In his first State of the Nation Address , President Ferdinand “Bongbong” Marcos Jr. identified his administration’s priorities in tax reforms, including the enactment into law of the Real Property Valuation Reform Bill and the Passive Income and Financial Intermediary Taxation Act . The President likewise declared his support for the imposition of value-added tax on digital service providers and simplified tax compliance procedures to promote ease of paying taxes.
PIFITA, which was conceived as the package 4 of the previous administration’s tax reform bill, sought to reform the taxation of capital income and financial services by redesigning the financial sector taxation into simpler, fairer, more efficient and a revenue neutral tax system.
For ease of compliance to tax rules and regulations, simplified tax returns and processes shall be implemented for taxpayers not classified as medium or large. This is in recognition of the varying ability of taxpayers to settle their tax obligations.