RR No. 4-2024: Implements 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 RA No. 11976 (Ease of Paying Taxes Act),  on the filing of tax returns and payment of taxes and other matters affecting the declaration of taxable income

Summary

RR No. 4-2024 implements 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 as amended by RA No. 11976, on filing, payment and declaration of taxable income.

Key points

1. Electronic filing and payment. Returns are filed on available electronic platforms, with manual filing allowed if they are unavailable. Payments may be made electronically or manually to AABs and RCOs, which accept manual payment only after the return is filed electronically, unless an advisory allows manual filing.
2. Joint ITR of spouses. Spouses who are both self-employed, in business or practice of profession, file the income tax return jointly. Where a joint return is impracticable, such as when their businesses are under two different RDOs, each files separately.
3. 25% civil penalty removed. The civil penalty of 25% of the amount due for filing with an internal revenue officer other than the proper one is no longer imposed.
4. Section 2.58.5 repealed. Section 2.58.5 of RR No. 2-98, as amended, on additional requirements for deductibility of certain income payments is repealed. The obligation to withhold and remit remains.
5. Time of withholding. Section 2.57.4 of RR No. 2-98 is restated: the payor’s duty to withhold arises when income becomes payable, meaning accrued or recorded as an expense or asset in its books, or when the seller issues a sales invoice or other adequate document, whichever comes first.
6. Excess withholding. Income subject to creditable withholding is included in the recipient’s return. Tax withheld in excess of the tax due is refunded subject to Section 204.

Who is affected

• Married individuals who are both self-employed
• Withholding agents and payors
• AABs and RCOs

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.