Practice question
A taxpayer has PHP25 million gross sales but only PHP2 million net profit. It claims the EOPT micro category solely because net profit is under PHP3 million. Assume the statutory sales measure is correctly computed and no special adjustment applies. Which is correct?
- Net profit necessarily replaces gross sales under Section21.
- The gross-sales measure places the taxpayer in the medium band, not micro on those facts.
- Every taxpayer with any expense is automatically micro.
- Shareholder nationality alone determines the EOPT band.
- PHP25 million is below the statutory PHP3 million cutoff.
Legal references
- NIRC, Sections 5-7,22-23 and32, as enacted in RA8424 and subject to the cited later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA12214, May29,2025, CMEPA, including amended NIRC Sections22,25 and32: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
- RA11976, Ease of Paying Taxes Act, Section3 amending NIRC21 taxpayer classifications: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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