Tax Amnesty Act for Delinquent Taxpayers

President Rodrigo Duterte signed the Tax Amnesty Act for Delinquent Payers (Republic Act No. 11213) on February 14, 2019. The law took effect on March 2, 2019, allowing Filipino taxpayers with overdue tax liabilities and pending tax evasion cases to turn over a new leaf starting April 24, 2019.

 

Delinquent taxpayers will have a year to file application for amnesty.

 

The Bureau of Internal Revenue (BIR) sent out Revenue Regulations No. 4-2019 (RR 4-2019) last April 5, 2019, which serves as the Implementing Rules and Regulations (IRR) of the act.

 

This comes as a relief to delinquent payers as it clarifies some of the law’s more ambiguous provisions on Tax Amnesty on Delinquencies (TAD).

 

Who’s covered?

 

All natural and juridical persons who have tax liabilities for 2017 and previous years are eligible for TAD under the following circumstances:

 

Delinquent tax accounts:

 

  • Accounts that have applied for compromise settlement based on financial incapacity or doubtful validity of their tax assessment, regardless of whether the application has been denied or remains pending at the National Evaluation Board (NEB) and Regional Evaluation Board (REB) on or before the law took effect.
  • Accounts with delinquent withholding tax liabilities due to non-withholding of tax
  • Accounts with delinquent estate tax liabilities.

 

A delinquent account pertains to tax due from a Filipino taxpayer based on a BIR audit, and who has been sent an Assessment Notice that is final and executory for the following reasons:

  • Inability to pay tax due on the date specified in the Formal Letter of Demand (FLD) or Final Assessment Notice (FAN) and has not made a valid Protest, regardless of whether or not a request for reinvestigation or reconsideration had been filed within 30 days of receipt.
  • Inability to make a formal appeal at the Court of Tax Appeal (CTA) and Commissioner of Internal Revenue (CIR) within 30 days of receipt of a Decision formally denying their request for reinvestigation or reconsideration.
  • Inability to file an appeal to CTA within 30 days of receipt of CIR Decision denying their administrative appeal regarding the Final Decision on Disputed Assessment (FDDA).

 

The same goes for delinquent accounts with pending criminal cases at the Department of Justice (DOJ), Prosecutor’s Office, or any of the regional and metropolitan courts, for tax evasion.

 

Criminal offenses covered by the amnesty fall under the scope of Section 275 of the Tax Code or Chapter II of Title X 1) Regardless of an assessment had been issued, and 2) Whether a final and executor court judgment on or before the IRR took effect.

 

How to file for amnesty

 

If you’re eligible for tax amnesty, you must gather the necessary documents and follow these steps:

 

  1. Secure a Certificate of Delinquencies and Tax Liabilities at the appropriate BIR office, whether it’s your local Revenue District Office (RDO), Legal Divisions of the Regional Office, or Large Taxpayers Service.
  2. Accomplish a Tax Amnesty Return and Acceptance Payment Form (APF), to be endorsed by APF. After paying for amnesty, you must submit the forms and other necessary documents to the appropriate RDO.
  3. Wait for a BIR-issued Notice of Issuance to Cancel Assessment (NIATCA) within 15 days, which serves as proof of availment of this tax amnesty.

 

For tax-related concerns, let FilePino assist you. Contact us today at +1.806.553.6552 (USA) or +63.917.892.2337 (Philippines).

 

References:

https://www.bworldonline.com/the-tax-amnesty-act-of-2019-welcome-news-for-delinquent-taxpayers/
https://www.bir.gov.ph/index.php/tax-amnesty-act.html#ta-act
https://www.bir.gov.ph/images/bir_files/internal_communications_1/Tax%20Amnesty%20matters/20190214-VETO-RA-11213-RRD_Annex%20B.pdf
https://business.inquirer.net/268337/bir-tax-amnesty-on-delinquencies-starts-on-april-24
https://www.bakermckenzie.com/en/insight/publications/2019/04/bir-issues-revenue-regulations-for-tax
https://www.grantthornton.com.ph/newsroom/technical-alerts/tax-alert/2019/clarifications-on-tax-amnesty-on-delinquencies/
https://news.mb.com.ph/2019/06/17/bir-to-delinquent-taxpayers-declare-liabilities-when-applying-for-tax-amnesty/
https://www.rappler.com/business/229362-ask-the-tax-whiz-availing-amnesty-delinquencies
https://www.philstar.com/business/2019/04/10/1908648/bir-issues-guidelines-tax-amnesty-program