BIR issues regulations to implement the provisions of Republic Act No. 11976 or the Ease of Paying Taxes (EOPT) Act.

In line with the Bureau’s commitment to providing excellent taxpayer service, it has recently issued new regulations to implement the changes introduced under the EOPT Act. These updates include revised compliance requirements, taxpayer classifications, special concessions for small and micro taxpayers, and updated invoicing standards.

Update in Compliance Requirements

Payment of Annual Registration Fee is no longer required effective January 22, 2024, both for new business registrants and existing business taxpayers. 

The Certificate of Registration (COR) of the taxpayer shall retain its validity although the Registration Fee is still reflected therein as one of the tax types. The taxpayer is not required to replace it, unless there are other updates/changes in your business registration information that need to be reflected in the COR.¹

Moreover, all Books of Accounts and other accounting records of taxpayers shall be preserved for a period of five (5) years from the day following the deadline for filing a return, or if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the Books of Accounts.

However, if the taxpayer has any pending protest or claim for tax credit/refund of taxes and the books and records concerned are material to the case, the taxpayer is required to preserve the Books of Accounts and other accounting records until the case is finally resolved, even beyond the prescribed 5-year retention period. ²

Another key provisions of the EOPT Act is the more straightforward tax filing and payment processes. Previous directive requiring taxpayers to use the Electronic Filing and Payment System (eFPS) for filing returns and remitting payments remain applicable, as these requirements align with Section 3 of RR No. 4-2024. Consequently, taxpayers already enrolled in eFPS should continue utilizing the system, although they may be permitted to use the eBIR Forms facility if there is a notification indicating eFPS unavailability. Taxpayers mandated to use eFPS but not yet enrolled can use eBIR Forms for electronic filing and remit payments either electronically or manually until their eFPS enrollment is completed.

It is important to note that manual filing is permitted under certain conditions: if electronic filing platforms are not operational, if the relevant tax return form is unavailable on any electronic platform, or if the Commissioner of Internal Revenue grants permission for valid reasons. Taxpayers may file and pay their taxes manually to any Revenue Collection Officer (RCO) or Authorized Agent Bank (AAB). However, RCOs are only authorized to accept cash payments of up to Php20,000.00, while there is no restriction on the amount of check payments.³

Classification of Taxpayers

For purposes of responsive tax administration, the EOPT Act classified taxpayers into four groups, depending on their gross sales.⁴

The following concessions shall be made available to micro and small taxpayers for purposes of EOPT Act:

1. The Income Tax Return (ITR) required under Section 51 of the NIRC shall consist of a maximum of two (2) pages in paper form or electronic form;
2. A reduced rate of ten percent (10%) for civil penalties as provided under Section 248 of the NIRC, as amended;
3. A fifty percent (50%) reduction on the interest rate imposed under Section 249 of the NIRC, as amended;
4. A reduced fine of Five hundred pesos (P500) as penalty for failure to file certain information returns as provided under Section 250 of the NIRC, as amended; and
5. A reduced compromise penalty rate of at least fifty percent (50%) for violations of Sections 113, 237, and 238 of the NIRC, as amended. ⁵

Invoicing Requirements

A significant change in the invoicing requirements introduced by the EOPT Act is the requirement to issue an “Invoice” for both the sale of goods and the provision of services.

A VAT-registered person shall issue a duly registered VAT Invoice for every sale, barter, exchange or lease of goods or properties, and for every sale, barter or exchange of services regardless of the amount of the transaction. On the other hand, a Non-VAT-registered person shall issue a duly registered Non-VAT Invoice for every sale, barter, exchange or lease of goods or properties, and for every sale, barter or exchange of services valued at Five Hundred Pesos (Php 500.00) or more. However, if a buyer requests for an Invoice, the seller must issue the same regardless of the amount of transaction.

Taxpayers are still obligated to include the information specified under Section 6(B) of RR No. 7-2024 on the Official Receipt, such as the quantity, unit cost, and description of goods sold or the nature of services provided, as required under Section 237 of the amended Tax Code.⁶

In line with the Bureau’s initiative to expand the scope of electronic invoicing to encompass all major taxpayers, it has implemented an Electronic Invoicing System (EIS) aimed at streamlining tax reporting and compliance. This system mandates that large taxpayers, e-commerce businesses, and exporters issue and report their sales data electronically, with full compliance required by March 2026.^[7]

These BIR regulations signify a substantial reform intended to ease the compliance burden on taxpayers by streamlining previously rigid and stringent requirements. Under this new framework, taxpayers are expected to accurately determine their classification to qualify for applicable special concessions. Moreover, strict adherence to the revised compliance and invoicing standards is crucial to avoid the imposition of penalties for non-compliance.

The Bureau remains committed to enhancing tax administration efficiency and fostering taxpayer compliance. Taxpayers are strongly encouraged to stay informed of subsequent developments and regulatory updates to ensure continued adherence to the applicable requirements.

Prepared by April Anne Roma.

FOOTNOTES

1. Revenue Memorandum Circular (R.M.C.) No. 91-2024 dated 14 August 2024
2. Revenue Regulations (R.R.) No. 7-2024 dated 22 March 2024
3. R.R. No. 4-2024 dated 22 March 2024
4. R.R. No. 8-2024 dated 22 March 2024
5. R.R. No. 6-2024 dated 22 March 2024
6. R.M.C. No. 77-2024 dated 11 July 2024
7. R.R. No. 11-2025 dated 25 February 2025