RR No. 8-2024 — Implements Section 21(b) of the Tax Code of 1997, as amended by RA No. 11976 (Ease of Paying Taxes Act), on the classification of taxpayers (Date Posted: April 12, 2024)

BUREAUOF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE FnTTiYr APk 11 2024

National Office Building Quezon City RECORDS MGT. DIVISION }7JC7}U

MAR_2_2 2024

REVENUE REGULATIONS NO._8-Z024

SUBJECT Implementing Section 21(b) of the National Internal Revenue Code

of 1997, as Amended by Republic Act No. 11976, otherwise known as the "Ease of Paying Taxes Act"', on the Classification of Taxpayers

TO All Internal Revenue Officers and Others Concerned

on the classification of taxpayers. SECTION 1. Scope. -- Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), in relation to Section 47 of Republic Regulations are hereby promulgated to implement Section 2I(b) of the Tax Code Act (RA) No. 11976, otherwise known as the "Ease of Paying Taxes (EOPT) Act", these

be covered by these Regulations, as follows: SECTION 2. Coverage and Classification of Taxpavers. -- Taxpayers shall be classified, and

A. Micro Taxpayer -- shall refer to a taxpayer whose gross sales for a taxable year is less than Three Million Pesos (F3,000,000.00).

B. Small Taxpayer -- shall refer to a taxpayer whose gross sales for a taxable year is Three Million Pesos (f3,000,000.00) to less than Twenty Million Pesos (P20,000,000.00).

C. Medium Taxpayer -- shall refer to a taxpayer whose gross sales for a taxable year- is Twenty Million Pesos (P20,000,000.00) to less than One Billion Pesos (P1,000,000,000.00).

D. Large Taxpayer -- shall refer to a taxpayer whose gross sales for a taxable year is One Billion Pesos (P1,000,000,000.00) and above.

shall refer to total sales revenue, net of VAT, if applicable, during the taxable year, without For purposes of classification of taxpayers under these Regulations, gross sales

any other deductions.

and income excluded under Section 32(B), all of the Tax Code. under employer-employee relationship, passive income under Sections 24, 25, 27 and 28, Gross sales shall only cover business income, excluding compensation income earned

or the exercise of a profession. Business income shall include income from the conduct of trade or business

D SECTION 3. Initial Classification of Taxpayers. - Taxpayers who will register to engage

be classified based on its declaration in the Registration Forms starting from the year they registered, and shall remain as such unless reclassified. in business or practice of profession upon the effectivity of these Regulations shall initially

as stated under Section 2 of these Regulations. The concerned taxpayer shall be reclassified in accordance with the threshold values

or procedure to be prescribed in a revenue issuance to be issued separately. SECTION 4. Notification on the Classification/Reclassification. -- Taxpayers shall be duly notified by the BIR of their classification or reclassification, as may be applicable, in a manner

shall be classified on the basis of their gross sales for taxable year 2022. SECTION 5. Transitory Provisions. - Taxpayers registered in 2022 and prior years

except VAT-registered taxpayers, who shall be classified as SMALL. before the effectivity of these Regulations, they shall initially be classified as MICRO, on their gross sales for taxable year 2022, and taxpayers registered in 2023 or in 2024 For taxpayers registered in 2022 and prior years but without any submitted information

is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect. SECTION 6. Separability Clause. - If any of the provisions of these Regulations

are hereby repealed, amended or modified accordingly. SECTION 7. Repealing Clause. - All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with any provisions of these Regulations

SECTION 8. Effectivity. -- These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR official website; whichever comes first.

Finance PR.08 2024

Recommending Approval:

.r Ss ssioner of Internal Revemue

BUREAU OF INTERNALREVENUE TF NNmTTyT

RECORDS MGT.DIVISION M J