled a key goal by Marcos’ government, the fresh EOPT legislation boosts their 8-point plan by raising tax revenue to advance society and the economy.
“The law will modernize and increase the efficiency and effectiveness of tax administration and strengthen taxpayer rights and 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 Presidential Communications Office said.
In September 2023, both Senate and House approved a unified version of the new Simplified Tax Payment bill.
Key features of the new tax law included sorting taxpayers by size from very small to very large, giving the option to file tax returns and make payments either online or through designated banks or software providers, allowing tax payments to local treasurers, and simplifying VAT refunds by risk level while also removing differences in the record-keeping for sales of goods and services.
The EOPT law aims to make tax services more accessible to taxpayers living outside the Philippines, simplify paperwork, and modernize tax processes with the BIR’s Ease of Paying Taxes and Digitalization plan.
Ease of Paying Taxes Act signed into law
The new rule requires action on refund requests for wrong or unlawful taxes within 180 days, raises the receipt issuance threshold from P100 to P500 for all sales and services, and cuts the income tax return form from four to two pages.
The law requires the BIR to implement a full digital strategy to enhance its operations and better serve taxpayers.
The new law starts 15 days following its announcement in the Official Gazette or a widely-read newspaper.
In 2023, the legislation enacted by Congress to prolong the period for estate tax amnesty application became law on August 5, even without the signature of President Ferdinand “Bongbong” Marcos Jr.
This new law, Republic Act No. 11956, was published in the Official Gazette on August 8. It extends the deadline for availing of the estate tax amnesty until June 14, 2025.
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