- The Bureau of Internal Revenue’s (BIR) plan from 2020 to 2030 aims to make tax filing easier for everyone by embracing digitalization.
- Before, tax filing in the Philippines primarily involved manual and paper-based processes but the BIR began transitioning to digital tax filing in 2015.
- Some government initiatives that can help you digitally register and file tax returns include ORUS, eBIRForms, eFPS, and eAFS.
Did you know that in 2014, Filipino taxpayers spent an average of 197 hours preparing and paying their taxes?
This is why in 2015, the government adopted digital tax filing, leading to a steady decline in tax preparation and payment times each year — 191 hours in 2015, 186 hours in 2016, 182 hours in 2017, 181 hours in 2018, and 171 hours in 2019.
To build on this progress, the BIR designed a 10-year digital roadmap starting in 2020. This initiative includes 49 projects aligned with the Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018), which made tax compliance more convenient and efficient for business owners.
While the traditional tax filing system remains an option for those who prefer its familiarity, embracing digital solutions can save time and resources, allowing you to focus more on achieving growth.
This article will explore the history of tax filing in the Philippines and highlight existing government initiatives for digital tax filing.
Long Queues, Multiple Steps: Philippine Tax Filing in the Past
Historically, tax filing in the Philippines has been a manual and paper-based process. Taxpayers, both individuals and businesses, were required to submit their documents by visiting physical BIR offices.
The manual tax filing process involves multiple steps — from obtaining and filling out forms to submitting them for processing and the long lines and piles of paperwork in between. No doubt this entire process is overwhelming for many taxpayers!
The good news is that from April 2025, taxpayers now have the option to file their taxes electronically via the Electronic BIR Forms (eBIRForms).
With eBIRForms, taxpayers can prepare and file tax returns from their homes or offices, avoiding possible heavy traffic and long lines. Hence, it’s no wonder that BIR achieved a nearly seven-fold increase in tax returns e-filed in just two years.
Manual to Digital Tax Filing
BIR’s transition from manual to digital tax filing is a significant milestone. The rollout of eBIRForms back in 2015 represents a shift toward greater efficiency for the BIR and convenience for taxpayers.
The BIR has also made BIR forms available digitally via the Electronic Filing and Payment System (eFPS), including:
- Income Tax Return
- VAT Form
- Withholding tax forms
- FBT Form
- DST Forms
- Payment form
Despite these strides toward digitalization, traditional tax filing remains an option. After all, the BIR seeks to enhance accessibility not only for a select few but for all taxpayers.
Benefits of Digital Tax Filing
From budgeting tools to mobile and investment apps, technology has transformed the way we manage our finances. This change extends to tax filing, where digital solutions have simplified the once time-consuming process.
According to the World Bank, tax administrations are embracing digital transformation and system automation to ensure proper taxation, tax compliance, and sustainable tax reforms.
But what are the benefits of adopting digital tax filing for business leaders like you? Let’s talk about them!
1. Efficiency
According to PwC, one of the leading professional services networks in the world, BIR’s Digital Transformation (DX) projects have made tax compliance and administration more efficient. With digital tax platforms, you can swiftly process vast amounts of data, perform tax calculations, and check errors or inconsistencies within seconds.
2. Simplicity
Tax filing can be effortless with the user-friendly interfaces and step-by-step guidance on digital platforms. You can just fill out the fields presented until you accomplish everything as you go. This process greatly reduces the hassle and paperwork associated with manual tax preparation and filing.
3. Accessibility
With a data or internet connection, you can file or update your tax returns from anywhere, even in remote areas. This flexibility eliminates the need to visit tax offices or wait in long lines. BIR’s digital tax filing platforms are also accessible around the clock, enabling you to file your taxes at any time that suits your busy schedule.
4. Transparency
Digital tax filing platforms offer a detailed breakdown of calculations and the calculation process itself. This clarity helps you better understand your tax obligations and build trust in the system, especially when there are errors like overlooked deductions or reported income discrepancies.
Government Initiatives to Streamline Tax Processes
The digitalization of tax filing is a highly positive development for individuals and businesses. Initiatives that support this and aim to streamline tax processes have the potential to enhance the ease of doing business in the Philippines.
If you want to start adopting digital tax filing, here are some government initiatives you can keep in mind:
1. Online Registration and Update System (ORUS)
With the Online Registration and Update System (ORUS), you can register and update your information from your homes or offices, avoiding possible heavy traffic and long lines.
2. Electronic Bureau of Internal Revenue Forms (eBIRForms)
Electronic Bureau of Internal Revenue Forms (eBIRForms) covers thirty-six (36) BIR Forms, including Income Tax Returns; Excise Tax Forms; and Withholding Tax Forms. This system was developed to simplify the filing process and improve the accuracy of tax returns for taxpayers like you.
3. Electronic Filing and Payment System (eFPS)
The Electronic Filing and Payment System (eFPS) allows you to process and transmit tax return information, including attachments and payments to the government made through the BIR website. This 24/7 system offers immediate feedback when you are enrolling, e-filing, or performing e-payments.
4. Electronic Audited Financial Statements (eAFS)
Through the Electronic Audited Financial Statements (eAFS), you can digitally submit your filed Income Tax Returns (ITR), Audited Financial Statements (AFS), and other necessary attachments in PDF format.
Under BIR’s 2020-2030 Digital Transformation (DX) Roadmap, several projects can also enhance the overall efficiency of tax-related processes. Some projects that recently went live include Document Tracking and Management System (DMTS), Property Management System (PMS). and Accountable Forms Management System (AFMS).
Tax Preparation Tools Beyond Government Offerings
While the Philippine government’s initiatives to simplify tax processes have eased the burden on taxpayers like you, commercial solutions play an equally important role in achieving an efficient, simple, accessible, and transparent tax preparation.
Here are some tax preparation tools you can use for greater accuracy and confidence in doing your taxes:
JuanTax
Designed specifically for individuals and businesses in the Philippines, this tax compliance tool automates tax calculations and filings. With JuanTax, you can even make digital copies of important documents like previously filed Income Tax Returns and a Certificate of Income Tax Withheld on Compensation. There is also a mobile version of JuanTax, which can be useful if you are always on the go.
Taxumo
Taxumo is an accredited online tax filing tool that helps freelancers, self-employed professionals, small businesses, and corporations in the Philippines. This tool allows you to fill out forms, calculate tax dues, file returns, and pay taxes wherever. Taxumo can also create relevant attachments for tax filing like Quarterly Alphabetical List of Payees (QAP), Summary List of Sales and Purchases (SLSP), and Summary Alphalist of Withholding Tax (SAWT).
Final Thoughts
From manual and paper-based processes before, we now have platforms like ORUS, eBIRForms, eFPS, and eAFS that allow taxpayers to register and accomplish returns anytime and anywhere.
Although these governmental and third-party tax preparation tools are efficient, accessible, convenient, and transparent, navigating them can still be challenging.
If you need help navigating these tools or getting your tax preparation in order, Manila Bookkeepers can help you. Our team assists with timely tax preparation and filing, including VAT (Value Added Tax) and other local taxes.
Are you looking for a company that specializes in helping businesses stay compliant with local standards? Look no further! Learn more about Manila Bookkeepers’ extensive services here!
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