BIR issues guidelines for tax amnesty program

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued the implementing rules and regulations (IRR) for a tax amnesty program, providing a clean slate for taxpayers with existing delinquencies.

The agency issued Revenue Regulation 4-2019 providing the guidelines for Republic Act 11213 or the Tax Amnesty Act signed by President Duterte on Feb. 14.

The regulation was signed by Finance Secretary Carlos Dominguez and BIR Commissioner Caesar Dulay.

Earlier, Finance Undersecretary Antonette Tionko said the BIR may start accepting applications for amnesty on delinquent accounts after the issuance of the IRR.

Tionko said the program would run for one year. The finance department expects to raise P27.54 billion in additional revenue from the implementation of the tax amnesty program.

The bulk or P21.26 billion of the amount is estimated to come from the tax amnesty program for delinquencies, while the remaining P6.28 billion is expected to come from the estate tax amnesty program.

Under the guidelines, qualified applicants with delinquent accounts covering taxable year 2017 and prior years and assessments that have become final and executory will pay only 40 percent of the basic tax assessed.

Those with tax cases subject of final and executory judgement by the courts will pay 50 percent of the basic tax assessed, while those with pending criminal cases will pay 60 percent.

Withholding agents who withheld taxes but failed to remit the same to the BIR will have to pay 100 percent of the basic tax assessed.

The government is still drafting the guidelines for the tax amnesty program on estate taxes.