BIR: Manner of Payment of Penalty Relative to Violations Incurred by RBEs in the IT-BPM Sector

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The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 39-2022 dated April 6, 2022 on the manner of payment of penalty relative to violations incurred by Registered Business Enterprises (RBEs) under the Information Technology – Business Process Management (IT-BPM) Sector on the conditions prescribed regarding work from home (WFH) arrangement.

In August 2, 2021, the Fiscal Incentives Regulatory Board Issue Resolution No. 19-2021 which prescribed certain conditions that must be complied with by the IT-BPM sector granted WFH arrangement, otherwise, the tax incentives given to them shall be suspended. Relatively, BIR issued RMC No. 23-2022 prescribing the rate of penalty to be imposed for violation committed by the RBE and the relevant BIR forms to use for payment of penalty.

This Circular is issued to avoid confusion and mandate the uniform manner of payment of the said penalty using BIR Form No. 0605 by choosing ‘Others’, under ‘Voluntary Payment’ and by indicating in the field provided the phrase “Penalty pursuant to FIRB Res. No. 19-2021.” The tax type code shall still be “IT” and the ATC to be indicated is “MC 200”.

The penalty shall be paid within thirty (30) days after the due date prescribed for the payment of the income tax. Administrative penalties shall be imposed if not paid on time.

Full text: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2022%20RMCs/RMC%20No.%2039-2022.pdf