BIR requires gov’t agencies to use eFPS

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has required national government agencies (NGAs) to file tax returns and pay taxes through the electronic filing and payment system (eFPS).

The eFPS was launched in 2001 as part of government’s efforts to provide fast and convenient manner of transacting with state-run agencies. It was initially introduced to the large taxpayers duly notified by the BIR.

The BIR decided to include NGAs in the coverage of taxpayers required to avail of the eFPS since they make use of the electronic tax remittance advice system (TRA) in settlement of their withholding tax liabilities arising from the use of funds being released by the Department of Budget and Management.

The scheme of remitting taxes withheld through TRAs started with the issuance of the joint circular signed by the Department of Finance, DBM and the Commission on Audit in lieu of the other modes of withholding tax remittance such as cash remittances, the modified disbursement system checks and authority to debit the account of the agency.

With the TRA system, NGAs need not go to the BIR to secure blank TRA forms and to manually file the tax returns.

The system is expected to enhance transparency and efficiency in revenue collection reporting and reconciliations will be enhanced as all concerned parties can view and record on real time the remittances made by the NGAs.

Aside from the NGAs, other taxpayers earlier mandated to use the system include top 20,000 private corporations, top 5,000 individual taxpayers, those who intend to enter into contract with government offices, corporations with paid-up capital of P10 million, entities registered with the Philippine Economic Zone Authority and those located within special economic zones.

With the eFPS, taxpayers can avail of a paperless tax filing experience and can also pay their taxes online through the convenience of an Internet-banking service via debit facility from their enrolled bank account.

Taxpayers can file and pay taxes anytime and anywhere as long as they are using a computer with an Internet connection.