Self employed individuals whose annual gross sales/receipts that exceeds the three million peso (3,000,000 PHP) Value Added Tax (VAT) threshold are not qualified of availing the newly implemented 8% Income Tax Rate option in accordance with Revenue Memorandum Order No. 23-2018.
What if My Gross Sales/Receipts Exceed to 3 million During Mid Year?
If gross sales/receipts exceeds the 3 million threshold anytime during the taxable year once the option was made, then the taxpayer should update his/her registration from Non-VAT to VAT filer within the month, following the month that the taxpayer exceeds the threshold.
Visit this blog for you to learn more about this 8% Income Tax Rate option.
