RR 8-2024

Revenue Regulations No. 8-2024 (issued April 11, 2024) implements Section 21(b) of the Tax Code of 1997, as amended by Republic Act No. 11976 (Ease of Paying Taxes Act), and classifies taxpayers by gross sales for the taxable year: Micro (below ₱3,000,000), Small (₱3,000,000 to below ₱20,000,000), Medium (₱20,000,000 to below ₱1,000,000,000), and Large (₱1,000,000,000 and above). Gross sales means total sales revenue, net of VAT if applicable, without other deductions, and covers only business income (excluding compensation income, passive income under Sections 24, 25, 27 and 28, and income excluded under Section 32(B)). New registrants are initially classified based on their declarations in the Registration Forms; taxpayers registered in 2022 and prior years are classified based on 2022 gross sales; those without 2022 data and those registering in 2023 or 2024 before effectivity start as Micro, except VAT-registered taxpayers, who start as Small. The BIR will notify taxpayers of classification or reclassification under procedures to be prescribed in a separate revenue issuance.