February 10, 2020
Please note that the Board of Inland Revenue (BIR) has announced that effective
February 1 2020, all PAYE and VAT returns will be required to be completed online via the Inland Revenue Department’s (IRD’s) electronic tax service (e-tax).
The online filing service will initially be available to all taxpayers and service providers via a non-logged in service, which allows access to taxpayer’s tax information for returns to be prepared--- without the need for a TT connect ID.
This non-logged in service is meant to be a temporary measure employed for the remainder of this year, aimed at facilitating the easy transition of all taxpayers to online return preparation.
The intention of the BIR is to fully transition to the logged-in services from 2021 and as such all taxpayers will be required to possess a TT connect ID and be registered for e-tax by then.
We therefore urge you to use this opportunity to have your company obtain TT connect registration for e-tax purposes.
We will provide further details on the TT connect registration process under separate cover in the upcoming months.
What do you need for non-logged in services?
In the interim, be advised that the following credentials are necessary to obtain access to the non-logged in service:
How do I prepare returns using non-logged in services?
The return can be drafted and saved on the e-tax system without submission. On exiting the draft a unique access code is produced by the system along with the initial preparer’s email address. For subsequent access to the return, you will be required to use this code;
Once the return is completed and submitted, a declaration form will be generated. This form must be printed, signed by an authorised officer of the company and submitted to the BIR with the original signature in order to be deemed as filed and processed;
Declaration forms not submitted by the statutory deadlines, mentioned below, will incur their respective penalties:
— VAT: 25th of the month following the VAT period
— PAYE: 15th of the month following the month in which the deduction was made
— Where the statutory deadline falls on a weekend or holiday the return is due on the next working day.
Note that the process for payment of tax liabilities remains unchanged.
What will change with KPMG’s filing procedures?
In consideration of the above developments, please note the following changes to our filing procedures:
Original returns are no longer required to be sent via FedEx/courier for signature;
What else do you need to know?
Where we are not engaged for return preparation and you wish to become acquainted with the e-tax platform to prepare yourself, we would be pleased to host a personal online demonstration on request.
In the alternative, you can indicate whether you wish that we render our services for the online return preparation for your company as our Tax Team has already been trained by the BIR with respect to the e-tax platform. In this regard you may contact our Tax Director, Ms Gillian Wolffe-O’Neil at 1-868-612-5764 ext. 2512 or Ms Hamattee Guptar, Tax Manager, at ext. 2718.
We welcome the increased efficiency by the BIR to shift to online VAT and PAYE return filings and look forward to working with you to make this a seamless process.
Should you require clarification or wish to discuss this matter further please do not hesitate to contact us.
See below some useful resources regarding the e-tax service:
Official announcement of online return filing from the Ministry of Finance:
Link to the e-tax platform:
KPMG Tax Team