Tax Digest
Volume 9,
Series 54
Payment of Internal Revenue Taxes Using Philippine-Issued Card

The Bureau of Internal Revenue published its Revenue Regulations (RR) no. 3-2016 last March 23, 2016 with the title of “Prescribing the Policies and Guidelines on the Adoption of Credit/Debit/Prepaid Card Payments as Additional Modes of Payment of Internal Revenue Taxes.” It was released last March 23, 2016.

Because of the mounting number of population, taxpayers grow in number too. In order to cater to this increasing number, RR no. 3-2016 states that Philippine-issued cards such as credit, debit and prepaid may be used by the taxpayer which is under his/her name to pay his/her internal revenue tax (included also here are the surges, penalties, interests and other applicable fees). Its purpose is to somehow make the taxpayers’ lives easier by decreasing the toil they experienced while paying. The date and decreasing the toil they experienced while paying. The date and time of the payment will only then be confirmed through the system-generated payment confirmation receipt. It would be issued by the AAB-Acquirer, a universal or commercial bank authorized by BIR to collect the tax payments and then directly remit it to the Bureau of Treasury.

Since there’s a non-automatic ‘charge-back’, in case the taxpayer made a mistake when it comes to the payment, he/she may apply for a refund or tax credit with the BIR. It is also reminding the taxpayer that the banks or the Bureau wouldn’t shoulder other fees like credit card charges and especially, the Merchant Discount Rate since this is only optional and not mandatory. Regardless of the mode of payment used by the taxpayer, he/she should file his/her tax returns online thru eFPS.

Revenue Regulations No. 3-2016, March 23, 2016
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