THE ELECTRONIC FILING AND PAYMENT SYSTEM (EFPS) OF THE BUREAU OF INTERNAL REVENUE

The Bureau of Internal Revenue has further expanded the coverage of corporations required to file and pay taxes through the Electronic Filing and Payment System (EFPS) as per Revenue Regulations 10-2007. Revenue Regulations 10-2007 enumerates the following criteria for a corporation to be covered in EFPS:

1. Corporations with paid-up capital stock of Ten Million Pesos (Php.10,000,000) and above;
2. Corporations with complete computerized system;
3. All government bidders pursuant to EO no. 398 as implemented by RR 3-2005.
   

However, non-stock, non-profit corporations are excluded from the coverage of RR 10-2007.

The BIR's Electronic Filing and Payment System (EFPS) is a filing and payment gateway of the BIR which started online on July 1, 2001. It is a system developed and maintained by the BIR where the taxpayer can file through the internet, tax returns including attachments (if any) and accordingly pay the taxes due through Authorized Agent Banks' (AAB) internet banking facility. In this process, the taxpayer's representative will not have to go to the bank or the BIR office to file and pay it's monthly dues as this can be done online. The taxpayer will only have to log-on to the agency's link https://efps.bir.gov.ph/index.html.

Generally, any corporation though not covered by the RR 10-2007 - specifically those non-large taxpayers, may still opt to avail of the Electronic Filing and Payment System. The taxpayer's representative will only have to have their company be enrolled in the BIR's system. The taxpayer will only need to have an Internet connection, Internet Explorer Version 5 or higher, an email account, an a nominated bank account of an Authorized Agent Bank of the BIR.

The introduction of EFPS have lessened the load of compliance on BIR requirements. Through the EFPS, taxpayers will not have to wait on long lines just to have its payments be received as this can be done by simply a click of a mouse. Mispostings on the BIR forms are likewise brought to a minimum since the forms on the EFPS system are electronic and will compute for itself the tax due on the filed return. Having the option of validation, the forms will be counter-checked by the system itself. Taxpayers will not be stressed with on beating the clearing time of banks as transactions done before 10PM can still be considered as payment for such day.

However, we have just recently experienced the downside of an online system. Last April 15, 2008, the deadline for filing Annual Income taxes, the EFPS system of the BIR bogged down causing confusion and chaos to its users. This, I think, should be primarily be considered by the government. Since it now uses the advantages of the internet to aide in its regulatory and licensing functions, it should also invest whatever is needed for an internet system to work flawlessly.

IS INCOME FROM BLOGGING TAXABLE?

Is income from blogging taxable? My answer is Yes. Though there have been no concrete BIR regulation to address this question or at least I may have not found one, the basis of my opinion is Chapter 3, Section 23 of the National Internal Revenue Code which states that "A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines". Therefore, it means that all revenue sources of income by a Filipino currently residing in the Philippines shall be subject to tax.

Though income from such endeavor is not subjected to withholding taxes, this shall still be within the bounds of Philippine taxation. This will then be the responsibility of the income earner or of the blogger in this case, to report to the government his earnings from abroad. And since there exists no employee-employer relationship between the publisher (blogger) and the advertising middlemen, this may be reckoned to as income from business and therefore, as just like the thousands of blogging enthusiasts in the country who also has a full-time job, will now be treated as mixed income earner.

As a mixed income earner, first and foremost, the taxpayer will now be required to register at their respective BIR District Offices as such. With it goes the responsibility to pay for the registration fee of Php.500 and may further be subjected to VAT if the annual income from blogging goes beyond Php.1,500,000 annually. It will however be a zero-rated VAT since the business is a sale to customers outside of the country. Further, the taxpayer will now be required to keep books of accounts or accounting records. There will also be additional reportorial requirement as a mixed income earner, which is the quarterly income tax and even monthly VAT reports if income is reaches the VATABLE SALE threshold.