Tiêu đề EOPTA - Kingfisher JPIA Academics_Gundayao&Hussain.pdf ✅

SPECIAL TOPICS IN TAXATION R.A. 11976 EASE OF PAYING TAXES ACT 1 A.Y. ‘23 - ‘24 SEMESTER #2 KINGFISHER JPIA Prepared by Maureen Mae Gundayao and Irish May Hussain Prepared by Maureen Mae Gundayao and Irish May Hussain 1.0 EASE OF PAYING TAXES ACT Note on Effectivity Date: Taxpayers are given six (6) months from effectivity of the implementing revenue regulations to comply with the amendments to VAT and OPT. (Section 48, Transitory Clause, EOPTA) Declaration of Policy. It is hereby declared the policy of the State: (Section 2, EOPTA) 1.1 Classification of Taxpayers (Sec. 21(b) NIRC) VETOED PROVISION: Granting MICRO enterprises exemption from the requirement and obligation of withholding creditable tax. (Sec. 57, NIRC) Therefore, this provision is NOT EFFECTIVE. 1.2 FILING OF TAX RETURNS & PAYMENT OF TAXES Republic Act No. 11976 Signed January 5, 2024 Publication January 7, 2024 Effectivity Date January 22, 2024 1. To provide healthy environment for the tax paying public that protects and safeguards taxpayer rights and welfare, as well as assures the fair treatment of all taxpayers; 2. To modernize tax administration and improve its efficiency and effectiveness by providing mechanisms that encourage proper and easy compliance at the least cost and resources possible; 3. To update the taxation system, adopt best practices, and replace antiquated procedures; and 4. To enact policies and procedures, which are appropriate to different types of taxpayers. GROUP GROSS SALES Micro Less than P3,000,000 Small P3,000,000 to less than P20,000,000 Medium P20,000,000 to less than P1,000,000,000 Large P1,000,000,000 and above Filing of Return The act of accomplishing and submitting the prescribed tax return, electronically or manually, to the Bureau of Internal Revenue (BIR), or through any authorized agent bank (AAB) or authorized tax software provider (ATSP). (Section 22[KK] of the NIRC) Payment/Rem ittance of Tax The act of delivering the amount of tax due or withheld, either electronically or manually, to the BIR, or through any AAB or ATSP. (Section 22[LL] of the NIRC) BEFORE EOPTA: Taxpayers are classified into:  Large Taxpayers – Gross Sales of at least 1 billion pesos  Non-Large Taxpayers
SPECIAL TOPICS IN TAXATION R.A. 11976 EASE OF PAYING TAXES ACT 2 A.Y. ‘23 - ‘24 SEMESTER #2 KINGFISHER JPIA Prepared by Maureen Mae Gundayao and Irish May Hussain Prepared by Maureen Mae Gundayao and Irish May Hussain 1.2.1 Venue of GENERAL FILING and PAYMENT of Taxes (Sec. 51(B), Sec.77(A), and Sec. 58(A) of the NIRC) Except in cases where the Commissioner otherwise permits, the return shall be filed and paid, either electronically or manually, with any: 1. Authorized Agent Bank, 2. Revenue District Office through Revenue Collection Officer, or 3. Authorized Tax Software Provider. EOPTA update on Overseas Contract Workers (OCW/OFW): An Individual Citizen of the Philippines who is working and deriving income SOLELY FROM ABROAD as an “Overseas Contract Worker” as provided under Section 23(C) of this Code, or “Overseas Filipino Worker” as defined under Section 3 (G) of R.A. No. 11641, otherwise known as “Department of Migrant Workers Act” shall NOT be required to file an income tax return. (Sec. 51(A) of NIRC) EOPTA update on WRONG VENUE FILING – Surcharge of 25% was REMOVED. EOPTA update on Timing of Withholding of Taxes: The obligation to DEDUCT and WITHHOLD the tax arises at the time the INCOME HAS BECOME PAYABLE (Sec. 58 (C) of the NIRC) EOPTA update on Annual Information Return: Requirement to submit Annual Information Return has been REMOVED under EOPTA. 1.3 EOPTA Provisions on INCOME TAX EOPTA update on Requirement for Deductibility of Certain Expenses/Payments: Requirements under Section 34 (K) of the NIRC regarding deductibility of expenses were REPEALED. EOPTA update on EXCESS income tax PAID in case of DISSOLUTION or CESSATION of business: The taxpayer shall file an application for refund of any unutilized excess income tax credit, and the BIR shall decide on the application and refund within two (2) years from the date of the dissolution or cessation of business. BEFORE EOPTA: Returns are filed and paid through: 1. Authorized Agent Banks (AAB) 2. Revenue District Office (RDO) 3. Duly Authorized Treasurer of the city or municipality having jurisdiction over the location of the principal office BEFORE EOPTA: There is 25% surcharge on basic tax due for WRONG VENUE filing BEFORE EOPTA: Withholding of Tax: Income payment or paid or payable, or the income payment is accrued or recorded an expense or asset, whichever is applicable, in the payor’s books, whichever comes first. (Sec. 2.57.4 of RR 2-98 amended by RR 12-2001) BEFORE EOPTA: Any amount paid or shall be allowed only if it is shown that the tax required to be deducted and withheld therefrom has been paid to the BIR (Sec. 34 (K) of the NIRC) BEFORE EOPTA: The National Internal Revenue Code provides NO PERIOD for filing an application of excess tax refund and granting thereof by the BIR.
SPECIAL TOPICS IN TAXATION R.A. 11976 EASE OF PAYING TAXES ACT 3 A.Y. ‘23 - ‘24 SEMESTER #2 KINGFISHER JPIA Prepared by Maureen Mae Gundayao and Irish May Hussain Prepared by Maureen Mae Gundayao and Irish May Hussain 1.4 EOPTA Provisions on Value Added Tax EOPTA update on VAT Base for Sale of Services and Use or Lease of Properties: All references to "gross selling price," "gross value in money," and "gross receipts" shall now be referred to as the "GROSS SALES" regardless of whether the sale is for goods under Sec 106 or services under Sec 108 of the Tax Code. The 12% VAT basis is now based on GROSS SALES. EOPTA update on VAT Invoicing Requirements: The EOPT Act mandates a single document for both sales of goods and services. Hence, all references to Sales/Commercial Invoices or Official Receipts shall now be referred to as "INVOICE." EOPTA update on Sale of at least ₱1,000: In the case of sales in the amount of ₱1,000 or more where the sale or transfer is made to a VAT- registered person, the name, address and Taxpayer Identification Number of the purchaser, customer, or client. Also, the business style requirement has been removed. EOPTA update on Issuance of Invoice:  All persons subject to an internal revenue tax shall, at the point of each sale and transfer of merchandise or for services rendered valued at Php 500 or more, issue duly registered invoices.  The seller shall issue invoice when the buyer so requires regardless of the amount of the transaction.  If the sales amount per transaction is below the threshold but the aggregate amount at the end of the day is at least Php 500, the seller will issue one invoice for the aggregate sales amount for such sales at the end of the day.  VAT-registered persons shall issue duly registered invoice regardless of the amount of the sale and transfer of merchandise or for services rendered. EOPTA update on Output VAT Base on Uncollected Receivables: A seller of goods may deduct the output VAT pertaining to uncollected receivables from its output VAT on the next quarter after the lapse of the agreed period to pay subject to the following conditions: 1. The sale or exchange has taken place AFTER the effectivity of the regulations; 2. The sale is ON CREDIT OR ON ACCOUNT; 3. There is a WRITTEN agreement on the period to pay the receivable, i.e. credit term is indicated in the invoice or any document showing the credit term; 4. The VAT is separately shown on the invoice; 5. The sale is specifically reported in the summary list of sales covering the period when the sale was made and NOT reported as part of “various” sales; BEFORE EOPTA: VAT is based on gross receipts (excluding VAT) on the sale of services and use or lease of properties. BEFORE EOPTA: For every sale of goods or properties – SALES INVOICE For every sale of services, use or lease of properties – OFFICIAL RECEIPTS BEFORE EOPTA: Business style requirement of the purchaser is required. BEFORE EOPTA: Threshold: Php 100 The requirement on issuance of Official Receipts has been REMOVED.
SPECIAL TOPICS IN TAXATION R.A. 11976 EASE OF PAYING TAXES ACT 4 A.Y. ‘23 - ‘24 SEMESTER #2 KINGFISHER JPIA Prepared by Maureen Mae Gundayao and Irish May Hussain Prepared by Maureen Mae Gundayao and Irish May Hussain 6. The seller declared in the tax return the corresponding output VAT indicated in the invoice within the period prescribed under existing rules; 7. The period agreed upon, whether extended or not, HAS ELAPSED; and 8. The VAT component of the uncollected receivables has not been claimed as deduction from gross income (i.e. bad debts under Sec. 34 (E) of the Tax Code). EOPTA update on VAT Exempt Transactions: All provisions mentioning the VAT-exempt threshold of three million pesos (P3,000,000.00) shall be read as “the amount of VAT threshold herein stated shall now be adjusted to its present value every three (3) years using the Consumer Price Index (CPI), as published by the Philippine Statistics Authority (PSA).” EOPTA update on Cancellation of VAT Registration: Application may either be tax credit certificate or cash refund for any unused input tax. The cash refund shall apply if the taxpayer has no tax liabilities against which the TCC may be utilized. EOPTA update on Risk-based Approach in the Verification and Processing of VAT Refund Claims: VAT refund claims shall be classified into low, medium, and high-risk. The risk classification shall be based on the following criteria, among others: 1. Amount of VAT refund claim; 2. Tax compliance history, and 3. Frequency of filing of VAT refund claims. 1.5 EOPTA Provisions on PERCENTAGE Tax EOPTA update on Minimum Gross Receipts (Sec. 117 of the NIRC): Provisions concerning the minimum quarterly gross receipts of domestic carriers and keepers of garages were REMOVED. BEFORE EOPTA: In computing the percentage tax provided in this section, the following shall be considered the minimum quarterly gross receipts in each particular case (Sec. 117 of the NIRC): Jeepney for hire: 1. Manila and other cities P 2,400 2. Provincial 1,200 Public utility bus: Not exceeding 30 passengers P 3,600 Exceeding 30 but not exceeding 50 passengers 6,000 Exceeding 50 passengers 7,200 Taxis: 1. Manila and other cities P 3,600 2. Provincial 2,400 Car for hire (w/ chauffeur) P 3,000 Car for hire (w/out chauffeur) 1,800 These quantitative benchmarks were REPEALED and REMOVED under EOPTA. BEFORE EOPTA: The NIRC provides NO PROVISION for uncollectible receivables. BEFORE EOPTA: Sale of lease of goods or properties or the performance of services shall be exempt from the VAT provided that the gross annual sales and/or receipts do not exceed the amount of Php 3,000,000. BEFORE EOPTA: A VAT registered person whose registration has been cancelled may apply for a tax credit certificate for any unused input tax within 2 years from date of cancellation. BEFORE EOPTA: The NIRC provides NO PROVISION for risk classification of VAT refund claims.