Saturday, 16 August 2014

How the Bureau of Internal Revenue Promotes Efficient Collection of Taxes

Source: http://knowyourtaxes.ph/

Last Aug. 1st, the Bureau of Internal Revenue (BIR) which is responsible of collecting taxes to every employed Filipino celebrated their 110th founding anniversary. I tell you I have nothing against them but it is not easy to let go of a part of our hard - earned money. When I used to work in the corporate world for 8 years, I never cared about how much is deducted to me because I have a fixed salary of work. So long as I report 8 hours for 5 days in a week, I am good. 

When I became a freelance entrepreneur who only get paid after a project has been done or a sale has been closed, I feel I need to take a look about how taxation works in the Philippines. I became conscious of where my money is spent every from a single peso because I have bills and rents to pay here in Manila. I also met a lot of business owners and startup founders who are struggling to put up a legally - compliant business from registering the name, to filing and paying the taxes.

I did a basic online research and in fairness to everyone, I found 3 very promising public awareness campaigns needed for a fair process of collecting taxes. I think what we need is the strong implementation of these to the public. Let me tell you one by one:

1. Register, File and Pay System

There's so much visibility of the RFP program. I see the ads of this everywhere. I even have a bit of lss (last song syndrome) of its music jingle because it is always played in the flat screen located in the lobby of the condo where I live. Whenever I pass to reach the 24th floor, I always hear this. 

The step by step procedures in business registration and the list of documents necessary to register a business can be found here.

To know more about Register, File and Pay System, you may click here.

2. Premyo sa Resibo contest

This is to encourage customers/business owners to demand sales invoices and official receipts. This was launched as early as 1999 and still ongoing.

To know more about the mechanics of Premyo sa Resibo, you may click here.

3.  Electronic Filing and Payment System (eFPS)

The eFPS is an innovative way of paying taxes by doing it online.  This is very much a good news to freelancers who are now able to avoid the hassles of voluntarily paying taxes on time.

To know more about the details of eFPS, you may click here.

We have to keep in mind that unable to pay due tax in the Philippines is illegal, meaning the business may be closed and the owner will be asked to pay a fine. If you don't know of the process,  this is never a good excuse to be considered. As early as 2008, BIR has been conducting programs that conduct nationwide closure of erring business establishments like the Oplan Kandado.

The official BIR website has also an eComplaint facility where complaints for erring BIR employees and taxpayers can be reported.

The Aquino administration has been very strong  in its advocacy to file tax evasion cases against individuals and business establishments. There are a lot of new payment gateways added as well to provide convenience to everyone paying the tax but has little time to do it.

To know more about BIR Programs and Services, visit www.bir.gov.ph. To get daily tax updates, visit the BIR Fan Pages http://ow.ly/zUjMm.

31 comments:

  1. Great post ! Any help in regards to taxes is always welcomed ! As they say, you can not avoid death or taxes....

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  2. I've heard enough of RFP and it's really easy to refer to their website. The contest program is as well an efficient way of promoting payment of taxes.

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  3. The dreaded taxes right? Good for people to know the hows and wheres thought - so nice of you to post this.

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  4. The BIR has really had a better collection effort. I just hope there would be less leakages of funds.

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  5. Thanks for this important summary of sites about tax payment in the Philippines. Will be referring back to this for more study.

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  6. I didnt know the Premyo sa Resibo is still on, I have tons of receipts I can submit! ;)

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  7. This is a helpful post! As a typical employee, I care less on how much goes to the tax part whenever I receive my payslip, i guess it's time for me to be aware of it too. thanks for sharing!

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  8. Informative & helpful post.xxx Tax payment through this easy. great

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  9. Taxes are rough on us Freelancers :-( Thanks for opening our eyes with this information

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  10. Unlike before, the filing seemed a year to finish in front of so many filers and employees. But, at present, very easy and less effort. the RFP should be pushed through to the people.

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  11. Very informative post! thank you for this, Maria! :) I learned something today. :)

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  12. That is really informative. Thank you for sharing your knowledge with us :)

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  13. Never knew what an RFP or an eFPS was. Thanks for this great article. Loads of information.

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  14. More Filipinos are into this RFP and very inspiring to know that they're doing their share.

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  15. Thinking about and doing my taxes makes me cringe a little, LOL. It is nice to read posts like this that help the lay person figure things out for themselves..

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  16. Good to hear about programs like these are in place. If everything is online, it will be much easier. They should also focus on improving the process on giving back refunds. In my 14 years of working in the Philippines, I was due for a refund at least 3 times and never received them!

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  17. It's crucial to register and file up your taxes. It's a great sharing and informative for people who wanted to file up their tax in this hour..

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  18. The current program being implemented tend to really make things more easier to accomplish. Such program must be promoted more for Filipino taxpayers to know.

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  19. According to Robert Kiyosaki, taxes are kinder on business owners than employees. Business owners get to declare their expenses hence reducing the amount having to be paid. They can also claim on business property and vehicles.

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  20. I saw their ad on TV. By far, the most creative way of informing and engaging people to pay their taxes.

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  21. I actually was pleasantly surprised when they released their ad on TV. I like how every infographic was actually clear and helpful.

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  22. I didn't know that the premyo sa resibo is still going on.. and the efps really brings convenience to the taxpayers!

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  23. This is a nice post. Thank you for sharing some insights on the topic. This is a great help.

    xoxo
    MrsMartinez

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  24. this is good news! i've never looked into these new systems in depth but i'm impressed that it lets you pay your taxes online. that is such a breather for self-employed people!

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  25. Hmmm... Not very clear about the systems in Philippines, just hope no corruption takes place as it harms both the government and citizens! Not to forget the country's economy!

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  26. YAY!!! Any movement on improvement from our government should be celebrated so they will keep on pushing for it!

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  27. Still not aware of this things but thanks for this info. Soon I'll know more about these taxes.

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  28. Very insightful on a topic many would like to avoid... Hahaha! I think taxes serve an important purpose and it's good to understand what the bureau really does.

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  29. Never heard of the third (eFPS) though. But I admire the first (RFP) and second (Premyo sa Resibo) ways more. Considering that TAX is actually a lifeblood of a state's government at all.

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  30. Wonderful to hear about this. Where they actually go is another matter though. Hehe.

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  31. This is very informative and helpful. The bureau is really improving and making it easier for the employees.

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