RR No. 6-2024 — Implements Section 45 of RA No. 11976 (Ease of Paying Taxes Act), on the imposition of reduced interest and penalty rates for micro and small taxpayers (Date Posted: April 12, 2024)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City BUREAU OF iNTERNAL REVENUE RECORDS MGT. DIVISION tnttt M "APR 11 2024 Son

MAR_2 2 2024

REVENUE REGULATIONS NC 6-202A

SUBJECT:Implementing Section 45 of Republic Act No. 11976, otherwise known as Penalty Rates for Micro and Small Taxpayers the "Ease of Paying Taxes Act", on Imposition of Reduced Interest and

TO: All Internal Revenue Officials, Employees and Others Concerned

imposition of reduced interest and penalty rates for micro and small taxpayers. Internal Revenue Code of 1997, as amended (Tax Code), in relation to Section 47 of Republic SECTION 1. Scope. - Pursuant to the provisions of Sections 244 and 245 of the National Regulations are hereby promulgated to implement Section 45 of the EOPT Act on the Act (RA) No. 11976, otherwise known as the "Ease of Paying Taxes (EOPT) Act", these

classified under Section 21 (B) of the Tax Code, as amended by the EOPT Act, to wit: SECTION 2. Coverage. These Regulations shall cover micro and small taxpayers as

a."Micro Taxpayer" -- shall refer to a taxpayer whose gross sales for a taxable year is less than Three Million Pesos (P3,000,000.00).

b."Small Taxpayer?" -- shall refer to a taxpayer whose gross sales for a taxable year is Three Million Pesos (P3,000,000.00) to less than Twenty Million Pesos (P20,000,000.00).

following cases: SECTION 3 Imposition of Civil Penalties. required to be paid, a penalty equivalent to ten percent (10%) of the amount due, in the -- There shall be imposed, in addition to the tax

(A)Failure to file any return and pay the tax due thereon as required under the provisions of the Tax Code or rules and regulations, on the date prescribed.

Provided, that no penalty shall be imposed to an amendment of a tax return if the the prescribed due date for its filing. covered taxpayer filed the initial tax return and paid the tax due thereon, on or before

was found to have been filed beyond the prescribed period or due date; Provided, further, that in case of a deficiency tax assessment as a result of a tax audit. a penalty shall be imposed on the tax deficiency if the particular tax return being audited

(B) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment; or

(C) Failure to pay the full or part of the amount of tax shown on any return required to be for its payment. filed under the provisions of the Tax Code or rules and regulations, or the full amount of tax due for which no return is required to be filed, on or before the date prescribed

In case of a willful neglect to file a return within the period prescribed by the Tax Code or by rules and regulations, or for false or fraudulent filing of return, a penalty at the rate of fifty Commissioner of Internal Revenue pursuant to the rules and regulations promulgated by the Secretary of Finance, shall constitute prima facie evidence of a false or fraudulent return. percent (50%) of the tax, or of deficiency tax in case of payment made before the discovery of the falsity or fraud, shall be imposed. Provided, that a substantial under-declaration of taxable sales or income, or a substantial overstatement of deductions, as determined by the

return; while "substantial overstatement of deductions" shall mean a claim of deductions in an For this purpose, "substantial under-declaration of taxable sales or income" shall mean failure to report sales or income in an amount exceeding thirty percent (30%) of the declared per amount exceeding thirty percent (30%) of actual deductions.

SECTION 4. Imposition of Interest -- There shall be assessed and collected on any unpaid of the interest rate mandated in Section 249 of the Tax Code. amount of tax by the covered taxpayers, an interest at the reduced rate of fifty percent (50%)

issue a separate Circular therefor. For this purpose, the legal interest imposable to covered taxpayers shall be six percent (6%) In case a new legal interest rate is prescribed, the Commissioner of Internal Revenue shall

information as may be required, on the date prescribed therefor, a penalty of Five Hundred of failure to file an information return, statement or list, or keep any record, or supply any SECTION 5. Imposition of penalty for failure to file certain information returns. -- In case

demand by the Commissioner of Internal Revenue. Pesos (P500.00) shall be paid for each such failure by the covered taxpayer, upon notice and

exceed Twelve Thousand Five Hundred Pesos (P12,500.00). In no case shall the aggregate amount to be imposed for all such failures during a calendar year

applied. rate of fifty percent (50%) of the applicable rate or amount of compromise under Annex "A: SECTION 6. Compromise Penalty. -- In case of criminal violation by covered taxpayers of Sections 113, 237, and 238 of the Tax Code, not involving fraud, a reduced compromise penalty of Revenue Memorandum Order No. 7-2015 and its subsequent amendments, if any, shall be

between the covered taxpayer and the Commissioner of Internal Revenue. For this purpose, the compromise penalty shall be collected in lieu of criminal prosecution for violation committed, where payment is based on a compromise agreement validly entered into

in these Regulations, except when duly approved by the Commissioner of Internal Revenue, or Provided, that, in no case shall the compromise penalty differ in amount from those specified his duly authorized representatives.

BUREAU OF INTERNAL REVENUE NNNIYN HaSoW XPR 11 20?4 Page 2 of 3

RECORDS MGT. DIVISION G)C(C

Provided, further, that the compromise penalty herein prescribed shall not prevent the Commissioner of Internal Revenue, or his duly authorized representatives, from accepting a compromise amount higher than what is provided hereof.

Provided, lastly, that a compromise offer lower than the prescribed amount may be accepted after approval by the Commissioner of Internal Revenue, or his duly authorized representatives.

SECTION 7. Applicability. -- These Regulations shall apply prospectively in accordance with Section 51 of RA No. 11976.

subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect. SECTION 8. Separability Clause. -- -- If any of the provisions of these Regulations is

SECTION 9. Repealing Clause. -- All other issuances and rules and regulations or parts hereby repealed, amended, or modified accordingly. thereof which are contrary to and inconsistent with any provisions of these Regulations are

its publication in the Official Gazette or the BIR official-website, whichever comes first. SECTION 10. Effectivity.-- These Regulations shall take effect fifteen (15) days following

Sedretayy of Finance R 0 8 2024

Recommending Approval:

ROMEO LUMAGUI, JR.

missioner of Internal Revenue

BUREAU OF NTERNAL REVENUE TNTTY

RECORDS MGT. DIVISION TGJUJ

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