RMC No. 21-2010: Reiterates the applicable penalties for employers who fail to withhold, remit, do the year-end adjustment and refund employees of the excess withholding taxes on compensation

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Summary

RMC No. 21-2010 reiterates the penalties for employers who fail to withhold and remit taxes, do the year-end adjustment, or refund excess withholding taxes on compensation. It also covers those who under-withheld or under-remitted.

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Key points

  1. Additions to the tax. Penalties or interest apply under Sections 248, 249, 251 and 252 under Title X, Chapter I of the Tax Code, as amended.
  2. Criminal liability. Fine or imprisonment or both apply under Sections 255, 256, 272 and 275 under Title X, Chapter II, III and IV of the Tax Code, as amended.
  3. Compromise penalty. In certain instances provided in Revenue Memorandum Order No. 19-2007, a compromise penalty may be imposed and collected in lieu of criminal liability.

Who is affected

  • Employers who fail to withhold, remit, adjust or refund withholding taxes on compensation

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.