BIR Revenue Regulations No. 21-2018

Regulations Implementing Section 249 (Interest) of the National Internal Revenue Code (NIRC) of 1997, as amended under Section 75 of Republic Act (RA) No. 10963 or the “Tax Reform for Acceleration and Inclusion (TRAIN Law)

“SECTION 2. RATE OF INTEREST. – There shall be assessed and collected on any unpaid amount of tax, interest at the rate of double the effective legal interest rate for loans or forbearance

of any money in the absence of an express stipulation as set by the Bangko Sentral ng Pilipinas (BSP)from the date prescribed for payment until the amount is fully paid.

The rate of interest per BSP Memorandum No. 799 series of 2013 for loans or forbearance of any money in the absence of an express stipulation is six percent (6%). Thus, the rate of legal interest imposable under Section 249 of the Tax Code, as amended, shall be twelve percent (12%).A Circular shall be issued by the Commissioner in case BSP prescribes new rate of interest.”

“SECTION 3. DEFICIENCY INTEREST. – Interest imposed on any deficiency tax due, which interest shall be assessed and collected from the date prescribed for its payment until: (a) full payment thereof, or (2) upon issuance of a notice and demand by the Commissioner or his authorized representative, whichever comes first.

SECTION 4. DELIQUENCY INTEREST. – Interest imposed on the failure to pay:

(1) The amount of the tax due on any return to be filed; or

(2) The amount of the tax due for which no return is required: or

(3) A deficiency tax, or any surcharge or interest thereon on the due date appearing in the notice or demand of the Commissioner or his authorized representative until the amount is fully paid, which interest shall form part of the tax.

SECTION 5. NO DOUBLE IMPOSITION OF INTEREST. – Upon the effectivity of the TRAIN Law, in no case shall the deficiency and delinquency interest prescribed herein be imposed simultaneously.

SECTION 6. TRANSITORY PROVISION. – In cases where the tax liability/ies or deficiency tax/es became due before the effectivity of the TRAIN Law on January 1, 2018, and where the full payment thereof will only be accomplished after the said effectivity date, the interest rates shall be applied as follows:

The double imposition of both deficiency and delinquency interest under Section 249 prior to its amendment will still apply in so far as the period between the date prescribed for payment until December 31, 2017.”