Pursuant to Administrative Order No. 30 s. 2020 of the President to direct all government agencies to suspend deadlines for the duration of community quarantine, the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) 15-2020 to further amend the RR 4-2019 regarding the deadline and procedures to avail the Tax Amnesty on Delinquencies (TAD).
The initial information on availing TAD was released last year thru RR 4-2019. However, several revenue regulations have been released extending the deadline in consideration of the effects of the pandemic.
Amendments to the above mentioned Revenue Regulation are presented below. Specific provisions amended are underlined for emphasis.
- Amendment to Section 3 of RR 4-2019
“SECTION 3. COVERAGE. Any person, 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 the effectivity of these Regulations or until December 31, 2020, under any of the instances listed below. However, the said date may be extended if the circumstances warrant an extension such as in case of country-wide economic of health reasons.”
- SECTION 5. MANNER OF AVAILMENT OF TAX AMNESTY ON TAX DELINQUENCIES
Any person, whether natural or juridical, who wishes to avail of the Tax Amnesty on Delinquencies shall file, within the period set forth under Section 3 of these Regulations, an application therefor in accordance with the procedures set forth below.
- DOCUMENTARY REQUIREMENTS: XXX XXX XXX
- PLACE OF FILING: XXX XXX XXX
- PROCEDURES: The taxpayer-applicant shall:
Step 1. Secure the Certificate of Delinquencies/Tax Liabilities from the concerned BIR Office as specified below:
XXX XXX XXX
The concerned BIR Office receiving the request for Certificate of Delinquencies/Tax Liabilities shall issue said Certificate of Delinquencies/Tax Liabilities to the taxpayer within three (3) working days from the date of the request. Should the concerned BIR Office find that said Certificate of Delinquencies/Tax Liabilities cannot be issued, said BIR Office must state in writing the legal and factual basis for its denial.
Step 2. Present the duly accomplished Tax Amnesty Return (TAR) made under oath and Acceptance Payment Form (APF), together with the other required documents, to the concerned Revenue District Office (RDO)/Large Taxpayer Division (LTD)/Large Taxpayer Collection Enforcement Division (LTCED) for endorsement of the APF and pay the tax amnesty amount with the Authorized Agent Banks (AABs) or Revenue Collection (RC), whichever is applicable, by presenting the RDO/LTD/LTCED-endorsed or approved APF. Provided that if no payment is required as in the case when the assessment consists only of unpaid penalties due to either late filing or payment, the phrase “no payment required” shall be indicated in the APF. Provided, further, that the concerned RDO/LTD/LTCED shall endorse said duly accomplished TAR and APF within one (1) working day from receipt of complete documents.
Step 3. Submit/file immediately to the RDO/LTD/LTCED where the taxpayer is registered, in triplicate copies, the duly accomplished TAR, made under oath, together with the complete documentary requirements and proof of payment, which in no case shall be beyond the availment period set forth under Section 3 of these Regulations. The taxpayer applicant shall be furnished with a copy stamped as “received”, of said TAR and APF.
Availment of Tax Amnesty on Delinquencies shall be considered fully complied with upon completion of the above-enumerated steps within the period set forth under Section 3 of these Regulations.”
Being updated on the latest information from the taxman enables the taxpayers to properly plan their next step in order to properly maneuver their businesses during this pandemic. This also provides opportunities and options for the taxpayers to create and focus on the new demands brought by the changes of the new normal.