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 Repealed provisions are kept, struck through, so that references in earlier records stay traceable.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 V — OTHER PERCENTAGE TAXES

SEC. 116. Tax on Persons Exempt from Value-added Tax (VAT)

Page 95 of the PDF edition

Any person whose sales are exempt under Section 109(CC)176 of this Code from the payment of value-added tax and who is not a VAT-registered person shall pay, either electronically or manually, a tax equivalent to three percent (3%) of his gross quarterly sales: Provided, That cooperatives shall be exempt from the three percent (3%) tax herein imposed: Provided, further, That effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%).177

Amendment notes

  1. CREATE Act, sec. 13 — amended.
  2. CREATE Act, sec. 13 — amended.
Book a consultation →
Inquire Call Messenger