Benefits of the proposed general tax amnesty
By: Atty. Euney Marie J. Mata-Perez on October 16,2025
A WELCOME development is Senate Bill (SB) 60, which proposes a one-time amnesty on all unpaid internal revenue taxes imposed by the national government for 2024 and prior years.
Several key tax reforms have been passed, significantly amending the National Internal Revenue Code (Tax Code) since 2018. However, no general amnesty act has been implemented since.
While Republic Act (RA) 11213, or the Tax Amnesty Act, was signed into law in February 2019, a year after the passage of RA 10963, the Tax Reform or Acceleration and Inclusion (Train) Act, the president, at the time, vetoed provisions on general amnesty for all unpaid internal revenue taxes due to lack of proper safeguards and measures against tax evasion.
Subsequent major amendments to the Tax Code were introduced by RA 11534, the Corporate Recovery and Tax Incentives for Enterprises (Create) Act in 2021, and RA 11976, the Ease of Paying Taxes (EOPT) Act, in 2024. In 2025, RA 12066, the Create More Act, was also enacted to address issues and inconsistencies in its predecessor.
The passage of these tax reform laws, coupled with the brunt of the Covid-19 pandemic, resulted in many taxpayers or registered businesses subjected to penalties. It is thus high time that the government revisits and pushes for the passage of a general amnesty act.
Generally, an amnesty gives the population an opportunity to file and pay taxes, without being civilly or criminally prosecuted and/or without being assessed penalties.
It allows individuals — who have violated the law and continue to evade it because of a fear of being penalized — to become law-abiding taxpayers again. It also allows the Bureau of Internal Revenue to collect back taxes. They can thus close accounts under investigation. An amnesty may encourage greater future compliance (Tax Indulgences: The Scope and Effect of Tax Amnesty, by G. Guttman, USA).
It has been statistically shown that tax amnesty programs increase voluntary compliance and enhance the credibility of the taxation system. But while the Philippines has had major tax reforms, it did not couple such reforms with a general tax amnesty. Thus, the passage of SB 60 is good news.
In detail, SB 60 proposes that those who avail of the amnesty pay a General Tax Amnesty Tax of 2 percent based on the taxpayer’s total assets as of Dec. 31, 2024, or a 5 percent tax based on the taxpayer’s total net worth in the same period.
Those who will avail of and comply with the conditions of the general tax amnesty shall be immune from the payment of taxes, as well as all appurtenant civil, criminal, and administrative cases and penalties under the Tax Code, arising from the failure to pay any and all internal revenue taxes for 2024 and prior years.
Any information or data contained in, derived from, or provided by a taxpayer in the Tax Amnesty Return, Statement of Total Assets, or Statement of Assets, Liabilities, and Net Worth, as the case may be, and appurtenant documents, shall be confidential and shall not be used in any investigation or prosecution before any judicial, quasi-judicial, and administrative bodies. However, the taxpayer may use them as a defense, whenever appropriate, in cases brought against it.
The books of accounts and other records of the taxpayer for the years covered by the tax amnesty availed of shall not be examined by the BIR. However, the Commissioner of Internal Revenue (CIR) may authorize in writing the examination of the said books of accounts and other records to verify the validity or correctness of a claim for any tax refund, tax credit (other than refund or credit of taxes withheld on wages), tax incentives, and/or exemptions under existing laws.
Notwithstanding the provisions of the Bank Secrecy Act, the CIR shall be authorized to inquire into the taxpayer’s bank deposits and other related data held by local and foreign financial institutions, and to exchange information with a foreign tax authority for a one-year period of availing of the amnesty.
However, the immunities and privileges shall not apply when the Statement of Total Assets, or Statement of Assets, Liabilities, and Net Worth, as the case may be, or where the amount of total assets or net worth as of Dec. 31, 2024, is proven to be understated to the extent of 30 percent or more.
Definitely, the passage of SB No. 60, granting a general tax amnesty, will encourage taxpayers’ voluntary compliance with their tax obligations and give them a reprieve on penalties and interests on unpaid taxes. It will also address the lack of safeguards against tax evasion by including provisions on lifting of bank secrecy, automatic exchange of information, and penalties for untruthful net worth or total asset declarations. In the end, it will promote a balance, by offering taxpayers an opportunity to start with a clean slate, while at the same time allow the government to collect amnesty taxes.
Euney Marie J. Mata-Perez is a CPA-Lawyer and the Managing Partner of Mata-Perez, Tamayo & Francisco (MTF Counsel). She is a corporate, M&A and tax lawyer and has been ranked as one of the top 100 lawyers of the Philippines by Asia Business Law Journal and is the Chair of the Tax Committee of the Management Association of the Philippines. This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit MTF website at www.mtfcounsel.com.
The article was published at the More to Follow Column at The Manila Times on October 16,2025. Please see this link. https://www.manilatimes.net/2025/10/16/business/top-business/benefits-of-the-proposed-general-tax-amnesty/2201599