REVENUE MEMORANDUM CIRCULAR NO.

21-2018 issued on April 5, 2018

circularizes Memorandum No. 016-2018 regarding the imposition of surcharge, interest and
compromise penalty for filing of an amended tax return.
An interest of twenty percent (20%) and penalty equivalent to twenty-five percent (25%)
of the amount due shall be imposed on failure to file any return and pay the tax due thereon on
the date prescribed or failure to pay the full or part of the amount of tax shown on any return.
Thus, in an amendment of return where an additional tax is due per amended return, 20%
interest and 25% penalty shall be imposed based on the additional tax to be paid per amended
return.
Compromise penalties are only amounts suggested by the BIR in settlement of criminal
liability for violations committed by taxpayers, the payment of which is consensual in nature,
and may not therefore be imposed or exacted on the taxpayer. Thus, in the event that a taxpayer
refuses to pay the suggested compromise penalty, the violation shall be referred to the
appropriate office for criminal action.