CAGAYAN DE ORO CITY (PIA) – The Bureau of Internal Revenue (BIR) addressed taxpayer concerns and clarified the application of the Ease of Paying Taxes (EOPT) Law during a roadshow held in Cagayan de Oro City on July 15, 2024.
One main point of clarification was the application of reduced penalties for due dates preceding the effectivity of the EOPT law on April 27, 2024.
Juanito H. Balbastre III, OIC Chief of BIR Legal and Legislative Division, clarified that the EOPT law would be effective starting January 22, 2024.
“If the due dates fall even before the effectivity of the regulations, we could give it a retroactive application to January 22, 2024. So meaning, the violation should have been committed after the effectivity of the law on January 22, 2024, for the reduced interest and penalty rates to apply,” he explained.
The forum also addressed local government units (LGUs) concerns regarding withholding tax timelines.
Rosana P. San Vicente, OIC Assistant Commissioner, said the EOPT provisions did not differentiate between government and private entities regarding withholding timeliness.
“So if you don’t have money for the remittance, they have already incurred, they have already accrued from the books, just find a way to remit the corresponding withholding tax so that there is no penalty for late remittance,” she said.
Additionally, LGUs could request the abatement or removal of penalties if fund processing delays were beyond their control.
Regarding late registration, Balbastre clarified that late registration would not qualify for the 50 percent reduced penalties. He emphasized that only specific violations are eligible for reduced rates, such as failure to file an information return, maintain statements or lists, or keep records.
The forum, the second EOPT roadshow in Mindanao, provided much-needed clarity on the new regulations, reassuring taxpayers that the BIR is committed to easing the process and addressing issues that may arise during the EOPT law implementation. (OSG/PIA-10)
