Overview
- The Senate approved the reform by a 43–26 vote, putting the law into force after a marathon session.
- The thresholds that trigger criminal tax cases jump to 100 million pesos for simple evasion and 1,000 million for aggravated evasion.
- The law creates a Simplified Declaration regime for individuals with annual income up to 1,000 million pesos and net assets under 10,000 million, taxing on billed income rather than asset changes.
- ARCA will prepare income-tax returns for participants in the simplified regime, aiming to cut compliance costs and standardize oversight.
- The statute introduces payment-based closures of penal actions and sharply raises automatic filing fines to 200,000 pesos, prompting concerns from professionals as the ministry signals regulatory tweaks to temper the impact.