Tuesday, October 8, 2013

RR No. 9-2013 on Tax Compromise Fee in Philippines

The Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 9-2013 dated May 10, 2013 (RR No. 9-2013) amending Revenue Regulations No. 30-2002 (RR No. 30-2002) relative to the amount of compromise payment of deficiency internal revenue taxes.

In the past under RR No. 30-2002, the rule was to apply for compromise of deficiency taxes under any of the following and upon approval, the compromise amount shall then be paid:

  • Minimum amount of 40% of basic tax due based on doubtful validity; or
  • Minimum amount of 10% of basic tax due based on financial incapacity.

Under RR No. 9-2013, the compromise offer shall be paid by the taxpayer upon filing of the application for compromise settlement and the application for compromise shall not be processed unless the compromise amount is paid. In case of disapproval of the application, the amount paid shall be deducted from the total outstanding tax liabilities.

Please see below Revenue Regulations No. 9-2013 for easy reference.


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