SEC.4-116 of Sections 2. Amendments under Revenue Regulations (RR) No. 4-2021 refers of the Tax on Persons Exempt from VAT.
Under these regulations, any person whose sales or receipts are exempt under Section 109(I)(CC) of the Tax Code from the payment of VAT and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts. Provided, however, that the following shall be exempt from the payment of three percent (3%) percentage tax:
1. Cooperatives; and
2. Self-employed individuals and professionals availing of the 8% tax on gross sales and/or receipts and other non-operating income, under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of the Tax Code.
Provided, further, that effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%).
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Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202021/RR%20NO.%204%20-%202021.pdf of the full text of RR No. 4-2021.
