BIR sees rise in online AITR filings this year

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is seeing the impact of its digital transformation efforts, with more Filipinos opting to file and pay their annual income tax returns (AITRs) online this tax season.

BIR Commissioner Romeo Lumagui observed a noticeable decrease in foot traffic at district offices and filing centers during the AITR deadline yesterday.

During his visit to BIR-Revenue Region 6 in Manila, Lumagui said he observed that the lines were shorter compared to last year, an indication that the agency’s electronic filing and payment system is effective.

“And that’s what we actually want to see, that there are fewer people in our district offices and filing centers,” he added.

According to the BIR, nearly all tax returns were submitted electronically, with the exception of micro and small business enterprises. These businesses were required to use updated forms in compliance with the Ease of Paying Taxes Law.

Nevertheless, this year’s performance marks an improvement over last year’s 91-percent rate of online filings.

As of yesterday morning, the agency was still anticipating about 1.4 million more taxpayers to file, approximately nine percent of the 15.6 million expected returns for the season.

“We are confident that the remaining taxpayers will comply, considering that we had a successful tax campaign this year,” Lumagui said.

Late filings and payments will incur penalties, including a 12-percent interest charge, a 25-percent surcharge and additional compromise penalties.

Under Philippine tax rules, individuals with taxable income are generally required to file income tax returns. However, exemptions apply to those earning P250,000 or less annually, employees covered by substituted filing, individuals whose income is subjected to final withholding tax and minimum wage earners.

With the April filing period underway, the BIR estimates total collections to reach around P431.95 billion. Of this amount, nearly half or approximately P207.63 billion is expected to come from net income and profit taxes. The rest will be sourced from value-added taxes, excise taxes, percentage taxes and other revenue streams.

The P432-billion goal for April reflects a 14-percent increase from the P379 billion collected during the same period last year.