RMC No. 3-2024: Circularizing Republic Act No. 11976, otherwise known as the “Ease of Paying Taxes Act” and the Veto Message of President Ferdinand R. Marcos Jr.

Key points

1. Amended NIRC sections. The Act amends many NIRC sections, including Sections 21, 22, 51, 56, 57, 58, 76, 77, 81, 90 and 91. It also covers the VAT and percentage tax sections 103 to 120 and 128, Sections 200, 204, 229, 235 to 238, 241 to 243, 245, 248 and 269.
2. Repeal. Section 34(K) of the NIRC is repealed and the succeeding paragraph is renumbered accordingly.
3. EOPT and digitalization roadmap. The BIR develops a roadmap of programs and projects for ease of compliance, under Section 40 of the Act, such as simplified returns, streamlined processes, fewer requirements and digital services. It prioritizes micro and small taxpayers and ensures accessibility of services.
4. Implementing rules. The Secretary of Finance, after consulting the BIR and the private sector, issues the implementing rules and regulations within ninety (90) calendar days from the Act’s effectivity.
5. Veto. The provision granting micro-enterprises an exemption from the obligation to withhold taxes was vetoed by the President.

Who is affected

• Micro and small taxpayers (prioritized in the roadmap)

Deadlines and effectivity

• Signed January 5, 2024
• Implementing rules within ninety (90) calendar days from effectivity