Philippines: Extension of deadline to avail of tax amnesty on delinquencies

In brief

The Bureau of the Internal Revenue (BIR) issued RMC No. 61-2020 on 15 June 20202 which officially extends the deadline to avail of the Tax Amnesty on Delinquencies (TAD) from 22 June 2020 to 31 December 2020. To complement this, RR No. 15-2020 was issued on 19 June 2020 reiterating the extensions and qualifying it by stating that further extensions may be made if the circumstances warrant due to country-wide economic or health reasons.


Contents

RR No. 15-2020 also amends Section 5 of RR No. 4-2019 regarding the procedures for availment of the TAD. In order to avail of the TAD, the taxpayer must accomplish the following:

1. Secure a Certificate of Delinquencies / Tax Liabilities from the concerned BIR office.

Upon receipt of request for the certificate, the concerned BIR office shall issue that certificate to the taxpayer within three (3) working days from the date of request. If the certificate cannot be issued, the BIR office must state in writing the legal and factual basis for its denial.

2. Present the accomplished Tax Amnesty Return (TAR), made under oath, and Acceptance Payment Form (APF), to the concerned Revenue District Office (RDO), Large Taxpayers Division Office (LTD), Large Taxpayers Collection Enforcement Division Office (LTCED).

The concerned RDO/LTD/LTCED shall endorse the TAR and APF within one (1) working day from receipt of the complete documents. Upon presentation of these endorsed documents, the taxpayer may pay the tax amnesty amount with the Authorized Agent Banks or Revenue Collection Officers, whichever is applicable.

3. Submit in triplicate copies the TAR, other documents, and proof of payment to the RDO/LTD/LTCED where the taxpayer is registered by 31 December 2020.

Actions to Consider

The extension of the deadline gives taxpayers more time to gather documents and prepare its application to apply for the TAD. We advise taxpayers to continue to monitor developments introduced by government as it continues to adjust deadlines in light of the COVID-19 situation in the Philippines.

*Authored by Quisumbing Torres, a member firm of Baker & McKenzie International, a Swiss Verein. Please contact QTInfoDesk@quisumbingtorres.com for inquiries.

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