Tax Compliance, BIR CAS, and the Right Solution Partner for Your Business
July 04, 2024 | Blog
When it comes to business in the Philippines, tax compliance remains one of the most exhausting yet crucial responsibilities. Adhering to tax regulations helps protect your business from losses, penalties, and tax cases that could even lead to closure. Still, many businesses, especially micro, small, and medium enterprises, find it challenging to keep up with the country’s evolving tax collection rules.
Given the historical challenges in Philippine tax collection, the government recently passed the Ease of Paying Taxes (EOPT) Law Philippines to simplify the tax system and encourage digital transition. IT Group, Inc. (ITG) and Oracle NetSuite — leaders in cloud ERP Philippines and tax software solutions — support this digital transformation journey in the Philippine tax compliance landscape. But what exactly is the EOPT Law?
What is the Ease of Paying Taxes (EOPT) Law Philippines?
The EOPT Law (RA 11976) is the government’s latest regulatory framework focused on modernizing Philippine tax administration and protecting taxpayer rights. This law aims to make tax filing easier, digital, and more taxpayer-friendly — an essential change for businesses operating under the Philippine tax digital transformation movement.
Key highlights of the EOPT Law include:
Taxpayers can now file their Income Tax Return (ITR) at any Bureau of Internal Revenue (BIR) office.
The tax filing process is simplified while strengthening taxpayer rights EOPT Law provisions.
Taxpayer classification now clearly categorizes businesses as micro, small, medium, or large based on gross sales for better tax regulation.
Tax returns and payments can be filed electronically or manually through authorized agent banks, authorized software providers, and revenue collection officers.
The option to pay taxes through city or municipal treasurers was removed to promote electronic payment channels.
The law encourages the adoption of computerized accounting system requirements under the mandated BIR Computerized Accounting System (BIR CAS) provisions.
President Ferdinand R. Marcos, Jr. emphasized in his State of the Nation Address that this law marks a crucial step towards a more dynamic and efficient tax administration, which supports business recovery and growth.
How BIR CAS Supports Businesses in Tax Compliance
The BIR Computerized Accounting System (CAS) is a core part of the EOPT Law implementation, aimed at moving businesses from manual to digital tax reporting and ensuring compliance with BIR electronic submission standards. BIR CAS enables businesses to adapt to a computerized accounting and e-invoicing Philippines system mandated by the Bureau of Internal Revenue.
With BIR CAS, enterprises can:
Streamline tax filing and payment processes to maximize time and reduce human errors that cause penalties.
Utilize cloud-based e-invoicing to automate daily sales data transmission.
Participate actively in the ongoing digital transformation tax compliance initiatives led by the Philippine government.
The introduction of BIR CAS has already started a new phase of tax modernization, encouraging businesses to invest in tax software Philippines solutions for better compliance.
Partnering with the Right Tax Solution Provider
Transitioning your company to comply with the EOPT Law and BIR CAS requires a trusted tax solution provider Philippines with deep expertise. IT Group, Inc. (ITG), together with Oracle NetSuite — the #1 Cloud ERP Philippines provider — offers an integrated, scalable solution for businesses looking to achieve tax compliance efficiently.
This partnership provides:
A BIR CAS accredited accounting software capable of issuing e-receipts, e-invoices, and transmitting sales data to BIR in real-time.
Support for digital signature tax compliance, multilingual and multicurrency features for international expansions, and adherence to BIR policies on document storage and tax calculations.
Oracle NetSuite’s Invoice Management feature automates supplier invoice processing through a three-way match system involving purchase orders, receipts, and bills.
A tailor-made sales data transmission system (SDTS) designed per the BIR API development guide, available in cloud and on-premise deployment options.
Technical assistance from IT Group’s expert team, including consultations with BIR representatives to guide you through the BIR CAS application process.
This comprehensive support ensures your business is always ready to meet the demands of tax filing automation Philippines, reduce risks, and thrive under the new tax administration system.
Become EOPT and BIR CAS Ready — The Future of Philippine Tax Compliance
Adopting the Ease of Paying Taxes Act and complying with the BIR Computerized Accounting System will propel your business into the next era of Philippine tax compliance. Leveraging innovative cloud ERP Philippines solutions like Oracle NetSuite and expert partners like IT Group, Inc. guarantees that you navigate this transition smoothly and successfully.