Only 3 percent of taxpayers file their returns electronically, despite the numerous types of taxpayers, who are required to do so under the regulations issued by the Bureau of Internal Revenue (BIR).
The Department of Finance’s latest Tax Watch advertisement revealed that taxpayers are required to file their returns electronically to ensure the efficient collection of taxes from the taxpaying public.
The particular taxpayers include accredited tax agents/practitioners and all of their client-taxpayers, local government units, national government agencies, all licensed local contractors, enterprises enjoying fiscal incentives and all corporations with paid-up capital of P10 million and above.
Finance Secretary Cesar V. Purisima cited the efforts of Internal Revenue Commissioner Kim Jacinto-Henares to require more taxpayers to file electronically, but noted that only 3 percent of the total number of taxpayers actually do so.
“We appreciate the efforts of Commissioner Henares in taking this important leap in the Philippines’s ease of doing business agenda. Right now, the BIR has less than 3 percent of its taxpayers filing returns electronically, but we aim to dramatically increase this number to ease taxpayer experience and, in the process, encourage more people to pay taxes. E-filing and e-payment are critical to the success of any modern tax administration,” Purisima said.
The most recent addition to the kinds of taxpayers that are required to file automatically are the accredited importers and customs brokers and prospective importers and customs brokers, who are also required to secure their accreditation from both the BIR and the Bureau of Customs to engage in such business.
Other taxpayers, who are required to file their returns electronically, are Taxpayer Account Management Program taxpayers; top 5,000 individual taxpayers; corporations with complete computerized systems; procuring government agencies with respect to withholding of value-added tax and percentage taxes; Large Taxpayers; top 20,000 private corporations;
Accredited printers of principal and supplementary receipts/invoices; one-time transaction taxpayers; those who shall file a “No Payment” return; government-owned and controlled corporations; and cooperatives registered with the National Electrification Administration and the Local Water Utilities Administration.