BIR releases draft tax amnesty guidelines

Published March 13, 2019, 1:39 PM

by Patrick Garcia

By Jun Ramirez

The Bureau of Internal Revenue (BIR) released on Wednesday the draft regulations on the processing of tax amnesty application for delinquent accounts.

Bureau of Internal Revenue (MANILA BULLETIN)
Bureau of Internal Revenue (MANILA BULLETIN)

The proposed guideline was made available to various organizations of certified accountants and other stakeholders for review and comment.

It will be implemented 15 days after it is signed by BIR Commissioner Caesar R. Dulay and published in official journal or newspaper with nationwide circulation.

Individuals and corporations may avail of the privilege with tax debts covering 2017 and prior years.

“The delinquent account pertains to a tax due from a taxpayer arising from the audit of the bureau which had been issued assessment notices that have become final and executory,” the regulation read.

The amnesty payments range from 40 percent of the basic tax for delinquent accounts which have become final and executory and 50 percent of the basic tax for cases under court litigation.

The amnesty is also available to taxpayers with pending criminal or tax evasion cases before the Department of Justice and the courts by paying 60 percent of the assessment.

Withholding agents who withheld taxes but failed to remit them are also eligible to avail of the amnesty by turning over to the bureau 100 percent of the basic tax assessed.

The delinquent accounts maybe settled within one year upon the effectivity of the regulations which implemented the Tax Amnesty Law signed last month by President Duterte.

Meanwhile, revenue officials said the rules and regulations on the estate tax amnesty will be released next month.