RMC No. 111-2020: Clarifies certain issues relative to the Voluntary Assessment and Payment Program (VAPP) pursuant to Revenue Regulations No. 21-2020

Key points

1. Who and what is covered. All persons, natural and juridical, including estates and trusts, may avail. The Program covers calendar year 2018 and fiscal year 2018 ending July to November 2018, as well as those ending January to June 2019. Availment must cover all tax types the taxpayer is registered for, including Withholding Taxes, except a tax type under a pending claim for credit or refund.
2. Forms, filing and payment. BIR Form No. 2119 is the application and BIR Form No. 0622 is the payment form. Taxpayers, including eFPS users, download the PDFs from the BIR website, fill them out and pay at the Authorized Agent Bank or Revenue Collection Office. E-payment channels such as G-Cash and PayMaya are not allowed, and TRA is not acceptable, only cash in all its forms. ATCs are MC341, MC342 and MC343.
3. Where to file. Sections 9.a and 9.b availments are filed at the BIR office where the taxpayer is registered. Donor’s Tax is filed at the RDO where the donor is domiciled at the time of donation. Sale of real property is filed at the RDO having jurisdiction over the property. Unlisted share sales are filed where the seller is registered, with copies of validated BIR Form No. 1707 and BIR Form No. 2000-OT.
4. Computation rules. Gross sales means sales, receipts, revenues and fees net of returns, allowances and discounts per the Annual Income Tax Return. With no increase or decrease in taxes versus 2017, the net increase of not more than 10% bracket applies. A first-year taxpayer uses the net increase of more than 30% bracket. If the ONETT assessment pertains only to penalties, the voluntary payment is 5% of the basic tax paid. Unwithheld and unremitted taxes for 2018 must be paid first.
5. Audits, assessments and refund claims. A taxpayer under audit for 2018 who avails has the audit suspended while the availment is evaluated. Once a Certificate of Availment is issued, the eLA and related notices are withdrawn and canceled. Taxpayers with a protested FAN for 2018 may avail if all tax types are covered, and a pending refund claim may continue unless it is for erroneous payment that the taxpayer has not waived.
6. Deficiencies and denial. A taxpayer told to correct deficiencies or pay additional voluntary tax who fails to act within ten (10) days from receipt no longer qualifies. If availment is denied and an audit follows, the voluntary tax paid counts as payment of the 2018 deficiency assessments, upon Commissioner approval. Payment made on or before December 31, 2020 with an application filed after the deadline is treated as availment within the deadline.

Who is affected

• All persons, natural and juridical, including estates and trusts
• Taxpayers with 2018 audits or protested FANs
• Taxpayers with pending refund claims

Deadlines and effectivity

• Payment on or before December 31, 2020 counts as within the deadline
• Notified taxpayers have 10 days from receipt to rectify or pay
• eCAR issued within 5 days from the Certificate of Availment (Section 9.c)