Definition of Large Taxpayer
- A "large taxpayer" meets any of these criteria based on the preceding taxable year:
- VAT paid or payable of at least ₱100,000 per quarter.
- Excise tax paid or payable of at least ₱1,000,000 annually.
- Corporate income tax paid or payable of at least ₱1,000,000 annually.
- Withholding tax paid or remitted of at least ₱1,000,000 annually.
- The Secretary of Finance may adjust or add criteria after considering economic factors such as inflation, business volume, wages, and employment.
Compliance and Penalties
- Violations of the Commissioner's regulations regarding filing and payment locations for large taxpayers are subject to penalties under Section 248 of the National Internal Revenue Code.
Receipts for Tax Payments
- The Commissioner, authorized representatives, or accredited banks must acknowledge payments by issuing receipts indicating the amount and tax account.
- The form and manner of receipts are prescribed by the Commissioner.
Authority to Compromise Tax Payments
- The Commissioner may compromise on tax payments under two grounds:
a. When reasonable doubt exists regarding the claim's validity.
b. When the taxpayer's financial condition clearly shows inability to pay. - For large taxpayers, compromises cannot be less than 50% of the tax due without Secretary of Finance approval.
Implementation and Effectivity
- The Secretary of Finance, upon the Commissioner's recommendation, shall issue rules and regulations to enforce this Act effectively.
- All inconsistent laws, orders, or issuances are repealed or amended.
- The Act took effect immediately upon approval on February 24, 1993.