PENALTIES = Applies to all taxes + Applies also to withholding agents Civil Penalties L. Surcharge ~ Percentage of the amount of tax due October 2019 25% Surcharge 50% Surcharge i Fallre to ile any retum and pay the tax due thereon (within the prescribed period for filing and payment), Involves a sitution where the tanpeyer voluntarily files the retum beyond the prescribed period, but before any notice is! received from the BIR. ?) Wrong Venue. Filing a return with an } lnernal revenue officer ether than these | with whom the retum is requted to be | filed; (3) Failure to pay the deficiency ax" within the time prescribed for ts payment i the (4) Failure to pay the full oc part of the ‘amount_of tex shown on any ren | required t be filed, or before the date | prescribed for its payment. (5) Pursuant to Section 248 (A) (1) and (4) of the Tex Code (paragraphs (1) and (4) | above), in an amendment of retum by twxpayer where an addtional tx is due per amended retum, the 25% penalty | Shall be imposed based on the adstionsl ‘wx to be paid per amended return.” “Willful neglect to file the rerura within the Note: The 50% surcharge shall be imposed in 2) Un case a false or fraudulent retum is Period prescribed by the Tax Code or by rule and regulations; ‘case the taxpayer Gls the rerum only after prior notice in writing wilfully made A substantial underdeclaration of taxable sales, receipts or income, or a substantial overstttement of deductions by > 30% shall constitute a prima facie evidence of falsity or fraud, IL Interest ‘There shall be assessed and collected on any unpsid amount of tax, interest atthe rate of| double the legal interest rate for loans or forbearaaee of an” muoney in the absence of an ‘express stipulation as set by she Bangho Sentral ng Pulipinas, iro ‘payment until the amount i fully pai. = the date prescribed for ‘As a ule, no surcharge is imposed on deficiency ax Deficiency tax rienns the amount by which the orrect amount of tax as determined by the BIR exceeds the amount show i te taxpayer's retum. ™ DOR Memo 16-2018 (RMC No, 21-2018),| October 2019 Note: The current rate set by the BSP is six percent (6%) per annum, pursuant to BSP Circular No. 799 dated June 21, 2013. Twice (2x) this rate is twelve (12%) per anni Provided, that the deficiency and delinguency"* interest shall not be imposed simultaneously. Notes: “Pie (® In cases where extended payment of the tax is duly authorized by the BIR, no 25% surcharge shall be imposed for ‘ate payment since the deadline for Payment has been duly extended, However, 12% interest pet anaum for the extended payment shall be imposed. The 12% interest per annum shall be ‘imposed on the extended payment based on the diminishing balance of the ‘unpaid amount. Provided, however, tha the taxpayer's request for extension of the period within ‘which to pay is made on or before the deadline. Conversely, if such request is made after the deadline prescribed for payment, the taxpayer shall already be treated late in payment, in which case, the 25% surcharge shall be imposed even if payment of the delinquency be allowed in Partial amortization (©) Pursuant to Section 248(A)(1) and (4) of the Tax Code, in an amendment of retum by a taxpayer where an additional tax is due per amended return, the 12% interest and the 25% penalty shall be imposed based on the additional tax to be ‘Paid per amended return. ML. Other Penalties 4. For failure to fle an information return, statement, ist, or any required attachment: 1.000 for each such failure. The aggregate amount to be imposed for all such ‘failures during a ealendar yer shall not exceed P25,000. & For failure of a withholding agent o collect and remit the tax: ‘Penalty in the amount equal tothe total amount of the tax not withheld, © For failure of a withholding agent to refund excess withholding tax: ‘Any employer/withholding agent who fails or refuses tp refund excess withholding tex shall ‘be Table to penalty equal tothe total amount of refunds which was not refunded. | os | " Befode the effectivity of the TRAIN (January 1, 2018), interest was stat 20% per anoum, Datinquency tax vise incase of flare to py seamount de in run or the amount of wx due for ich Ho renzn f required to be flea in case of fire to pay the dtiienc) tax on the de dete sppeaiig inthe noise of gemand ofthe BIR ™ DOR Memo 16-2018 (RMC No, 21-2018). i i 2