REVENUE REGULATIONS NO. 4-2024
Issued on April 11, 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 Tax Code of 1997, as amended by Republic Act No. 11976 EOPT Act on the following:
- 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);
- Removal of civil penalty in case of filing of return at the wrong venue;
- Non-filing of income tax return by an Overseas Contract Worker (OCW) or Overseas Filipino Worker (OFW);
- Removal of additional requirements for deductibility of certain payments; and
- Withholding of tax at source and declaration of income of recipient.
1. Modes of Filing of Tax Returns and Payment of Internal Revenue Taxes
As to the mode of filing of tax returns, regardless of the venue or jurisdiction of the Revenue District Office (RDO), the filing of the tax returns shall be done electronically, on any of the available electronic platforms. However, in case of unavailability of the electronic platforms, manual filing of tax returns may be allowed. As for the payment of Internal Revenue Taxes, the same shall be made either electronically in any of the available electronic platforms or manually to any Authorized Agent Banks (AABs) or authorized Revenue Collection Officers (RCOs).
The said RR also provided the following meaning of the terms “electronically” and “manually”:
- Electronically – when the filing of tax return and payment of tax is done through electronical 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 Authorized Tax Software Provider (ATSP) (for specific returns as certified by BIR).
- 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 ₱20,000.00, while for check payment, regardless of the amount.
2. Removal of Civil Penalty in Case of Filing of Return at the Wrong Venue
With the repeal of Section 248(A)(2) of Tax Code, as amended, under the EOPT, the civil penalty of 25% of the amount due in case of filing a return with an internal revenue officer other than those with whom the return is required to be filed, shall no longer be imposed.
3. 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 (₱250,000) – the Certified List of Employees Qualified for Substituted Filing of Income Tax Return, reflecting the amount of income payment, the tax due and tax withheld, if any, filed by the respective employers, duly stamped “Received” by the Bureau, shall be tantamount to the substituted filing of income tax returns by said employees;
- An individual income tax has been correctly withheld by his employer, provided that such individual has only one employer for the taxable year – the Certified List of Employees Qualified for Substituted Filing of Income Tax Return, reflecting the amount of income payment, the tax due and tax withheld, if any, filed by the respective employers, duly stamped “Received” by the Bureau, shall be tantamount to the substituted filing of income tax returns by said employees;
- An individual whose sole income has been subjected to final withholding tax;
- A minimum wage earner as defined in these regulations – the Certified List of Employees Qualified for Substituted Filing of Income Tax Return, reflecting the amount of income payment, the tax due and tax withheld, if any, filed by the respective employers, duly stamped “Received” by the Bureau, shall be tantamount to the substituted filing of income tax returns by said employees; and
- An individual citizen of the Philippines who is working and deriving income solely from abroad as an “Overseas Contract Worker (OCW)” or “Overseas Filipino Worker (OFW)” as defined under Section 3(G) of RA No. 11641, or the Department of Migrant Workers Act”.
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.
4. Removal of the Additional Requirement of Deductibility of Certain Payments
With the repeal of Section 34(K) of the Tax Code, as amended, and upon the effectivity of the EOPT, Section 2.58.5 of RR No. 2-98, as amended, on “Additional Requirements for Deductibility of Certain Income Payments” is repealed: Provided, however, that the obligation to withhold tax on certain income payments and remit the same remains.
5. Withholding of Tax at Source and Income of Recipient
Section 2.57.4 of RR No. 2-98, as amended by RR No. 4-2024, provides that 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.
Section 8 of the said RR also provides that 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 Tax Code.