Elijah Felice Rosales – The Philippine Star
June 12, 2022 | 12:00am
South Korea is extending a $55 million loan to the Philippines to build on the electronic invoicing system of the Bureau of Internal Revenue (BIR).
The Export Import Bank of Korea (Korea Eximbank) is providing the funding through the Economic Development Cooperation Fund to improve the reach of the BIR’s e-invoicing system.
Korean Embassy Third Secretary Lee Gahye told The STAR that the loan has an interest rate of up to 1.5 percent per annum, payable in 10 years.
The BIR is enhancing its e-invoicing to cover at least one million business taxpayers, including 3,000 large-scale firms, in the system’s registry. Starting July, the tax agency will begin transitioning to the digital issuance of invoices and receipts as mandated under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
The law, signed in 2017, requires the shift to e-invoices and e-receipts within five years from the effectivity of the measure. Large-scale firms listed with the Large Taxpayers Service, as well as enterprises engaged in the e-commerce and export trade, are first to adopt the e-invoicing system.
Through the loan, the Korean Embassy hopes that the BIR can enhance tax administration and collection by simplifying invoicing especially for micro, small and medium enterprises (MSMEs).
“The system will help the BIR improve tax administration leading to better revenue collection, as well as assist Filipino businesses, particularly MSMEs, in streamlining business processes and maximizing usability of sales information,” the Korean Embassy said.
The Korean Embassy added the financing would boost the BIR’s capability in delivering on its goal to cover in the e-invoicing system at least 100 corporations including P&G Philippines Inc., Pilipinas Shell Petroleum Corp., San Miguel Corp., SC Johnson Philippines and SM Retail Inc.
Source: https://www.philstar.com/business/2022/06/12/2187704/south-korea-lends-55-million-bir-e-invoicing