New Tax Regulations for 2024: What Businesses Need to Know

The year 2024 marked a turning point for Philippine taxation, with several landmark laws and regulations reshaping the landscape for businesses. Whether you’re a microenterprise or a large corporation, understanding these updates is critical to staying compliant and optimizing your operations.

📊 New Corporate Tax Brackets

The Bureau of Internal Revenue (BIR) introduced Revenue Memorandum Order (RMO) No. 037-2024, which restructured corporate tax brackets.

• Micro and small enterprises benefit from lighter compliance requirements and proportionate tax rates.

• Medium and large corporations face stricter oversight, with obligations aligned to their earning capacity.

• This reform aims to balance fairness with efficiency, ensuring that tax burdens reflect business size and profitability.

⚖️ Ease of Paying Taxes (EOPT) Act

Signed into law in January 2024, the EOPT Act (RA 11976) modernizes tax administration:

• Taxpayer classification: Micro (<₱3M sales), Small (₱3M–₱20M), Medium (₱20M–₱1B), Large (>₱1B).

• Simplified filing and payment processes, reducing administrative burdens.

• Enhanced digital platforms to encourage compliance and transparency.

🌐 VAT on Digital Services

From October 2024, digital services such as streaming platforms, online marketplaces, and cloud solutions became subject to 12% VAT.

• Local and foreign providers must register with the BIR.

• Businesses using these services should account for VAT in their expense planning.

🏢 Real Property Valuation and Assessment Reform Act (RPVARA)

Passed mid-2024, RPVARA standardizes property valuation nationwide.

• Ensures consistency in real estate taxation.

• Impacts businesses with significant property holdings, especially developers and landlords.

💡 CREATE MORE Act

In November 2024, the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law was enacted.

• Expands tax incentives for strategic industries.

• Encourages investment in innovation, sustainability, and job creation.

✈️ VAT Refund for Tourists

To boost tourism, a VAT refund mechanism for non-resident tourists was introduced at the end of 2024. While not directly affecting local businesses, it enhances the hospitality and retail sectors.

✅ Key Takeaways for Businesses

• Review your classification under the new taxpayer categories.

• Update compliance systems to align with EOPT and digital VAT requirements.

• Reassess property portfolios in light of RPVARA.

• Explore CREATE MORE incentives if your industry qualifies.

• Stay proactive: 2024’s reforms emphasize transparency, fairness, and modernization.