Tax Alert No. 1 [Revenue Regulation (RR) No. 33-2020 dated 17 December 2020]

Amendments to Revenue Regulations No. 21-2020 on the Voluntary Assessment and Payment Program for Taxable Year 2018 Under Certain Conditions

The Secretary of Finance has issued RR No. 33-2020 to amend certain provisions of the Voluntary Assessment and Payment Program (VAPP) under RR No. 21-2020.

The salient provisions of RR No. 33-2020 are as follows:

• Qualified persons can now avail of the benefits of the VAPP until 30 June 2021, unless extended further by the Secretary of Finance.
• Taxpayers who avail of the VAPP on withholding taxes shall be allowed to claim deductions on the corresponding income payment pursuant to RR No. 6-2018.
• Discrepancy Notice and other third party information (TPI) are some of the documents that can support the findings of the appropriate revenue official on under-declaration of sales or overstatement of deductions which can render the availment of VAPP invalid.
• No denial of application or invalidation of a previously issued Certificate of Availment shall be valid unless the taxpayer is formally notified by the Division Chief (LT Office) or the Revenue District Officer where the taxpayer is registered, stating the factual reasons therefor.

The taxpayer can appeal the said denial or invalidation to the Assistant Commissioner-Large Taxpayer Service (ACIT-LTS) or Regional Director (RD) within thirty (30) days from receipt of such notice.

These Regulations shall take effect immediately.

You may access the full version of this issuance through the BIR website.