RR No. 4-2019 — Implements the Rules and Regulations of RA No. 11213 (Tax Amnesty Act), Providing for the Guidelines on the Processing of Tax Amnesty Application on Tax Delinquencies (Published in Malaya Business Insight on April 9, 2019) Digest | Full Text | Annex A | Annex B | Annex C

REPUBI,IC OF HE PI{ILIPPINES DEPARI-N{Er.r" T O F FINAN CE BUREAU OF INTERNAI RE\'ENUE Quezon Cir.v Date ;if ii ,, 5 ?0ili REVENUE REGULATToNS r,io. 4- 2oll SUBJECT: Implementing Rules and Regulations of Repubiic Act No. 71213, Otherwise Known as the "Tax Amnesty Act", Providing for the Guidelines on the Processing of Tax Amnesty Applicati.on on Tax Delinquencies TG All Revenue Officers and Others Concerned SECTION 1. SCOPE. Pursuant to the provisions of Section 244 tnrelation to Section 245 of the 1997 Tax Code, as amended, and Section 27 of Repubiic Act (RA) No. 11213, these Regulations are hereby promulgated to implement the provisions on Tax Amnesty on Delinquencies under Title IV of the Tax Amnesty Act. SECTION 2. DEFINITION OF TERMS. For purposes of these Regulations, the words used herein shall be defined as foliorvs: A. Delinquent Account - shall perlain to a tax due from a taxpayer arising from the audit of the Bureau of internal Revenue (BIR) which had been issued Assessment Notices that have become final and executory due to the following instances: 1. Failure to pay the tax due on the prescribed due date provided in the Final Assessment Notice (FAN)lFormal Letter of Demand (FLD) and for which no valid Protest, whether a request for reconsideration or reinvestigation, has been filed within thirty (30) days from receipt thereof; 2. Failure to file an appeal to the Court of Tax Appeal (CTA) or an administrativc appeal before the Commissioner of internal Revenue (CIR) rvithin thi*y (30) days from receipt of the decision denying the request foi reinvestigation or reconsideration; or 3. Faiiure to fiie an appeai to the CTA within thirly (30) days frorn receipt ol the Decision of the CIR denying the taxpayer's adrninistrative appeal to the Final Decision on Disputed Assessment (FDDA). B, Assesslnent Notice - refers to a notice issued io a taxpayer slating the amount and basis ct'the defic_iency iax assessed. This term includes FAN/I]LD and PDDA; z/ ,Mvl -"1 ti\rv- !t4:ilI

C. Basic Tax Assessed - The term relers to any of the foliowing: 1. Tax due shown on the Assessment *odr", net of any basie tax paid prior to the effectivity of these Regulations, exclusive of civil penalties; 2. The computed basic tax liabilities as shown in the criminal complaint filed by the BIR u,ith the Department of Justice (DOJ)/ Prosecutor's Office cr in the infonnation hled in the Cor:rts for violations of tax laws and regulations; and 3. The basic tax iiabiiities as per Court's fina1 anC executory decision. D. Criminal Cases - refer to cases involving crimes and other offenses defined an.i enumerated under Chapter II of Title X and Section 275 af the 1991 Tax Ccde, as amended. E. Withholding Agent.- is a person required to rvithhold, account for, and remit within the prescribed period any tax irnposed by the 1997 Tax Code, as amendeC. SECTION 3. COVERAGE. All persons, whether natural or juridical, with internai revenue tax iiabilities covering taxable year 2017 and prior years, may avail of Tax Amnesty cn Deliirquencies r.vithin one (1) year from the effectivity of these Regulations, under any of the folio*'ing instances: A. Delinquent Accounts as of the effectivity of these R.egulations, including the following: 1. Delinquent Accounts with application for compromise settierrent 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 rvith the Regional Evaluation Board (REB) or the National Evaluation Board (l.tEB), as rhe case may be, on or before the effectivity of these Regulations; 2. Delinquent Withholding Tax liabiiities arising from non-withholding oltax; and 3. Delinquent Estate li'ax liabilities. B. V/ith pending criminal cases with the DOJlProsecutor's Office or the courts for tax evasion and other criminal olfenses under Chapter Ii of Title X and Section 275 of tbe Tax Code, as amended. with or rn'ithout assessments duly issued; C. With fina1 and e;rr:cutory judgment by the courts on or before the effectivity of these Regulations; and D. tVitlrholcling tax iiabiiities of u,ithholding agents arising from iheir failure to ren:it r.rithheld taxes. StrCTICi"{.1. TAX Aft{I"{ES'i'Y- RA'flitS. 'fhe tax anrnesty rates shali be i.:; ft;11orvs: ,.\ ?/ 1lj:i,,i,'lii",'i,riiii,l,i:iii..i:il-i,\trF'A,i;1R.-6:'v;QttIC,l;1t;S{;)rA;!z:.w"f,i.;i.,fi;';i,:i-;r'i:-rijt,lirij,I ,i 2 : ,r' rl, ,$ il!,;tt} '! \,,." i : ,i''.,:i.. i::i ).i:-:' ,i,.i:t'.:] -' i':, -. i

A. Delinquent accounts and assessments which have 40% of the basic tax assesseci become final and executory 50% ofthe basic tax assessed 60% ofthe basic tax assessed B. Tax cases subject of final and exeoutory judgment 100% ofthe basic tax assessed by the courts 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 Titie X and Section 275 of the Tax Code, as amenCed D. Withholding agents who withheld taxes but failed to remit the same to the Bureau The tax amnesty rate of one hundred percent (100%) provided in letter (D) shall apply in all cases of non-remittalce of withholding taxes, even if the same shail fall under letters (A), (B) or (C) above. In cases where the delinquent taxes have been the subject of appiication for compromise settlement pursuant to Section 2A4 of the Tax Code, whether denied or pending, ihe amount of payment shal1 be based on the net basic tax as certified by the concemed office foliowing the procedure under Section 5(C) of these Reguiations. Illustration 1: with denied/pending Application for compromise settlement: Basic Tax per FAN P 1,000,000.00 Basic Tax paid per Compromise Settlement application Net Basic Tax prior to the effectivity of these Regulations 400.000.00 Multiply by the Tax Amnesty Rate Amount of Tax Amnesty to be Paid P 600,000.00 40% P 240.000.00 For all other cases rvith partiai/instalhnent payments, the amount of payrnent shal1 be based on the net amount as certified by the concerned office as specified under Section 5(C) of these Regulations. Illustration 2: With partiallinstallment payntents: Basic 1'a:< per FAN P 1,000,000.cc Partial payrneil'Lis made Prior to the effectiviry of tircse Rcgrrlations (nci o Ipayment ; p1--i iediio penalties) z0!p!0,09 4 .F' | .. :'t ...: ;) u -"-ia- aiii:iit:l:li,iii:,i il iIiiti;i ,l 1 .:'.1 i:- i|i:: E\diTJ iIi'iii ( i) rI lii: ,;llLtI i:-I_ r'...il/',it!i.t..tn.ltFF-J/0t,-'-jt|.S-rA).,t-_rI\\$l \|;l f :ii ii:1 i)a ;'' i ;:j i,,tl'i l . ili\,I ll ,:'I.' I :, ::, iI I - ._.- :..i :r l::

Net Basic Tax P 8C0,000.00 Multiply by the Tax Amnesty Rate Amount of Tax Amnesty to be paid 40% P 320.000.00 In case the delinquent accountlassessment consi.sts only of unpaid penalties due to either late filing or payment, and there is no basic tax assessed, the taxpayer may avail of the tax amnesty in accordance with the procedure set fodh in Section 5 of these Regulations, without any payment due. SECTIOIT{ 5. MANNER. OF AVAILMENT OF TAX AMNESTY ON TAX DELINQUENCIES. Any person, whether naturai or juridical, who wishes to avail of the Tax Amnesty on Delinquencies shail file, u,ithin one (i) year from the effectivity of these R.egula'r.ions, an application therefor in accordance with the procedures set forth below. A. DOCUMENTARY REQUIREiVIENTS: The taxpayer shali submit ihe following: 1. Tax Amnesty Retum (TAR) (BIR Form No.2118-DA, Annex "A"), completely and accurately accomplished and made under oath; 2. Acceptance Payment Form (APF) (BIR Form No. 0621-DA, Annex "B") duly validated by the Authorized Agent Banks (AABs) or APF duly stamped "received" vviin accompanying bank deposit slip duly validated by the concerned AABs or Revenue Official Receipt (ROR) issued by the Revenue Collection Officers (RCOs); 3. Certificate of Tax Delinquencies/Tax Liabilities issued by concerned BIR offices (Annex "c"); and 4. In case of applications under Section 3(AX2) of these Regulations, a copy of the assessment found in the FANIFDDA: Provided that,incases of applications under Section 3(D), either delinquent account or not, with or r.vithout FAN/FDDA, the Preiiminary Assessment Notice (PAN)A{otice for Informal Conference or equivalent document is sufficient. B. PLACE OF FILING - The Tax Amnesty Return and other documentaty requirements shall be filed with the following BIR offices: Classification Place of Filins Non-Large Taxpayers Revenue District Office (RDO) where applicant-taxpayer is Large Taxpayers - Cebu or registered Davao Large Taxpayers Division (LI'D) Office where applicant- Large Taxpayers - Excise taxoaver is reeistered Large Taxpayers Collection Enlorcement Division (LTCED) and Reguiar #" - "r \-? i7 rl ..iaj I il

C. PROCEDURES - The taxpayer-applicant shall: Step 1. Secure the Certificate of Delinquencies/Tax Liabilities from the concerned BIR Office as specifieci below: Nature of Tax Liabilities Large Taxpayer Non-Large Taxpayer Delinquent tax cases, Large Taxpayers a. Regional Collection Division - For including withholding tax Division (Cebu or taxpayer-applicants under the liabilities of withholding Davao)/ Large jurisdiction of Revenue Regions (RR) agents arising from failure Taxpayers Nos.5, 6,7 and 8 (Caloocan, Manila, to remit withheld taxes and Collection Quezon City and Makati, those with pending or Enforcement respectively); denied application for Division (LTCED) b. Revenue District Office (RDO) where compromise settlement. the taxpayer-applicant is registered - Tax cases subject of f,rnal Litigation/ For other taxpayer-applicants and executory judgment by Prosecution the courts including RDO No. 36 (Puerto Division of the Princesa). National Office, a. Legal Division of the Regional Office which handled the - For taxpayer-applicants under the case jurisdiction of Revenue Regions (RR) Tax liabilities covered by Prosecution Nos.5, 6,7 and 8 (Caloocan, Manila, a pending criminal cases Division of the Quezon City and Makati, filed with the National Office respectively); DOJiProsecutor's b. Legal Division of the Regional Office Office/Courts or Litigation/Prosecution Division in the National Office which handled the case - For taxpayer-applicants under the jurisdiction of Revenue Regions other than the RRs mentioned under (a) hereof. a. Legal Division - For taxpayer- applicants under the jurisdiction of Revenue Regions (RR) Nos. 5, 6,7 and 8 (Caloocan, Manila, Quezon City and Makati, respectively); b. Legai Division of the Regional Office or Prosecution Division in the National Office which handled the case - For taxpayer-applicants under tire jurisdiction of Revenue Regions oiher than the RRs mentioned under (a) hereof.

Step 2. 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 RDOiLTD/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. Step 3. Submit/file immediately to the RDO/LTD/LTCED where the taxpayer is registered, in triplicate copies, the duly accomplished TAR, made under oath, together w'ith the complete documentary requirernents and proof of payment, which in no case shall be beyond the one (1) year availment period. The taxpayer/applicant shall be fumished r.vith 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. SECTION 6. ISSUANCE OF AUTHORITY TO CANCEL ASSESSMENT (ATCA) AND LIFTING OF THE VALIDITY OF THE ISSUED NOTICES AND WARRANTS. The Notice of Issuance of Authority to Caneel Assessment QTIIATCA) shall be issued by the BIR to the taxpayer avaiiing 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 shali be deemed as sufficient proof of availment. Insofar as the tax delinquencies covered by the TAR is concemed, any notice, attachment andlor 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. SECTION 7. REPORT TO OVERSIGHT COMMITTEB. Report to the Congressional Oversight Committee shall be submitted by the BIR within six (6) months aIler the one (1) year period of availment of the Tax Amnesty on Delinquencies. SECTION 8. IMMUNITIES AND PRIVILEGES OF AVAILII\G TAX AMNESTY ON TAX DELINQUENCIES. The tax delinquency of those who avail of the Tax Amnesty on Delinquencies under these Regulations, upon full compliance with all the conditions set forth hereof, shali be considered settled, and the criminal case in connection therewith and its coresponding 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 weil as additions thereto, and from ali appurlenant 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. ;],ri.: ;_r1: ::.; ;,., '1:t-.j :'.':l' ':, . ii'i,. (l t l 'YV r; APRp:0ast' ,i.-:'1.-:at '.. ::' a...:."/-t::." ,l ':/-,1'ti ..,.., \-' :.. 1..,-; ;\)1...

The availment of the Tax Amnesty on Delinquencies herein provided and the issuance of the corresponding APF do not imply any admission of criminal, civil or administrative liability on the part of the availing taxpayer. SECTION 9. EFFECTMTY. These Regulations shail take effect fifteen (15) days from date of its publication in the newspaper of general circulation or Official Gazette. CAIILOS G. DO Secretary of Finance A i,p l.r ,j ,/rll Recommending Approval: -/\j*^ c.Z+-*A'{*, o CAESAR R. DULAY Comrnissioner of Internal Revenue 025018 *F Li rlfi i- iil.: - iir:-li: l-.' tri g:. r: r": ',,-iriii Tii-;l- iililiiii\\rlil\il!i 1ili APR 08 ii\i Ililli--.. Fia-C i.;.: !y, i,a