DELINQUENT taxpayers may settle their liabilities at either 2 percent of their total assets or 5 percent of their net worth under a new proposal by the Department of Finance to grant a general tax amnesty.
In a presentation to the House Committee on Ways and Means last Wednesday, DOF Revenue Operations Group Director IV Euvimil Nina R. Asuncion said the rates for the general tax amnesty would be of two kinds.
These could be a 2-percent levy based on their total assets as of December 31, 2024, or a 5 percent levy on net worth, subject to minimum amounts depending on taxpayer type.
For individual taxpayers, the amnesty tax could be 5 percent or P75,000, whichever is higher. Corporations would be subject to rates ranging from P100,000 for those with subscribed capital below P5 million to P1 million for those with capital exceeding P50 million. Other juridical entities would also face P75,000.
The DOF said earlier that the amnesty may cover tax liabilities between 2007 and 2024.
Asuncion said the DOF will also allow discounts depending on when taxpayers settle their delinquencies.
Taxpayers who settle within the first three months from the effectivity of the implementing rules and regulations (IRR) will get a 20 percent discount, 15 percent if paid within six months and 10 percent if paid within nine months.
The amnesty would also grant immunity for taxpayers from taxes, penalties and legal cases for 2024 and prior years, as well as confidentiality of all information disclosed in the amnesty application.
In addition, the Bureau of Internal Revenue (BIR) would be barred from examining books for the covered years, except in limited cases. However, privileges would be forfeited if the amnesty return is not filed or if assets are understated by 30 percent or more.
The proposed amnesty would cover income tax, withholding tax, capital gains tax, donor’s tax, value-added tax (VAT), other percentage taxes, excise tax, and documentary stamp tax imposed by the BIR.
It also includes VAT and excise taxes on importation, with or without assessments duly issued, collected by the Bureau of Customs (BOC).
Taxpayers with pending court cases involving the Presidential Commission on Good Government, unexplained wealth, anti-graft and money laundering, tax evasion and certain criminal offenses under the Tax Code and Revised Penal Code would be excluded from the amnesty.
Estate tax amnesty extension
THE DOF is also seeking to extend the estate tax amnesty until June 30, 2028, after its expiration on June 14, 2025.
Asuncion said the rate will be kept at 6 percent and cover estates of decedents who died on or before May 31, 2024.
The amnesty will apply to estates with unpaid taxes, whether or not a tax assessment has been issued.
The lawyer noted that certain cases specified under Section 9 of Republic Act 11213 or the Tax Amnesty Act will remain excluded.
Further, estates availing of the amnesty would be granted immunity from estate taxes, penalties, and related cases under the National Internal Revenue Code of 1997 for deaths on or before May 31, 2024.
Data from the BIR showed collections on estate tax amnesty amounted to P503.23 million from January to March 2025, availed by 14,758
This contributed 40.31 percent to the P1.248-billion in total estate tax collections in the first quarter of this year.
Since January to June this year, a total of 92,066 availed of the amnesty.
