NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
23 hay-4 P1:ll
SENATE
S.B. No. 2128
RECEIVE OB'';
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
INTRODUCING ADMINISTRATIVE TAX REFORMS, AMENDING 
SECTIONS 21,22, 51, 56, 57, 58, 77, 81,90, 91,103,106,108,109,110, 
112, 113, 114, 115, 116, 117, 118, 119, 120, 128, 200, 236, 237, 245, 
AND 248 AND CREATING A NEW SECTION 112-A UNDER THE 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
During his first State of the Nation Address (SONA) in July 2022, President 
Ferdinand R. Marcos Jr. said the government is eyeing to put in place tax 
administration reforms to increase revenue collection as the economy is expected to 
grow by 6.5% to 7.5%. Tax compliance procedures will also be streamlined to promote 
ease of paying taxes.1 President Marcos also emphasized his administration’s 
commitment to fast-track measures to digitalize government services to ensure 
efficiency, accessibility, and responsiveness to the public.2
In recent years, major tax reform laws were enacted to accelerate poverty 
reduction, address inequality, and invite a more sustainable stream of revenues. 
Putting in place the corresponding tax administration reforms will maximize the 
benefits of these key legislations. As explained by the International Monetary Fund 
(IMF), “the ‘best’ tax administration is not simply one that collects the most revenue; 
How that revenue is raised may be equally important’’3 and “improved tax 
administration is a prerequisite for the success of tax reform.’’4 Furthermore, studies
1 
Philippine News Agency. PBBM eyes tax admin reforms to boost revenue collection. 25 July 2022. Available at 
https://www,pna.gov.ph/articles/1179715. Accessed on 20 April 2023.
2 
Philstar. Marcos to 
ramp 
up digitalization of 
government. 03 January 
2023. 
Available 
at
https://www.philstar.com/headlines/2023/01/03/2234896/marcos-ramp-diqitalization-qovernment. Accessed on 20 April 
2023.
3 
International Monetary 
Fund 
(IMF). The Reform of Tax 
Administration. 
1992. 
Available 
at
https://www.elibrarv.imf.orq/display/book/9781557753175/chOOI .xml?tabs-fulltext. Accessed on 20 April 2023.
4 
IMF. 
Tax 
Reform 
in 
Developing 
Countries. 
1991. 
Available 
at
https://www.elibrarv.imf.orq/downloadpdf/iournals/022/0028/002/article-A015-en.pdf. Accessed on 20 April 2023.


on taxpayer behavior show services that facilitate reporting, filing, and paying taxes, 
among others, may prove to be a more cost-effective way to achieve compliance, 
rather than measures designed to counter non-compliance.5
This measure aims to institute administrative tax reforms to improve bureaucratic 
efficiency and effectiveness by simplifying the process for the filing of returns and 
payment of taxes, thereby providing taxpayers with convenient and responsive tax 
services. It seeks to modernize our tax administration system by removing obstacles 
that prevent taxpayers from complying with tax laws and introducing procedures that 
serve the needs of different types of taxpayers, including a new provision on value- 
added tax (VAT) refund for tourists. These reforms are in line with this administration’s 
8-point socioeconomic agenda in the near and medium term (/.e., improving 
bureaucratic efficiency), and ultimately improve the revenue performance of the 
country.
In view of the foregoing, the passage of this bill is earnestly sought.
JOBy VILLANUEVA^
Bird, R. Administrative Dimensions of Tax Reform. Annals of Economics and Finance (2014), p. 303. Available at 
http://aeconf.eom/Articles/Nov2014/aef150202.pdf. Accessed on 20 April 2023.


Senate
of the
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 2128
23 HUY-4 Pi:ll
RECEIVED 3V:
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
INTRODUCING ADMINISTRATIVE TAX REFORMS, AMENDING 
SECTIONS 21,22, 51, 56, 57, 58, 77, 81, 90, 91,103,106,108,109,110, 
112, 113, 114, 115, 116, 117, 118, 119, 120, 128, 200, 236, 237, 245, 
AND 248 AND CREATING A NEW SECTION 112-A UNDER THE 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the “Ease of Paying Taxes
Act.”
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State:
a) 
To provide a healthy environment for the tax paying public that protects and 
safeguards taxpayer rights and welfare, as well as assures the fair treatment of 
all taxpayers:
b) 
To modernize tax administration and improve its efficiency and effectiveness by 
providing mechanisms that encourage proper and easy compliance at the least 
cost and resources possible;
c) 
To update the taxation system, adopt best practices, and replace antiquated 
procedures such as requiring the filing of a return or declaration for the payment 
of taxes or the “pay as you file” system and restriction of venue for filing and 
payment: and
d) 
To enact policies and procedures which are appropriate to different types of 
taxpayers.


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SEC. 3. Section 21 of the National Internal Revenue Code of 1997, as amended,
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is hereby amended to read as follows:
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“SEC. 21. Sources of Revenue AND CLASSIFICATION OF TAXPAYERS. -
(A) SOURCES OF REVENUE. - The following taxes, fees and charges are 
deemed to be national internal revenue taxes:
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[(a)] (1) Income tax;
[(b)] (2) Estate and donor's taxes;
[(e)] (3) Value-added tax;
[(4)1 (4) Other percentage taxes;
[(e)] (5) Excise taxes;
[(f)] (6) Documentary stamp taxes; and
[(§)] (7) Such other taxes as are or hereafter may be imposed and collected by 
the Bureau of Internal Revenue.
(B) CLASSIFICATION OF TAXPAYERS. - FOR PURPOSES OF 
RESPONSIVE TAX ADMINISTRATION, THE SECRETARY OF FINANCE, 
UPON RECOMMENDATION OF THE COMMISSIONER, SHALL ESTABLISH 
REASONABLE CRITERIA FOR CLASSIFYING TAXPAYERS, TAKING INTO 
CONSIDERATION THEIR CAPACITY TO COMPLY WITH TAX RULES AND 
REGULATIONS, THE AMOUNT AND TYPE OF TAX PAID, THE GROSS 
SALES AND/OR RECEIPTS OF THE TAXPAYER, AS WELL AS INFLATION, 
VOLUME OF BUSINESS, WAGE AND EMPLOYMENT LEVELS, AND 
SIMILAR ECONOMIC AND FINANCIAL FACTORS: PROVIDED, THAT THE 
SECRETARY OF FINANCE SHALL DETERMINE CLASSIFICATIONS FOR 
MEDIUM AND LARGE TAXPAYERS AND INTRODUCE ADDITIONAL 
CLASSIFICATIONS AS MAY BE DEEMED NECESSARY AND REASONABLE 
TO ACHIEVE BETTER TAX ADMINISTRATION AND SERVICE EFFICIENCY: 
PROVIDED, FURTHER, THAT THE BUREAU OF INTERNAL REVENUE MAY 
PROVIDE FOR A SPECIAL UNIT TO CATER TO THE NEEDS OF EVERY 
CLASS OF TAXPAYER: PROVIDED, FINALLY, THAT FOR EASE OF 
COMPLIANCE TO TAX RULES AND REGULATIONS, SIMPLIFIED TAX 
RETURNS AND PROCESSES SHALL BE IMPLEMENTED FOR TAXPAYERS 
NOT CLASSIFIED AS MEDIUM OR LARGE.”
SEC. 4. Section 22 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:
“SEC. 22. Definitions. - When used in this Title:
XXX
(KK) THE TERM TILING OF RETURN' SHALL REFER TO THE ACT OF 
ACCOMPLISHING AND SUBMITTING THE PRESCRIBED TAX RETURN, IN 
PAPER FORM OR ELECTRONIC FORM, TO THE BUREAU OF INTERNAL 
REVENUE AS REQUIRED UNDER THIS CODE OR AS PRECRIBED UNDER 
EXISTING RULES AND REGULATIONS.


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(LL) THE TERM ‘PAYMENT OF TAX’ OR ‘REMITTANCE OF TAX SHALL 
REFER TO THE ACT OF DELIVERING THE AMOUNT OF TAX DUE OR 
WITHHELD, EITHER PERSONALLY OR ELECTRONICALLY, TO THE 
BUREAU OF INTERNAL REVENUE AS REQUIRED UNDER THIS CODE OR 
AS PRESCRIBED UNDER EXISTING RULES AND REGULATIONS.”
SEC. 5. Section 51 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:
“SEC. 51. Individual Returns. -
XXX
(B) Where to File. - Except in cases where the Commissioner otherwise permits, 
the return shall be filed, EITHER PERSONALLY OR ELECTRONICALLY, with 
anY authorized agent bank. Revenue District Officer, OR Collection Agent [or 
duly authorized Treasurer-of the-c4ty or municipality in which such person has his
legal residence or principal place of business in the-Philippines, or if there be no
legal residence or place of business in the Philippines, with the Office-of the
Commissioner].
XXX
(D) Husband and Wife. - Married individuals, whether citizens, resident or 
nonresident aliens, who do not derive income purely from compensation, shall 
file, EITHER PERSONALLY OR ELECTORNICALLY, a return for the taxable 
year to include the income of both spouses, but where it is impracticable for the 
spouses to file one return, each spouse may file a separate return of income but 
the returns so filed shall be consolidated by the Bureau for purposes of 
verification for the taxable year.
X X x”
SEC. 6. Section 56 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:
“SEC. 56. Payment and Assessment of Income Tax for Individuals and 
Corporations. -
(A) Payment of Tax. -
(1) In General. - The total amount of tax imposed by this Title shall be paid, 
EITHER PERSONALLY OR ELECTRONICALLY, by the person subject 
thereto [at the time] DURING the FILING OF THE return [is filed]. In the case 
of tramp vessels, the shipping agents and/or the husbanding agents, and in 
their absence, the captains thereof are required to file the return herein 
provided and pay the tax due thereon before their departure. Upon failure of 
the said agents or captains to file the return and pay the tax, the Bureau of 
Customs is hereby authorized to hold the vessel and prevent its departure 
until proof of payment of the tax is presented or a sufficient bond is filed to


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answer for the tax due.
X X x”
SEC. 7. Section 57 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:
“SEC. 57. Withholding of Tax at Source. -
XXX
(C) TIMING OF WITHHOLDING TAXES. - THE OBLIGATION TO DEDUCT 
AND WITHHOLD THE TAX ARISES AT THE TIME PAYMENT IS MADE.
[(G)] (D) Tax-free Covenant Bonds. - x x x
The Department of Finance shall review, at least once every three (3) years, 
regulations and processes for the withholding of creditable tax under this Code, 
and direct the Bureau of Internal Revenue to amend rules and regulations for the 
same, should it be found during the review that the existing rules, regulations, 
and processes for the withholding of creditable tax under this Code adversely 
and materially impact the taxpayer[r]: PROVIDED, THAT THOSE NOT 
CLASSIFIED AS MEDIUM OR LARGE TAXPAYERS SHALL NOT BE 
REQUIRED TO WITHHOLD TAXES UNDER SUBSECTION (B) OF THIS 
SECTION.”
SEC. 8. Section 58 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:
“SEC. 58. Returns and Payment of Taxes Withheld at Source. -
(A) Quarterly Returns and Payments of Taxes Withheld. - Taxes deducted and 
withheld under Section 57 by withholding agents shall be covered by a return 
and paid to, EITHER PERSONALLY OR ELECTRONICALLY, except in cases 
where the Commissioner otherwise permits, anY authorized agent bank, 
Revenue District Officer, OR Collection Agent [, or duly authorized Treasurer of 
the city or municipality where the withholding agent has his legal residence or
principal place of business, or-where the withholding agent is a corporatioFTy
where the principal office is located].
X X x”
SEC. 9. Section 77 of the National Internal Revenue Code of 1997, as amended, 
is hereby amended to read as follows:
“SEC. 77. Place and Time of Filing and Payment of Quarterly Corporate Income 
Tax. -
(A) Place of Filing. - Except as the Commissioner otherwise permits, the 
quarterly income tax declaration required in Section 75 and the final adjustment


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return required in Section 76 shall be filed EITHER PERSONALLY OR 
ELECTRONICALLY, with [the] ANY authorized agent bank[s-of], Revenue 
District Officer or Collection Agent [or duly authorized Treasurer of the-city or 
municipality having jurisdiction over the location of the principal-office of the
corporationfiling the return or place where its main booksofaccounts and other 
data from whioh-the return is prepared are kept].
(B) Time of Filing the Income Tax Return. - The corporate quarterly declaration 
shall be filed, EITHER PERSONALLY OR ELECTRONICALLY, within sixty (60) 
days following the close of each of the first three (3) quarters of the taxable year. 
The final adjustment return shall be filed on or before the fifteenth (15th) day of 
April, or on or before the fifteenth (15th) day of the fourth (4th) month following 
the close of the fiscal year, as the case may be.
(C) Time of Payment of the Income Tax. - The income tax due on the corporate 
quarterly returns and the final adjustment income tax returns computed in 
accordance with Sections 75 and 76 shall be paid, EITHER PERSONALLY OR 
ELECTRONICALLY, [at the time] DURING THE FILING OF the declaration or 
return [is filed] in a manner prescribed by the Commissioner.”
SEC. 10. Section 81 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 81. Filing of Return and Payment of Taxes Withheld. - Except as the 
Commissioner otherwise permits, taxes deducted and withheld by the employer 
on wages of employees shall be covered by a return and paid, EITHER 
PERSONALLY OR ELECTRONICALLY, to anY authorized agent bank, 
REVENUE DISTRICT OFFICER, OR Collection Agent[, or the duly autborize4 
Treasurer of the city or municipality where the employer has his legal residence
or principal place of business, or in case the employer is a corporation-where
the principal office is located].
The return shall be filed and [the payment made] PAID, EITHER PERSONALLY 
OR ELECTRONICALLY, within twenty-five (25) days from the close of each 
calendar quarter: Provided, however, That the Commissioner may, with the 
approval of the Secretary of Finance, require the employers to pay or deposit the 
taxes deducted and withheld at more frequent intervals, in cases where such 
requirement is deemed necessary to protect the interest of the Government.
X X x”
SEC. 11. Section 90 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 90. Estate Tax Returns. -
XXX
(D) Place of Filing. - Except in cases where the Commissioner otherwise permits, 
the return required under Subsection (A) shall be filed, EITHER PERSONALLY


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OR ELECTRONICALLY, with anY authorized agent bank, [of] Revenue District 
Officer, OR Collection Officer[, or duly authorized Treasurer of the city or 
municipality in-which the decedent-was domiciled at the time of his death or if
there be no- legal residence in-the Philippines, with the—Office of the
Commissioner].”
SEC. 12. Section 91 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 91. Payment of Tax. -
(A) Time of Payment. - The estate tax imposed by Section 84 shall be paid, 
EITHER PERSONALLY OR ELECTRONICALLY, [at the time] DURING THE 
FILING OF the return [is filed] by the executor, administrator or the heirs.
XXX
(D) Liability for Payment. - The estate tax imposed by Section 84 shall be paid, 
EITHER PERSONALLY OR ELECTRONICALLY, by the executor or 
administrator before delivery to any beneficiary of bis THE distributive share of 
the estate. Such beneficiary shall to the extent of bis THE distributive share of 
the estate, be subsidiarily liable for the payment of such portion of the estate tax 
as bis THE distributive share bears to the value of the total net estate.
X X x”
SEC. 13. Section 103 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 103. Filing of Return and Payment of Tax. -
XXX
(B) Time and Place of Filing and Payment. - The return of the donor required in 
this Section shall be filed, EITHER PERSONALLY OR ELECTRONICALLY, 
within thirty (30) days after the date the gift is made and the tax due thereon shall 
be paid, EITHER PERSONALLY OR ELECTRONICALLY, [at the time of filing] 
DURING THE FILING OF THE DECLARATION OR RETURN IN A MANNER 
PRESCRIBED BY THE COMMISSIONER. Except in cases where the 
Commissioner otherwise permits, the return shall be filed and the tax paid, 
EITHER PERSONALLY OR ELECTRONICALLY, to anY authorized agent 
bank, [tbe] Revenue District Officer, OR Revenue Collection Officer [or-duty 
authorized Treasurer of the city or municipality where the donor was domiciled
at the time of the transfer, or if there be no legal residence in the Philippinesr-wltb
the Office of tbe-Gommissioner]. In the case of gifts made by a nonresident, the 
return may be filed, EITHER PERSONALLY OR ELECTRONICALLY, with the 
Philippine Embassy or Consulate in the country where he is domiciled at the time 
of the transfer, or directly with the Office of the Commissioner.”
SEC. 14. Section 106 of the National Internal Revenue Code of 1997, as


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amended, is hereby further amended to read as follows:
“SEC. 106. Value-Added Tax on Sale of Goods or Properties. -
XXX
(D) Sales Returns, Allowances and Sales Discounts. - The value of goods or 
properties sold and subsequently returned or for which allowances were granted 
by a VAT-registered person may be deducted from the gross sales [of-rec^ipts] 
for the quarter in which a refund is made or a credit memorandum or refund is 
issued. Sales discount granted and indicated in the invoice at the time of sale 
and the grant of which does not depend upon the happening of a future event 
may be excluded from the gross sales within the same quarter it was given.
X X x”
SEC. 15. Section 108 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 108. Value-added Tax on Sale of Services and Use or Lease of 
Properties. -
(A) Rate and Base of Tax. - There shall be levied, assessed and collected, a 
value-added tax equivalent to twelve percent (12%) of gross [receipts] SALES 
derived from the sale or exchange of services, including the use or lease of 
properties.
XXX
FOR PURPOSES OF VAT, [T]the term “gross [receipts]” SALES means the total 
amount of money or its equivalent [representing—the—contract—pric&r 
compensation, service fee, rental or royalty, including the amount charged for
materials supplied with the services and deposits and advanced payments
actually or constructively received during the taxable quarter for the services
performed-or-to-be performed for another person,] WHICH THE PURCHASER 
PAYS OR IS OBLIGATED TO PAY TO THE SELLER IN CONSIDERATION OF 
THE SALE, BARTER, OR EXCHANGE OF SERVICES AND THE USE OR 
LEASE OF PROPERTIES, excluding value-added tax. THE LIABILITY TO PAY 
VAT SHALL BE AT THE TIME OF THE ISSUANCE OF THE INVOICE.
XXX
(C) SALES RETURNS, ALLOWANCES AND SALES DISCOUNTS. - THE 
VALUE OF SERVICES SOLD AND SUBSEQUENTLY REFUNDED OR FOR 
WHICH ALLOWANCES WERE GRANTED BY A VAT-REGISTERED PERSON 
MAY BE DEDUCTED FROM THE GROSS SALES FOR THE QUARTER IN 
WHICH A REFUND IS MADE OR A CREDIT MEMORANDUM IS ISSUED. ANY 
SALES DISCOUNT GRANTED AND INDICATED IN THE INVOICE AT THE 
TIME OF SALE AND THE GRANT OF WHICH DOES NOT DEPEND UPON A


FUTURE EVENT MAY BE EXCLUDED FROM THE GROSS SALES OF THE 
QUARTER IT WAS GIVEN.”
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SEC. 16. Section 109 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 109. Exempt Transactions. -
(1) Subject to the provisions of Subsection (2) hereof, the following transactions 
shall be exempt from the value-added tax:
XXX
(CC) Sale or lease of goods or properties or the performance of services 
other than the transactions mentioned in the preceding paragraphs, the 
gross annual sales [and/or receipts] do not exceed the amount of Three 
million pesos (P3,000,000.00)[.]; PROVIDED, THAT THE AMOUNT 
HEREIN STATED SHALL BE ADJUSTED TO ITS PRESENT VALUE NOT 
LATER THAN JANUARY 01, 2024, AND EVERY THREE (3) YEARS 
THEREAFTER, BASED ON THE CONSUMER PRICE INDEX (CPI) THAT 
IS PUBLISHED BY THE PHILIPPINE STATISTICS AUTHORITY (PSA).”
SEC. 17. Section 110 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 110. Tax Credits. -
(A) Creditable Input Tax. -
(1) Any input tax evidenced by a VAT invoice [or official receipt] issued in 
accordance with Section 113 hereof on the following transactions shall be 
creditable against the output tax:
XXX
(b) Purchase of services on which a value-added tax has been actually 
[paM\ BILLED BY THE SUPPLIER.
X X x”
SEC. 18. Section 112 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 112. Refunds or Tax Credits of Input Tax. -
(A) Zero-rated or Effectively Zero-rated Sales. - Any VAT-registered person, 
whose sales are zero-rated or effectively zero-rated may, within two (2) years 
after the close of the taxable quarter when the sales were made, apply for the 
[tssyafrGe^T^ax-OFe#LGertif}eate or] refund of creditable input tax due or paid 
attributable to such sales, except transitional input tax, to the extent that such


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input tax has not been applied against output tax; Provided, however, That in the 
case of zero-rated sales under Section 106 (A)(2)(a)(1), (2) and (b) and Section 
108 (B)(1) and (2), the acceptable foreign currency exchange proceeds thereof 
had been duly accounted for in accordance with the rules and regulations of the 
Bangko Sentral ng Pilipinas (BSP): Provided, further. That where the taxpayer is 
engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt 
sale of goods of properties or services, and the amount of creditable input tax 
due or paid cannot be directly and entirely attributed to any one of the 
transactions, it shall be allocated proportionately on the basis of the volume of 
sales: Provided, finally. That for a person making sales that are zero-rated under 
Section 108 (B)(6), the input taxes shall be allocated ratably between his THE 
zero-rated and non-zero-rated sales.
(C) Period within which THE Refund or Tax Credit of Input Taxes shall be 
Made. - In proper cases, the Commissioner shall grant a refund for creditable 
input taxes within ninety (90) days from the date of submission of the [officlat 
receipts or] invoices and other documents in support of the application filed in 
accordance with Subsections (A) and (B) hereof. VAT REFUND CLAIMS 
SHALL BE CLASSIFIED INTO LOW-, MEDIUM-, AND HIGH-RISK CLAIMS: 
PROVIDED, THAT MEDIUM- AND HIGH-RISK CLAIMS SHALL BE SUBJECT 
TO AUDIT OR OTHER VERIFICATION PROCESSES IN ACCORDANCE WITH 
THE BIR’S NATIONAL AUDIT PROGRAM FOR THE YEAR: Provided, 
FURTHER, That should the Commissioner find that the grant of refund is not 
proper, the Commissioner must state in writing the legal and factual basis for the 
denial.
XXX
(D) Manner of Giving Refund. - Refunds shall be made upon warrants drawn by 
the Commissioner or by }ms THE duly authorized representative without the 
necessity of being countersigned by the Chairman, Commission on Audit, the 
provisions of the Administrative Code of 1987 to the contrary notwithstanding: 
Provided, That refunds under this paragraph shall be subject to post audit by the 
Commission on Audit FOLLOWING THE RISK-BASED CLASSIFICATION 
ABOVE-DESCRIBED.”
SEC. 19. A new section designated as Section 112-A under Chapter I, Title IV of 
the National Internal Revenue Code of 1997, as amended, is hereby inserted to read 
as follows:
“SEC. 112-A. VAT REFUND FOR TOURISTS. - A TOURIST SHALL BE 
ELIGIBLE FOR A VALUE-ADDED TAX (VAT) REFUND ON GOODS 
PURCHASED IN THE PHILIPPINES IF SUCH GOODS ARE SHIPPED OR 
TAKEN OUT OF THE COUNTRY WITHIN SIXTY (60) DAYS FROM THE DATE 
OF PURCHASE, AND THE TOTAL VALUE OF GOODS PURCHASED MUST 
AT LEAST BE THREE THOUSAND PESOS (P3,000.00): PROVIDED, THAT 
SUCH THRESHOLD MAY BE REASONABLY ADJUSTED TO AN AMOUNT 
THAT WOULD SUFFICIENTLY COVER THE COST OF ADMINISTERING THE 
REFUND, AS DETERMINED BY THE SECRETARY OF FINANCE, UPON 
RECOMMENDATION OF THE COMMISSIONER OF INTERNAL REVENUE.


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FOR PURPOSES OF THIS SECTION, A “TOURIST” SHALL REFER TO A 
FOREIGN INDIVIDUAL NOT A RESIDENT OF, NOR ENGAGED IN TRADE OR 
BUSINESS IN, THE PHILIPPINES, WHO COMES TO THE COUNTRY FOR 
TRAVEL, RECREATION, LEISURE, OR BUSINESS FOR A PERIOD NOT 
EXCEEDING SIX (6) MONTHS.”
SEC. 20. Section 113 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 113. Invoicing and Accounting Requirements for VAT-Registered 
Persons. -
(A) Invoicing Requirement[s]. - A VAT-registered person shall issue[f
(1) A] A VAT invoice for every sale, barter, [ofj exchange, OR LEASE of goods 
or properties[^aft4
(2-) A VAT-official-receipt for every-tease of goods or properties,] and for every 
sale, barter or exchange of services.
(B) Information Contained in the VAT Invoice [or VAT Official Receipt]. - The 
following information shall be indicated in the VAT invoice [or VAT official 
receipt]:
(1) A statement that the seller is a VAT-registered person, followed by [bis] THE 
SELLER’S Taxpayer's Identification Number (TIN);
(2) The total amount which the purchaser pays or is obligated to pay to the seller 
with the indication that such amount includes the value-added tax. Provided, 
That:
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(a) The amount of the tax shall be shown as a separate item in the invoice 
[or receipt];
(b) If the sale is exempt from value-added tax, the term “VAT-exempt sale” 
shall be written or printed prominently on the invoice [or receipt];
(c) If the sale is subject to zero percent (0%) value-added tax, the term “zero­
rated sale” shall be written or printed prominently on the invoice [or receipt];
(d) If the sale involved goods, properties or services some of which are 
subject to and some of which are VAT zero-rated or VAT-exempt, the invoice 
[or receipt] shall clearly indicate the break-down of the sale price between its 
taxable, exempt and zero-rated components, and the calculation of the 
value-added tax on each portion of the sale shall be shown on the invoice 
[or-receipt]: Provided, That the seller may issue separate invoices [or 
receipts] for the taxable, exempt, and zero-rated components of the sale.
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XXX
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(D) Consequence of Issuing AN Erroneous VAT Invoice [or VAT Official 
Receipt]. -
(1) If a person who is not a VAT-registered person issues an invoice [or receipt] 
showing [f^s] THE PERSON’S Taxpayer Identification Number (TIN), followed 
by the word “VAT”:
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(b) The VAT shall, if the other requisite information required under 
Subsection (B) hereof is shown on the invoice [or receipt], be recognized as 
an input tax credit to the purchaser under Section 110 of this Code.
(2) If a VAT-registered person issues a VAT invoice [or VAT official receipt] for 
a VAT-exempt transaction, but fails to display prominently on the invoice [or 
receipt] the term “VAT-exempt sale, "the issuer shall be liable to account for the 
tax imposed in section 106 or 108 as if Section 109 did not apply.
(3) IF A VAT-REGISTERED PERSON ISSUES A VAT INVOICE TO 
ANOTHER VAT-REGISTERED PERSON WITH LACKING INFORMATION 
REQUIRED UNDER SUBSECTION (B) HEREOF, THE ISSUER SHALL BE 
LIABLE TO A PENALTY IMPOSABLE FOR NON-COMPLIANCE WITH THE 
INVOICING REQUIREMENT: PROVIDED, HOWEVER, THAT THE VAT 
SHALL STILL BE RECOGNIZED AS TAX CREDIT ON THE PART OF THE 
PURCHASER PURSUANT TO SECTION 110 OF THIS CODE IF THE 
LACKING INFORMATION DO NOT PERTAIN TO THE AMOUNT OF SALES, 
THE AMOUT OF VAT, THE NAME AND TIN OF BOTH THE PURCHASER 
AND ISSUER/SELLER, AND THE DATE OF THE TRANSACTION.
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X X X
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SEC. 21. Section 114 of the National Internal Revenue Code of 1997, as
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amended, is hereby further amended to read as follows:
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“SEC. 114. Return and Payment of Value-Added Tax. -
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(A) In General. - Every person liable to pay the value-added tax imposed under
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this Title shall file, EITHER PERSONALLY OR ELECTRONICALLY, a quarterly
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return of the amount of bic THE gross sales [or receipts] within twenty-five (25)
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days following the close of each taxable quarter prescribed for each taxpayer:
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Provided, however, That VAT-registered persons shall pay, EITHER
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PERSONALLY OR ELECTRONICALLY, the value-added tax on a monthly
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basis: Provided, finally. That beginning January 1,2023, the filing and payment
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required under this Subsection shall be done within twenty-five (25) days
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following the close of each taxable quarter.
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XXX
(B) Where to File the Return and Pay the Tax. - Except as the Commissioner 
otherwise permits, the return shall be filed with and the tax paid, EITHER
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PERSONALLY OR ELECTRONICALLY, to anY authorized agent bank[T] OR 
Revenue Collection Officer [or duly authorized city or municipal Treasurer in the 
P-hilippiftes-iocated within the revenue district where-the taxpayer i&-registered or
required to register].
XXX
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SEC. 22. Section 115 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 115. Power of the Commissioner to Suspend the Business Operations of 
a Taxpayer. - The Commissioner or his/HER authorized representative is hereby 
empowered to suspend the business operations and temporarily close the 
business establishment of any person for any of the following violations:
(a) In the case of a VAT-registered Person. -
(1) Failure to issue [receipts-or] invoices;
(2) Failure to file a value-added tax return as required under Section 114; or
(3) Understatement of taxable sales [or receipts] by thirty percent (30%) or 
more of fris THE correct taxable sales [or receipts] for the taxable quarter.
X X x”
SEC. 23. Section 116 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 116. Tax on Persons Exempt from Value-Added Tax (VAT). - Any person 
whose sales [of-receipts] are exempt under Section 109 (CC) of this Code from 
the payment of value-added tax and who is not a VAT-registered person shall 
pay, EITHER PERSONALLY OR ELECTRONICALLY, a tax equivalent to three 
percent (3%) of bis THE gross quarterly sales [or receipts]: Provided, That 
cooperatives shall be exempt from the three percent (3%) gross receipts tax 
herein imposed: Provided, further. That effective July 1,2020 until June 30,2023, 
the rate shall be one percent (1%).”
SEC. 24. Section 117 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 117. Percentage Tax on Domestic Carriers and Keepers of Garages. - 
Cars for rent or hire driven by the lessee, transportation contractors, including 
persons who transport passengers for hire, and other domestic carriers by land, 
for the transport of passengers (except owners of bancas and owners of animal- 
drawn two wheeled vehicle), and keepers of garages shall pay a tax equivalent 
to three percent (3%) of their quarterly gross [receipts] SALES.
The gross [receipts] SALES of common carriers derived from their incoming and 
outgoing freight shall not be subjected to the local taxes imposed under Republic
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Act No. 7160, otherwise known as the Local Government Code of 1991.
[In computing the percentage tax provided in this Section, the following shall be
considered the minimum quarterly gross receipts in each particular case:
-rJeepney for hire 
2. Provincial—P1T200
1. Not exceeding 30 passengers—P3,600
2. Exceeding 30 but not exceeding 50 passengers—P6,000
3. Exc-eeding 50 passengers—P7,200
Taxis
1-. -Manila and other cities—P3,600
2. Provincial—P2AQQ
Car for hire (with chauffer)—P3,000
Car for hire (without chauffer) - PI ,800]”
SEC. 25. Section 118 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 118. Percentage Tax on International Carriers. -
(A) International air carriers doing business in the Philippines on their gross 
[receipts] SALES derived from transport of cargo from the Philippines to another 
country shall pay a tax of three percent (3%) of their quarterly gross [receipts]
SALES.
(B) International shipping carriers doing business in the Philippines on their gross 
[receipts] SALES derived from transport of cargo from the Philippines to another 
country shall pay a tax equivalent to three percent (3%) of their quarterly gross
SALES.”
SEC. 26. Section 119 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 119. Tax on Franchises. - Any provision of general or special law to the 
contrary notwithstanding, there shall be levied, assessed and collected in respect 
to all franchises on radio and/or television broadcasting companies whose 
annual gross [receipts] SALES of the preceding year do not exceed Ten million 
pesos (PI0,000.00), subject to Section 236 of this Code, a tax of three percent 
(3%) and on gas and water utilities, a tax of two percent (2%) on the gross 
[receipts] SALES derived from the business covered by the law granting the 
franchise: Provided, however, That radio and television broadcasting companies 
referred to in this Section shall have an option to be registered as a value-added 
taxpayer and pay the tax due thereon: Provided, further. That once the option is
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exercised, said option shall be irrevocable.
X X x”
SEC. 27. Section 120 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows;
“SEC. 120. Tax on Overseas Dispatch, Message or Conversation Originating 
from the Philippines. -
(A) Persons Liable. - There shall be collected upon every overseas dispatch, 
message or conversation transmitted from the Philippines by telephone, 
telegraph, telewriter exchange, wireless and other communication equipment 
services, a tax of ten percent (10%) on the amount [paM] PAYABLE for such 
services. The tax imposed in this Section shall be payable by the person paying 
for the services rendered and shall be paid to the person rendering the services 
who is required to collect and pay the tax within twenty (20) days after the end of 
each quarter.
X X x”
SEC. 28. Section 128 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 128. Returns and Payment of Percentage Taxes. -
(A) Returns of Gross Sales, Receipts or Earnings and Payment of Tax. -
(1) Persons Liable to Pay Percentage Taxes. - Every person subject to the 
percentage taxes imposed under this Title shall file, EITHER PERSONALLY 
OR ELECTRONICALLY, a quarterly return of the amount of [fws] THE 
PERSON’S gross sales, receipts or earnings and pay, EITHER 
PERSONALLY OR ELECTRONICALLY, the tax due thereon within twenty- 
five (25) days after the end of each taxable quarter: Provided, That in the 
case of a person whose VAT registration is cancelled and who becomes 
liable to the tax imposed in Section 116 of this Code, the tax shall accrue 
from the date of cancellation and shall be paid in accordance with the 
provisions of this Section.
(2) Person Retiring from Business. - Any person retiring from a business 
subject to percentage tax shall notify the nearest internal revenue officer, file,
EITHER PERSONALLY OR ELECTRONICALLY [Ws] THE PERSON’S 
return and pay, EITHER PERSONALLY OR ELECTRONICALLY, the tax
due thereon within twenty (20) days after closing [his] THE business.
XXX
(B) Where to File. - Except as the Commissioner otherwise permits, every 
person liable to the percentage tax under this Title [may, at his optiof^] SHALL 
file, EITHER PERSONALLY OR ELECTRONICALLY, a [separate return for
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each branch or place of business, or] a consolidated return for all branches or 
places of business with [the] ANY authorized agent bank, Revenue District 
Officer, OR Collection Agent [or—duly-authorized-Treasurer of the city or 
municipality where said business-or-principal place of business is located, as the
SEC. 29. Section 200 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 200. Payment of Documentary Stamp Tax. -
(A) 
In General. - The provisions of Presidential Decree No. 1045 
notwithstanding, any person liable to pay documentary stamp tax upon any 
document subject to tax under Title VII of this Code shall file, EITHER 
PERSONALLY OR ELECTRONICALLY, a tax return and pay, EITHER 
PERSONALLY OR ELECTRONICALLY, the tax in accordance with the rules 
and regulations to be prescribed by the Secretary of Finance, upon 
recommendation of the Commissioner.
(B) Time for Filing and Payment of the Tax. - Except as provided by rules and 
regulations promulgated by the Secretary of Finance, upon recommendation of 
the Commissioner, the tax return prescribed in this Section shall be filed, EITHER 
PERSONALLY OR ELECTRONICALLY, within ten (10) days after the close of 
the month when the taxable document was made, signed, issued, accepted, or 
transferred, and the tax thereon shall be paid, EITHER PERSONALLY OR 
ELECTRONICALLY, at the same time the aforesaid return is filed.
(C) Where to File. - Except in cases where the Commissioner othenA/ise permits, 
the aforesaid tax return shall be filed, EITHER PERSONALLY OR 
ELECTRONICALLY, with and the tax due shall be paid, EITHER PERSONALLY 
OR ELECTRONICALLY, through [the] ANY authorized agent bank [within the 
territorial-jurisdiction ofThe Revenue District Office which has jurisdiction over the
residence or principal place of business of the taxpayer]. In places where there 
is no authorized agent bank, the return shall be filed with [the] A Revenue District 
Officer[7] OR [c]Collection [a]Agent[, or duly authorized-Treasurer of the-city-or 
municipality-in-which-the taxpayer has his legal residence-of principal place of
business].
X X x”
SEC. 30. Section 236 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 236. Registration Requirements. -
(Aj Requirements. - Every person subject to any internal revenue tax shall 
register once with the appropriate Revenue District Officer OR THROUGH 
ELECTRONIC MEANS:
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The registration shall contain the taxpayer’s name, [style,] place of residence, 
business and such other information as may be required by the Commissioner 
in the form prescribed therefor: Provided, THAT THE COMMISSIONER SHALL 
ENSURE THE AVAILABILITY OF REGISTRATION FACILITIES TO 
TAXPAYERS WHO ARE NOT RESIDING IN THE COUNTRY: PROVIDED, 
FURTHER, That the Commissioner shall simplify the business registration and 
tax compliance requirements of self-employed individuals and/or professionals.
XXX
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[(B) Annual Registration-Fee—An annual registration fee-in-the amount of Five
hundred pesos (P5QO)-f0f-every separate-o<^i&tinct establishment or place-of
business, including facility types-where-sales-transactions occur, shall be paid
upon registration and-every year thereafter on or before the last day of-JaFtuary-:-
Provided, however. That cooperatives, individuals earning purely compensation
income,-whether locally or abroad, and overseas workers are not liable to the
registration fee herein imposed.
The registration fee shall be paid to an authorized agent bank located within the
revenue district, or to the Revenue Collection Officer, or duly authorized
Treasurer of the city or municipality where each place of business or branch is
registered.]
[(G)] (B) Registration of Each Type of Internal Revenue Tax. - Every person who 
is required to register with the Bureau of Internal Revenue under Subsection (A) 
hereof, shall register each type of internal revenue tax for which he is obligated, 
shall file, EITHER PERSONALLY OR ELECTRONICALLY, a return and shall 
pay, EITHER PERSONALLY OR ELECTRONICALLY, such taxes, and shall 
update such registration of any changes in accordance with Subsection (E) 
hereof.
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[(B)] (C) Transfer of Registration. - In case a registered person decides to 
transfer [bis] THE place of business or [his] head office or branches, it shall be 
[his] THE PERSON’S duty to update [his] THE registration status by filing, 
EITHER PERSONALLY OR ELECTRONICALLY, an application for registration 
information update in the form prescribed therefor.
[(^](D)xxx
[(F)] (E) Cancellation of Registration. -
(1) General Rule. - The registration of any person who ceases to be liable to 
a tax type shall be cancelled upon MERE filing with the Revenue District 
Office where [he] THE PERSON is registered OR THROIGH ELECTRONIC 
MEANS, an application for registration information update in a form 
prescribed therefor. HOWEVER, THIS SHALL NOT PRECLUDE THE 
REVENUE DISTRICT OFFICER FROM CONDUCTING AN AUDIT IN 
ORDER TO DETERMINE TAX LIABILITY.
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(2) Cancellation of Value-Added Tax Registration. - A VAT- registered 
person may cancel [t:^] THE registration for VAT if:
(a) [He] THE PERSON makes A written OR AN ELECTRONIC
application and can demonstrate to the Commissioner’s satisfaction that 
[his] THE gross sales or receipts for the following twelve (12) months, 
other than those that are exempt under Section 109 (A) to ([U] CC), will 
not exceed [One^millionH:ive hundred thousand pesos^(PT,500,000)]
THREE MILLION PESOS (P3,000,000) or
(b) [He] THE PERSON has ceased to carry on [hHs] THE trade or business 
and does not expect to recommence any trade or business within the next 
(12) months.
The cancellation of registration will be effective from the first day of the 
following month.
[(G)] (F) Persons Required to Register for Value-Added Tax. —
(1) Any person who, in the course of trade or business, sells, barters or 
exchanges goods or properties, or engages in the sale or exchange of 
services, shall be liable to register, EITHER PERSONALLY OR 
ELECTRONICALLY, for value-added tax if:
(a) [His] THE PERSON’S gross sales [or receipts] for the past twelve (12) 
months, other than those that are exempt under Section 109 (A) to (BB), 
have exceeded [Three million pesos (P3,000,000)] THE THRESHOLD 
AS PROVIDED IN SECTION 109 (CC); or
(b) There are reasonable grounds to believe that [i=Hs] THE gross sales [or 
receipts] for the next twelve (12) months, other than those that are exempt 
under Section 109 (A) to (BB), will exceed [Three—million -pesos 
(P3,000,000)] THE THRESHOLD AS PROVIDED IN SECTION 109 (CC).
(2) Every person who becomes liable to be registered under paragraph (1) 
of this Subsection shall register, EITHER PERSONALLY OR 
ELECTRONICALLY, with the Revenue District Office which has jurisdiction 
over the head office or branch of that person, and shall pay, EITHER 
PERSONALLY OR ELECTRONICALLY, the annual registration fee 
prescribed in Subsection (B) hereof. If be SUCH PERSON fails to register, 
he/SHE shall be liable to pay the tax under Title IV as if he were a VAT- 
registered person, but without the benefit of input tax credits for the period in 
which he was not properly registered.
[(H)] (G) Optional Registration for Value-Added Tax of Exempt Person. -
(1) Any person who is not required to register for value-added tax under 
Subsection [(G)] (F) hereof may elect to register, EITHER PERSONALLY 
OR ELECTRONICALLY, for value-added tax [by registering] with the
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Revenue District Office that has a jurisdiction over the head office of that 
person. [, and paying the annual registration fee in Subsection (B) hereof.]
(2) Any person who elects to register under this Subsection shall not be 
entitled to cancel Ws THE registration under Subsection [(F)] (E)(2) for the 
next three (3) years.
XXX
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[(f)] (H) Supplying of Taxpayer Identification Number (TIN). -
Any person required under the authority of this Code to make, render or file a 
return, statement or other document shall be supplied with or assigned a 
Taxpayer Identification Number (TIN) which [he] THE PERSON shall indicate in 
such return, statement or document filed, EITHER PERSONALLY OR 
ELECTRONICALLY, with the Bureau of Internal Revenue for [his] proper 
identification for tax purposes, and which [he] THE PERSON shall indicate in 
certain documents, such as, but not limited to the following:
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In cases where a registered taxpayer dies, the administrator or executor shall 
register, EITHER PERSONALLY OR ELECTRONICALLY, the estate of the 
decedent in accordance with Subsection (A) hereof and a new Taxpayer 
Identification Number (TIN) shall be supplied in accordance with the provisions 
of this Section.
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In the case of a nonresident decedent, the executor or administrator of the estate 
shall register, EITHER PERSONALLY OR ELECTRONICALLY, the estate with 
the Revenue District Office where [he] THE EXECUTOR OR ADMINISTRATOR 
is registered: Provided, however, That in case such executor or administrator is 
not registered, registration of the estate shall be made with the Taxpayer 
Identification Number (TIN) supplied by the Revenue District Office having 
jurisdiction over his SUCH PERSON’S legal residence.
X X x”
SEC. 31. Section 237 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:
“SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. -
(A) Issuance. - All persons subject to an internal revenue tax shall, at the point 
of each sale and transfer of merchandise or for services rendered [vaiueh-aTOoe 
huFidred^peso&-(P400T00fof-more7] issue duly registered receipts or sales or 
commercial invoices, showing the date of transaction, quantity, unit cost and 
description of merchandise or nature of service: Provided, however. That where 
the receipt is issued to cover payment made as rentals, commissions, 
compensation, or fees, receipts or invoices shall be issued which shall show the 
name, [business style, if any,-] and address of the purchaser, customer or client:
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Provided, further, That where the purchaser is a VAT-registered person, in 
addition to the information herein required, the invoice or receipt shall further 
show the Taxpayer Identification Number (TIN) of the purchaser.
X X x”
SEC. 32. Section 245 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 245. Specific Provisions to be Contained in Rules and Regulations. - The 
rules and regulations of the Bureau of Internal Revenue shall, among other 
things, contain provisions specifying, prescribing or defining:
XXX
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(J) The manner in which internal revenue taxes, such as income tax, including 
withholding tax, estate and donor's taxes, value-added tax, other percentage 
taxes, excise taxes and documentary stamp taxes shall be paid, EITHER 
PERSONALLY OR ELECTRONICALLY, through the collection officers of the 
Bureau of Internal Revenue or through duly authorized agent banks which are 
hereby deputized to receive payments of such taxes and the returns, papers and 
statements that may be filed by the taxpayers in connection with the payment of 
the tax: Provided, however, That notwithstanding the other provisions of this 
Code prescribing the place of filing of returns and payment of taxes, the 
Commissioner may, by rules and regulations, require that the tax returns, papers 
and statements and taxes of MEDIUM AND large taxpayers be filed and paid, 
respectively, through collection officers or through duly authorized agent banks: 
[Provided, further. That the Commissioner can exercise this power within six (6) 
years from the approval of Republic Act No. 7646 or the completion of its 
comprehensive computerization program, whichever comes earlier:] Provided, 
[finally] FURTHER, That separate venues for the Luzon, Visayas and Mindanao 
areas may be designated for the filing of tax returns and payment of taxes by 
said MEDIUM AND large taxpayers.
[For the purpose of this Section, ‘large taxpayer’ means a taxpayer who satisfies
any of the following criteria:
(1) Value-Added Tax (VAT) - Business establishment with-VAT paid or
payable of at least One hundred thousand pesos (PI 00, 000) for any quarter
of the preceding taxable year;
(2) Excise tax— Business establishment with excise tax paid or payable of at
least One million pesos (PI, 000,000) for the preceding taxable yeari
(3) Corporate Income-Tax—Business establishment with annual income tax
paid or payable of at least One million pesos (PI,000,000) for the preceding
taxable year; and
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(4) Withholding tax—B^jsiness-establishment with withholding4ax payment or
remittance of at-least One million-peso& (P1,000,000) for-the preceding
taxable year.
Provided, howBveFr^B{ the Secretary of Finance,Hjpon recommendation of the 
Commissioner, ma^modify or add to the above criteria for determining a large 
taxpayer after considering such factors as inflation, volume of business, wage
The penalties prescribed under Section 248 of this Code shall be imposed on 
any violation of the rules and regulations issued by the Secretary of Finance, 
upon recommendation of the Commissioner, prescribing the place of filing of 
returns and payments of taxes by MEDIUM AND large taxpayers.”
SEC. 33. Section 248 of the National Internal Revenue Code of 1997, as 
amended, is hereby amended to read as follows:
“SEC. 248. Civil Penalties. -
(A) There shall be imposed, in addition to the tax required to be paid, a penalty 
equivalent to [twenty-five percent (25%)] TWELVE PERCENT (12%) of the 
amount due, in the following cases:
(1) Failure to file any return and pay the tax due thereon as required under the 
provisions of this Code or rules and regulations on the date prescribed; or
[(2) Unless otherwise authorized by the Commissioner, filing a return with an
interrial-revenue officer other than those with whom the return is required to
be filed; or]
[(6)] (2) Failure to pay the deficiency tax within the time prescribed for its 
payment in the notice of assessment; or
[(4)] (3) Failure to pay the full or part of the amount of tax shown on any return 
required to be filed under the provisions of this Code or rules and regulations, 
or the full amount of tax due for which no return is required to be filed, on or 
before the date prescribed for its payment.
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X X X
SEC. 34. Implementing Rules and Regulations. - Within ninety (90) calendar 
days from the effectivity of this Act, the Secretary of Finance shall, in consultation with 
the Bureau of Internal Revenue and the private sector, promulgate the necessary rules 
and regulations for its effective implementation.
SEC. 35. Separability Clause. - If any provision of this Act is declared invalid 
or unconstitutional, the other provisions not affected thereby shall remain in full force 
and effect.
SEC. 36. Repealing Clause. - AW laws, decrees, executive issuances, and rules
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and regulations inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly.
SEC. 37. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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