Saturday, May 18, 2024

PCCI Lauds Passage of Ease of Paying Taxes Act

PCCI Lauds Passage of Ease of Paying Taxes Act

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The Philippine Chamber of Commerce and Industry (PCCI) welcomed the signing into law of the Republic Act 11976 or the Ease of Paying Taxes, as this would encourage businesses to file their taxes properly and on time, paving the way for an increased government revenue collection.

PCCI President, Consul Enunina “Nina” Mangio underscored the importance of having a modernized, efficient, and effective tax administration system to streamline processes and minimize the burden on taxpayers.

“The passage of RA 11976 is certainly a welcome development to the business community. I hope this law, coupled with proper implementation and monitoring, will significantly ease the paying of taxes in the country,” Mangio said.

RA  11976 provides classification of taxpayers into micro, small, medium and large companies. It also allows 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. Furthermore, the law eliminates the distinction between documentation and basis of sales of goods and services; and classification of value-added tax (VAT) refund claims into, medium and high-risk.

Mangio hopes that the law would encourage foreign investors to do business in the Philippines. “We need to harmonize and streamline our processes for us to attract investors into the country. Otherwise, we will remain low in the ease of doing business,” she added.

While the implementing guideline has yet to be released, Atty. Benedicta Du-Baladad, Director for PCCI Tax and Legislative Committee urged the BIR to intensify its information campaign to ensure that more people and companies are 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,” Du-Baladad added.

Incidentally, the PCCI and BIR have an existing agreement to promote the sharing of knowledge and best practices in taxation policies and regulations to better improve the Philippine business tax system through consultations and regular dialogues.