On Sept. 15, 2021, the House of Representatives approved on third and final reading House Bill No. 8942, otherwise known as the Ease of Paying Taxes (EOPT) Act.
The EOPT Act aims to simplify tax compliance and modernize tax administration. Its salient provisions include:
a. Removal of the annual Bureau of Internal Revenue (BIR) registration fee;
b. Removal of authority to print requirement for receipts/invoices;
c. Removal of business style;
d. Removal of the value-added tax rule in issuing official receipt for sale of services and invoice for sale of goods to allow issuance of single document for both sales of services and goods;
e. Harmonization of venue rules to allow fully online filings with the BIR;
f. Filing of Taxpayer Identification Number offsite;
g. Introduction of medium taxpayer classification;
h. Streamlining of BIR procedures;
i. Creation of Taxpayer’s Advocate Office under the direct supervision of the Department of Finance as taxpayers’ recourse for issues with the BIR; and,
j. Implementation of risk-based approach on BIR assessments.
The legislative measure will be in full consonance with the Ease of Doing Business Act and will be deliberated next by the Senate.
Please be guided accordingly
P&A Grant Thornton