PCCI lauds passage of ease of paying taxes law
MANILA, Philippines -The country’s largest business organization on Tuesday lauded the Marcos administration for signing into law the Ease of Paying Taxes (EOPT) Act, citing that it will encourage local businesses to file their taxes properly and on time.
Enunina Mangio, president of the Philippine Chamber of Commerce and Industry (PCCI), said they welcome the passage of Republic Act No. 11976, highlighting the importance of having a modernized, efficient and effective tax administration system to streamline processes and minimize the burden on taxpayers.
“I hope this law, coupled with proper implementation and monitoring, will significantly ease the paying of taxes in the country,” Mangio said in a statement.
The new law classifies taxpayers into micro, small, medium and large based on their gross sales to develop a tax system that can more effectively respond to each segment’s specific needs.
READ: President signs into law Ease of Paying Taxes Act
Also, the law allows for the filing of income tax returns electronically or manually with the Bureau of Internal Revenue (BIR) through any authorized agent bank or authorized software provider.
It also provides for the classification of value-added tax (VAT) refund claims into medium and high-risk depending on such factors as the amount of VAT refund claim, tax compliance history and frequency of filing of VAT refund claims.
Given the law’s provisions, Mangio said also she hoped the EOPT Act would encourage foreign investors to do business in the Philippines.
Last year, the Board of Investments approved P1.26 trillion worth of new investments projects in the country, the highest in the government agency’s 56-year history.
READ: BOI targets P1.1-trillion investment approvals in 2024
Despite this volume of investments coming into the Philippines, it has historically lagged behind its peers in the Association of Southeast Asian Nations, trailing Indonesia, Malaysia, Singapore, Thailand and Vietnam.
Meanwhile, Benedicta Du-Baladad, the director for PCCI’s tax and legislative committee, said they would conduct an information campaign with the BIR to ensure that businesses become aware and informed of the new law.
“We will be holding a series of info and education campaigns in partnership with the BIR to ensure that our members, many of which are small enterprises, are able to use this mechanism,” she said. INQ
