The Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 43-2022 on April 12, 2022, which prescribes the non-imposition of surcharges on amended tax returns.

Section 248 (A) of the Tax Code, as amended, provides that a penalty equivalent to twenty-five percent (25%) of the amount due shall be imposed in the following cases:

  1. Failure to file any return and pay the tax due thereon as required under the provisions of the Tax Code or rules and regulations on the date prescribed; or
  2. Unless otherwise authorized by the Commissioner, filing a return with an internal revenue officer other than those with whom the return is required to file; or
  3. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessments; or
  4. Failure to pay the full or part of the amount of tax shown on any return required to be filed under the provisions of this Code or rules and regulations, or the full amount of the tax due for which no return is required to be filed on or before the date prescribed for its payment.

In RMC No. 54-2018, it is provided that when an additional tax is due per amended tax return, the 25% surcharge shall be imposed on the additional tax to be paid, while in RMC No. 46-1999, it is stated that no 25% surcharge shall be imposed in computing for the deficiency tax assessment as a result of the tax audit. Due to these issuances, it may appear that a taxpayer is unduly penalized for amending tax returns to pay the correct tax due but is unintentionally rewarded if unremitted taxes or correct tax due is paid only during the tax paid, which therefore discourages the taxpayers to amend their tax returns to voluntarily pay the correct tax due.

RMC No. 43-2022 was issued to reconcile the provisions of RMC No. 54-2018 and RMC No. 46-1999, such that  no 25% surcharge shall be imposed to an amended tax return if the taxpayer was able to file the initial tax return on or before the prescribed due date of its filing. On the other hand, the 25% surcharge will be imposed on a tax deficiency found during audit if the particular tax return being audited was found to have been filed beyond the prescribed period or due date.

Please be guided accordingly.



P&A Grant Thornton

Certified Public Accountants


As published in SunStar Cebu, dated 04 May 2022