Department of Finance

 

The Department of Finance (DoF) issued Revenue Regulations (RR) No. 4-2019, 8 April 2019, to implement and provide guidelines on the processing of Tax Amnesty Application on Tax Delinquencies under Republic Act No. 11213, otherwise known as the “Tax Amnesty Act”.

All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of Tax Amnesty on Delinquencies within one (1) year from its effectivity.

Delinquent account pertains to a tax due from a taxpayer arising from the audit of the Bureau of Internal Revenue (BIR) which had been issued Assessment Notices that have become final and executory due to the following instances:

1.     Failure to pay the tax due on the prescribed due date provided in the Final Assessment Notice / Formal Letter of Demand and for which no valid protest, whether a request for reconsideration or reinvestigation, has been filed within thirty days from receipt thereof;

2.     Failure to file an appeal to the Court of Tax Appeal (CTA) or an administrative appeal before the Commissioner of Internal Revenue (CIR) within thirty days from receipt of the decision denying the request for reinvestigation or reconsideration; or

3.     Failure to file an appeal to the CTA within thirty days from receipt of the decision of the CIR denying the taxpayer’s administrative appeal to the Final Decision on Disputed Assessment.

The tax amnesty rates shall be as follows:

Delinquent accounts and assessments which have become final and executory	40% of the basic tax assessed
Tax cases subject of final and executory judgment by the courts	50% of the basic tax assessed
Pending criminal cases filed with the Department of Justice/Prosecutor’s Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended	60% of the basic tax assessed
Withholding agents who withheld taxes but failed to remit the same to the BIR	100% of the basic tax assessed

The RR also provides for the documentary requirements and the specific BIR offices where each taxpayer classification can file their tax amnesty returns, as well as the step-by-step procedures. 

Finally, upon full compliance with all the conditions set forth in the RR, the tax delinquency of those who avail of the Tax Amnesty on Delinquencies shall be considered settled, and the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, shall be terminated.  The taxpayer shall be immune from all suits or actions, including the payment of said delinquency or assessment, as well as additions thereto, and from all appurtenant civil, criminal and administrative cases, and penalties related to the internal revenue taxes for taxable years that are subject of the tax amnesty availed of.

(RGM&Co. Note: RR 4-2019 was published in Malaya Business Insight on 9 April 2019 and shall take effect on 24 April 2019)

 

Attached is the full text of the issuance.

Revenue Regulations No. 4-2019

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