BIR implements Voluntary Assessment & Payment Program (VAPP) covering the taxable year 2018

The VAPP shall apply to all internal revenue taxes covering the taxable year ending December 31, 2018, and fiscal year 2018 ending on the last day of the months of July 2018 to June 2019, including taxes on one-time transactions (ONETT) such as estate tax, donor’s tax, capital gains tax (CGT), as well as ONETT-related creditable withholding tax (CWT)/expanded withholding tax and documentary stamp tax (DST).

Any person, natural or juridical, including estates and trusts, liable to pay internal revenue taxes for the above specified period/s who, due to inadvertence or otherwise, erroneously paid his/its internal revenue tax liabilities or failed to file tax returns/pay taxes, may avail of the benefits under these Regulations, except those falling under any of the following instances:

a. Those taxpayers who have already been issued a Final Assessment Notice (FAN) that have become final and executory, on or before the effectivity of these Regulations;
b. Persons under investigation as a result of verified information filed by a Tax Informer under Section 282 of the NIRC of 1997, as amended, with respect to the deficiency taxes that may be due out of such verified information;
c. Those with cases involving tax fraud filed and pending in the Department of Justice or in the courts; and
d. Those with pending cases involving tax evasion and other criminal offenses under Chapter II of Title X of the NIRC of 1997, as amended.

Period of Availment. – Qualified persons can avail of the benefits of the VAPP until December 31, 2020, unless extended by the Secretary of Finance.

Privilege under VAPP: No Audit – A taxpayer with a duly issued Certificate of Availment shall not be audited for 2018 for the tax types covered by the availment.

In case the taxpayer’s tax returns for the covered taxable period are currently being audited, the conduct of the audit shall be suspended upon the availment of the VAPP while the availment is under evaluation. It shall resume if the availment has been found invalid. If the taxpayer’s availment has been determined to be valid, a Certificate of the Availment shall be issued and consequently, the issued Letter of Authority, Tax Verification Notice, Discrepancy Notice, Notice for Informal Conference, Preliminary Assessment Notice, Final Assessment Notice for pending cases shall be withdrawn and canceled. However, despite the issuance of a Certificate of Availment, the taxpayer’s availment shall be rendered invalid and shall be subject to audit or investigation following the prescribed procedures under existing rules and regulations, upon prior authorization and approval of the Commissioner of Internal Revenue, in the following instances:

a. When there is strong evidence or findings of under-declaration of sales, receipts or income or overstatement of deductions by more than 30% based on a written report of the appropriate revenue official stating the facts with supporting documents; and/or
b. When there is verifiable information that the taxpayer has withheld but failed to
remit withholding taxes.
Any voluntary payment may be applied against the deficiency tax due, if any, that may
be assessed against the taxpayer after the audit/investigation.

A link to the copy of the RR 21-2020 (VAPP) is provided below:


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