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 (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
NATURE OF CRIMINAL PENALTY
CODE AMOUNT OF COMPROMISE
VIOLATION IMPOSED
SEC
255 Failure to file and/or pay Fine of not less than If the amount of tax unpaid
any internal revenue tax P10,000 and
But does
at the time or imprisonment of not less Compromise
Exceeds not
times required by law or than one (1) year but is
exceed
regulation not more than 10 years
P xxx 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 xxx 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
NATURE OF CRIMINAL PENALTY
CODE AMOUNT OF COMPROMISE
VIOLATION IMPOSED
SEC
255 Failure to Fine of not less than If gross sales, earnings or receipts;
make/file/submit any P10,000 and or gross estate or gift (based on the
return or supply correct imprisonment of not subject returns/information for
information at the time less than one (1) year filing/submission)
or times required by but not more than ten
But does Compromise
law or regulation (10) years Exceeds
not exceed is
P xxx 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 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 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.