WAIVER OF THE DEFENSE OF

PRESCRIPTION UNDER THE

STATUTE OF LIMITATIONS OF THE
NATIONAL INTERNAL REVENUE
CODE
BY: MIZELLE ALO
What is a Waiver of the Statute of Limitations?

• It is a derogation of the taxpayer’s right to security

against prolonged and unscrupulous investigations
and must therefore be carefully and strictly construed
against the government.

• It is not a waiver of the right to invoke the defense of

prescription, but is an agreement between the TP and
the BIR that the period to issue an assessment and to
collect taxes due is extended to a date certain.
General Rule:

The BIR can assess taxpayers for deficiency internal

revenue taxes within 3 years after the last day
prescribed by law for the filing of the return or the
actual date of filing of such return, whichever comes
later. If the return is filed beyond the period prescribed
by law, the three (3) year period shall be counted from
the day the return was filed. Any assessment notice
issued after the 3-year prescriptive period is not valid
and not effective.
Exceptions:

Sec 222 of the National Internal Revenue Code of

1997, as amended.
(b)“If before the expiration of the time prescribed in Section
203, both the Commissioner and the taxpayer have agreed
in writing to its assessment after such time, the tax may be
assessed within the period agreed upon. The agreed period
so agreed upon may be extended by subsequent recent
agreement made before the expiration of the period
previously agreed upon.”
What are the contents of a Waiver?

1. The request for approval by the Commissioner of

Internal Revenue for more time to submit the
documents required in connection with the
investigation/reinvestigation/re-evaluation/collection
enforcement of my internal revenue tax liabilities for
the taxable year.

2. The waiver the defense of prescription under the

statute of limitations
What are the contents of a Waiver?

3. The consent of the Taxpayer to the assessment and/or collection

of the tax or taxes of said year which may be found due after
investigation/re-investigation/re-evaluation at any time before or
after the lapse of the period of limitations

4. Signature of the TP or authorized representative and CIR

5. The date of execution and expiry date

Sample Waiver

WAIVER OF THE DEFENSE OF PRESCRIPTION UNDER THE STATUTE OF LIMITATIONS OF

THE NATIONAL INTERNAL REVENUE CODE

I, ____________________________, request for approval by the Commissioner of Internal Revenue for more time to
submit the documents required in connection with the investigation/reinvestigation/re-evaluation/collection enforcement of
my internal revenue tax liabilities for the taxable year _____. I hereby waive the defense of prescription under the statute of
limitations prescribed in Sections 203 and 222, and other related provisions of the National Internal Revenue Code, and
consent to the assessment and/or collection of the tax or taxes of said year which may be found due after investigation/re-
investigation/re-evaluation at any time before or after the lapse of the period of limitations fixed by said sections of the
National Internal Revenue Code but not later than ____________________.

The intent and purpose of this waiver is to afford the Commissioner of Internal Revenue ample time to carefully consider
the legal and/or factual questions involved in the determination of the aforesaid tax liabilities. It is understood, however,
that the undersigned taxpayer represented below, by the execution of this waiver, neither admits in advance the correctness
of the assessment which may be made for the year above-mentioned nor waives the right to use any legal remedies accorded
by law to secure a credit or refund of such tax that may have been paid for the same year pursuant to the provisions of
Sections 204 and 229 of the National Internal Revenue Code.
 The period so stated herein may be extended by subsequent waiver in accordance with existing rules and
regulations of the Bureau of Internal Revenue.

Executed this ______ day of ______________ 2017 in _________________________, Philippines.

________________________
Taxpayer

ACCEPTED BY:

Commissioner of Internal Revenue

By:

Regional Director

_____________________
Date
 ACKNOWLEDGMENT

Republic of the Philippines) S.S.

_______________________)

In the City of _____________________, on this __________ day of ____________________,

personally appeared before me ______________________________, with Community Tax Certificate
No. _______________ issued at _______________ on _______________, in his/her capacity as
_______________ of _______________, known to me and to me known to be the same person who
executed the foregoing waiver for and in behalf of the said taxpayer, and he/she acknowledged to me that
the same is the voluntary act and deed of ______________________________, and that he/she is duly
authorized to sign the same.

WITNESS MY HAND SEAL at the place and on the date first above written.

Doc. No. ________

Page No. _______
Book No. _______
Series No. ______
Requisites of a Valid Waiver
According to RMO 20-90 (4/4/90) and RDAO 05-01 (08/02/01)

1. The waiver shall be signed by the taxpayer himself or his duly

authorized representative.

2. The authorized revenue official shall ensure that the waiver is duly
accomplished and signed by the taxpayer or his authorized
representative before affixing his signature to signify acceptance
of the same. In case the authority is delegated by the taxpayer
to a representative, the concerned revenue official shall see to it
that such delegation is in writing and duly notarized.
Requisites of a Valid Waiver
According to RMO 20-90 (4/4/90) and RDAO 05-01(08/02/01)

3. Only the designated Revenue Officers who are authorized under RMO 20-90
and RDAO 05015 are allowed to sign and accept such the waivers

4. Date of Acceptance must be indicated

5. The “WAIVER” should not be accepted by the concerned BIR office and
official unless duly notarized.

6. Waiver must be in the form identified thereof

Requisites of a Valid Waiver

The salient features of RMO No. 14-2016 (repealed RMO 20-90 and
RDAO 05-01) include the following:

1. The waiver may not necessarily be in the form prescribed by

RMO 20-90 or RDAO 05-01 provided that the following conditions
are complied with:
· The waiver is executed before the expiration of the period
to assess or to collect taxes;
· The waiver is signed by the taxpayer himself, his duly
authorized representative, or by any of the responsible
officials for corporations; and,
· The expiry date of the period agreed upon to
assess/collect the tax is indicated.

.
2. The waiver need not specify the taxes to be assessed nor the amount thereof
except in cases of waiver for collection of taxes

3. The taxpayer has the burden to ensure that the waiver is validly executed by its
authorized representative. The waiver cannot thereafter be invalidated on the
ground that the taxpayer’s representative who participated in the conduct of the
audit is not authorized to sign the waiver.

4. Notarization of the waiver is now optional.

5.The waiver can be accepted by the Commissioner’s authorized representative

as prescribed in existing regulations, the revenue district officer, or the group
supervisor designated in the Letter of Authority for the audit.

6. To be valid, there are only two dates that need to be present on the waiver,
namely (1) the date of execution, and (2) the expiry date of the period the
taxpayer waives the statute of limitations.
END