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Philippines: Tax amnesty deadline extended for fifth time
MANILA, Philippines — The Department of Finance (DOF) has given delinquent taxpayers more time to settle their deficiencies as part of the government’s efforts to ease the taxpayers’ burden amid the pandemic.
The DOF has issued Revenue Regulations 32-2020 and 33-2020 extending until June 2021 the respective deadlines for people to avail themselves of the Tax Amnesty on Delinquencies (TAD) and Voluntary Assessment and Payment Program (VAPP).
Finance Undersecretary Antonette Tionko said both the TAD and the VAPP have been extended until end-June next year.
“By further extending the two programs, we hope to help more taxpayers settle their tax deficiencies amid the pandemic,” Tionko said.
This is the fifth time the deadline for the TAD has been extended to give more time for taxpayers to settle their liabilities from the years 2017 and earlier.
The tax amnesty on delinquencies cover all national taxes including capital gains tax, documentary stamp tax, donor’s tax, excise tax, income tax, percentage tax, value-added tax and withholding tax.
Qualified applicants with delinquent accounts and assessments that have become final and executory need to pay only 40 percent of the basic tax assessed.
Those with tax cases subject of final and executory judgement by the courts have to 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.
President Duterte signed Republic Act 11213 or the Tax Amnesty Act in February 2019.
The original one-year period for the tax amnesty ended last April 23, but the Bureau of Internal Revenue (BIR) extended the deadlines to May 23, June 8, June 22, Dec. 31 through the issuance of revenue regulations.
The new regulations were issued under RA 11494 or the Bayanihan to Recover As One Act that allowed the extension of statutory deadlines and timelines to ease the taxpayers’ burden under COVID-19-related mobility restrictions.
Similarly, the BIR issue Revenue Regulation 33-2020 extending the deadline for availing of the VAPP.
Initiated by the DOF and the BIR under RR 21-2020, the VAPP lets taxpayers voluntarily settle their unpaid internal revenue tax, with or without an ongoing audit/investigation.
Those who will do so shall not be audited for 2018 for the tax types availed.
As November, the BIR reported that it had collected more than P200 million from the program with just three months of implementation.
xThe majority of the applicants were small business taxpayers who wish to settle their 2018 tax liabilities.
“We are delighted that the VAPP has been helping our small and medium taxpayers settle their 2018 tax obligations, while also generating additional revenue collection for the BIR. The same goes with the TAD program,” Tionko said.
Moreover, Revenue Regulation 33-2020 ensures that the BIR correctly evaluates VAPP applications by requiring denials and invalidation to be supported by documents such as discrepancy notices and other third-party information documents.
Source: https://www.philstar.com/business/2020/12/23/2065679/tax-amnesty-deadline-extended-fifth-time