Summary
RMC No. 21-2018 circularizes Memorandum No. 016-2018 on the surcharge, interest and compromise penalty imposed when an amended tax return is filed.
Key points
- Interest and penalty. Failing to file a return and pay the tax on the prescribed date, or failing to pay the full or part of the tax shown on a return, carries 20% interest and a penalty of 25% of the amount due.
- Amended returns. If an amended return shows additional tax due, the 20% interest and 25% penalty are imposed on the additional tax to be paid.
- Compromise penalties. These are only amounts the BIR suggests to settle criminal liability, and payment is consensual, so they cannot be imposed on the taxpayer. If a taxpayer refuses to pay the suggested amount, the violation is referred to the appropriate office for criminal action.
Who is affected
- Taxpayers filing amended returns
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.