THE Tax Management Association of the Philippines Inc. (TMAP) said more taxpayers may need assistance in filing their tax returns due to the changes in rates and forms required by the Tax Reform for Acceleration and Inclusion (TRAIN) law.
TMAP President Eleanor L. Roque said assistance centers during tax filing season may see an increase in terms of foot traffic as taxpayers may need help with the new forms of the Bureau of Internal Revenue (BIR).
“We don’t know if there will be a substantial increase in the number of ITR [income tax return] filers. What we are expecting would be an increase in the number of taxpayers that may need assistance because of the new ITR forms issued by the BIR,” Roque told the BusinessMirror via SMS.
“Taxpayers shall be filing based on the TRAIN law for the first time. We expect that there may be some birth pains in adopting to the new rules and new form,” she added.
Last month, the BIR revealed that it once again partnered with the TMAP through a memorandum of agreement (MOA) in line with the establishment of assistance centers to assist taxpayers during tax-filing season.
The BIR said the MOA with TMAP, signed on March 27, sought to provide aid to taxpayers relative to the filing of their 2018 ITRs. BIR Commissioner Caesar R. Dulay and Roque signed the MOA in the presence of BIR and TMAP officials.
The tax assistance centers will be established in the BIR Revenue Regions of Quezon City and Makati City and will be operational on April 12 and 15, 2019, from 8 a.m. to 12 noon and 1 to 5 p.m.
The BIR hopes more taxpayers will file their ITRs this year as the forms were simplified further in line with the implementation of the TRAIN law, and more filing centers can be found among all regional offices of the BIR.
“All regional offices have set up filing centers to help assist taxpayers file their returns online. Hopefully, even more will file because TRAIN law simplified the rates and forms,” said BIR Deputy Commissioner for Legal Affairs Marissa O. Cabreros in a text message to the BusinessMirror.
Under the National Internal Revenue Code of 1997, the filing of the ITR deadline is usually on the 15th of April following the close of the taxable year, which can only be moved to the next working day if the said date falls on a weekend or a holiday.
Taxes paid after the filing deadline will incur penalties such as a 25-percent surcharge, 12-percent interest per annum and compromise penalty, according to the BIR.
For the 2016 annual ITR filing on April 17, 2017, the BIR had opened 120 filing centers in various areas to accommodate more taxpayers filing their ITRs.
Last year, the BIR launched the electronic Tax Software Providers Certification System (eTSPCert) with the United States Agency for International Development in line with the verification of third-party providers of electronic tax solutions.
In a news briefing on Wednesday, the BIR encouraged taxpayers to file and pay their 2018 ITRs on or before April 15 to avoid penalties.
For easier tax filing, the ITR forms are now shortened to two to four pages for both individuals and corporations, and the BIR has also added more modes of payment, said Cabreros, who is also the BIR’s spokesperson.
The TRAIN law was signed by President Duterte in December 2017 and was implemented immediately in January 2018. The law calls for slashing personal income tax rates while implementing offsetting measure to compensate for the revenue loss, including increasing excise taxes on fuel and tobacco, among others.