By: Andrei Kristoffer G. Macandog

The Department of Finance recently moved the deadlines for the availment of the Tax Amnesty on Delinquencies (TAD) and the Voluntary Assessment and Payment Program (VAPP).[1] The DOF previously fixed the deadlines for both programs on December 31, 2020 but the same were now moved to June 30, 2021.

The TAD may be availed of by taxpayers with internal revenue tax liabilities covering taxable year 2017 and prior years.

The VAPP lets taxpayers settle their unpaid internal revenue taxes for the taxable year 2018 on a voluntary basis. Those who will be issued Certificates of Availment of VAPP shall not be audited for 2018 for the tax types that they availed of. Furthermore, those who will avail of the VAPP on withholding taxes shall be allowed to claim deductions on the corresponding income payments subject to such withholding taxes pursuant to RR No. 6-2018.

The BIR likewise issued clarifications on the suspension of the statute of limitation provided under RR No. 11-2020.

Revenue Memorandum Circular No. 136-2020, issued on December 17, 2020 clarified that the suspension of the Statute of Limitation provided in the matrix shown in RR No. 11-2020 shall start from March 16, 2020 until sixty (60) days from the lifting of the quarantine.

Thus, the counting of the 3-year prescriptive period to assess deficiency taxes, and the 5-year prescriptive period to collect the same, shall exclude the number of days covered by the period of suspension (i.e. the quarantine period), which totals 137 days. Note that no suspension under RR No. 11-2020 shall apply if the original prescriptive date falls on March 15, 2020 or earlier.

The BIR made the following illustrations:

Original Prescriptive Period New Prescriptive Period
Case 1 March 15, 2020 March 15, 2020
Case 2 March 16, 2020 July 31, 2020
Case 3 April 15, 2020 August 30, 2020
Case 4 June 15, 2020 October 30, 2020
Case 5 July 15, 2020 November 29, 2020
Case 6 April 15, 2021 August 30, 2021



[1] See Revenue Regulations Nos. 32-2020 and 33-2020


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