The tax season kicked off this week, with the BURS urging all eligible taxpayers to file their returns for the year which ended on June 30.
However, poor compliance rates have dogged the individual tax filing period, with just 38,000 returns filed last year, from the 70,000 expected by the tax collector.
“We aim to improve this through enhanced outreach and support, including mobile tax offices and stakeholder engagement programmes,” BURS commissioner general, Jeanette Makgolo told a briefing on Tuesday. “We have procured three mobile trucks which will be used as mobile tax offices – an initiative which will assist us to travel and reach remote areas to assist our customers with fulfilling their obligations. “We plan to extend Wifi connectivity to all inland offices and ports of entry, ensuring taxpayers can access e-services anytime.”
BURS expects to collect about five percent of its total tax target of P70.8 billion for the 2024–2025 financial year, from individual taxes. Individual taxes or personal income tax, are the total earnings of individuals from various earnings whether these are wages or investments.
Taxpayers with a gross income exceeding P480,000 per annum are required to file individual returns. Those with multiple income sources, even if their total income is less than P480,000, must also file. Employers must submit returns for deducted amounts by July 31, 2024, to allow employees to access their tax certificates.
However, the BURS has struggled to increase its compliance rates, as some of those who should file the returns do not get their tax certificates on time from employers. Others attempt to hide certain streams of income such as rental income, while some taxpayers under-represent their earnings from certain activities.
The BURS says taxes are a social contract between the state and citizens, in which everyone should play their part in contributing towards the country’s socio-economic needs.
“This exercise is by no means any form of tool to frustrate anyone but rather important for maintaining high levels of voluntary compliance and citizen’s confidence in the overall tax system,” Makgolo said. “It is merely a means through which every taxpayer proudly declares that they have indeed played their part in financing the socio-economic status of their country.”
The commissioner general also urged eligible taxpayers to use the BURS’ digital platforms such as e-services and the Mtax App, to minimise queues for service at the tax agency’s offices.
