BIR eyes 98% fully-electronic filing of taxes in 2022

The Bureau of Internal Revenues is eyeing a 98% fully-electronic filing of taxes in 2022, BIR Commissioner Lila Guillermo said Wednesday.

Guillermo disclosed this during the first Senate finance committee hearing on the proposed 2023 budget after Senate Majority Leader Joel Villanueva inquired about the funding of the digitalization of government transactions.

So far, Finance Secretary Benjamin Diokno said 84% of BIR's collection is through e-payment.

Guillermo said the bureau's ultimate objective is to make it to 100% fully-electronic tax filing.

"Our objective is to make that a 100%, all taxpayers electronically filing and paying and we are mandating our large taxpayers as well as our medium taxpayers to do electronic filing and payment with us," she said.

Asked about the timeline to achieve the 100% e-payment system, Guillermo said: "For this year I think we are going to 98% percent na yan."

Under the 2023 budget proposed by the Executive Department, Budget Secretary Amenah Pangandaman said they allotted P12.47 billion for the ICT and digitalization program of all national government agencies.

This includes the budget for digital payments of government financial transactions.

The allocation for the digitalization program is also in line with former President Rodrigo Duterte's Executive Order No. 170 which provides for the adoption of digital payments for disbursement and collections, Pangandaman added.

"Even yung sa DOF like the BIR and BOC kasama ang P3.56 billion for their digital transformation program," the Budget secretary stated.

Guillermo pointed out  the need to fund their digitalization efforts as this is in line with the proposed law seeking to impose taxes on digital services and transactions.

"Insofar as infrastructure is concerned, we thank the budget that they are giving us for the upgrade of our infrastructure and especially so that we are after online sellers, online services in the Philippines and the foreign-based ones will come later after the bill is turned into law," she said.

Earlier, Guillermo said the reason why she accepted the position as BIR chief is to "change the image" of the bureau through digitalization. —LBG, GMA Mews