RR No. 7-2013: Prescribes the policies and guidelines for the abatement of surcharges, interests and compromise penalties in relation to the filing of 2012 tax returns of Philippine nationals and alien individuals employed by foreign governments/embassies/diplomatic missions and international organizations situated in the Philippines

Key points

1. Summary List of Employees. The employers submit to the Office of the Commissioner a Summary List of Employees as of December 31, 2012. Only employees on the list may avail of the abatement. International organizations whose non-Filipino employees enjoy tax immunity under international agreements or domestic laws need not submit information on those employees.
2. Relief granted. Employees covered by RMC No. 31-2013 who failed to file, or to declare the correct income on, their 2012 returns may file original or amended returns and pay the tax due. No surcharges and interests under Sections 248 and 249 of the Tax Code are imposed, and no compromise penalty under RMO No. 19-2007 is assessed.
3. Conditions. The taxpayer is registered with the BIR and is on the Summary List. The return is filed and the basic tax fully paid by May 15, 2013, or paid in installments under Section 56(A)(2). The taxpayer has no Letter of Authority, Tax Verification Notice, Audit Notice, Letter Notice or discrepancy notice for 2012, and no pending criminal case for tax evasion or other Tax Code offenses covering 2012.
4. Declaration of Availment of Abatement. By May 15, 2013 the taxpayer files this Declaration in triplicate. Attachments are a photocopy of the return, proof of full payment (or partial payment if in installments), and a notarized employer certificate with the monthly breakdown of 2012 salaries, emoluments and monetary benefits.
5. Review and approval. Filing does not stop the BIR from investigating the correctness of the returns. A Technical Working Committee reviews each Declaration and sends a notice of approval or disapproval, with a certification or a notice of disapproval.

Who is affected

• Philippine nationals and alien individuals employed by foreign governments, embassies and diplomatic missions
• Employees of international organizations in the Philippines

Deadlines and effectivity

• Summary List of Employees: on or before May 10, 2013
• Returns, payment and Declaration of Availment of Abatement: on or before May 15, 2013
• Covered taxable year: 2012