Ease of Paying Taxes Act

(Republic Act No. 11976)

General Amendments
● Classification of Taxpayers

GROUP GROSS SALES

Micro < P3,000,000

Small P3,000,000 to < P20,000,000

Medium P20,000,000 to <1,000,000,000

Large ≥ P1,000,000,000

● Filing, Payment, and Registration

Current Provisions under Section 22 NIRC
AAD or RDO Revenue Collection Officer or Authorized treasurer of the city/mun.

Electronic(for specific tax payers) Manual

EOPT
AAD or RDO Revenue Collection Officer or Authorized Tax Software Provider

Electronic Manual

Amendments on Income Tax

● Options for excess of income tax paid in case of dissolution and cessation of
business
Current Provisions under Section 76 NIRC
Excess income taxes paid during the year
- Carry over to income tax liability of next quarter of succeeding taxable year
- Tax Credit Certificate (TCC)
- Tax refund

EOPT
Additional:
Incase the taxpayer cannot carry over the excess income tax credit due to
Dissolution or cessation of business:
- Apply for refund of unutilized excess income tax credit
- The BIR should decide on the application and refund the excess within 2
years from the date of the dissolution or cessation of business

● Deductibility of Certain Payments

Current Provisions of Sec.34(K)
Additional requirements for deductibility of certain payments
 - Any amount paid as payable which is otherwise deductible from, or taken into
account in computing gross income or for which depreciation or amortization
may be allowed
- Deduction shall be allowed if tax required to be deducted and withheld has
been paid to BIR in accordance with Section 58 and 81 of NIRC of 1997

EOPT
Repealed

Amendments on Withholding Tax

● Time of Withholding
Current Rules (RR No. 12-01)
- Upon payment

- Upon accrual WHICHEVER COMES FIRST

- When an obligation becomes payable

EOPT
When an obligation becomes payable

Amendments on Value-Added Tax

● VAT Base of Sale of Services
Current Provisions
Transactions Tax Base

Sale of Goods Gross Selling Price

Sale of Services Gross Receipts

EOPT
Transactions Tax Base

Sale of Goods Gross Sales

Sale of Services Gross Sales

● VAT Threshold and Output VAT Deductibility

Current Provisions
- A non-VAT registered seller will automatically be subjected to VAT if their
gross annual sales exceeded P3,000,000
EOPT
- A non-VAT registered seller will automatically be subjected to VATif their gross
annual sales exceeded P3,000,000, adjusted to its present values as
published by the Philippine Statistics Authority every 3 years

● Invoicing Requirements
- VAT Invoice as the only proof of transaction needed, removing official receipts
Amendments on Other Percentage Tax
● Percentage Tax on Domestic Carriers and Keepers of Garages

Current Provisions(Sec.117) EOPT

Amendments on Remedies
● Authority of the Commissioner to credit or refund taxes or penalties
-The period for processing the refund of taxes shall be within 180 days

● Recovery of tax erroneously or illegally collected

-If the application to recover tax erroneously or illegally collected is denied, the
taxpayer shall appeal to the Court of Tax Appeals within 30 days

Amendments on Compliance Requirements

● Compliance Requiremnts
Current Provisions
-Taxpayers are required to preserve their books of account for a period of ten years

EOPT
-Taxpayers are required to preserve their books of account for a period of five years

● Registration Matters
Current Provisions
-The Annual Registration Fee of P500 for every separate or distinct establishment or
place of business.

EOPT
-The Annual Registration Fee of P500 for every separate or distinct establishment or
place of business is repealed.
Name:_______________________ Yr.&Sec________ Date:__________ Score:_______

Assessment - Ease of Paying Taxes Act

True or False: Write TRUE if the statement is correct; otherwise, write FALSE.

1. The EOPT Act was published in the Official Gazette on 07 January 2024 and shall
take effect 15 days after its publication.

2. Under EOPT Act, the classification of taxpayers are micro, small, medium and large.

3. The annual registration of P500 for every separate establishment or place of

business is repealed.

4. Under EOPT Act, micro and small taxpayers are given special concessions of
reduced civil penalties and 2-page income tax returns; and exemption of micro
taxpayers from withholding tax obligations.

5. The effectivity date of the EOPT Act or Republic Act No. 11986 is on Jan. 22,2024.

6. Under EOPT Act, taxpayers are given 6 months from the effectivity of the
implementing revenue regulations to comply with the amendments on the VAT and
Other Percentage Taxes.

7. The proof of transaction required by the BIR to claim input tax credits are the VAT
invoice and official receipt.

8. Under EOPT Act, the period for processing the refund of taxes shall be within 120
days.

9. Taxpayers are given three months to comply with the amendments to VAT.

10. All taxpayers are required to preserve their books of account for a period of ten
years, reckoned from the day following the deadline of filing the return or the date of
actual filing, whichever is later.

“The single most powerful asset we all have is our mind. If it is trained well, it can create
enormous wealth in what seems to be an instant.”
― Robert T. Kiyosaki, Rich Dad, Poor Dad

Prepared by: Betty Mae N. Flores