President Ferdinand R. Marcos Jr. has signed into law the Ease of Paying Taxes Act (Republic Act 11976) which is aimed at making tax administration more modern, efficient, and fairer to taxpayers.

According to the Presidential Communications Office (PCO), this law was a priority mentioned in the State of the Nation Address in both 2022 and 2023. Its goal is to bring more taxpayers into the system by making things easier for them and, in the long run, increasing the country’s revenue collection.

Albay Rep. Joey Sarte-Salceda lauded Marcos for approving the measure which will introduce major improvements in tax administration.

“I thank President Marcos for signing the Ease of Paying Taxes Act, the most comprehensive tax administration reform since the 1997 National Internal Revenue Code,” Salceda said.

“It brings our tax administration system to the digital world – allowing the BIR to shift to a full digitalization,” he remarked.

The new law introduces reforms to tax administration and updates the Philippine taxation system. It aims to simplify things and replace old, outdated procedures with better practices.

Some key features of RA 11976 include categorizing taxpayers into different groups based on their size, allowing electronic or manual filing of taxes, and giving taxpayers the choice to pay taxes at city or municipal treasurer offices.

It also eliminates certain complicated distinctions in the sales of goods and services and categorizes VAT refund claims based on risk.

This law further ensures that non-Philippine resident taxpayers have access to registration facilities, helps taxpayers through the tax processes, reduces paperwork, and modernizes the services provided by the Bureau of Internal Revenue (BIR) through digitalization.

Additionally, it sets a timeframe of 180 days to process refund claims for taxes collected incorrectly or unfairly and increases the amount for mandatory issuance of receipts for sales and services.

The PCO mentioned that the law requires the BIR to adopt a strategy using digital tools to improve services for taxpayers. This includes using integrated systems for basic tax services, setting up electronic systems for sharing information between departments, and enhancing the BIR's technology capabilities.