Philippine President Ferdinand Marcos Jr has signed into legislation a invoice making it simpler for taxpayers to pay their taxes, his workplace stated on Sunday, in a bid to extend the revenues his authorities wants to spice up infrastructure spending.
“The law will modernise 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,” his workplace stated in a press release.
Called the “Ease of Paying Taxes Act”, the brand new legislation simplifies procedures by permitting taxpayers to electronically or manually file tax returns with the Bureau of Internal Revenue (BIR), any authorised agent financial institution or authorised tax software program supplier.
The new legislation additionally permits non-residents to register for these amenities, in a bid entice overseas traders and make it simpler for them to do enterprise within the Philippines.
Under the legislation, the tax authority is remitted to behave on claims to refund taxes erroneously or illegally collected inside 180-days. The threshold for necessary issuance of receipts was raised to 500 pesos ($8.99) from 100 pesos, the legislation added.
The variety of revenue tax return pages was additionally reduce to 2 from 4 beforehand.
To pace up the method, the BIR should additionally craft a digitalisation roadmap to ease tax compliance particularly for micro and small taxpayers, the legislation said.
Marcos, who was elected president in June 2022, has outlined an bold plan for his six-year time period in workplace that focuses on fiscal administration and infrastructure upgrades.
His authorities needs to boost its tax effort, which is the share of tax collections to gross home product, to above 17 per cent by 2028 from greater than 14 per cent presently, and maintain infrastructure spending at 5 per cent to six per cent of gross home product.
