BIR extends deadline for filing tax amnesty on delinquencies

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has extended the deadline of application for tax amnesty on delinquencies from April 23 to May 23 amid the coronavirus disease 2019 (COVID-19) pandemic.

Internal Revenue Commissioner Caesar Dulay issued Revenue Memorandum Circular 33-2020, giving delinquent taxpayers another month to avail of the tax amnesty program.

This was after the issuance of BIR Revenue Regulation 5-2020, which amended RR 4-2019, particularly on the duration of availment of the program.

The RR stated that the deadline may be moved if the circumstances warrant an extension, such as in the case of a country-wide economic or health reasons.

Under the program, all persons with internal revenue tax liabilities covering taxable year 2017 and prior years may avail of tax amnesty on delinquencies.

Qualified applicants with delinquent accounts and assessments that have become final and executory will pay only 40 percent of the basic tax assessed.

Those with tax cases subject of final and executory judgement by the courts will pay 50 percent of the basic tax assessed, while those with pending criminal cases will pay 60 percent.

Withholding agents who withheld taxes but failed to remit the same to the BIR will pay 100 percent of the basic tax assessed.

Aside from tax amnesty on delinquencies, RA 11213 also provides taxpayers an opportunity to clean up their estate tax liabilities.

Meanwhile, the BIR also extended the submission or filing of certain documents and correspondences under the Tax Code, including the letter answer to the Notice of Informal Conference, response to the Preliminary Assessment Notice, and protest letter to Final Assessment Notice or Formal Letter of Demand, among others.

The submission of these documents are extended for 30 days from the date of the lifting of the enhanced community quarantine in Luzon.

The due date for the filing of Certificate of Residence for Tax Treaty Relief (CORTT) forms for final withholding taxes on dividends, interests, royalties paid on or before March 10 is likewise moved to April 30 without the imposition of penalties.