The Bureau of Internal Revenue (BIR) promulgated Revenue Regulations (RR) No. 4-2024 to implement Sections 22, 34, 51(A)(2)(e), 5l(B), 51(D), 56(A)(l), 58(A), 58(C), 58(E), 77, 81, 90, 91, 103, 114, 128, 200 and 248 of the National Internal Revenue Code (NIRC), as amended by the Ease of Paying Taxes (EOPT) Act, on the following:

 

(a)  filing of tax returns and payment of taxes to be made electronically or manually, regardless of venue or jurisdiction of the Revenue District Office (RDO);

(b)  removal of civil penalty in case of filing of return at the wrong venue;

(c)   non-filing of income tax return by an Overseas Contract Worker (OCW) or Overseas Filipino Worker (OFW);

(d)  removal of additional requirements for deductibility of certain payments; and

(e)  withholding of tax at source and declaration of income of recipient.

 

Under the RR, the filing of tax returns shall be done electronically in any of the available electronic platforms. However, in case of unavailability of the electronic platforms, manual filing of tax returns may be allowed. For tax payments, the same shall be made either electronically in any of the available electronic platforms or manually to any Authorized Agent Bank (AABs) and Revenue Collection Officers (RCOs).

 

The BIR defined the terms “electronically” and “manually” to mean the following:

 

A.    Electronically – when the filing of tax return and payment of tax is done through electronic means using the BIR’s electronic platform (Electronic Filing and Payment System/eBIRForms), ePayment Channels of AABs (e.g. LinkBiz, PesoNet, UPay, MyEG, etc.) and ATSP (for specific returns as certified by BIR).

 

B.    Manually – when the tax return is accomplished by writing or through the aid of electronic equipment but the act of submission and payment is done through over-the-counter with any AAB or RCO of the BIR. The RCO can accept payment in cash up to P 20,000.00, while for check payment, regardless of the amount through over-the-counter with any AAB or RCO of the BIR. The RCO can accept payment in cash up to P 20,000.00, while for check payment, regardless of the amount.

 

The RR also provided the following provisions:

 

SECTION 6. Removal of the Additional Requirement for Deductibility of Certain Payments. – The entire provision of Section 34(K) of the Tax Code, as amended, on “Additional Requirements for Deductibility of Certain Income Payments” is repealed by EOPT. Therefore, upon the effectivity of the EOPT, Section 2.58.5 of RR No. 2-98, as amended, is hereby repealed: Provided, however, that the obligation to withhold tax on certain income payments and remit the same remains.

 

SECTION 7. Withholding of Tax at Source. Section 2.57.4 of RR No. 2-98, as amended, shall now read as follows: 

 

“Sec. 2.57.4. Time of Withholding. – The obligation of the payor to deduct and withhold the tax under Section 2.57 of these Regulations arises at the time an income has become payable. The term “payable” refers to the date the obligation becomes due, demandable or legally enforceable. The obligation of the payor to deduct and withhold the tax arises at the time an income payment is accrued or recorded as an expense or asset, whichever is applicable, in the payor’s books. or at the issuance by the seller of the sales invoice or other adequate document to support such payable, whichever comes first.”

References:

[1] Revenue Regulations No. 04-2024

[2] Republic Act No. 11976 (Ease of Paying Taxes) Act

Author:

Atty. Graham Ragsac