RMC No. 55-2007: Publishes the full text of Department Order No. 29-07 entitled “Implementing Rules and Regulations of Republic Act No. 9480,” otherwise known as “Tax Amnesty Act of 2007”

Key points

1. Coverage and who may avail. The amnesty covers national internal revenue taxes for 2005 and prior years unpaid as of December 31, 2005, with or without assessments. Individuals, estates and trusts, corporations, cooperatives and tax exempt entities that became taxable as of December 31, 2005, and other juridical entities including partnerships may avail. An individual who is also an estate executor or administrator files two separate amnesty returns.
2. Who is excluded. Excluded are withholding agents for withholding tax liabilities, and those with pending PCGG cases, unexplained wealth cases, Anti-Money Laundering Law court cases, criminal tax evasion cases under Chapter II of Title X of the NIRC, certain Revised Penal Code felony cases, or tax cases with final and executory judgment.
3. Documents and filing. Taxpayers file a Notice of Availment, a Statement of Assets, Liabilities and Networth (SALN) as of December 31, 2005, and a Tax Amnesty Return. Residents file with the RDO or LTDO having jurisdiction, and non-residents with the CIR office or any RDO. Payment is made to the Authorized Agent Bank, or the Collection Agent or treasurer if none.
4. Amnesty tax. The tax is 5% of declared networth as of December 31, 2005 or the absolute minimum, whichever is higher. The minimum is P 50,000 for individuals, estates, trusts and other juridical entities. For corporations it is P 500,000 (subscribed capital above P 50 Million), P 250,000 (above P 20 Million up to P 50 Million), P 100,000 (P 5 Million to P 20 Million) and P 25,000 (below P 5 Million).
5. Immunities and conditions. Compliant taxpayers are immune from the taxes and penalties for 2005 and prior years, and their books for the covered years are not examined by the BIR, subject to stated exceptions. The immunities do not apply if no SALN and amnesty return are filed or networth is understated by 30% or more.
6. Penalties and policy. Willful understatement of networth by 30% or more carries perjury penalties. Unlawful divulgence of the return or SALN is punished by a fine of not less than P 50,000.00 and imprisonment of 6 to 10 years. No further tax amnesty is allowed henceforth, including administrative amnesty, but compromise or abatement under Sec. 204 is not an amnesty.

Who is affected

• Individuals, estates and trusts, corporations, cooperatives and other juridical entities with unpaid 2005 and prior year taxes

Deadlines and effectivity

• Filing of return and SALN and payment within six (6) months from effectivity of the Rules
• Covers taxes unpaid as of December 31, 2005