Summary
RMC No. 11-2007 circularizes an unnumbered memorandum of Commissioner Guillermo L. Parayno, Jr. dated March 31, 2004. It concerns settlement of outstanding Withholding Tax liabilities of Local Government Units (LGUs).
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Key points
- Directive to field offices. Regional Directors, Revenue District Officers, the Chief-Assessment Division and the Chief-Collection Division are to cause immediate settlement of LGUs’ Withholding Tax liabilities in their jurisdiction. They do so by encouraging LGUs to pay the basic tax and/or interest and apply for abatement of other penalties.
- Reporting. A report on each LGU’s payments and the action taken is submitted immediately to the Assistant Commissioner-Collection Service (ACIR-CS), through the Chief-Withholding Tax Division, for monitoring.
- Abatement application. The taxpayer submits three copies of the Application for Abatement or Cancellation of Tax, Penalties and/or Interest (BIR Form No. 2110), with a letter stating the reasons and payment forms showing payment of basic tax and/or interest, if any. After evaluation, the office forwards it to the Technical Working Committee on Abatement through the ACIR-CS as Chairman.
Who is affected
- Local Government Units with outstanding Withholding Tax liabilities
Deadlines and effectivity
- Memorandum dated March 31, 2004
- Circular issued February 9, 2007
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.