when it comes to mundane things.
deadline for the filing and payment of your annual income tax return.
Income Tax 2015:Compromise penalty has been updated to conform with the provisions of the new compromise penalty rates pursuant to RMO 7-2015.
returns, by the way.
slapped by penalties.
Income Tax Return today, you may be one of those taxpayers feverishly googling
on how to compute penalties for filing your Income Tax Return late. Sure, you can always go to your Revenue
District Office to have the Revenue Officer compute your penalties.
with the penalties that you will incur for not filing your Income Tax Return on
time, here is a step-by-step procedure on how you can compute the
penalties. Be aware, though, that you
still have to go to the Revenue District Office where you are registered to
have the penalties computed and signed by the Revenue Officer.
Under the Tax Code, the civil penalties that may be imposed for
failure to file and pay your ITR on
25% or 50% surcharge,
Interest of 20% per annum, and
purposes, let us assume that your Income Tax Payable is P 20,000.00.
A surcharge of 25% is imposed for failure to file and pay the
tax due on time. This surcharge is also
imposed when you file a return other than those with whom the return is
required to be filed (i.e. You are registered with Revenue District
Office-La Union, but you filed you return at the Revenue District Office of
will warrant a surcharge of 50%:
In case of willful neglect to file the return on
In case of false or
fraudulent return that is willfully made.
An interest of 20% per annum (or a higher rate as may be
prescribed by rules and regulations) is likewise imposed on any unpaid amount
of tax until the amount is fully paid.
Income Tax Return with Income Tax Payable in the amount of P20,000.00 is filed
five (5) days after the deadline:
Tax Payable x 20% x( number of days / *360
P20,000.00 x 20% x (5 days/360 days)
Revenue Memorandum Order No. 19-2007 issued on August 10, 2007
prescribes the Consolidated Revised Schedule of Compromise Penalties for
violations of the Philippine Tax Code.
*Update as of April 2015: The BIR has issued Revenue Memorandum Order No. 7-2015 prescribing the Revised Schedule of Compromise Penalties.
on the above-mentioned Income Tax Payable of P20,000.00 is P10,000.00.
Total Income Tax Payable inclusive of penalties is:
don’t need to file your Income Tax Return because your computation led to an
exempt or even return, you are wrong.
Although there is no surcharge and interest to be computed, you will
still be liable for not filing your
Income Tax return. You still have to pay
a compromise penalty , based on your gross annual sales
although your gross annual receipts or sales is P150,000.00 because you
incurred a net loss and therefore have no income tax payable, you will be
charged a compromise penalty of P5,000.00.
filed your Income tax returns and paid the corresponding income tax due.
purely compensation income from only one employer for this taxable year whose
income tax due is equal to tax withheld, don’t worry because you don’t need to
file an Income Tax Return since BIR Form No. 1604-C/F shall be considered as a substituted return
filed by the employer. BIR Form No. 2316
duly certified by both employer and employee shall serve the same purpose as if
BIR Form No. 1700 (Income Tax Return for Employees)has been filed. BIR Form 2316 shall be considered as proof of
financial capacity for purposes of loan, credit card, and for other purposes
with various government agencies.