Newly signed Ease of Paying Taxes Act to modernize PH tax administration and strengthen taxpayer rights

Finance Secretary Benjamin E. Diokno welcomed the enactment of the Ease of Paying Taxes (EOPT) Act, which was signed into law as Republic Act No. (RA) 11976 by President Ferdinand R. Marcos, Jr. on January 5, 2024, to modernize the Philippine tax administration and strengthen taxpayer rights.

“We are off to a good start this 2024. By making the tax system more taxpayer-friendly through simplified tax filings and protecting taxpayers’ rights, we will achieve our goal of encouraging and improving tax compliance” Secretary Diokno said.

RA 11976 will encourage more taxpayers to enter into and comply with the tax system by streamlining processes and minimizing the burden on taxpayers, thereby increasing the country’s revenue collection.

President Ferdinand R. Marcos, Jr. previously tagged the EOPT Act as a priority legislation in his State of the Nation Address (SONA). The measure supports the administration’s 8-Point Socioeconomic Agenda through the collection of more taxes to enhance economic and social development.

“After the comprehensive amendments to tax policy introduced by the previous administration, we now focus our sights on tax administration with the passage of the Ease of Paying Taxes Act. Recognizing the importance of how the government collects taxes, this measure solidifies our commitment to our countrymen towards a dynamic and efficient tax administration which is responsive to the needs of our taxpayers, both individuals and those who are doing business, adapts to the changing times, and ultimately supports our recovery and growth objectives,” the President said in a statement.

The new law will classify taxpayers into micro, small, medium, and large according to their gross sales in order to form a tax system that is responsive and specific to each segment’s needs.

Filing of returns and payment of internal revenue taxes will also be made easier through electronic or manual means such as authorized agent banks or authorized software providers.

The option to pay internal revenue taxes to the city or municipal treasurer with jurisdiction over the taxpayer was removed in order to encourage the shift to electronic payment channels.

Furthermore, it ensures the