Manila: Senator Sherwin Gatchalian on Friday highlighted the enactment of the Ease of Paying Taxes (EOPT) Act as one of the most significant legislative achievements of the 19th Congress. Gatchalian, chair of the Senate Committee on Ways and Means and principal author and sponsor of Republic Act 11976, said the law aims to simplify tax compliance and increase government revenue without introducing new taxes.

According to Philippines News Agency, the EOPT Act was enacted in January 2024 and introduces reforms to the Bureau of Internal Revenue's (BIR) operations. It includes a file-and-pay-anywhere system that allows taxpayers to file and pay taxes electronically or manually through any authorized bank or tax software provider. The law also eliminates the option to pay taxes to city or municipal treasurers, shifting to an invoice-based system to improve registration processes and expedite value-added tax (VAT) refunds.

The legislation classifies taxpayers as micro, small, medium, or large and removes the documentary distinction between sales of goods and services. It classifies VAT refund claims into low, medium, and high risk and imposes a 180-day deadline for the BIR to act on refund claims involving erroneous or illegal tax collections. Additionally, the law raises the mandatory threshold for official receipts from PHP100 to PHP500 and shortens the income tax return (ITR) form from four pages to two, ensuring registration access for non-resident taxpayers.

To support these reforms, the BIR is required to adopt the 'Ease of Paying Taxes and Digitalization Roadmap,' which aims to provide integrated, end-to-end digital tax services. President Ferdinand R. Marcos Jr. signed the EOPT Act in January 2024 as part of his administration's eight-point socioeconomic agenda.