- When is the extended deadline to avail of the benefits of the Bureau of Internal Revenue's Voluntary Assessment and Payment Program for Taxable Year 2018 (VAPP)?
The Bureau of Internal Revenue (BIR) has issued Revenue Regulations No. 33-2020 (RR No. 33-20) which extends the period for availment of the benefits of the Voluntary Assessment and Payment Program for Taxable Year 2018 under Certain Conditions (VAPP) until June 30, 2021, unless extended further by the Secretary of Finance.
The VAPP was originally set to expire on December 31, 2020 under Revenue Regulations No. 21-2020 (RR No. 21-20). It is a program promulgated by the Secretary of Finance to encourage voluntary tax compliance in light of the COVID-19 pandemic and the need to maximize revenue collection for the Government.
Under the VAPP, taxpayers may pay "all internal revenue taxes covering the taxable year ending December 31, 2018, and fiscal year 2018 ending on the last day of the months of July 2018 to June 2019." It covers income tax, percentage tax, excise tax, documentary stamp tax, value-added tax, final withholding tax, creditable withholding tax (CWT), and taxes on one-time transactions, such as estate tax, donor's tax, and capital gains tax. Please see our November TIPS at https://tinyurl.com/SyCipLaw-NovTIPS-Vol5 for more information on the VAPP.
- What are the amendments to the VAPP under RR No. 33-20?
RR No. 33-20 amends Section 10 (Privilege) of RR No. 21-20 by providing that taxpayers who avail themselves of the VAPP on withholding taxes shall be allowed to claim deductions on the corresponding income payment pursuant to Revenue Regulations No. 6-2018 (RR No. 6-18). RR No. 6-18 provides the requirements for deductibility of certain expenses from a taxpayer's gross income. RR No. 33-20 also identifies a Discrepancy Notice and other third party information documents as examples of documents to support a finding of under-declaration of sales, receipts or income or overstatement of deductions by more than 30% for purposes of overturning a Certificate of Availment of the VAPP.
In addition, RR No. 33-20 provides that "no denial of application or invalidation of a previously issued Certificate of Availment shall be valid unless the taxpayer is formally notified by the Division Chief (LT Office) or the Revenue District Officer where the taxpayer is registered, stating the factual reasons" for the denial. The taxpayer can appeal the said denial or invalidation to the Assistant Commissioner – Large Taxpayer Service (ACIT-LTS) or Regional Director (RD) within 30 days from receipt of the notice of denial.
- When is the new deadline to avail of the Tax Amnesty on Delinquencies?
The BIR has issued Revenue Regulations No. 32- 2020 (RR No. 32-20), which amends Section 3 of Revenue Regulations No. 04-2019 (RR No. 4-19) by further extending the period to avail of the tax amnesty on delinquencies which is provided under Republic Act No. 11213 (RA No. 11213 or the Tax Amnesty Act) to June 30, 2021. The tax amnesty under RA No. 11213 covers: [a] estate taxes; and [b] delinquencies. For more information, please see our bulletin on RR No. 4-19 at https://tinyurl.com/SyCipLaw-BulletinRR4-19 , which was posted on April 22, 2019.
Under RR No. 4-19, the deadline for the availment of the tax amnesty was April 24, 2020.
Download >> Tax Updates November 2020 (SyCipLaw Tax Issues and Practical Solutions (TIPS) Vol. 6)
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