Foreign business groups present invoice for ease of payment of taxes

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SEVERAL groups of foreign companies have called on the Senate to vote on the bill to simplify the process of paying taxes in the country.

In a statement on Wednesday, business organizations said they recently sent a letter to the Senate Ways and Means Committee asking it to deliberate on the Ease of Tax Payment Bill. The House approved the bill at third and final reading on September 15; it was then sent to the Senate the next day.

The measure wants to put in place a simplified tax declaration process to improve compliance with the country’s tax rules and regulations. It also aims to create an office of taxpayers’ attorney, allowing the public to apply for an offsite tax identification number, among other things.

Citing the Joint Foreign Chambers, business groups said enforcement of the law can help the country improve its ease of doing business, which bodes well for its ranking in the Bank’s Doing Business report. world (WB).

Irregularities

HOWEVER, the WB recently announced the cessation of the said survey after finding “irregularities in the data” due to potential manipulation in the 2018 and 2020 surveys.

The latest report from 2020 places the Philippines in 95th place, behind its Asian neighbors, including Indonesia, Vietnam, Thailand, Malaysia and Singapore.

“We are certain that the end being the only country to require an operating room [official receipt] and not accepting the invoice is a positive step. If other higher ranked countries than the Philippines do not need this additional paperwork, then it makes good sense to remove the requirement as soon as possible, ”they said.

Foreign Chambers said the proposal received support from government and private sector representatives during the House hearing, even citing the previous endorsement by Finance Secretary Carlos Dominguez.

“In this unprecedented time of the Covid-19 pandemic, when the circumstances for taxpayers – whether businesses or individuals – are very difficult, the government must be creative and innovative in collecting revenues for our fight against the virus, but at the same time the government must facilitate compliance by taxpayers, ”they added.

The declaration was signed by the American Chamber of Commerce in the Philippines, the Australian New Zealand Chamber of Commerce in the Philippines, the Canadian Chamber of Commerce in the Philippines, the European Chamber of Commerce in the Philippines, the Japanese Chamber of Commerce and Philippine Industry, Philippine Chamber of Commerce and Philippine Association of Multinational Corporations Regional Headquarters Inc.

Image courtesy of Rolly Barayang

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