CAGAYAN DE ORO CITY (PIA) — New tax reforms are set to provide relief to micro and small businesses, with the Ease of Paying Taxes program introducing measures that simplify compliance and cut down penalties, the Bureau of Internal Revenue-Revenue Regulations (BIR RR)-16 announced.
“Isa sa salient features aning ease of paying taxes is naghatag ni siya og benepisyo for all sa atong mga micro and small taxpayers. As provided under the tax code sections 248 and 249 ang atong civil penalties, ang atong interest is pegged at 6 percent. So, na-lower ang interest sa penalties for non-payment sa atong micro and micro taxpayers as well as ang surcharge. Ang surcharge nato is 25 percent,” said Lawyer Al Philip Agad, assistant chief of the Assessment Division BIR Revenue Region 16.
(One of the salient features of the ease of paying taxes is that it provides benefits for all our micro and small taxpayers. As provided under the tax code sections 248 and 249 on civil penalties, our interest is pegged at 6 percent. So, the interest for penalties on non-payment has been lowered for our micro and small taxpayers, as well as the surcharge. Our surcharge is 25 percent.)
Micro taxpayers are defined as those whose gross sales do not exceed P3 million annually. Small taxpayers, on the other hand, have sales that exceed P3 million but remain below P20 million. Both groups stand to gain significantly from the program.
In addition, taxpayers facing “open cases,” situations where returns are not filed on time, will see lower penalties. Under the Revenue Field Office (RFO) 2017-2021, the minimum penalty for such cases is set at P1,000. However, for micro and small taxpayers, this amount is halved to P500, provided there is no evidence of fraud involved. Fraudulent activities, on the other hand, will still face stricter penalties.
Another important update is related to the Certificate of Registration (COR) for businesses. Taxpayers no longer need to update their COR annually unless there are significant changes in their tax profile, such as a shift to a higher tax rate or a substantial increase in sales. For example, businesses whose sales rise by more than P3 million during the year will need to update their registration to reflect this.
“Ang Certificate of Registration ayha lang i-update if ever naa’y changes or updates sa atong registration. Dili na ni siya limited sa atong tax time kung dili apil pud ni siya kung naa ta’y additional line of business, change on the registered address, mag-open ka og another branch,” Agad said.
(The Certificate of Registration only needs to be updated if there are changes or updates to our registration. This is not limited to tax time, but also applies if we add an additional line of business, change the registered address, or open another branch.)
This series of reforms is designed to help small and micro businesses maintain compliance with tax regulations without the heavy burden of penalties and bureaucratic processes.
Agad added that these measures, alongside ongoing reforms, reflect the government’s commitment to fostering a more business-friendly environment, particularly for the country’s micro and small enterprises. (RTP/PIA-10)
