Revenue Memorandum Circular No. 3-2024

This circularizes Republic Act (RA) No. 11976 (Ease of Paying Taxes [EOPT] Act), together with the Veto Message both signed by President Ferdinand R. Marcos Jr. on January 5, 2024.

The following Sections of the National Internal Revenue Code (NIRC) were amended under the EOPT Act:

• Section 21. Sources of Revenue and Classification of Taxpayers
• Section 22. Definitions
• Section 51. Individual Returns
• Section 56. Payment and Assessment on Income Tax for Individuals and Corporations
• Section 57. Withholding Tax at Source
• Section 58. Returns and Payment of Taxes Withheld at Source
• Section 76. Final Adjustment Return
• Section 77. Place and Time of Filing and Payment of Quarterly Corporate Income Tax
• Section 81. Filing of Return and Payment of Taxes Withheld
• Section 90. Estate Tax Returns
• Section 91. Payment of Tax
• Section 103. Filing of Return and Payment of Tax
• Section 106. Value-Added Tax on Sale of Goods or Properties
• Section 108. Value Added-Tax on Sale of Services and Use or Lease of Properties
• Section 109. Exempt Transactions
• Section 110. Tax Credit
• Section 112. Refund of Input Tax
• Section 113. Invoicing and Accounting Requirements for VAT-registered Persons
• Section 114. Return and Payment of Value-Added Tax
• Section 115. Power of the Commissioner to Suspend the Business Operations of a Taxpayer
• Section 116. Tax on Persons Exempt from Value-Added Tax
• Section 117. Percentage Tax on Domestic Carriers and Keepers of Garages
• Section 118. Percentage Tax on International Carriers
• Section 119. Tax on Franchises
• Section 120. Tax on Overseas Dispatch, Message of Conversation Originating from the Philippines
• Section 128. Returns and Payment of Percentage
• Section 200. Payments of Documentary Stamp Tax
• Section 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes
• Section 229. Recovery of Tax Erroneously or Illegally Collected
• Section 235. Preservation of Books of Accounts and Other Accounting Records
• Section 236. Registration Requirements
• Section 237. Issuance of Sales or Commercial Invoices
• Section 238. Printing of Sales or Commercial Invoices
• Section 241. Exhibition of Certificate of Payment at Place of Business
• Section 242. Continuation of Business of Deceased Person
• Section 243. Removal of Business to Other Location
• Section 245. Specific Provision to be Contained in Rules and Regulations
• Section 248. Civil Penalties
• Section 269. Violations Committed by Government Enforcement Officers Section 34(K) of the NIRC of 1997, as amended, is repealed and the succeeding paragraph is renumbered accordingly.

The BIR shall develop an EOPT and digitalization roadmap that will provide for the programs and projects to be implemented to ensure ease of compliance of tax laws, rules and regulations, including but not limited to adoption of simplifies tax returns, streamlining of tax processes, reduction of tax or documentary requirements, and digitalization of BIR services as provided under Section 40 of the Act; Provided, That in developing this roadmap, the BIR shall prioritize taxpayers who are considered as micro and small taxpayers for purposes of the Act, in terms of streamlining tax procedures and documentary requirements according to taxpayer size and capacity to comply; Provided, further, that the BIR shall ensure accessibility of its various services to different taxpayers particularly micro and small taxpayers so as to improve tax compliance, and enhance taxpayer convenience.

Within ninety (90) calendar days from the effectivity of the Act, the Secretary of Finance, after due consultation with the BIR, and the private sector, shall promulgate the necessary rules and regulations for its effective implementation.

The provision of the EOPT Act granting micro-enterprises exemption from the obligation to withhold taxes was vetoed by the President.

Originally Published in GPP CPAs website.