The ease of paying taxes

The Ease of Paying Taxes Act (Republic Act No. 11976) will modernize and increase the efficiency and effectiveness of tax administration and strengthen taxpayers´ rights, allowing 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. 

There will be a shift to electronic payment channels including electronic (and manual) means for filing of returns and for payments of revenue taxes, either with the BIR, any other agent bank or authorized tax software provider. 

Non-Residents can also register to these facilities to encourage foreign investors to do business in the Philippines. The number of pages for Income Tax return and documentary requirements will be reduced. A VAT Invoice will be the sole proof needed for the sale of goods and services which eliminates the need for a reconciliation on sales of services for VAT and Income Tax purposes. 

For long-term contracts the invoice will be issued during the month in which the sale or service has been rendered or supplied. Mandatory issuance of receipts for each sale and transfer of goods and services is increased from P100 to P500. There will be a 180-day period for the BIR to process general refund claims on erroneous or illegally collected taxes.