The following individuals are not qualified to avail of the 8% Income Tax rate:
a) Purely compensation Income earners;
b) VAT registered taxayers, regardless of the amount of gross sales/receipts and other non-operating income exceeded the P3,000,000.00 VAT treshold;
c) Non-VAT taxpayers whose gross sales/receipts and other non-operating income exceeded the P300,000,000.00 VAT threshold;
d) Taxpayers who are subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those under Section 116 of the same title;
e) Partners of a General Professional Partnership (GPP) since their distributive share from GPP is already net of costs and expenses; and
f) Individuals enjoying income tax exemption such as those registered under the Barangay Micro Business Enterprises (BMBEs), etc., since taxpayers, are not allowed to avail of double or multiple tax exemptions under different laws, unless specifically provided by law.
when they are checking whether your business is complying with its Tax obligations,