Summary
RMC No. 90-2007 amends Question and Answer No. 28 of RMC No. 69-2007 on the Tax Amnesty Program under RA No. 9480, as implemented by DO No. 29-07.
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Key points
- Companies amending the Balance Sheet. Companies in a deficit position can avail of the tax amnesty if they amend the Balance Sheet so that the reported deficit is reduced.
- Computation. The decrease in the deficit is the basis for the 5% amnesty tax rate. The amnesty tax payable is whichever is higher: 5% of the reduction in capital deficit or the prescribed minimum absolute amount.
- Companies not amending. Companies in a deficit position that do not amend their Balance Sheets are not qualified to avail of the tax amnesty.
Who is affected
- Companies in a deficit position (negative networth)
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.