MANILA - Taxpayers who have liabilities will be able to settle them without going through an audit, the Department of Finance said Monday as it announced a program that it said provides an easier way to settle tax deficiencies.
The DOF and the Bureau of Internal Revenue are implementing the Voluntary Assessment and Payment Program (VAPP) for the taxable year 2018.
“The VAPP allows taxpayers to voluntarily pay their unpaid internal revenue tax liabilities--with or without an ongoing audit of or investigation into their finances-- and those who do so will no longer be audited or investigated for 2018 for the tax types availed,” the DOF said.
The DOF said VAPP covers all internal revenue taxes due for the taxable year ending December 31, 2018, and for fiscal year 2018 ending on the last day of July 2018 to June 2019.
The program also covers one-time transactions (ONETT) such as the payment of estate taxes, donor’s taxes and capital gains taxes, as well as ONETT-related creditable withholding taxes or expanded withholding taxes and documentary stamp taxes.
The DOF however said that taxpayers who wish to avail of the VAPP must generally pay the higher of a certain percentage of 2018 gross sales or 2018 taxable net income, based on the increase or decrease in total taxes paid from taxable years 2017 to 2018, subject to minimum amounts based on subscribed capital.
The government expects VAPP to increase its tax collections while providing taxpayers an easy and affordable way to settle their unpaid tax deficiencies, the DOF said.
VAPP was launched on Aug. 18 and will run until Dec. 31 this year.