The BIR has issued RR No. 4-2024 to implement Sections 22, 34, 51(A)(2)(e), 51(B), 51(D), 56(A)(1), 58(A), 58(C), 58(E), 77, 81, 90, 91, 103, 114, 128, 200 and 248 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 11976, otherwise known as the “Ease of Paying Taxes Act” (“EOPT”), on the filing of tax returns and payment of taxes and other matters affecting the declaration of taxable income.

Here are the key points from the revenue regulations:

  1. Mode of Filing of Tax Returns and Payment of Internal Revenue Taxes
  • The filing of tax returns shall be done electronically in any of the available electronic platforms.
  • In case of the unavailability of electronic platforms, manual filing of tax returns may be allowed.
  • Tax payments shall be made either electronically in any of the available electronic platforms or manually to any authorized agent bank (AAB) or revenue collection officer (RCO).
  • Electronically means when the filing of tax return and payment of tax is done through electronic means using the BIR’s electronic platform, ePayment Channels of AABs and ATSP (for specific returns as certified by BIR).
  • Manually means 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 the over-the-counter with any AAB or RCO of the BIR. The RCO can accept payment in cash up to P20,000, while for check payment, regardless of the amount.
  • In the case of filing Income Tax Returns (“ITR”) by married individuals, the husband and wife, shall file the said return for the taxable year jointly. However, if the businesses are registered under two (2) different RDOs, each spouse shall file separately their respective ITRs.
  1. If the return is filed with a different internal revenue officer than the one designated, the civil penalty of 25% of the amount payable shall no longer apply.
  1. Individuals not required to file income tax return
  • An Individual earning purely compensation income whose taxable income does not exceed Two Hundred Fifty Thousand Pesos (Php250,000);
  • An Individual whose income tax has been correctly withheld by his employer, provided that the individual has only one(1) employer for the taxable year;
  • A Minimum Wage earner as defined in the regulations;

In the above three cases, the Certified List of Employees Qualified for Substituted Filing of Income Tax Returns, shall be tantamount to the substituted filing of income tax returns by the said employees.

  • An individual whose sole income has been subjected to final withholding tax; and
  • An Individual Citizen of the Philippines who is working and deriving income from abroad (i.e., Overseas Contract Worker “OCW” , Overseas Filipino Worker “OFW”).

In all cases, all individuals deriving compensation income, regardless of the amount, from two (2) or more concurrent or successive employers at any time during the taxable year, are not qualified for substituted filing. Thus, they are still required to file a return.

  1. Section 34(K) of the Tax Code, as amended, on additional requirements for the deductibility of certain payments (i.e. the tax required to be deducted and withheld was paid to the BIR) has been REPEALED. Provided, however, that the obligation to withhold tax on certain income payments and remit the same remains.
  1. Section 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.

Income upon which any creditable tax is required to be withheld at source, shall be included in the return of its recipient but the excess of the amount of tax so withheld over the tax due on his return shall be refunded subject to the provision of Section 204 of the same Code.