Legal & Tax Updates [Back to list]
Implementing Section 45 of the Ease of Paying Taxes Act on Reduced Interest and Penalty Rates for Micro and Small Taxpayers
Revenue Regulations No. 6-2024 was issued by the Bureau of Internal Revenue on 11 April 2024 to implement Section 45 of the Ease of Paying Taxes Act which provides the following special concessions (reduced penalties) to micro and small taxpayers, to wit:
Penalties/Interest | Other Taxpayers | Micro and Small Taxpayers |
Surcharge | 25% (Section 248, National Internal Revenue Code, as amended [“NIRC”]) | 10% |
Interest | 12% (Section 249, NIRC) | 6% |
Penalty for Failure to Supply or Keep Record/Information | PHP1,000.00 for each failure (Section 250, NIRC) | PHP500.00 for each failure |
Compromise penalty | Applicable rates under Revenue Memorandum Order No. 7-2015 | Reduced compromise penalty rate of 50% of the applicable rate or amount of compromise under Annex A of Revenue Memorandum Circular No. 7-2015 |
Micro taxpayers are those whose gross sales for a taxable year are less than PHP3,000,00.00, whereas small taxpayers are those whose gross sales for a taxable year are PHP3,000,000.00 to less than PHP20,000,000.00.