President Ferdinand Marcos Jr. signed a bill into law that will make tax administration more efficient while effectively protecting taxpayers' rights, Malacañang said on Sunday.

As one of Marcos's top priorities, Malacañang said the President signed Republic Act No. 11976, or the Ease of Paying Taxes Act last 5 January.

In a statement, the Palace said RA 11976's goal is to make it easier for small and medium-sized businesses to file their taxes and to update and improve the Bureau of Internal Revenue's revenue collection system.

Among the law's key features mentioned that the micro, small, medium and large taxpayers could file their tax returns either electronically or manually.

Malacañang added that the taypayers could make the payments to the BIR, an authorized agent bank, or tax software providers. Taxpayers could also choose to pay their taxes to the city or municipal treasurer.

Documentation and grounds of sales of goods and services are no longer different under the law. Value-added tax refund claims are now divided into three risk levels: low, medium, and high.

The move also includes making registration easier for taxpayers who don't live in the Philippines, promoting and helping people with the tax process, lowering the number of documents needed, and digitizing BIR services.

"It also mandates that in order to improve the performance and efficiency of the BIR, the agency must adopt an integrated digitalization strategy by providing end-to-end solutions for the benefit of taxpayers," Malacañang said.

The Ease of Paying Taxes Act also sets a 180-day process time for claims for refunds of wrongly or illegally collected taxes. It also lowers the fees from ₱100 to ₱50 for providing receipts for every sale and transfer of goods and services.

The BIR is also required by the new law to digitize its services by putting in place an electronic and online data and information system and an integrated and automatic system for basic tax services.

"The law's implementing rules and regulations shall be promulgated 90 days from the effectivity of the Act after the consultation of the Finance Secretary with the BIR, and the private sector," the measure stated.