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Seventeenth Congress Third Regular Session: Republic of The Philippines
Seventeenth Congress Third Regular Session: Republic of The Philippines
Seventeenth Congress Third Regular Session: Republic of The Philippines
SEVENTEENTH CONGRESS
Third Regular Session
AN ACT
ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY
GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE TAXES
IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2017
AND PRIOR YEARS WITH RESPECT TO ESTATE TAX, OTHER INTERNAL
REVENUE TAXES, AND TAX ON DELINQUENCIES
1 TITLE I
2 PRELIMINARY PROVISIONS
3 SECTION 1. Short Title. – This Act shall be known as the “Tax Amnesty Act”.
5 to protect and enhance revenue administration and collection, and make the
9 an estate tax amnesty program that will give reasonable tax relief to estates
11 (b) Broaden the tax base by offering a general tax amnesty for all unpaid
12 internal revenue taxes that will help cleanse, organize, and improve the Bureau
1
1 (c) Enhance revenue collection by providing a tax amnesty on
2 delinquencies that will minimize administrative costs in pursuing tax cases and
5 reform program that will simplify the requirements on tax amnesties with the
9 (a) Basic Tax Assessed refers to the latest amount of tax assessment issued
12 (b) Net Estate refers to the gross estate less all allowable deductions as
14 applicable estate tax laws prevailing at the time of death of the decedent;
15 (c) Net Undeclared Estate refers to the difference between the total net
16 estate valued at the time of death and the net estate previously declared with
22 property other than money shall be valued at the cost at which the property was
23 acquired: Provided, further, That foreign currency assets and/or securities shall
2
1 be valued at the rate of exchange prevailing as of the date of the Statement of
3 (2) All existing liabilities which are legitimate and enforceable, secured or
5 (3) The networth of the taxpayer, which shall be the difference between the
7 (e) Total Asset refers to the amount of the aggregate assets whether within
9 capital.
10 TITLE II
13 hereinafter called Estate Tax Amnesty, which shall cover the estate of decedents
14 who died on or before December 31, 2017, with or without assessments duly
15 issued therefor, whose estate taxes have remained unpaid or have accrued as of
16 December 31, 2017: Provided, however, That the Estate Tax Amnesty hereby
17 authorized and granted shall not cover instances enumerated under Section 9
18 hereof.
20 covered by Section 9 hereof, the estate may enjoy the immunities and privileges
21 of the Estate Tax Amnesty and pay an estate amnesty tax at the rate of six
22 percent (6%) based on the decedent’s total net estate at the time of death:
23 Provided, That if an estate tax return was previously filed with the Bureau of
24 Internal Revenue, the estate tax rate of six percent (6%) shall be based on net
3
1 undeclared estate. The provisions of the National Internal Revenue Code of
2 1997, as amended, or the applicable estate tax laws prevailing at the time of
5 further, That if the allowable deductions applicable at the time of death of the
6 decedent exceed the value of the gross estate, the heirs, executors, or
7 administrators may avail of the benefits of tax amnesty under Title II of this Act,
8 and pay the minimum estate amnesty tax of Five Thousand Pesos (₱5,000).
9 Sec. 6. Availment of the Estate Tax Amnesty; When and Where to File and
12 to avail of the Estate Tax Amnesty shall, within two (2) years from the effectivity
13 of the Implementing Rules and Regulations of this Act, file with the Revenue
14 District Office of the Bureau of Internal Revenue, which has jurisdiction over the
15 last residence of the decedent, a sworn Estate Tax Amnesty Return, in such
17 payment of the amnesty tax shall be made at the time the Return is filed:
18 Provided, That for non-resident decedents, the Estate Tax Amnesty Return shall
19 be filed and the corresponding amnesty tax be paid at Revenue District Office
20 No. 39, or any other Revenue District Office which shall be indicated in the
22 Provided, further, That if the estate involved has properties which are still
23 in the name of another decedent or donor, the present holder, heirs, executors or
24 administrators thereof shall only file one (1) Estate Tax Amnesty Return and
4
1 pay the corresponding estate amnesty tax thereon based on the total net estate
2 at the time of death of the last decedent covering all accrued taxes under the
3 National Internal Revenue Code of 1997, as amended, arising from the transfer
4 of such estate from all prior decedents or donors through which the property or
8 prescribed in the Implementing Rules and Regulations of this Act for the
9 authorized agent bank, or in the absence thereof, the revenue collection agent or
12 attached to said Return in order to verify the mode of transfer and the proper
13 recipients.
14 Provided, finally, That the availment of the Estate Tax Amnesty and the
17 estate.
20 correct, and final upon filing thereof, and shall be deemed complete upon full
22 The Acceptance Payment Form, and the Estate Tax Amnesty Return shall
5
1 provisions of this Act. A Certificate of Availment of the Estate Tax Amnesty
2 shall be issued by the Bureau of Internal Revenue within fifteen (15) calendar
4 Payment Form and the Estate Tax Amnesty Return. Otherwise, the duplicate
5 copies of the Acceptance Payment Form, stamped as received, and the Estate
8 Amnesty, which have fully complied with all the conditions set forth in this Act,
9 including the payment of the estate amnesty tax shall be immune from the
10 payment of all estate taxes, as well as any increments and additions thereto,
11 arising from the failure to pay any and all estate taxes for taxable year 2017 and
12 prior years, and from all appurtenant civil, criminal, and administrative cases
13 and penalties under the National Internal Revenue Code of 1997, as amended.
17 title over properties to heirs and/or beneficiaries and cash withdrawals from the
19 Upon full compliance with all the conditions set forth in this Title and
20 payment of the corresponding estate amnesty tax, the tax amnesty granted
6
1 SEC. 9. Exceptions. – The Estate Tax Amnesty under Title II of this Act
2 shall not extend to estate tax cases which shall have become final and executory
5 Government;
7 Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and
8 Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder;
9 (c) Involving violations of Republic Act No. 9160, otherwise known as the
11 (d) Involving tax evasion and other criminal offenses under Chapter II of
14 malversation of public funds and property under Chapters III and IV of Title VII of the
16 TITLE III
18 SEC. 10. Coverage. – There is hereby authorized and granted a tax amnesty,
19 hereinafter called General Tax Amnesty, which shall cover all national internal
20 revenue taxes such as, but not limited to, income tax, withholding tax, capital
21 gains tax, donor’s tax, value-added tax, other percentage taxes, excise tax and
23 value-added tax and excise taxes collected by the Bureau of Customs for taxable
24 year 2017 and prior years, with or without assessments duly issued therefor,
7
1 that have remained unpaid: Provided, however, That the General Tax Amnesty
2 hereby authorized and granted shall not cover persons or cases enumerated
4 SEC. 11. Entitlement under the General Tax Amnesty. – Except for the
6 may enjoy the immunities and privileges of the General Tax Amnesty by paying,
8 i. the rate of two percent (2%) based on the taxpayer’s Total Assets as of
14 required:
17 whichever is higher.
18 (b) Corporations
20 whichever is higher.
21 (2) With subscribed capital of above ₱20 million up to ₱50 million .…...
8
1 (3) With subscribed capital of ₱5 million up to ₱20 million ……. 5% or
4 whichever is higher.
5 (c) Other juridical entities, including, but not limited to, cooperatives
6 and foundations, that have become taxable as of December 31, 2017 ……. 5% or
8 Provided, That if the taxpayer opts to pay the amnesty tax based on total
9 networth and the computed networth is negative, the taxpayer may still avail of
10 the benefits of tax amnesty under this Title, and pay the minimum amnesty tax.
11 SEC. 12. Availment of the General Tax Amnesty; When and Where to File
12 and Pay. - Any person, natural or juridical, who wishes to avail of the General
13 Tax Amnesty shall, within one (1) year from the effectivity of the Implementing
14 Rules and Regulations, file with the appropriate office of the Bureau of Internal
15 Revenue, which has jurisdiction over the taxpayer, a sworn General Tax
17 notarized Statement of Asssets, Liabilities, and Networth, as the case may be, as
18 of December 31, 2017. The payment of the amnesty tax shall be made at the time
20 Provided, That the Revenue District Officer shall issue and endorse an
23 agent bank, or in the absence thereof, the revenue collection agent or municipal
4 taxpayer.
8 a. If paid on or before the end of the third calendar month from the
10 b. If paid after the end of the third calendar month until the end of the
11 sixth calendar month from the effectivity of the Implementing Rules and
13 c. If paid after the end of the sixth calendar month until the end of the
14 ninth calendar month from the effectivity of the Implementing Rules and
15 Regulations ………………………..10%;
16 Sec. 13. Contents of the Statement of Total Assets and Statement of Assets,
10
1 acquired by purchase, or the zonal valuation or fair market
5 inheritance or donation;
22 Total Assets.
11
1 B. The Statement of Assets, Liabilities, and Networth shall contain a true
12 inheritance or donation;
21 inheritance or donation;
12
1 rate of exchange prevailing as of the date of the Statement of
16 or the Statement of Assets, Liabilities, and Networth, filed at the option of the
17 taxpayer, shall be conclusively presumed as true, correct, and final upon filing
18 thereof, and shall be deemed complete upon full payment of the amount due.
19 The Acceptance Payment Form, and the General Tax Amnesty Return shall
23 shall be issued by the Bureau of Internal Revenue within fifteen (15) calendar
13
1 Payment Form and the General Tax Amnesty Return. Otherwise, the duplicate
2 copies, stamped as received, of the Acceptance Payment Form, and the General
4 Sec. 15. Immunities and Privileges. – Those who avail of the General Tax
5 Amnesty and have fully complied with all the conditions set forth in this Act and
6 upon payment of the amnesty tax shall be entitled to the following immunities
7 and privileges:
8 (a) With respect to the years covered by the tax amnesty, the taxpayer
9 shall be immune from the payment of taxes, as well as additions thereto, and
10 from all appurtenant civil, criminal, and administrative cases and penalties
11 under the National Internal Revenue Code of 1997, as amended, arising from the
12 failure to pay any and all internal revenue taxes for taxable year 2017 and prior
13 years and from such other investigations or suits insofar as they relate to the
14 assets, liabilities, networth, and internal revenue taxes that are subject of the
15 tax amnesty.
18 Assets, Liabilities, and Networth, as the case may be, and appurtenant
14
1 (c) The books of accounts and other records of the taxpayer for the
2 years covered by the tax amnesty availed of shall not be examined by the Bureau
4 authorize in writing the examination of the said books of accounts and other
5 records to verify the validity or correctness of a claim for any tax refund, tax
6 credit (other than refund or credit of taxes withheld on wages), tax incentives,
8 All these immunities and privileges shall not apply when the taxpayer
9 failed to file a General Tax Amnesty Return and a Statement of Total Assets, or
11 Upon full compliance with all the conditions set forth in this Title and
12 payment of the corresponding general amnesty tax, the tax amnesty granted
14 SEC. 16. Exceptions. – The General Tax Amnesty under this Act shall not
16 (a) Withholding tax agents who withheld taxes but failed to remit the same
23 Practices Act, and Republic Act No. 7080 or An Act Defining and
8 (c) Tax cases that have become final and executory; and
9 (d) Delinquencies and assessments that have become final and executory.
10 TITLE IV
12 SEC. 17. Coverage. – There is hereby authorized and granted a tax amnesty
13 herein called the Tax Amnesty on Delinquencies, which shall cover all national
14 internal revenue taxes, such as, but not limited to, income tax, withholding tax,
15 capital gains tax, donor’s tax, value-added tax, other percentage taxes, excise
16 tax, and documentary stamp tax collected by the Bureau of Internal Revenue,
17 including value-added tax and excise taxes collected by the Bureau of Customs,
19 For purposes of this Act, the Tax Amnesty on Delinquencies may be availed
23 compromise has been requested on the basis of: (1) doubtful validity of the
24 assessment; or (2) financial incapacity of the taxpayer, but the same was denied
16
1 by the Regional Evaluation Board or the National Evaluation Board, as the case
2 may be, on or before the Implementing Rules and Regulations take effect;
3 (b) Pending criminal cases with the Department of Justice or the courts for
4 tax evasion and other criminal offenses under Chapter II of Title X and Section
5 275 of the National Internal Revenue Code of 1997, as amended, with or without
7 (c) Tax cases subject of final and executory judgment by the courts on or
9 (d) Withholding tax agents who withheld taxes but failed to remit the same
12 enjoy the immunities and privileges of the Tax Amnesty on Delinquencies and
19 Department of Justice or the courts for tax evasion and other criminal offenses
20 under Chapter II of Title X and Section 275 of the National Internal Revenue
21 Code of 1997, as amended, with assessments duly issued and otherwise excluded
23 d. Withholding agents who withheld taxes but failed to remit the same to
17
1 SEC. 19. Availment of the Tax Amnesty on Delinquencies; When and Where
2 to File and Pay. – Any person, natural or juridical, who wishes to avail of the Tax
3 Amnesty on Delinquencies shall, within one (1) year from the effectivity of the
4 Implementing Rules and Regulations of this Act, file with the appropriate office
5 of the Bureau of Internal Revenue, which has jurisdiction over the residence or
8 payment of the amnesty tax shall be made at the time the Return is filed.
9 Provided, That the Revenue District Officer shall issue and endorse an
12 agent bank, or in the absence thereof, the revenue collection agent or municipal
15 and the issuance of the corresponding Acceptance Payment Form do not imply
17 availing taxpayer.
18 Sec. 20. Immunities and Privileges. – The tax delinquency of those who avail
19 of the Tax Amnesty on Delinquencies and have fully complied with all the
20 conditions set forth in this Act and upon payment of the amnesty tax shall be
21 considered settled and the criminal case under Section 18 (c) and its
23 taxpayer shall be immune from all suits or actions, including the payment of said
18
1 appurtenant civil, criminal, and administrative cases, and penalties under the
3 taxpayer’s assets, liabilities, networth, and internal revenue taxes that are
4 subject of the tax amnesty, and from such other investigations or suits insofar as
5 they relate to the assets, liabilities, networth and internal revenue taxes that are
6 subject of the tax amnesty: Provided, That any notices of levy, attachments
7 and/or warrants of garnishment issued against the taxpayer shall be set aside
12 within fifteen (15) calendar days from submission to the Bureau of Internal
15 the Acceptance Payment Form, and the Tax Amnesty on Delinquencies Return
17 Tax Amnesty on Delinquencies Return and the Acceptance Payment Form shall
21 Upon full compliance with all the conditions set forth in this Title and
19
1 TITLE V
9 Liabilities, and Networth, as the case may be and appurtenant documents shall
13 information sheets, and any such other statements or disclosures that may have
15 deemed to have been amended by the Tax Amnesty Return and/or the Statement
17 may be, filed under this Act and may not be the subject of any investigation or
20 TITLE VI
21 GENERAL PROVISIONS
20
1 Land Registration Authority, Department of Trade and Industry, Securities and
4 use of information declared or obtained from the Tax Amnesty Returns and
7 All the statements and returns required under this Act shall be filed and
8 processed separately from all other records of the Bureau of Internal Revenue in
12 Revenue Code of 1997, as amended, shall still be complied with. The Information
13 Management System shall also comply with the provisions of Republic Act No.
14 10173, otherwise known as the Data Privacy Act and such other laws relating to
15 confidentiality of information.
18 the tax amnesty herein granted shall accrue to the Department of Finance and
19 shall be used exclusively for purposes of establishing tax database under Section
20 22 of this Act.
21 Any excess shall be allocated to augment the appropriations needed for the
21
1 projects as provided under Section 82 of Republic Act No. 10963, otherwise
3 TITLE VII
5 SEC. 24. Section 270 of the National Internal Revenue Code of 1997, as
9 Act No. 6388, any officer or employee of the Bureau of Internal Revenue
10 who divulges to any person or makes known in any other manner than
16 conviction for each act or omission, be punished by a fine of not less than
17 Fifty thousand pesos (₱50,000) but not more than One hundred
19 (2) years but not more than five (5) years, or both.”
21 divulges or makes known in any other manner to any person other than
22
1 upon conviction, be punished by a fine of not less than [Fifty thousand
3 but not more than [One hundred thousand pesos (₱100,000)] ONE
5 than two (2) years but not more than five (5) years, or both.”
7 Documents. – It shall be unlawful for any person having knowledge of the Tax
9 relative thereto, and any violation hereof shall be penalized a fine of One
10 Hundred Fifty Thousand Pesos (₱150,000) and imprisonment of not less than six
11 (6) years but not more than ten (10) years: Provided, That if the offender is an
13 the penalties under Section 270 of the National Internal Revenue Code of 1997,
14 as amended, shall apply. Provided, further, That the offender shall likewise
16 TITLE VIII
24 (6) months after the two (2) year period of availment of the Estate Tax Amnesty
23
1 and one (1) year period of availment of the General Tax Amnesty and Tax
5 and publish the necessary rules and regulations of this Act within ninety (90)
7 The failure of the Secretary of Finance to promulgate the said rules and
8 regulations shall not prevent the implementation of this Act upon its effectivity.
10 declared invalid or unconstitutional, the other provisions hereof which are not
12 SEC. 29. Repealing Clause. – All other laws, acts, presidential decrees, rules
13 and regulations or parts thereof inconsistent with the provisions of this Act are
15 SEC. 30. Effectivity. – This Act shall take effect fifteen (15) days after its
17 general circulation.
Approved,
24