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March 14, 2019
Philippines grants tax amnesty on delinquencies
The Philippine President approved, on 14 February 2019, the proposed law granting tax amnesty (Tax Amnesty Law) on estate taxes and tax delinquencies covering all taxes under the Internal Revenue Code and value-added tax (VAT) collected by the Bureau of Customs. The immunities and privileges can be enjoyed upon the payment of the tax amnesty within the specified time period.
This Alert summarizes the key provisions of the law granting tax amnesty on delinquencies.
The delinquency tax amnesty covers all national taxes including income tax, withholding tax, capital gains tax, donor’s tax, VAT, percentage tax, excise tax, and documentary stamp tax, for the taxable year ended 2017 and prior years.
The delinquency tax amnesty is available for the following cases:
Entitlement of tax amnesty on delinquencies
The tax amnesty privileges and immunities are applicable upon the payment of tax amnesty with rates depending on the delinquent case:
Period for payment of amnesty tax
Any taxpayer who wishes to be eligible for the delinquency tax amnesty should file a sworn Tax Amnesty on Delinquency Return accompanied by a Certification of Delinquency within one year from the effectiveness of the IRR to the Tax Amnesty Law with the appropriate BIR revenue district office. The amnesty tax should be paid at the time the tax return is filed.
Immunities and privileges
Those who apply for the delinquency tax amnesty and have fully complied with all the conditions can enjoy the following immunities and privileges upon payment of the amnesty tax:
The delinquency tax amnesty will become final upon full compliance with all the conditions and payment of the amnesty tax.
1. Taxpayer with final and executory tax cases can apply for compromise on the basis of the following: (1) doubtful validity of the assessment; or (2) financial incapacity of the taxpayer.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Philippines (SGV & Co.), Makati City
Ernst & Young LLP, Philippine Tax Desk, New York
Ernst & Young LLP, Asia Pacific Business Group, New York