PENALTIES FOR LATE FILING OF TAX RETURNS

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 (P10,000) 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 (P20,000)
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. 19-2007 provides for the
Consolidated Revised Schedule of Compromise Penalties for Violations of the National
Internal Revenue Code (NIRC), which can be accessed via this link:
ftp://ftp.bir.gov.ph/webadmin1/pdf/36076Annex%20A.pdf

From page 1, last paragraph in Annex A of RMO No. 19-2007

TAX
CODE
SEC

NATURE OF
VIOLATION

CRIMINAL
PENALTY IMPOSED

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

AMOUNT OF COMPROMISE

If the amount of tax unpaid

Exceeds
Pxxx
500
1,000
2,000
5,000
7,500
10,000
15,000
20,000
30,000
50,000
100,000
500,000
1,000,000
5,000,000

But does not

exceed
P 500
1,000
2,000
5,000
7,500
10,000
15,000
20,000
30,000
50,000
100,000
500,000
1,000,000
5,000,000
xxx

Compromise is
P 200
400
700
1,000
1,500
2,000
3,000
4,000
6,000
8,500
12,000
16,000
20,000
25,000
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 2 of Annex A of RMO No. 19-2007.
TAX
CODE
SEC

NATURE OF
VIOLATION

CRIMINAL
PENALTY IMPOSED

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

AMOUNT OF COMPROMISE

If gross annual sales, earnings or receipts; or

gross estate or gift
Exceeds
But does not
Compromise is
exceed
Pxxx
P 10,000
P 200
10,000
20,000
400
20,000
30,000
600
30,000
50,000
1,000
50,000
75,000
1,500
75,000
100,000
2,000
100,000
300,000
3,000
300,000
500,000
5,000
500,000
1,000,000
7,500
1,000,000
5,000,000
10,000
5,000,000
10,000,000
15,000
10,000,000 25,000,000
20,000
25,000,000
xxx
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 Commisssioner, be paid by the person failing to file, keep or supply the same, One thousand
pesos (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 (P25,000).

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.