Tacloban City, Philippines 0995 398 9482 info@aaccocpas.com
Home › Insights › AAC Tax Code

Insights

AAC Tax Code.

The National Internal Revenue Code of 1997 as it currently stands — consolidated by the firm to carry the TRAIN Law, the CREATE Act, the Ease of Paying Taxes Act, the VAT on Digital Services Act, CREATE MORE, the CMEPA and the amendatory laws in force to 1 August 2026, with a footnote at every provision naming the law that changed it.

Text current as at 1 August 2026. This is an unofficial consolidation prepared by the firm and not the official text of the Code. Repealed provisions are kept, struck through, so that references in earlier records stay traceable.
Download the PDF edition →

The printed edition runs to 240 pages and carries the same text, footnotes and references as the browser below. Every section here shows the page it sits on in that PDF, so a citation taken from the screen matches the one taken from the book.

TITLE IV — VALUE-ADDED TAX › CHAPTER I. IMPOSITION OF TAX

SEC. 115. Power of the Commissioner to Suspend the Business Operations of a Taxpayer

Page 94 of the PDF edition

The Commissioner or his authorized representative is hereby empowered to suspend the business operations and temporarily close the business establishment of any person for any of the following violations:

(a) In the Case of a VAT-registered Person. —

(1) Failure to issue invoices;

(2) Failure to file a value-added tax return as required under Section 114; or

(3) Understatement of taxable sales by thirty percent (30%) or more of his correct taxable sales for the taxable quarter.

(b) Failure of any Person to Register as Required under Section 236. —

The temporary closure of the establishment shall be for the duration of not less than five (5) days and shall be lifted only upon compliance with whatever requirements prescribed by the Commissioner in the closure order.

The power of the Commissioner to suspend shall include the blocking of digital services performed or rendered in the Philippines by a digital service provider. This shall be implemented by the Department of Information and Communications Technology (DICT), through the National Telecommunications Commission (NTC).175

Amendment notes

  1. Paragraph (a) as amended by sec. 23 of the Ease of Paying Taxes Act (Republic Act No. 11976), approved 5 January 2024, which removed the references to receipts consequent on the shift to a single invoice. The amendments introduced by Republic Act No. 12023 on the blocking of digital services are also reflected above.
  2. RA 12023, sec. 9 — inserted.
Book a consultation →
Inquire Call Messenger