Filing and paying taxes can be a complex process for businesses, especially for those classified as large taxpayers. The Bureau of Internal Revenue’s (BIR) Electronic Filing and Payment System (eFPS) was developed to simplify and modernize this process, ensuring more efficient tax compliance. For large taxpayers, the use of eFPS is not just optional—it’s a legal requirement.
Read more to learn what eFPS is, who must use it, and the step-by-step process for filing taxes through the system.
What Is BIR eFPS?
The eFPS is the BIR’s online platform that allows taxpayers to file returns, pay taxes, and access their tax records electronically. It eliminates the need for manual filing at BIR offices, reducing paperwork and processing time.
Through eFPS, taxpayers can:
- File tax returns online for different tax types (VAT, income tax, withholding tax, etc.).
- Pay taxes via accredited online banking channels linked to the BIR.
- Access filed returns and payment history for reference.
For large taxpayers, eFPS offers not only convenience but also a way to ensure timely compliance with strict filing schedules.
Legal Basis for Mandatory eFPS Filing
The requirement for certain taxpayers to use eFPS is backed by Philippine tax laws and BIR regulations:
- Section 244 of the National Internal Revenue Code (NIRC) of 1997 grants the BIR authority to prescribe electronic filing and payment rules.
- Republic Act No. 8792 (Electronic Commerce Act of 2000) recognizes the validity of electronic documents and transactions, paving the way for systems like eFPS.
- Revenue Regulations (RR) No. 9-2001 introduced the eFPS and outlined its initial procedures.
- RR No. 2-2002 made eFPS filing mandatory for large taxpayers, marking a key regulatory milestone.
Since then, additional revenue regulations have expanded mandatory eFPS coverage, but large taxpayers remain one of the primary groups required to use it.
Who is Legally Required to use eFPS
Under current BIR regulations, eFPS is mandatory for large taxpayers and other entities that meet specific criteria. These include:
- Large taxpayers that meet the BIR’s gross sale benchmarks.
- Belongs to certain industries with significant tax impact (e.g., banks, insurance companies, utilities).
- Enterprises enjoying fiscal incentives (e.g., under PEZA, BOI)
- Bidders in government procurement projects or suppliers of government agencies and instrumentalities.
Taxpayers not covered by the categories above are required to use eBIRForms instead. This includes self-employed individuals, professionals, small and medium-sized businesses, and non-large taxpayers not mandated to use eFPS.
Step-by-Step Guide to Filing Taxes via eFPS
- Enroll in eFPS
- Visit the BIR eFPS website and complete the enrollment form.
- Submit the required documents to the BIR’s Large Taxpayers Service or Revenue District Office (RDO) to finish registration.
- Log In to the eFPS Portal
- Access the portal using your registered username and password.
- Select the Tax Return Form
- Choose the appropriate BIR form for the tax you are filing (e.g., VAT, income tax, withholding tax).
- Fill Out the Tax Form Online
- Input accurate details for taxable amounts, deductions, and other required fields.
- Submit the Tax Return
- Review all entries before finalizing. Once submitted, a confirmation message will appear.
- Proceed to Payment
- Choose your accredited online bank from the eFPS list.
- Complete the payment transaction on the same day to avoid penalties.
- Save Your Filing Records
- Download and store the confirmation receipts for both filing and payment.
To avoid complications with the BIR, ensure your forms and supporting documents are complete, accurate, and compliant. Consult Triple i Consulting if you have any concerns or need professional assistance filing your BIR forms.
Deadlines Large Taxpayers Must Remember
Large taxpayers must strictly follow the BIR’s statutory deadlines for tax filings. Missing these dates results in surcharges, interest, and compromise penalties. Refer to the BIR Tax Schedule to stay ahead of deadlines.
Key Takeaways for Large Taxpayers Using eFPS
Here’s a summary of what you should remember:
- eFPS is mandatory for all taxpayers classified as large taxpayers and other taxpayer groups as designated by the BIR
- The system streamlines tax compliance, but you must still be accurate and meet deadlines to stay compliant.
- Enrollment and setup should be done early to avoid last-minute technical issues.
- Always verify deadlines and ensure payments are processed through accredited banks.
- Keep digital and printed copies of all confirmation receipts for record-keeping and audit purposes.
Do You Need Assistance Filing and Submitting Your BIR Forms?
Filing BIR forms can be challenging, especially with strict documentation requirements and tight deadlines. Missing information, incomplete attachments, or late submissions may result in penalties, disallowed claims, or even a higher risk of audit.
That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your business registration, so you don’t have to stress over the paperwork.
Contact us today to schedule an initial consultation with one of our experts:
- Fill out the form below
- Call us at: +63 (02) 8540-9623
- Send an email to: info@tripleiconsulting.com
