RMO No. 32-2002: Prescribes additional guidelines and procedures in the implementation of the expanded Voluntary Assessment and Abatement Program

Key points

1. Minimum amounts for January to June 2002. For VAT covering January to June 2002, the minimum amounts used are P 50,000 for corporations and P 25,000 for individuals. For Percentage Tax they are P 25,000 for corporations and P 5,000 for individuals.
2. Penalties, non-filers and unregistered taxpayers. Penalties accrued from late payment of basic tax may be covered, with the VAAP amount being interest at twenty percent (20%) per annum of the basic tax from its due date to payment. Non-filers, stop-filers and unregistered taxpayers may avail by filing the VAAP-AF, paying the VAAP amount using the VAAP-PF, and manually filing the unfiled returns with the RDO, and unregistered taxpayers must first register with the RDO of their principal place of business.
3. Deadlines. For taxpayers with a Letter Notice, the deadline is the one stated in the notice, unless extended or a different deadline is approved by the BIR MANCOM. For those without one, applications and payments for all tax types and periods with no noted sales discrepancy must be received on or before November 29, 2002, subject to the right to pay in installment.
4. Supporting documents. Deductions and credits claimed need a soft copy of the schedule of purchases of goods and services, submitted with the VAAP-AF or within thirty (30) days after. Penalty-only availments need the document showing the original computation of penalties, withholding tax on compensation needs Form No. 1604-CF or an alphabetical listing of employees, and expanded or final withholding tax needs a schedule of income payments.
5. Installments with a Letter Notice. If the minimum amount is less than P 500,000, no installment is allowed. From P 500,000 up to below P 3.0 Million, payment is in two (2) equal parts, the second within 30 days from the first deadline; at P 3.0 Million and above, it is in three (3) equal parts, with the third on or before December 27, 2002 for LNs issued before November 7, 2002, or within 30 days from the second deadline for LNs issued on or after that date.
6. Installments without a Letter Notice, and extensions. Installment payment must be in three (3) equal parts. The first is paid to the Accredited Agent Bank (AAB) using the VAAP-PF before filing the VAAP-AF, and the second and third on or before December 27, 2002, while an extension for financial incapacity needs a written request approved by the Regional Director for those without an LN, and by the BIR MANCOM for those with an LN.

Who is affected

• Taxpayers availing of VAAP
• Non-filers and stop-filers
• Unregistered taxpayers
• Corporations subject to preferential tax rates under special laws

Deadlines and effectivity

• Without Letter Notice: applications and payments due on or before November 29, 2002
• Second and third installments (no LN): on or before December 27, 2002
• Late schedule of purchases: within thirty (30) days from VAAP-AF submission
• Availments before November 19, 2002 follow RR 17-2002 conditions