Tax Alert

(Revenue Regulations Nos. 32 and 33-2020 published on December 22, 2020)

This Tax Alert is issued to inform all concerned on the extended period to avail of the Tax Amnesty on Delinquencies (TAD) and Voluntary Assessment and Payment Program (VAPP), and clarifications on the availment of VAPP.

Tax Amnesty on Delinquencies (TAD)

TAD can be availed until June 30, 2021 by those taxpayers with delinquent internal revenue liabilities for taxable year 2017 and prior years.

Voluntary Assessment and Payment Program (VAPP)

The period of availment of VAPP is extended until June 30, 2021, unless further extended by the Secretary of Finance.

Moreover, the following additional clarifications were provided:

1. Taxpayers availing of VAPP on withholding taxes is allowed to claim deductions on the corresponding income payments.
2. Evidence or findings of under-declaration of sales, receipts or income or overstatement of deductions by more than 30% which will invalidate availment of VAPP may come from Discrepancy Notice and other third-party information documents.
3. No denial of application or invalidation of a previously issued Certificate of Availment shall be valid unless the taxpayer is formally notified, stating the factual facts therefor. The denial can be appealed to the Assistant Commissioner – Large Taxpayer Service or Regional Director within 30 days from receipt of such notice.