Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1840)
The primary purpose is to grant a tax amnesty for untaxed income and/or wealth earned or acquired during the taxable years 1974 to 1980 and to require the filing of a statement of assets, liabilities, and net worth.
Any individual taxpayer with previously untaxed income or wealth, whether resident citizens, resident aliens, or non-resident citizens who earned such income during the years 1974 to 1980, may avail themselves of the tax amnesty.
A 20% tax is applied to previously untaxed income or wealth for resident citizens or resident aliens. A 2% tax applies to previously untaxed income converted into U.S. dollars derived from sources abroad for non-resident citizens.
The untaxed income/wealth must have been earned during 1974 to 1980, the amnesty return filed by November 30, 1981, the tax fully paid, the tax paid must not be less than P1,000 per taxable year, and a statement of assets, liabilities, and net worth as of December 31, 1980 must be filed.
Yes, exclusions include criminal cases filed on or before September 17, 1980, pending criminal actions involving civil tax liability, withholding tax at source liabilities, transfer tax cases without clearance, and deficiency internal revenue taxes assessed before that date.
The returns must be filed with the Office of the Regional Director, Revenue District Officer, Collection Agent, or authorized Municipal Treasurer where the taxpayer has legal residence or business in the Philippines, or with the nearest Philippine Embassy or Consulate for citizens residing abroad, on or before November 30, 1981.
If the tax due exceeds P50,000, payment can be made in two or three installments depending on the amount, with specific deadlines. For amounts exceeding P300,000, payments exceeding this may be made in equal monthly installments with approval.
All individuals owning assets worth P50,000 or more as of December 31, 1980, who are not required to file under Republic Act No. 3019, must file a sworn statement using the prescribed form by November 30, 1981, with specified BIR officials or consular offices.
Assets are valued at cost if purchased or fair market value as of acquisition date if acquired by exchange or gratuitous title; depreciated value for business assets as of December 31, 1980; liabilities are included only if enforceable and reducible to sums of money as of that date.
A fine of not less than P5,000 and imprisonment of not less than two years upon conviction are imposed for knowingly making false declarations or deliberately failing to comply with the filing requirements.
Information may only be published in anonymized tabulations and summaries; unauthorized disclosure by government officials is prohibited and punishable by fines, imprisonment, or dismissal from service.
Yes, it repeals, modifies, or supersedes provisions of Presidential Decree No. 1740 and related issuances inconsistent herewith, although those who filed net worth statements under PD No. 1740 need not file again under this decree.