What SME Businesses Need to Know About the New Tax Amnesty Act of 2019

What SME Businesses Need to Know About the New Tax Amnesty Act of 2019

Republic Act No. 11213, otherwise known as the Tax Amnesty Act of 2019 provides tax amnesty on delinquencies as well as estate tax amnesty. Since we prepared this article to show what’s in it for SME businesses, allow us to focus exclusively on tax amnesty on delinquencies.

In a nutshell, through such amnesty which covers all national internal revenue taxes, businesses with long overdue tax liabilities will finally be given a clean slate. This is because the taxes previously deemed as due will then be regarded as settled. The act likewise guarantees immunity as it effectively terminates the civil, administrative or criminal cases and penalties against the delinquent.

 

How to Take Advantage

  1. Secure the Certificate of Delinquencies or Tax Assessment.
  2. Submit the Tax Amnesty Return as well as the Acceptance Payment Form.
  3. Head to an authorized payment center to settle the tax amnesty.
  4. Submit the pertinent documents and proof of payment to the concerned Bureau of Internal Revenue (BIR) office. The appropriate BIR office pertains to the one which has jurisdiction over the principal place of business or residence of the tax payer in question.
  5. Wait for the Notice of Issuance to Cancel Assessment which will be released within 15 calendar days thereafter.

 

Quick Notes

 

  • Timeframe

You can only take advantage of this relief within one year from the date the Implementing Rules and Regulations take effect.

 

  • Examples Taxes Covered

VAT and excise taxes collected by the Bureau of Customs for taxable year 2017 and years prior to that

Capital gains tax

Excise tax

Income tax

Donor’s tax

Withholding tax

 

  • Amnesty Applied for Basic Tax Assessed for:

 

Delinquent tax cases (this includes assessments considered as final and executory)

– 40%

 

Tax cases yet to be considered as final and executory – 50%

 

Pending criminal cases – 60%

 

Withholding agents who withheld taxes but did not remit them to the BIR – 100%

If you’re qualified, prepare and double-check the requirements as soon as you can to take advantage of this opportunity for a clean slate. The tax amnesty on delinquencies is an opportunity for qualified SMEs and taxpayers in general to re-establish their compliance with the BIR.

This amnesty is a first of its kind. Then again, may it serve as a reminder for everyone to pay the due taxes religiously. Doing so will save them from the hassles not to mention financial setbacks brought about by penalties and delinquencies.

For more tax compliance tips and other Philippine accounting services assistance, contact our team through the following channels: +63 2 8247961 or +63 906 5586469 or info@jcsnaccounting.com.

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