BIR extends deadline to settle tax delinquencies until Dec. 31

The Bureau of Internal Revenue (BIR) has further extended the deadline for delinquent taxpayers to settle their tax liabilities until the end of the year.

This after the BIR released Revenue Memorandum Circular No. 61-2020 or the “further extension of deadline of availment of tax amnesty on delinquencies.”

“The deadline to avail of the tax amnesty on delinquencies is hereby further extended from June 22, 2020 to December 31, 2020,” the circular read.

Republic Act No. 11213 or the Tax Amnesty Act, signed into law in February 2019, grants an opportunity for delinquent taxpayers to settle all unpaid internal revenue taxes in 2017 and prior years.

The BIR has earlier moved the deadline of the availment of tax amnesty on delinquencies from April 23 to May 23, 2020, pursuant to Revenue Regulation No. 5-2020 and circularized by RMC No. 33-2020.

It later on extended the deadline to June 22, 2020 with the issuance of RR No. 12-2020.

The BIR said the extension of the duration of availment of the tax amnesty on delinquencies is “in consideration of the current circumstances prevailing in the country in relation to the World Health Organization’s declaration of COVID-19 Global Pandemic.”

Pursuant to Revenue Regulation No. 4-2019, "all persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years," may avail of the tax amnesty on delinquencies under any of the following instances:

•     With Delinquent Accounts as of April 24, 2019 (effectivity of RR No. 4-2019)

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•     With pending criminal cases with the Department of Justice (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
•     With final and executory judgment by the courts on or before April 24, 2019
•     Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes.

The tax amnesty to be paid by a taxpayer shall be computed based on the basic tax assessed, which shall be as follows:

•     40% for Delinquent Accounts and assessments which have become final and executory
•     50% for tax cases subject of final and executory judgment by the courts
•     60% for those with 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
•     100% for Withholding Agents who withheld taxes but failed to remit the same to the BIR (which shall also apply in all cases of non-remittance of Withholding Taxes.

—AOL, GMA News