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EOPT Update

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30 views

EOPT Update

Uploaded by

Kathleen Tiong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Ease of Paying Taxes (EOPT) Act -to minimize the bu

Republic Act No. 11976


General Update
Before EOPT EOPT

1. Tax Payer Classification


Classification: Group Gross Sales
Large Taxpayers Micro < 3M
Non-Large Taxpayers Small 3M ≥ 20M
Medium 20M ≥ 1B
Large 1B and above

Penalties: applicaple to all taxpayes, regardless of classification


For Micro and Small Taxpayers
•Reduced civil penalties
10% surcharge
6% interest
Php 500 penalty for failure to file certain
50% of compromise penalty violations
on invoicing/printing of invoices
•Veto: exemption from withholding tax
2. Venue of filing & payment

Authorized Agent Banks (AAB), Revenue District Office(RDO), Duly


Authorized Treasurer of the city or municipality having jurisdiction over Any AAB, RDO through RCO, authorized tax software provider
the location of the principal office

Surcharge on wrong venue filing - 25% of basic tax due Surcharge on wrong venue filing - remove

Income Tax
1. Requirement for Deductability of certaint Payments/Expenses

Expenses shall be allowed as a deduction only if it is shown that the


tax required to be deducted and withheld therefrom has been paid to Repealed
the BIR

Withholding Tax
1. Timing of Withholding

Income payment is paid or payable, or the income payment is accrued


The obligation to withhold arises at the time the income has become
or recorded as an expense or asset, whichever is applicable, in the
payable
payor's books, whichever comes first

Value-added Tax
1. Vat Base for sale of services
Gross Receipts Gross Sales
• Includes contract price, service fees, or its equivalent, including the
amount charged for materials supplied with the services rendered
• Services has already been rendered; use of lease of properties have
already been supplied
• Excludes amounts earmarked for payment to third party,
reimbursements not benefiting the seller for payments made on another's
behalf
For long-term contracts for a period of one year or more, the invoice shall
be issued on the month in which the service, use or lease of properties is
rendered
2. Output Vat on Uncollected Receivables
A seller of goods or services may deduct the output VAT on uncollected
No Provision receivables on the next quarter after the lapse of the agreed period to pay
subject to the following conditions:

1. The seller fully paid the VAT on the


transaction

2. VAT component of the uncollected


receivable has not been claimed as
deductible bad debts from gross income

*In case of recovery of uncollected receivables, VAT shall be remitted


during the period of recovery.

3. Vat Invoicing Requirments


i. For every sale of goods, properties, services, use orlease of properties -
i. For every sale of goods or properties - Sales Invoice
Sales Invoice
ii. For every sale of services, use or lease of properties - Official
ii. Business Style is not required
Receipts
iii. Input VAT on Sales Invoice with lacking information can still be claimed
iii. Business Style of the purchaser is required
provided the lacking information do not pertain to the following:
a. amount of sales
b. amount of VAT
c. Name and TIN of both buyer and seller
d. description or nature of goods or services
e. date of transaction

*Taxpayers enganged of services shall be allowed to strike the word


"Official Receipt" on the face of the manual and loose-leafe printed
receipts and stamp "Sales Invoice" to be issued as the primary invoice to
customers unti December 31, 2024
*To invoice the output VAT and sale to the customer, the seller shall
replace the billing statements/statement of accounts with Invoices.
Compliance Requirements/Administrative Provisions
1. Annual Registration Fee

Annual registration fee of 500 pesos shall be paid for every separate or
distinct establishment or place of business, including facility types
Requirement to pay annual registration fee was removed.
where sales transactions occur, upon registration and every year
thereafter on or before January 31

2. Issuance of Invoice

Threshold: Five hundred pesos (P500.00)

Generally, one invoice for each sale

If the transaction is below P500, the seller will issue one invoice for the
aggregate sales amount at the end of the day if the aggregate sales is at
Threshold: One hundred pesos (P100.00) Provision for Adjustment of
least P500;
Threshold: None

VAT registered taxpyers shall issue registered VAT invoice regardless of


amount

Provision for Adjustment of Threshold: Every three years using the


consumer price index, as published by the PSA

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