Revenue Memorandum Order · RMO

RMO No. 37-2024 Digest

To prescribe the policies, guidelines and procedures in classifying business taxpayers pursuant to Revenue Regulations No. 8-2024.

Bureau of Internal RevenueIndependent research copy

Document type: RMO
Number: 37
Year: 2024
Text quality: Not specified

Document text

Reference copy · verify against the official source

RMO No. 37-2024 prescribes how the BIR classifies business taxpayers into four groups based on gross sales for a taxable year: Micro (below ₱3 million), Small (₱3 million to below ₱20 million), Medium (₱20 million to below ₱1 billion), and Large (₱1 billion and above). Taxpayers registered in 2022 or earlier are classified using gross sales declared in their 2022 income tax returns; those without a 2022 ITR start as Micro, or Small if VAT-registered. Taxpayers registered in 2023 or 2024 before April 27, 2024 also start as Micro (Small if VAT-registered), while those registering after that date are classified based on declarations in BIR Forms 1901 or 1903. Taxpayers may request reclassification through the Head Office via ORUS or their home revenue district office, and the BIR may also initiate reclassification periodically or upon verification, with the new classification effective upon taxpayer notification.