Clarifications on Tax Amnesty on Delinquencies

(Revenue Memorandum Circular No. 57-2019)

This Tax Alert is issued to inform all concerned on the following clarifications on the implementing rules and regulations of the Tax Amnesty on Delinquencies (TAD):

A. Covered by the tax amnesty on delinquencies

  • Tax liabilities covered by a Final Assessment Notice which was timely protested yet withdrawn on or before April 24, 2019 can be considered delinquent account, and hence, may be the subject of tax amnesty on delinquencies.
  • Assessment notices on unpaid penalties due to either late filing/payment or other assessed penalties for non-compliance of reportorial requirements, which have become final and executory on or before April 24, 2019, can be the subject of tax amnesty on delinquencies. In this case, since tax amnesty amount is based on the basic tax assessed, there shall be no amount amnesty tax due for payment.
  • Tax liabilities of withholding agents pertaining to failure to remit withheld taxes for taxable year 2017 and prior years may be the subject of tax amnesty on delinquencies regardless of stage/time of investigation as long as the amount of tax liabilities are properly determined by the BIR.
  • Tax liabilities of taxpayers who failed to submit the required documents on request for reinvestigation can be considered delinquent account despite absence of FDDA.
  • Taxpayers with garnished/seized properties can still avail themselves of the tax amnesty on delinquencies if the garnished/seized property is not sufficient to fully settle the tax liabilities. Refer to the full text of the RMC for the computation of tax amnesty amount.

B. Not covered by the tax amnesty on delinquencies

  • Stop-filer cases are not covered by the tax amnesty on delinquencies.

C.  Rules on availing of the tax amnesty

  • Depending on the taxpayer’s financial capacity, tax amnesty on delinquencies may be applied on a per tax type and per taxable year basis within the one year availment period. The immunities will apply only on those tax types with valid tax amnesty availment.
  • Tax amnesty amount cannot be paid on installment basis. One-time payment of the tax amnesty amount indicated in the tax amnesty return must be made.

For a more detailed discussion, P&A Grant Thornton is offering a half-day seminar on Updates on the IRR of the Tax Amnesty Act, The Revised Corporation Code, and Recent Tax Issuances at the Holiday Inn and Suites on June 20.