Conditions for Immunity under Amnesty
- Untaxed income/wealth must have been earned or realized during taxable years 1974 to 1980.
- Taxpayers must file an amnesty return and fully pay the tax due on or before November 30, 1981.
- Minimum amnesty tax payment must be P1,000.00 per taxable year.
- Taxpayers must file a statement of assets, liabilities, and net worth as of December 31, 1980.
Exclusions from Tax Amnesty
- Does not cover criminal cases already filed as of September 17, 1980.
- Excludes internal revenue tax cases with pending criminal actions prior to September 17, 1980.
- Withholding tax at source liabilities and transfer tax cases without clearance certificates are excluded.
- Deficiency internal revenue taxes assessed on or before September 17, 1980, are not covered.
Filing Requirements for Amnesty Return
- Amnesty returns to be filed with appropriate BIR offices or Municipal Treasurer based on taxpayer's residence or business location.
- Filipino citizens abroad may file with nearest Philippine Embassy or Consulate or with the Commissioner of Internal Revenue.
- Return must disclose untaxed income/wealth per year and corresponding tax due.
- Filing deadline is November 30, 1981.
Payment of Amnesty Tax
- Tax due must be paid upon filing.
- For tax due over P50,000 but not more than P100,000, payment can be made in two equal installments.
- For amounts over P100,000, payment can be made in three equal installments with specified deadlines.
- In cases exceeding P300,000, installations beyond P300,000 may be allowed upon application.
- Failure to pay installments on time results in full amount becoming due with interest and penalties.
Filing of Statement of Assets, Liabilities, and Net Worth
- All individuals with assets/properties of P50,000 or more as of December 31, 1980, must file a sworn statement.
- Includes resident citizens, citizens abroad, and aliens residing in the Philippines.
- Filing deadline and places same as amnesty return, with provisions for non-resident citizens.
Valuation Standards
- Assets valued at cost if purchased, or fair market value if acquired by exchange or gratuitous title.
- Depreciated value included if asset used in trade/business as of December 31, 1980.
- Previously declared assets under PD Nos. 379 or 631 valued at declared amounts.
- Liabilities included only if enforceable and reducible to money as of December 31, 1980.
Penalties for Non-Compliance or Fraud
- Failure to file or submitting false or fraudulent statements results in fines of at least P5,000 and imprisonment of not less than two years upon conviction.
Confidentiality of Information
- Information from statements published only in aggregate form without individual references.
- Unlawful for government employees to disclose information except for internal revenue tax purposes.
- Violations subject to fines, imprisonment, and summary dismissal from government service.
Rulemaking Authority
- Ministry of Finance, upon Commissioner of Internal Revenue's recommendation, will promulgate rules for effective implementation.
Repealing Clause
- Inconsistent provisions of Presidential Decree No. 1740 and related issuances are repealed or modified.
- Those who already filed statements under PD No. 1740 are exempt from refiling under this Decree.
Effectivity
- The Decree takes effect immediately upon approval on September 19, 1981.