TAX REFORM FOR ACCELERATION AND INCLUSION ACT

OUTLINE FOR COMPLIANCES AS AMENDED

SECTION 155-288 OF THE NATIONAL INTERNAL REVENUE CODE
SECTION TITLE

COMPLIANCE PROVISION 232 KEEPING OF BOOKS

VALUE ADDED TAX 236 REGISTRATION REQUIREMENTS

(COMPLIANCE)
 ISSUANCE OF RECEIPTS OR SALES OR
COMPLIANCE 237 COMMERCIAL INVOICES

OTHER PROVISION 237-A ELECTRONIC REPORTING SYSTEM

OTHER PROVISION 249 INTEREST

OTHER PROVISION 254 ATTEMPT TO EVADE OR DEFEAT TAX

FAILURE OR REFUSAL TO ISSUE OR

SALES OR COMMERCIAL INVOICES
VIOLATIONS RELATED TO THE
PRINTING OF SUCH RECEIPTS OR
OTHER PROVISION 264 INVOICES AND OTHER VIOLATIONS
 FAILURE TO TRANSMIT SALES DATA
ENTERED ON CASH REGISTER
MACHINE (CRM)/POINT OF SALES
SYSTEM (POS) MACHINES TO THE
BIR’S ELECTRONIC SALES REPORTING
SYSTEM.

OTHER PROVISION 264-A

PURCHASE, USE, POSSESSION, SALE

OR OFFER TO SELL, INSTALLMENT,
TRANSFER, UPDATE, UPGRADE,
KEEPING OR MAINTAINING OF SALES
OTHER PROVISION 264-B SUPPRESSION DEVICES.
 OFFENSES RELATING TO FUEL
OTHER PROVISION 265-A MARKING
 VIOLATION COMMITTED BY
269 GOVERNMENT OFFICIAL

DISPOSITION OF INCREMENTAL
OTHE PROVISION 288 REVENUE
 OLD
1. All corporations, companies, partnerships or persons required
by law to pay internal revenue taxes shall keep a journal and a
ledger or their equivalents: Provided, however, That those whose
quarterly sales, earnings, receipts, or output do not exceed Fifty
thousand pesos (P50,000) shall keep and use simplified set of
bookkeeping records;
2. REQUIREMENT FOR FINANCIAL AUDIT BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT: QUARTERLY SALES, EARNINGS,
RECEIPTS OR OUTPUT EXCEED 150,000.
AS AMENDED
1.All corporations, companies, partnerships or persons required by law to pay
internal revenue taxes shall keep AND USE RELEVANT AND APPROPRIATE
set of bookkeeping records.
2. REQUIREMENT FOR FINANCIAL AUDIT BY INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANT: ANNUAL SALES, EARNINGS, RECEIPTS OR OUTPUT EXCEED
3,000,000.

1. PERSONS REQUIRED TO REGISTER: ACTUAL OR THERE IS A 1. THE COMMISSIONER SHALL SIMPLIFY THE BUSINESS REGISTRATION AND
REASONABLE GROUND TO BELIEVEE THAT GROSS SALES/RECEIPTS TAX COMPLIANCE REQUIREMENTS OF SELF-EMPLOYED INDIVIDUALS AND/OR
WILL EXCEED 1,500,000 PROFESSIONALS.

2..OPTIONAL REGISTRATION: WHO ARE NOT REQUIRED TO 2. PERSONS REQUIRED TO REGISTER: ACTUAL OR THERE IS A REASONABLE
REGISTER BUT ELECT TO REGISTER SHALL ONLY BE ENTITLED FOR GROUND TO BELIEVEE THAT GROSS SALES/RECEIPTS WILL EXCEED
THE CANCELATION OF THE REGISTRATION AFTER 3 YEARS 3,000,000

3...OPTIONAL REGISTRATION: WHO ARE NOT REQUIRED TO REGISTER BUT

ELECT TO REGISTER SHALL ONLY BE ENTITLED FOR THE CANCELATION OF THE
REGISTRATION AFTER 3 YEARS

PPROVIDED, THAT ANY PERSON TAXED UNDER SECTION 7 24(A)(2)(B) AND

24(A)(2)(C)(2)(A) OF THE NIRC WHO ELECTED TO 8 PAY THE EIGHT PERCENT
(8%) TAX ON GROSS SALES OR 9 RECEIPTS SHALL NOT BE ALLOWED TO
AVAIL OF THIS OPTION.
1. ISSUANCE FOR EACH SALE AND TRANFER OF MERCHANDISE; 1. ISSUANCE AT THE POINT OF SALE AND TRANFER OF MERCHANDISE;
2.AMOUNT OF SALE: P25.00
2.AMOUNT OF SALE: P300

3.ESTABLISHMENT OF SYSTEM CAPABLE OF STORING AND PROCESSING

REQUIRED DATA:

WHAT: ISSUANCE OF ELECTRONIC RECEIPTS OR SALES/COMMERCIAL

INVOICE
WHO : LARGE TAXPAYERS ENGAGED IN EXPORT OF GOODS AND SERVICES
AND ENGAGED IN COMMERCE.

OTHERS: OTHERS NOT COVERED (NON LARGE TAX PAYERS) MAY DO THE
SAME (ISSUE ELECTRONIC RECEIPT/ SI/ CI

KEEPING OF DIGITAL COPY: 3 YEARS AFTER THE CLOSE OF EACH TAXABLE

YEAR

WHAT: SYSTEM CAPABLE OF STORING AND PROCESSING REQUIRED DATA

WHO: LARGE TAXPAYERS ENGAGED IN EXPORT OF GOODS AND SERVES
AND ENGAGED IN ECOMMERCE

HOW: ELECTRONICALLY REPORT SALES TO THE BUREAU THROUGH THE USE

OF POINT OF SALES SYSTEM
There shall be assessed and collected on any unpaid amount of
tax, 1 interest at the rate of: 1. DOUBLE THE LEGAL INTEREST RATE FOR LOANS OR FORBEARANCE OF
ANY MONEY IN THE ABSENCE OF AN EXPRESS STIPULATION AS SET BY THE
twenty percent (20%) per annum, or such higher rate as may be BANGKO SENTRAL NG PILIPINAS
prescribed by rules and regulations, from the date prescribed for 2. PROVIDED, THAT IN NO CASE SHALL THE DEFICIENCY AND THE
payment until the amount is fully paid. DELINQUENCY INTEREST BE IMPOSED SIMULTANEOUSLY.
WITH A FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND PESOS
(P500,000) BUT NOT MORE THAN TEN MILLION PESOS (P10,000,000), AND
Any person who willfully attempts in any manner to evade or IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS BUT NOT MORE THAN
defeat any tax imposed under this Code or the payment thereof TEN (10) YEARS
shall, in addition to other penalties provided by law, upon
conviction thereof, be punished by a fine of not less than Thirty
thousand pesos (P30,000) but not more than One hundred
thousand pesos (P100,000) and suffer imprisonment of not less
than two (2) years but not more than four (4) years
WITH A FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND PESOS
(P500,000) BUT NOT MORE THAN TEN MILLION PESOS (P10,000,000), AND
IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS BUT NOT MORE THAN
TEN (10) YEARS
EVERY FAILURE SHALL RESULT TO A PENALTY AMOUNTING TO:
A. ONE-TENTH OF ONE PERCENT (1/10 OF 1%) OF THE ANNUAL NET
INCOME BASED ON AUDITED FINANCIAL STATEMENT FOR THE SECOND
YEAR PRECEDING THE CURRENT TAXABLE YEAR FOR EACH DAY OF VIOLATION
OR TEN THOUSAND PESOS (P10,000), WHICHEVER IS HIGHER;
B. SHOULD THE AGGREGATE NUMBER OF DAYS OF VIOLATION EXCEED
180 DAYS - PERMANENT CLOSURE OF THE TAXPAYER SHOULD BE IMPOSED
C. EXCEPTION- FAILURE TO TRANSMIT RESULTED FROM FORCE
MAJEURE OR BEYOND THE CONTROL OF THE TAXPAYER PENALTY SHALL
NOT APPLY.

1. WITH A FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND PESOS

(P500,000) BUT NOT MORE THAN TEN MILLION PESOS (P10,000,000), AND
IMPRISONMENT OF NOT LESS THAN TWO (2) YEARS BUT NOT MORE THAN
FOUR (4) YEARS
2. IF CUMULATIVE SUPPRESSION AMOUNTING TO FIFTY MILLION PESOS
(50,000,000) SHALL BE CONSIDERED AS ECONOMIC SABOTAGE AND SHALL
BE PUNISHED IN THE MAXIMUM PENALTY OF TEN MILLION PESOS
(P10,000,000) AND FOUR (4) YEARS IMPRISONMENT.
1. ANY PERSON WHO IS FOUND TO BE ENGAGED IN THE SALE, TRADE,
DELIVERY, DISTRIBUTION OR TRANSPORTATION OF UNMARKED FUEL IN
COMMERCIAL QUANTITY HELD FOR DOMESTIC USE;
2.ANY PERSON WHO CAUSES THE REMOVAL OF THE OFFICIAL FUEL
MARKING AGENT FROM MARKED FUEL, AND THE ADULTERATION OR
DILUTION OF FUEL INTENDED FOR SALE.

SHALL BE PUNISHED AS FOLLOWS:

1ST OFFENSE- 2,500,000
2ND OFFENSE- 5,000,000
3RD OFFENSE- 10,000,000 REVOCATION OF LICENSE TO ENGAGE IN ANY 17
TRADE OR BUSINESS.

3. OTHER ACTS UNDER THISE SECTION SHALL BE PUNISHED BY A FINE OF

NOT LESS THAT ONE MILLION PESOS.

MAKING, IMPORTING SELLING AND USING:

1. WITHOUT EXPRESS AUTHORITY;
2. COUNTERFEITING FUEL MARKERS;
3. CAUSING ANOTHER PERSON TO DO THE PRECEDING TWO;
AS ADDITIONAL VIOLATION OF GOVERNMENT OFFICIALS, DELIBARATELY
FAILURE TO ACT ON THE APPLICATION FOR REFUND WITHIN THE
ORESCRIBED PERIOD PROVIDED UNDER SEC. 112 OF THIS ACT SHALL BE
SUBJECT TO fine of not less than Fifty thousand pesos (P50,000) but not
more than One hundred thousand pesos (P100,000) and suffer imprisonment
of not less than ten (10) years but not more than fifteen (15) years and shall
likewise suffer an additional penalty of perpetual disqualification to hold
public office, to vote, and to participate in any public election.

A. SEVENTY PERCENT (70%) TO INFRASTRUCTURE;

B. THIRTY PERCENT (30%) TO FUND:
1. THE SUGARCANE INDUSTRY DEVELOPMENT ACT 27 OF 2015
2. EDUCATION, HEALTH, SOCIAL PROTECTION, EMPLOYMENT AND
HOUSING FOR THE POOR AND NEAR POOR.
3. SOCIAL WELFARE:
A. UNCONDITIONAL CASH TRANSFER;
B. FUEL VOUCHERS TO QUALIFIED FRANCHISE HOLDERS OF
PUBLIC UTILITY VEHICLES;
C. MINIMUM WAGE EARNER , UNEMPLOYED AND THE
POOREST 50% OF THE POPULATION
D. OTHER SOCIAL BENEFIT PROGRAM
 REMARKS
Keeping of books of accounts shall be used by All income tax payer
regardless of their amount of sale.
 BENCH MARKING FOR EACH TYPE OF INDUSTRY. EASIER
MONITORING OF INCOME/REVENUE LEVELS OF COMPANIES
BELONG TO SAME INDUSTRY.
TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS
TO STRICT THE COMPLIANCE OF TAXPAYERS

TO STRICT THE COMPLIANCE OF TAXPAYERS