A. For late filing of Tax Returns with Tax Due to be paid, the following penalties will be imposed upon filing, in addition to the tax due:
1. Surcharge
NIRC SEC. 248. - Civil Penalties.
(A) There shall be imposed, in addition to the tax required to be paid, a penalty equivalent to twenty-five percent (25%) of the amount due, in the following cases:
(1) Failure to file any return and pay the tax due thereon as required under the provisions of this Code or rules and regulations on the date prescribed; or
(2) Unless otherwise authorized by the Commissioner, filing a return with an internal revenue officer other than those with whom the return is required to be filed; or
(3) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment; or
(4) Failure to pay the full or part of the amount of tax shown on any return required to be filed under the provisions of this Code or rules and regulations, or the full amount of tax due for which no return is required to be filed, on or before the date prescribed for its payment.
2. Interest
NIRC SEC. 249. Interest. -
(A) In General. - There shall be assessed and collected on any unpaid amount of tax, interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, from the date prescribed for payment until the amount is fully paid.
3. Compromise
NIRC SEC. 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation. - Any person required under this Code or by rules and regulations promulgated thereunder to pay any tax make a return, keep any record, or supply correct the accurate information, who willfully fails to pay such tax, make such return, keep such record, or supply correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation, at the time or times required by law or rules and regulations shall, in addition to other penalties provided by law, upon conviction thereof, be punished by a fine of not less than Ten Thousand Pesos (P 10,000) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.
Any person who attempts to make it appear for any reason that he or another has in fact filed a return or statement, or actually files a return or statement and subsequently withdraws the same return or statement after securing the official receiving seal or stamp of receipt of internal revenue office wherein the same was actually filed shall, upon conviction therefor, be punished by a fine of not less than Ten Thousand Pesos (P10,000) but not more than Twenty Thousand Pesos (P 20,000) and suffer imprisonment of not less than one (1) year but not more than three (3) years.
In addition, Annex A of Revenue Memorandum Order (RMO) No. 7-2015 provides for the Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (NIRC), which can be accessed via this link: Annex
From page 5 of Annex A of RMO No. 7-2015
TAX CODE SEC
|
NATURE OF VIOLATION
|
CRIMINAL PENALTY IMPOSED
|
AMOUNT OF COMPROMISE
| ||
255
|
Failure to file and/or pay any internal revenue tax at the time or times required by law or regulation
|
Fine of not less than P10,000 and imprisonment of not less than one (1) year but not more than 10 years
|
If the amount of tax unpaid
| ||
Exceeds
|
But does not exceed
|
Compromise is
| |||
P x x x
|
P 5,000
|
P 1,000
| |||
5,000
|
10,000
|
3,000
| |||
10,000
|
20,000
|
5,000
| |||
20,000
|
50,000
|
10,000
| |||
50,000
|
100,000
|
15,000
| |||
100,000
|
500,000
|
20,000
| |||
500,000
|
1,000,000
|
30,000
| |||
1,000,000
|
5,000,000
|
40,000
| |||
5,000,000
|
x x x
|
50,000
| |||
B. For late filing of Tax Returns with NO Tax Due to be paid, the compromise penalty will be imposed upon filing of the Tax Return based on the following:
1. For violations of the NIRC provisions which are subject to compromise, the reference is found in page 4 of Annex A of RMO No. 7-2015.
TAX CODE SEC
|
NATURE OF VIOLATION
|
CRIMINAL PENALTY IMPOSED
|
AMOUNT OF COMPROMISE
| ||
255
|
Failure to make/file/submit any return or supply correct information at the time or times required by law or regulation
|
Fine of not less than P10,000 and imprisonment of not less than one (1) year but not more than ten (10) years
|
If gross sales, earnings or receipts; or gross estate or gift (based on the subject returns/information for filing/submission)
| ||
Exceeds
|
But does not exceed
|
Compromise is
| |||
P x x x
|
P 50,000
|
P 1,000
| |||
50,000
|
100,000
|
3,000
| |||
100,000
|
500,000
|
5,000
| |||
500,000
|
5,000,000
|
10,000
| |||
5,000,000
|
10,000,000
|
15,000
| |||
10,000,000
|
25,000,000
|
20,000
| |||
25,000,000
|
x x x
|
25,000
| |||
2. For violations of the NIRC provisions which may be the subject of criminal actions, Section 250 of the NIRC will apply as follows:
NIRC SEC. 250. Failure to File Certain Information Returns. - In the case of each failure to file an information return, statement or list, or keep any record, or supply any information required by this Code or by the Commissioner on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall, upon notice and demand by the Commissioner, be paid by the person failing to file, keep or supply the same, One Thousand Pesos (P 1,000) for each failure: Provided, however, That the aggregate amount to be imposed for all such failures during a calendar year shall not exceed Twenty-Five Thousand Pesos (P 25,000).
C. For late filing of Statements/Reports required to be filed with NO Tax Due to be paid, the compromise penalty will be imposed upon filing of the Tax Return based on the following:
NIRC SEC. 275. Violation of Other Provisions of this Code or Rules and Regulations in General.- Any person who violates any provision of this Code or any rule or regulation promulgated by the Department of Finance, for which no specific penalty is provided by law, shall, upon conviction for each act or omission, be punished by a fine of not more than One Thousand Pesos (P 1,000) or suffer imprisonment of not more than six (6) months, or both. both.
