Tax Particulars National Internal Revenue Code of 1997 R. A. No.

10963
Stamp Taxes Sec. 183 Policies of insurance or other instruments are subjected to DST rates on life insurance policies are increased to:
the following DST rates:

Does not exceed PHP100,000 Exempt Does not exceed PHP100,000 Exempt
Exceeds 100,000 but does not exceed 300,000 PHP10.00 Exceeds 100,000 but does not exceed 300,000 PHP20.00
Exceeds 300,000 but does not exceed 500,000 25.00 Exceeds 300,000 but does not exceed 500,000 50.00
Exceeds 500,000 but does not exceed 750,000 50.00 Exceeds 500,000 but does not exceed 750,000 100.00
Exceeds 750,000 but does not exceed 1,000,000 75.00 Exceeds 750,000 but does not exceed 1,000,000 150.00
Exceeds 1,000,000 100.00 Exceeds 1,000,000 200.00

Sec. 196 DST is collected on deeds of sale and conveyances of real DST collected on deeds of sale, conveyances and
property only. donations of real property. Transfers exempt from donor’s
tax are exempted from DST.
Sec. 197 Every charter party and similar instrument shall be collected Every charter party and similar instrument shall be
a DST at the following rates: collected a DST at the following rates:

Registered tonnage DST rate Registered tonnage DST rate

Does not exceed 1,000 tons
Exceeds 1,000 tons and does not
exceed 10,000 tons
Exceeds 10,000 tons
PHP500 + an additional tax of PHP50 for each month or
fraction of a month in excess of 6 months.
1, 000 + an additional tax of 100 for each month or
fraction of a month in excess of 6 months.
1, 500 + an additional tax of 150 for each month or
fraction of a month in excess of 6 months.
Does not exceed 1,000 tons
Exceeds 1,000 tons and does
not exceed 10,000 tons
Exceeds 10,000 tons
PHP1,000 + an additional tax of PHP100 for
each month or fraction of a month in excess of
6 months.
2,000 + an additional tax of 200 for each month
or fraction of a month in excess of 6 months.
3,000 + an additional tax of 300 for each month
or fraction of a month in excess of 6 months.

On compliance requirements
Keeping of books of Sec. 232 All that are required by law to pay internal revenue taxes
accounts shall keep a journal and a ledger or their equivalents.
Those whose quarterly sales, earnings, receipts, or output do not
exceed PHP50,000 shall keep and use simplified set of bookkeeping
records.
Books of accounts with gross quarterly sales, earnings, receipts or
output exceeding PHP150,000 must be audited by a CPA.
All that are required by law to pay internal revenue
taxes shall keep and use relevant and appropriate set of
bookkeeping records.
Books of accounts with gross annual sales, earnings,
receipts or output exceeding PHP3m must be audited by
a CPA.

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Tax Particulars National Internal Revenue Code of 1997
Registration Sec. 236 (A) Registration shall contain a taxpayer’s name, style,
requirements place of residence, business and other information required by the
Commissioner.
Sec. 236 (G) The following are the persons required to register for VAT:
• With gross sales or receipts for the past 12 months, other than
those that are VAT–exempt, have exceeded PHP1.5m.
• With reasonable grounds that the gross sales or receipts for the
next 12 months, other than those that are VAT-exempt, will exceed
PHP1.5m.
Sec. 236 (H) VAT exempt persons who elected to register for VAT shall
not be entitled to cancel his registration for the next three years.
Issuance of Sec. 237 (A) All persons subject to an internal revenue tax shall for
receipts or sales or each sale and transfer of merchandise or for services rendered valued
commercial invoices at PHP25 or more, issue duly registered receipts or sale or commercial
invoices prepared in duplicates.
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963
R. A. No. 10963
Additional provision:
The Commissioner shall simplify the business registration
and tax compliance requirements of self-employed
individuals and/or professionals.
The following are the persons required to register for
value-added tax:
• With gross sales or receipts for the past 12 months,
other than those that are VAT–exempt, have exceeded
PHP3m.
• With reasonable grounds that the gross sales or receipts
for the next 12 months, other than those that are VAT-
exempt, will exceed PHP3m.
Additional provision:
Persons who elected to pay the 8% tax on gross sales or
receipts, in lieu of the graduated income tax rates, shall
not be allowed to avail of the option of registering for VAT.
All persons subject to an internal revenue tax shall at
the point of each sale and transfer of merchandise or for
services rendered valued at PHP100 or more, issue duly
registered receipts or sale or commercial invoices.
Additional provisions:
• Within five years from the effectivity of the Act and
upon establishment of a system capable of storing and
processing the required data, taxpayers engaged in
the export of goods and services, e-commerce, and
under the jurisdiction of the Large Taxpayers Service
are required to issue electronic receipts or sales or
commercial invoices in lieu of manual receipts or sales
or commercial invoices.
• Taxpayers not required to issue electronic receipts or
sales or commercial invoices may opt to do so.
• Digital records must be kept in the place of business for
a period of three years.
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Tax Particulars National Internal Revenue Code of 1997
Issuance of No existing provision
receipts or sales or
commercial invoices
Other tax provisions
Interest Sec. 249 Interest of 20% per annum on any unpaid amount of tax.
Deficiency interest is due from the date prescribed for its payment
until full payment thereof.
Penalty provisions Sec. 254 Fine of not less than PHP30,000 but not more than
PHP100,000 and imprisonment of not less than two years but not
more than four years for attempt to evade or defeat any tax.
Sec. 264 Fine of not less than PHP1,000 but not more than
PHP50,000 and imprisonment of not less than two years but not more
than four years for the following:
• Printing of receipts or sales or commercial invoices without authority
from the BIR; or
• Printing of double or multiple sets of invoices or receipts; or
• Printing of unnumbered receipts or sales or commercial invoices,
not bearing the name, business style, Taxpayer Identification
Number, and business address of the person or entity
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963
R. A. No. 10963
Sec. 237-A. Within 5 years from the effectivity of the Act
and upon establishment of a system capable of storing
and processing the required data, taxpayers engaged
in the export of goods and services, and under the
jurisdiction of the large taxpayers service are required to
electronically report their sales data to the BIR through the
use of electronic point of sales systems.
Machines, fiscal devices and fiscal memory devices shall
be at the expense of the taxpayer.
The data processing of sales and purchase data shall
comply with the provisions of R.A. No. 10173 or the
Data Privacy Act, the unlawful divulgence of taxpayer
information under the Tax Code and other laws relating to
the confidentiality of information.
Policies, risk management approaches, actions, trainings,
and technologies to protect the cyber environment,
organization, and data shall be established in compliance
with R.A. No. 10175 or the Cybercrime Prevention Act.
Interest imposed shall be double the legal interest rate
for loans or forbearance of any money in the absence
of an express stipulation as set by BSP. Delinquency
and deficiency interest shall in no case be imposed
simultaneously.
Increased the fine to not less than PHP500,000 but not
more than PHP10m and imprisonment of not less than six
years but not more than ten years.
Increased the fine to not less than PHP500,000 but not
more than PHP10m and imprisonment of not less than six
years but not more than ten years.
Included printing of fraudulent receipts to the list of
offenses.
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Tax Particulars
Penalty provisions
Sec. 269 Violations committed by government enforcement officers
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963
National Internal Revenue Code of 1997 R. A. No. 10963
3. causing another person or entity to commit any of the
2 preceding acts; or
4. causing the sale, distribution, supply or transport
of legitimately imported, in-transit, manufactured
or procured controlled precursors and essential
chemicals, in diluted, mixtures or in concentrated
form, to any person or entity penalized in subsections
(a), (b), or (c) hereof.
Any person who willfully inserts, places, adds or attaches
directly or indirectly, through any overt or covert act,
whatever quantity of any unmarked fuel, counterfeit
additive or chemical in the person, house, effects,
inventory, or in the immediate vicinity of an innocent
individual for the purpose of implicating, incriminating
or imputing the commission of any violation of this Act
shall, upon conviction, be punished by a fine of not less
than PHP5m but not more than PHP10m, and suffer
imprisonment of not less than four years but not more
than eight years.
Any person who is authorized, licensed or accredited to
conduct fuel tests, who issues false or fraudulent fuel test
results knowingly, willfully or through gross negligence,
shall suffer the additional penalty of imprisonment ranging
from one year and one day to two years and six months.
The additional penalties of revocation of the license to
practice his/her profession in case of a practitioner, and
the closure of the fuel testing facility, may also be imposed
at the instance of the court.
Added in the list of offenses the deliberate failure on the
application for VAT refunds within the prescribed period
under Section 112 of the Tax Code.
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