Enter your annual gross sales to see your micro / small / medium / large classification under the Ease of Paying Taxes Act (RA 11976), whether reduced BIR penalties apply to you, and the headline EOPT reforms with their effective dates.
Taxpayer classification under the EOPT Act (RA 11976) is based on gross sales, not net income. Micro and small taxpayers enjoy reduced penalties and a simplified 2-page income tax return.
EOPT taxpayer classification
Reduced penalties: Yes
Taxpayer classification (micro / small / medium / large)
Taxpayers are classified by gross sales, with concessions and simplified returns targeted at micro and small taxpayers.
RR 8-2024 (effective 27 April 2024)
File and pay anywhere
Returns can be filed and taxes paid electronically or manually with any authorised agent bank, RCO, or software provider — the 25% surcharge for filing at the wrong venue is removed.
RA 11976 (effective 22 January 2024)
Invoice replaces the official receipt
VAT on sales of goods AND services is now reported on a single 'Sales Invoice' on an accrual (gross sales) basis — sellers of services no longer report VAT on collection.
RR 3-2024 / RR 7-2024 (2024)
Reduced penalties for micro & small taxpayers
10% surcharge (vs 25%), 6% interest (a 50% reduction), and a ₱500 compromise penalty per failure (max ₱12,500/year).
RR 6-2024 (effective 27 April 2024)
Higher mandatory-receipt threshold
The amount above which issuing a receipt/invoice is mandatory rose from ₱100 to ₱500 per sale.
RA 11976 (effective 22 January 2024)
Risk-based VAT refunds & statutory timelines
VAT refund claims are classified low/medium/high risk; the BIR has 180 days to act on refunds of erroneously or illegally collected taxes.
RA 11976 (effective 22 January 2024)
The Ease of Paying Taxes (EOPT) Act — Republic Act No. 11976 — was signed on 5 January 2024 and took effect on 22 January 2024, with implementing rules issued in BIR Revenue Regulations RR 3-2024 through RR 8-2024. Its goal is to modernise and simplify tax administration, especially for smaller businesses.
Taxpayers are now classified by gross sales for a taxable year (BIR RR 8-2024):
Micro and small taxpayers get reduced penalties (BIR RR 6-2024): a 10% surcharge instead of 25%, 6% interest (a 50% reduction from the standard 12%), and a ₱500 compromise penalty per failure capped at ₱12,500 per year, plus a simplified 2-page income tax return. These concessions do not apply to willful neglect or fraud, where the 50% surcharge still stands.
EOPT also delivered several administrative changes across the board:
If your business uses (or is moving to) electronic invoicing, check whether you fall under the BIR Electronic Invoicing System mandate with our EIS e-invoicing readiness checker.
The Ease of Paying Taxes (EOPT) Act, Republic Act No. 11976, was signed on 5 January 2024 and took effect on 22 January 2024, with implementing rules in BIR Revenue Regulations RR 3-2024 through RR 8-2024. It modernises tax administration — classifying taxpayers by size, letting you file and pay anywhere, replacing the official receipt with a single sales invoice, and granting reduced penalties to micro and small taxpayers.
Classification is based on gross sales for a taxable year (BIR RR 8-2024): micro is less than ₱3,000,000; small is ₱3,000,000 to less than ₱20,000,000; medium is ₱20,000,000 to less than ₱1,000,000,000; and large is ₱1,000,000,000 and above. Enter your annual gross sales above to see your band.
Only micro and small taxpayers qualify for reduced penalties under RA 11976 and BIR RR 6-2024. Medium and large taxpayers pay the standard penalty rates. The reduced rates also do not apply to willful neglect or fraudulent returns, where the 50% surcharge still stands.
For micro and small taxpayers: a 10% surcharge (instead of 25% under §248), 6% interest (a 50% reduction from the standard 12% under §249), and a ₱500 compromise penalty per failure capped at ₱12,500 per year. They may also file a simplified 2-page income tax return.
EOPT also lets you file and pay taxes anywhere (removing the 25% wrong-venue surcharge), replaces the official receipt with a single sales invoice so VAT on services is now reported on an accrual / gross-sales basis, raises the mandatory-receipt threshold from ₱100 to ₱500 per sale, and introduces risk-based VAT refunds with a statutory 180-day timeline.
Informational only — not tax advice. This tracker summarises the EOPT Act classification and penalty rules for general guidance; your specific situation may differ. Verify with the Bureau of Internal Revenue (BIR) or a qualified Philippine tax professional. See our full disclaimer.
Source: Republic Act No. 11976 (EOPT Act); BIR Revenue Regulations No. 6-2024 & No. 8-2024. As of June 2026.