Taxation Laws (compiled codal)
Section 38. Section 116 of the NIRC, as amended, is hereby further amended to read as follows:
"Sec. 116. Tax on Persons Exempt from Value-added Tax (VAT). - Any person whose sales or receipts are exempt under Section 109(BB) of this Code from the payment of value-added tax and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts: Provided, That cooperatives, and beginning January 1, 2019, self-employed and professionals with total annual gross sales and/or gross receipts not exceeding Five hundred thousand pesos (₱500,000) shall be exempt from the three percent (3%) gross receipts tax herein imposed."