Coverage.
SEC. 10. Coverage. - There is hereby authorized and granted a tax amnesty, hereinafter called General Tax Amnesty, which shall cover all national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor's tax, value-added tax, other percentage taxes, excise tax and documentary tax stamp tax collected by the Bureau of Internal Revenue, including value-added tax and excise tax collected by the Bureau of Customs for taxable year 2017 and prior years, with or without assessments duly issued therefor, that have remained unpaid; Provided, however, That the General Tax Amnesty hereby authorized and granted shall not cover persons or cases enumerated under Section 16 and Title IV hereof.
Entitlement Under the General Tax Amnesty.
SEC. 11. Entitlement Under the General Tax Amnesty. - Except for the instances covered in Section 16 hereof, any person, whether natural or juridical, may enjoy the immunities and privileges of the General tax Amnesty by paying, at the taxpayer's option, an amnesty tax at:
(i) the rate of two percent (2%) based on the taxpayer's total assets as of December 31, 2017, as declared in the Statement of Total Assets; or
(ii) based on the taxpayer's total networth as of December 31, 2017, as declared in the Statement of Assets, Liabilities, and Networth filed pursuant to Section 12 hereof and in accordance with the following schedule of amnesty tax rates and minimum amnesty tax payments required:
(a) Individual (whether resident or nonresident citizens, including resident of nonresident aliens), Trusts and Estates........5% or P75,000, whichever is higher.
(b) Corporations
(1) With subscribed capital of above P50 million.........5% or P1,000,000, whichever is higher.
(2) With subscribed capital of above P20 million up to P50 million.........5% or P500,000, whichever is higher.
(3) With subscribed capital of P5 million up to P20 million........5% of P250,000, whichever is higher.
(4) With subscribed capital below P5 million.........5% or P100,000, whichever is higher.
(c) Other juridical entities, including, but not limited to, cooperatives, foundations, that have been taxable as of December 31, 2017...........5% of P75,000, whichever is higher.
Provided, That if the taxpayer opts to pay the amnesty tax based on total networth and the computed networth is negative, the taxpayer may still avail of the benefits of tax amnesty under this Title, and pay the minimum amnesty tax.
Availment of the General Tax Amnesty; When and Where to File and Pay.
SEC. 12. Availment of the General Tax Amnesty; When and Where to File and Pay. - Any person, natural or juridical, who wishes to avail of the General tax Amnesty shall, within one (1) year from the effectivity of the Implementing Rules and Regulations, file with the appropriate office of the Bureau of Internal Revenue, which has jurisdiction over the taxpayer, a sworn General Tax Amnesty Return accompanied by a notarized Statement of Totat Assets or notarized Statement of Assets, Liabilities, and Networth, as the case may be, as of December 31, 2017. The payment of the amnesty tax shall be made at the time the Return is filed.
Provided, That the Revenue District Office shall issue and endorse an Acceptance Payment Form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act authorizing the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the amnesty tax payment:
Provided, further, That the availment of the General Tax Amnesty and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing taxpayer.
Provided, furthermore, That if the tax amnesty is availed based on the period indicated hereunder, the taxpayer shall be entitled to the corresponding reduction in the total amnesty tax due:
(a) If paid on or before the end of the third calendar month from the effectivity of the Implementing Rules and Regulations...................................................................20%;
(b) If paid after the end of the third calendar month until the end of the sixth calendar month from the effectivity of the Implementing Rules and Regulations...................15%; and
(c) If paid after the end of the sixth calendar month until the end of the ninth calendar month from the effectivity of the Implementing Rules and Regulations...................10%.
Contents of the Statement of Total Assets and Statement of Assets, Liabilities, and Networth.
SEC. 13. Contents of the Statement of Total Assets and Statement of Assets, Liabilities, and Networth . -
(A) The Statement of Total Assets shall contain a declaration of the total assets as of December 31, 2017, as follows:
(1) Assets within or without the Philippines, whether real or personal, tangible or intangible, whether or not used in trade or business:
(a) Real properties shall be accompanied by a description of their classification, exact location, and valued at acquisition cost, if acquired by purchase, or the zonal valuation or fair market value as shown in the schedule of values of the provincial, city or municipal assessors at the time of inheritance or donation, whichever is higher, if acquired through inheritance or donation;
(b) Personal properties other than money, shall be accompanied by a specific description of the kind and number of assets (e.g. automobiles, shares of stock, etc.) or other investments, indicating the acquisition cost less than accumulated depreciation or amortization, or the corresponding book value for shares of stock, in proper cases, if acquired by purchase, or the fair market price or value at the date of the Statement of Total Assets, if acquired through inheritance or donation;
(c) Assets denominated in foreign currency shall be converted into the corresponding Philippine currency equivalent, at the rate of exchange prevailing as of the date of the Statement of Total Assets; and
(d) Cash on hand and in bank in peso as of the date of the Statement of Total Assets, as well as cash on hand and in bank in foreign currency, converted to Philippine peso at the rate of exchange prevailing as of the date of the Statement of Total Assets.
(B) The Statement of Assets, Liabilities, and Networth shall a true and complete declaration of assets, liabilities, and networth of the taxpayer as of December 31, 2017, as follows:
(1) Assets within or without the Philippines, whether real or personal, tangible or intangible, whether or not used in trade or business:
(a) Real properties shall be accompanied by a description of their classification, exact location, and valued at acquisition cost, if acquired by purchase, or the zonal valuation or fair market value as shown in the schedule of values of the provincial, city or municipal assessors, at the of inheritance or donation, whichever is higher, if acquired through inheritance or donation;
(b) Personal properties other than money, shall be accompanied by a specific description of the kind and number of assets (e.g. automobiles, shares of stock, etc.) or other investments indicating the acquisition cost less the accumulated depreciation or amortization, or the corresponding book value for shares of stock, in proper cases, if acquired by purchase, or the fair market price or value at the date of the Statement of Assets, Liabilities, and Networth, if acquired through inheritance or donation;
(c)Assets denominated in foreign currency shall be converted into the corresponding Philippine currency equivalent, at the rate of exchange prevailing as of the date of the Statement of Assets, Liabilities, and Networth; and
(d) Cash on hand and in bank in peso as of the date of the Statement of Assets, Liabilities, and Networth, as well as cash on hand and in bank in foreign currency, converted to Philippine peso at the rate of exchange prevailing as of the date of the Statement of Assets, Liabilities, and Networth.
(2) All existing liabilities, which are legitimate and enforceable, secured or unsecured, whether or not incurred in trade or business, disclosing or indicating clearly the name and address of the creditor and the amount of the corresponding liability.
(3) The total networth of the taxpayer, which shall be the difference between the total assets and total liabilities.
SEC. 14. Presumption of Correctness of the Statement of Total Assets, and Statement of Assets, Liabilities, and Networth. - The Statement of Total Assets or the Statement of Assets, Liabilities, and Networth, filed at the option of the taxpayer, shall be conclusively presumed as true, correct, and final upon filing thereof, and shall be deemed complete upon full payment of the amount due.
The Acceptance Payment Form, and the General Tax Amnesty Return shall be submitted to the Revenue District Office after complete payment. The completion of these requirements shall be deemed full compliance with the provisions of this Act. A Certificate of Availment of the General Tax Amnesty shall be issued by the Bureau of Internal Revenue within fifteen (15) calendar days from submission to the Bureau of Internal Revenue of the Acceptance Payment Form and the General Tax Amnesty Return. Otherwise, the duplicate copies, stamped as received, of the Acceptance Payment Form, and the General Tax Amnesty Return shall be deemed as sufficient proof of availment.
Immunities and Privileges.
SEC. 15. Immunities and Privileges. - Those who avail of the General tax Amnesty and have fully complied with all the conditions set forth in this Act and upon payment of the amnesty tax shall be entitled to the following immunities and privileges:
(a) With respect to the years covered by the tax amnesty, the taxpayer shall be immune from the payment of taxes, as well as additions thereto, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended, arising from the failure to pay any and all internal revenue taxes for taxable year 2017 and prior years and from such other investigations or suits insofar as they relate to the assets, liabilities, networth, and internal revenue taxes that are subject od the tax amnesty.
(b) Any information or data contained in, derived from or provided by a taxpayer in the Tax Amnesty Return, Statement of Total Assets or Statement of Assets, Liabilities, and Networth, as the case may be, and appurtenant documents shall be confidential in nature and shall not be used in any investigation or prosecution before any judicial, quasi-judicial, and administrative bodies. However, the taxpayer may use this as a defense, whenever appropriate, in cases brought against the taxpayer.
(c) The books of accounts and other records of the taxpayer for the years covered by the tax amnesty availed shall not be examined by the Bureau of Internal Revenue: Provided, That the Commissioner of the Bureau of Internal Revenue may authorize in writing the examination of the said books of accounts and other records to verify the validity or correctness of a claim for any tax refund, tax credit (other than refund or credit of taxes withheld on wages), tax incentives, and/or exemptions under existing laws.
All these immunities and privileges shall not apply when the taxpayer failed to file a General Tax Amnesty Return and a Statement of Total Assets, or Statement of Assets, Liabilities, and Networth, as the case may be.
Upon full compliance with all the condition set forth in this Title and payment of the corresponding general amnesty tax, the tax amnesty granted this Title shall become final and irrevocable.
Exceptions.
SEC. 16. Exceptions. - The General Tax Amnesty under this Act shall not extend to the following:
(a) Withholding tax agents who withheld taxes but failed to remit the same to the Bureau of Internal Revenue;
(b) Taxpayers with case pending in appropriate courts involving:
(1) Those that fall under the jurisdiction of the Presidential Commission on Good Government
(2) Unexplained or unlawfully acquired wealth under Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder;
(3) Violations of Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act, as amended;
(4) Tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code of 1997, as amended; and
(5) Felonies of frauds, illegal exactions and transactions, and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code;
(c) Tax cases that have become final and executory; and
(d) Delinquencies and assessments that have become final and executory.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
