English: Aside from eliminating the requirement to withhold taxes, the proposed measure also provides for a reduction of penalties on micro and small enterprises. These include a reduced rate of 10% for civil penalties as opposed to 25% civil penalties for failure or neglect to file the correct tax returns and/or failure to pay the correct taxes or deficiencies; a 50% reduction on the interest rate in cases when there are deficiencies or delinquencies in the tax due; a reduced fine of P500 as penalty for failure to file certain information returns which originally amounts to Php1,000 for each failure; and a reduced compromise penalty rate of at least 50% for violations on invoicing requirements for VAT-registered persons, issuance of sales or commercial invoice, and printing of sales or commercial invoice.
Filipino: Bukod sa pagtanggal ng requirement na i-withhold ang buwis, binabawasan din ng panukalang batas ang mga parusa sa mga micro at small enterprise. Kabilang dito ang isang pinababang rate na 10% para sa civil penalties kumpara sa 25% civil penalties kung hindi nakapagbayad o kulang ang ibinayad na buwis; 50% na pagbawas sa rate ng interes kapag may deficiency sa pagbabayad; pinababang multa na P500 bilang parusa para sa hindi pag-file ng ilang information returns na dating nagkakahalaga ng Php1,000; at pinababang compromised penalty rate na hindi bababa sa 50% para sa mga paglabag sa invoicing requirements para sa mga taong nakarehistro sa VAT, pag-iisyu ng sales o commercial invoice, at pag-print ng sales o commercial invoice.