Philippines: Annual Registration Fee will not be collected starting 22 January 2024

In brief

On 8 January 2024, Commissioner of Internal Revenue Romeo D. Lumagui Jr. issued an advisory regarding the cessation of the Bureau of Internal Revenue (BIR)'s collection of the Annual Registration Fee (ARF), in compliance with Republic Act (RA) No. 11976 or the "Ease of Paying Taxes Act."


Contents

Background

  • On 5 January 2024, President Ferdinand R. Marcos Jr. signed into law RA No. 11976, which aimed to modernize tax administration and improve its efficiency and effectiveness. It likewise aims to provide a healthy environment for taxpayers — one that protects and safeguards their rights and welfare.
  • RA No. 11976 amended Section 236 of the National Internal Revenue Code (NIRC) of 1997, as amended, by deleting Subsection (B) on ARF in its entirety.

Recommended actions

  • Starting 22 January 2024, business taxpayers need not file BIR Form No. 0605 and pay the PHP 500 ARF, which was previously required to be settled on or before 31 January of each year.
  • Business taxpayers' BIR Certificate of Registration (COR) bearing a paid ARF will remain valid. These subject taxpayers may have their COR updated or replaced by surrendering their old COR to their respective Revenue District Office (RDO) on or before 31 December 2024.

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