What You Need to Know About the Ease of Paying Taxes Act

The Ease of Paying Taxes Act (Republic Act No. 11956) was passed to make it easier for people and businesses in the Philippines to file and pay their taxes. In this blog post, we’re going to break down how this new law helps taxpayers and why it matters for you.

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Why Was This Law Made?

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• Make Taxes Easier: The goal of this law is to make the tax process simple and less confusing.

• Accessible to Small Businesses: It’s designed to make things easier for small businesses and freelancers who don’t have big accounting teams.

• Encourage More People to Follow the Rules: When taxes are easier to file, more people are likely to do it the right way.

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Key Features of the Law

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• Simplified Tax Forms: This law makes tax forms easier to fill out for everyone, especially small businesses.

• Online Filing & Payment: You can now file your taxes and pay them online, saving you time from going to the office.

• New Taxpayer Categories: The law now puts taxpayers into different categories, such as individuals, small businesses, and corporations. Each group has different requirements, so it’s clearer what you need to do.

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How This Helps Small Businesses and Freelancers

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• Small Business Benefits: The law reduces paperwork and costs for small businesses, helping them grow.

• Freelancers and Self-Employed: Freelancers and independent workers can now easily file their taxes thanks to simpler forms and online payment options.

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Changes to Deadlines and Penalties

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• New Deadlines: There are updates to when you need to file your taxes, so make sure to keep an eye on those changes.

• Penalties and Rewards: The law also outlines penalties for not paying on time, but there are also incentives for paying early.

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How Technology is Improving Tax Filing

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• Tax Tech: The law focuses a lot on using technology to make tax filing easier and faster for both businesses and individuals.

• Future of Tax Filing: As more things move online, it’s important for everyone to get used to the idea of digital tax payments and filings.

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