RR No. 6 – 2024

RR No. 6 – 2024 Ease of Paying Taxes on the Imposition of Reduced Interest and Penalty Rates for Micro and Small Taxpayers

These regulations implement Section 45 of the Ease of Paying Taxes (EOPT) Act, focusing on reduced interest and penalty rates for micro and small taxpayers. 

Coverage 

Micro Taxpayer Annual gross sales less than ₱3,000,000. 
Small Taxpayer Annual gross sales between ₱3,000,000 and less than ₱20,000,000. 

Section 3: Imposition of Civil Penalties 

A 10% penalty applies to taxes due in cases of: 

  • Failure to file or pay taxes on time. 
  • Failure to pay deficiency tax after assessment. 
  • Partial or non-payment of tax due. 

A 50% penalty applies for willful neglect or fraudulent filing, with “substantial under-declaration” and “substantial overstatement of deductions” defined as exceeding 30%. 

Section 4: Imposition of Interest 

Interest on unpaid taxes is reduced to 6%, half the rate in Section 249 of the Tax Code. Changes to this rate will be made by the Commissioner of Internal Revenue. 

Section 5: Penalty for Failure to File Information Returns 

A ₱500 penalty per failure, capped at ₱12,500 per calendar year. 

Section 6: Compromise Penalty 

For non-fraudulent criminal violations of specific Tax Code sections, a reduced compromise penalty of 50% of the standard rate applies, replaceable by higher or lower amounts upon approval by the Commissioner of Internal Revenue. 

Effectivity:  

Takes effect 15 days after publication in the Official Gazette or BIR website, whichever is first. 

See below:

RR No. 6 – 2024

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