Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 11-2000)
It prescribes the registration and manner of filing of income tax returns and payment of income tax, if any, of marginal income earners with gross sales/receipts not exceeding P100,000.00 during any twelve (12) month period.
Individuals not deriving compensation as employees under an employer-employee relationship but who are self-employed and have gross sales/receipts not exceeding P100,000.00 in any 12-month period.
No, marginal income earners are exempt from the 10% Value Added Tax and any percentage tax under the National Internal Revenue Code of 1997.
To free the people from poverty through policies promoting full employment, rising standards of living, and improved quality of life by providing special tax treatment for marginal income earners.
They are exempt from registration fees and usual documentary requirements but must register with the Bureau of Internal Revenue. They will be issued a Taxpayer Identification Number (TIN) and TIN card.
No, they are exempt from maintaining books of accounts and from issuing registered receipts or sales/commercial invoices.
Yes, they must file the Annual Income Tax Return (Form No. 1700) reflecting income from whatever source, even if they may not be liable to income tax.
Yes, the Commissioner or authorized representative may verify the taxpayer’s claim and assess the proper taxes if warranted under Section 6 of the Tax Code of 1997.
No, they are exempt from attaching financial statements or account information forms to their income tax returns.
The regulations took effect fifteen (15) days after their publication in the Official Gazette or any newspaper of general circulation.