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Revenue Regulation (RR) No.21-2020 Voluntary Assessment and Payment Program

Posted by on February 18th, 2022

The Bureau of Internal Revenue (BIR) and the Department of Finance (DOF) has issued on August 18, 2020 RR No. 21-2020 which prescribes the policies, procedures and guidelines in the implementation of Voluntary Assessment and Payment Program (VAPP) that allows taxpayers to settle their unpaid 2018 dues through voluntary assessment in lieu of audit.

It covers all internal revenue taxes for the taxable year ending December 31, 2018 and fiscal year 2018 ending on the last day of the months of July 2018 to June 2019 including one-time transactions (ONETT) such as estate tax, donor’s tax, capital gains tax (CGT), as well as ONETT-related creditable withholding taxes (CWT) or expanding withholding taxes (EWT) and documentary stamp tax (DST).

The Taxpayers who have received a final assessment notice (FAN) that have become final and executory on or before the effectivity of the program, those under investigation fixed by a tax informer, those involved in cases of tax fraud pending before the Justice Department or in the courts, tax evasion and other criminal offenses are excluded from the VAPP.

The taxpayer-applicant needs to submit the following requirements:

Mandatory Requirements:
a. Application form (BIR Form No. 2119) and the
b. Payment form (BIR Form No. 2119) with proof payment to the BIR.

Additional Requirements:
c. Filed tax returns, proof of tax payments in 2017 and 2018, and Audited Financial Statement (AFS) for the covered taxable year – for Income Tax, Value-Added Tax, Percentage Tax, Excise Tax, and DST other than DST on ONET

d. Copy of remittance returns and proof payment of final and creditable withholding taxes – for Final Withholding Taxes (on compensation, fringe benefits, etc.) and Creditable Withholding Taxes (CWT) other than CWT on ONETT

e. Copy of duly paid and stamped BIR Form No. 0605 and proof of payment representing settlement of previous deficiency tax, with or without an assessment notice, if any, covering the taxable period ending December 31, 2018 and fiscal year 2018 ending on the last day of the months of July 2018 to June 2019.

f. Duly accomplished ONETT tax returns and corresponding documentary requirements – for taxes on ONETT, such as estate tax, donor’s tax, CGT, ONETT-related CWT/EWT, and DST

The taxpayers have until December 31, 2020 to avail the said program unless extended by the Secretary of Finance.

The voluntary payment should be in cash. Hence, non-cash modes of payment will not qualify as a valid payment.

Non-submission or submission of erroneous/incomplete/falsified information concerning the VAPP shall not entitle the taxpayer to avail of the privilege under this Regulation.

The amount of taxes to be paid under the VAPP shall be the higher of 1%-5% of 2018 gross sales or 5%-9% of 2018 taxable net income, but shall in no case be less than:

a. P75,000 – for individuals, estates and trusts, cooperatives, foundations, general professional partnerships
b. P100,000 – for corporations with subscribed capital of P5 million and less
c. P250,0000 – for corporations with subscribed capital of more than P5 million up to P20 million
d. P500,000 – for corporations with subscribed capital of more than P20 million up to P50 million
e. P1,000,000 – for corporations with subscribed capital of more than P50 million

A taxpayer with a duly issued Certificate of Availment shall not be audited for 2018 for the tax types covered by the availment. In case of on-going tax audit for the covered taxable period, the conduct of audit shall be suspended and shall resume if the availment has been found to be invalid. For all valid availments, the issued Letter of Authority (LOA), Tax Verification Notice (TVN), Discrepancy Notice, Notice for Informal Conference (NIC), Preliminary Assessment Notice (PAN), and Final Assessment Notice (FAN) shall be withdrawn and cancelled.

This was published in a newspaper of general circulation on September 5, 2020 and will take effect after 15 days.

Attached herewith also is the above mentioned Revenue Regulation for your reading reference. If you need any assistance in availing this program, you may email us at

For any additional updates from the agencies and instrumentalities, we shall share it with you on a timely manner.

Click to access RR%20No.%2021-2020_VAAP.pdf