Revenue Regulations 4-2019 (issued on 8 April 2019): Implementing Rules and Regulations of RA No. 11213, otherwise known as the Tax Amnesty Act
I. Who are covered?
RR 4-2019 covers all persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years.
Tax Amnesty on Delinquencies may be availed within one (1) year from the effectivity of RR 4-2019, under any of the following instances:
A. Delinquent Accounts as of the effectivity of RR 4-2019, including the following:
1. Delinquent Accounts with application for compromise settlement either on the basis of (a) doubtful validity of the assessment or (b) financial incapacity of the taxpayer, whether the same was denied by or still pending with the Regional Evaluation Board (REB) or the National Evaluation Board (NEB), as the case may be, on or before the effectivity of RR 4-2019;
2. Delinquent Withholding Tax liabilities arising from non-withholding of tax; and
3. Delinquent Estate Tax liabilities.
B. With pending criminal cases with the DOJ/Prosecutor’s Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended, with or without assessments duly issued;
C. With final and executory judgment by the courts on or before the effectivity of RR 4-2019; and,
D. Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes.
II. How much will be paid?
The amount that the taxpayer should pay, ranges from 40% to 100% of the basic tax assessed, pursuant to the following instances:
|A. Delinquent accounts and assessments which have become final and executory||40% of the basic tax assessed|
|B. Tax cases subject of final and executory judgment by the courts||50% of the basic tax assessed|
|C. Pending criminal cases filed with the DoJ, Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended||60% of the basic tax assessed|
|D. Withholding agents who withheld taxes but failed to remit the same to the Bureau||100% of the basic tax assessed|
III. How does one avail of the tax amnesty on tax delinquencies?
The taxpayer shall file, within one (1) year from the effectivity of RR 4-2019, an application in accordance with the requirements and procedures as follows:
1. Tax Amnesty Return (TAR) completely and accurately accomplished and made under oath
2. Acceptance Payment Form (APF) duly validated by the Authorized Agent Banks (AABs) or APF duly stamped “received” with accompanying bank deposit slip duly validated by the AABs or Revenue Official Receipt issued by the Revenue Collection Officers.
3. In case of applications under Section 3(A) (2) of RR 4-2019, a copy of the assessment found in the FAN/FDDA
Place of Filing:
1. Non – Large Taxpayers – RDO where applicant taxpayer is registered
2. Large Taxpayers – Cebu or Davao- LTD office where applicant taxpayer is registered
3. Large Taxpayers – Excise and Regular – Large Taxpayers Collection Enforcement Division
1. The taxpayer shall secure the Certificate of Delinquencies/Tax Liabilities from the concerned BIR Office.
2. The taxpayer shall then present the duly accomplished TAR made under oath and APF, together with the other required documents, to the concerned RDO/LTD/LTCED for endorsement of the APF and pay the tax amnesty amount with the AABs or RCOs, whichever is applicable, by presenting the RDO/LTD/LTCED-endorsed or approved APF: Provided, that if no payment is required as in the case when assessment consists only of unpaid penalties due to either late filing or payment, the phrase “no payment required” shall be indicated in the APF.
3. The taxpayer shall submit/file immediately to the RDO/LTD/LTCED where the taxpayer is registered, in triplicate copies, the duly accomplished TAR, made under oath, together with the complete documentary requirements and proof of payment, which in no case shall be beyond the one (1) year availment period. The taxpayer/applicant shall be furnished with a copy, stamped as received, of said TAR and APF.
- Availment of Tax Amnesty on Delinquencies shall be considered fully complied with upon completion of the above enumerated steps within the one (1) year availment period.·
IV. What are the effects of availment of Tax Amnesty?
- Notice of Issuance of Authority to Cancel Assessment (NIACTCA) shall be issued by the BIR to the taxpayer availing of the Tax Amnesty on Delinquencies within fifteen (15) calendar days from submission of the APF and TAR. Otherwise, the stamped-“received” duplicate copies of the APF and TAR shall be deemed as sufficient proof of availment.
- Insofar as the tax delinquencies covered by the TAR is concerned, any notice, attachment and/or warrant of garnishment issued against the taxpayer by the concerned BIR office shall be set aside pursuant to the lifting of the said notices and warrants issued by the concerned BIR Office
- The tax delinquency of those who avail of the Tax Amnesty on Delinquencies under RR 4-2019, upon full compliance with all the conditions set forth hereof, shall be considered settled, and the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, shall be terminated. The taxpayer shall be immune from all suits or actions, including the payment of said delinquency or assessment, as well as additions thereto, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended, as such relate to the internal revenue taxes for taxable years that are subject of the tax amnesty availed of.