RMC No. 55-2025: Clarifying Section 24 of Republic Act No. 12214, entitled “An Act Amending Section 22, 24, 25, 27, 28, 32, 34, 38, 39, 42, 51, 52, 56, 57, 127, 149, 174, 176, 179, 190, 199, and 258 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended, and for Other Purposes”

Key points

1. General penalty. A person who carries on business without registering it with the BIR under Section 236 faces, on conviction for each act or omission, a fine of not less than ₱5,000 but not more than ₱20,000 and imprisonment of not less than six (6) months but not more than two (2) years.
2. Excise-taxed articles. For persons distilling, rectifying, repacking, compounding or manufacturing any article subject to Excise Tax, the fine is not less than ₱30,000 but not more than ₱50,000. Imprisonment is not less than two (2) years but not more than four (4) years.
3. What the offense covers. The offense and penalty apply to failure to register a business. They do not apply to non-payment of the ₱500.00 annual registration fee, which RA No. 11976 (Ease of Paying Taxes Act) already repealed.

Who is affected

• Persons carrying on business without BIR registration
• Persons manufacturing articles subject to Excise Tax