PHI Tax Regs on Ease of Paying Taxes


On Apr. 11, PHI Tax issued set of revenue regs to implement revisions.


  • PHI Tax issued suite of revenue regulations outlined below, implementing amendments by the Republic act no. 11976, otherwise known as the Ease of paying taxes act.
  • Follows PHI Tax Feb. 2024 proposed regs about classifying taxpayers, see #202186.
  • Revenue Regulations No. 3-2024
  • These implement amendments introduced by the act, on the relevant provisions below.
  • Specifically, relevant provisions of title IV - value-added tax (referred to as VAT) and title v - percentage tax of the National internal revenue code of 1997, as amended.
  • Amendments to define terms; specific amendments to sale or exchange of service; specific amendments to VAT-exempt transactions; specific amendments to tax credits.
  • Specific amendments to claims for refund/tax credit certificate of input tax; transitory.
  • Revenue Regulations No. 4-2024
  • These implement prescribed sections of code, as amended by act; relates to filing of tax returns, payment of taxes, other matters affecting declaration of taxable income.
  • Includes section on removal of civil penalty in case of filing of return at wrong venue.
  • Various other sections, including regarding withholding of tax at source; boilerplate.
  • Revenue Regulations No. 5-2024
  • These implement prescribed sections of code, as amended by the act, re tax refunds.
  • Includes section on risk-based approach to verification of VAT refund claims.
  • In addition, section on judicial claim for credit/refund under section 229 of the code.
  • Contains various other sections, including boilerplate such as separability clause.
  • Revenue Regulations No. 6-2024
  • These implement section 45 of act on imposition of of reduced interest and penalty rates for micro and small taxpayers; includes section on imposition of civil penalties.
  • In addition, imposition of interest; imposition of penalty for failure to file certain information returns; compromise penalty; boilerplate sections such as separability.
  • Revenue Regulations No. 7-2024
  • These implement prescribed sections of the code, as amended by the act, on the registration procedures and invoicing requirements; contains section on definitions.
  • Section on invoicing and account requirements for VAT registered persons.
  • In addition, section on preservation of books of accounts, other accounting records; registration requirements; issuance of invoices; printing of invoices; and boilerplate.
  • Revenue Regulations No. 8-2024
  • These implement section 21(b) of code, as amended by the act, see #202186.
  • Includes section on coverage and classification of taxpayers; initial classification; notification on classification/reclassification; boilerplate, i.e. transitory provisions.
  • Effectiveness
  • Each set of revenue regs above shall take effect 15 days after respective publication in Official Gazette or PHI Tax website, whichever first; therefore, effective Apr. 25, 2024.
  • May 2024 Clarification
  • On May 14, 2024, PHI Tax issued clarification on section 6 of regulations no. 4-2024 (see above) on the repeal of section 34 (K) of National internal revenue code of 1997.
  • On all ongoing audit covering taxable period prior to Jan. 1, 2024, expenses subject to withholding tax shall be allowed as deductions from gross income by PHI Tax officers.
  • But this is only if the corresponding tax required to be withheld have been paid, whether prior to audit or submission of the audit report to the Reviewing Office (RO).
  • If a taxpayer failed to withhold the tax required to be withheld on expenses subject to withholding tax and the taxpayer did not pay the same prior to submission of the audit report to the RO, the RO has to recommend for the issuance of an assessment notice.
  • Further, for the taxable year covering Jan. 1, 2024 onwards, expenses/income payments subject to withholding tax shall be allowed as deductions from gross income.
  • This is for purposes of computing taxable income even if no tax was withheld.
  • PHI Tax also reported on briefing for its managers on the Ease of paying taxes act.
  • In May 2024, PHI Tax announced availability of classification inquiry, see #212517.
  • Jun. 13, 2024 Transitory Provisions Amended
  • On Jun. 13, 2024, PHI Tax issued revenue regulations no. 11-2024; makes textual amendments to 7-2024 above re deadlines for compliance with invoicing requirements.
  • The amendments are effective on publication on PHI Tax website, on Jun. 13, 2024.
  • Jun. 13, 2024 Additional Clarifications
  • On Jun. 13, 2024, PHI Tax clarified regarding Republic act no. 11976, otherwise known as Ease of paying taxes act, and about output VAT credit on uncollected receivables.
  • Includes clarification on rationale for amendments; meaning of the phrase after the lapse of the agreed upon period to pay; who can claim/deduct output VAT credit on uncollected receivables; various related aspects; circular takes effect Jun. 13, 2024.
  • Jun. 14, 2024 Compliance with Transitory Provisions
  • On Jun. 14, 2024, PHI Tax issued circular re implementation of transitory provisions in revenue regulations 7-2024, as amended by 11-2024 on Jun. 13, as detailed above.
  • Advised taxpayers can convert any unused official receipts, billing statements, statements of account or statements of charges into invoices or billing invoices.
  • They are required to submit an inventory report re such conversions by Jul. 31, 2024.
  • Notice on the renaming of official receipts is to be completed within 30 days from completion of reconfiguration/enhancement, or on Dec. 31, 2024, whichever is first.
  • Circular also sets out the procedure for submission of reports, options re submission.
  • Jun. 20, 2024 Submission Update
  • On Jun. 20, 2024, PHI Tax said it will allow the use of the remaining official receipts until they are fully consumed, instead of only until Dec. 31, 2024.
  • Further, the submission of inventory reports and/or notice required in compliance with the transitory provisions of revenue reg no. 7-2024 can now be done through email.
  • In Jun. 2024, PHI Tax issued guidelines, policies for VAT refund claims, see #216547
  • In Jun. 2024, PHI Tax clarified deadline for filing and payment of DST, see #216549.
  • Jun. 21, 2024 Transitory Provisions Summarized
  • On Jun. 21, 2024, PHI Tax issued a summary of revenue regulation 11-2024 above.
  • Advised taxpayers can convert any unused official receipts, billing statements, statements of account/charges into invoices or billing invoices until fully consumed.
  • They are required to submit an inventory report re such conversions by Jul. 31, 2024.
  • Notice on the renaming of official receipts is to be completed within 30 days from completion of reconfiguration/enhancement, or on Dec. 31, 2024, whichever is first.
  • PHI Tax commissioner commented the aim is to aid compliance with law, by removing the deadlines on the conversion and use of official receipts as well as extending the deadlines on the implementation of the new invoicing provisions under the EOPT act.
  • Jul. 2024 Invoicing Requirements
  • On Jul. 11, 2024, PHI Tax issued clarification on invoicing requirements for businesses as provided for in revenue regulations 7-2024 above; provides a series of Q&As.
  • VAT-registered persons are required to issue VAT Invoices for all transactions; non-VAT registered persons must issue invoices for transactions over PHP 500 or upon request.
  • Mandates unified invoice for goods, services, replacing previous separate requirement.
  • Transition guidelines allow use of remaining official receipts as invoices under specific conditions; revision in invoicing practices, systems are detailed to ensure compliance.

Regulators PHI Tax
Entity Types Auditor; Corp
Reference Memo Cir 77-2024, 7/11/2024; PR 6/21/2024; PR 38/2024, 6/20/2024; Memo Cir RMC No. 66-2024, 6/14/2024; Memo Cir RMC No. 65-2024, 6/13/2024; Reg RR 11-2024, 6/13/2024; PR, Memo Cir RMC No. 60-2024, 5/14/2024; Reg RR 3-2024, RR 4-2024, RR 5-2024, RR 6-2024, RR 7-2024, RR 8-2024, 4/12/2024
Functions Accounting; Complaints; Compliance; Financial; Legal; Record Retention; Registration/Licensing; Reporting; Tax; Treasury
Countries Philippines
Category
State
Products Corporate; Equity
Regions AP
Rule Type Final
Rule Date 4/11/2024
Effective Date 7/31/2024
Rule Id 208348
Linked to Rule :202186
Reg. Last Update 7/11/2024
Report Section International

Last substantive update on 07/15/2024