Philippines - Sample Protest Letter Tax Assessment

[Office Address of BIR Regional Office/RDO]

Print at least three (3) copies of the letter. One for the Assessor’s office, one for your personal file, and one spare.

The FLD/FAN was issued on [date] covering taxable year [year], which is beyond the three-year prescriptive period under Section 203 of the NIRC (or ten years for false/fraudulent return under Section 222). No valid waiver of the statute of limitations was executed.

What (e.g., Income Tax, VAT, or Withholding Tax) is the primary focus of your current assessment? sample protest letter tax assessment philippines

[State the amount and specific item being contested]

(or THE REVENUE DISTRICT OFFICER )Revenue Region No. [Insert Region Number]Revenue District Office (RDO) No. [Insert RDO Number]Bureau of Internal Revenue[Insert Address of the BIR Office]

[Date of Filing] THE REGIONAL DIRECTOR [Or THE REVENUE DISTRICT OFFICER] Revenue Region No. [Insert Number], RDO No. [Insert Number] Bureau of Internal Revenue [Complete Office Address of the RDO/Regional Office] Subject: PROTEST / REQUEST FOR REINVESTIGATION Re: Assessment Notice No. [Insert Assessment Notice Number] Dated: [Insert Date written on the FAN/FLD] Tax Year / Period: [Insert Tax Year, e.g., Calendar Year 2024] Date Received by Taxpayer: [Insert Exact Date You Received the FAN] Dear Sir/Madam: We write on behalf of [Insert Taxpayer Name / Company Name], a corporation duly organized and existing under Philippine laws, with principal office address at [Insert Registered Business Address], and registered with Taxpayer Identification Number (TIN) [Insert TIN Number]. This formal protest is being filed within the thirty (30) day prescriptive period provided under Section 228 of the National Internal Revenue Code (NIRC), as amended, counted from our receipt of the Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) on [Insert Date Received]. Conformably with Revenue Regulations No. 12-99, as amended, we hereby respectfully protest the alleged deficiency taxes assessed against our company for the Calendar Year [Year], broken down as follows: 1. Deficiency Income Tax – Php [Amount] 2. Deficiency Value-Added Tax (VAT) – Php [Amount] 3. Deficiency Expanded Withholding Tax (EWT) – Php [Amount] We categorically disagree with the findings of the Revenue Officers and pray for the total cancellation and withdrawal of the aforementioned assessment based on the following factual and legal grounds: I. NATURE OF THE PROTEST The Taxpayer respectfully requests a REQUEST FOR REINVESTIGATION. To substantiate the arguments set forth below, the Taxpayer intends to submit additional supporting documents within sixty (60) days from the filing of this protest, pursuant to Section 228 of the NIRC and RR No. 18-2013. II. GROUNDS FOR THE PROTEST A. THE DEFICIENCY INCOME TAX ASSESSMENT LACKS FACTUAL AND LEGAL BASIS BECAUSE THE DISALLOWED EXPENSES ARE FULLY SUBSTANTIATED. The Revenue Officers disallowed the amount of Php [Amount] representing [Name of Expense, e.g., Salaries and Wages / Rental Expenses] on the ground that they were allegedly unsubstantiated by proper receipts or documents. Contrary to the findings of the examiners, these expenses were legitimately incurred in the ordinary course of business and are completely substantiated. Attached herewith as Annex "A" are the relevant copies of [e.g., BIR-registered official receipts, payroll sheets, and lease contracts] proving the validity of the deductions. Under Section 34(A)(1)(a) of the NIRC, ordinary and necessary expenses paid or incurred during the taxable year in carrying on or which are directly attributable to the development, management, operation and/or conduct of the trade, business or exercise of a profession shall be allowed as a deduction. Therefore, the disallowance should be reversed, and the deficiency Income Tax assessment cancelled. B. THE DEFICIENCY VAT ASSESSMENT IS ERRONEOUS AS THE ALLEGED UNDERDECLARED REVENUES ARE RECONCILED WITH EXEMPT SALES. The BIR assessed the Taxpayer for deficiency VAT based on a supposed discrepancy between the Gross Sales declared in the Income Tax Return (ITR) and the VAT Returns. We respectfully submit that no such underdeclaration exists. The discrepancy noted by the examiners arises from [Explain the reason, e.g., timing differences in accounting realization / the inclusion of VAT-exempt transactions under Section 109 of the NIRC]. As demonstrated in the Reconciliation Schedule attached hereto as Annex "B", the Taxpayer accurately declared all vatable receipts. Consequently, there is no legal basis to impose the alleged deficiency VAT. C. THE ASSESSMENT FOR DEFICIENCY EXPANDED WITHHOLDING TAX (EWT) IS VOID DUE TO THE ARBITRARY IMPOSITION OF TAX RATES. The examiners assessed deficiency EWT on various purchases by arbitrarily applying a [e.g., 2% or 5%] withholding tax rate without verifying the specific nature of the income payment. Under RR No. 2-98, as amended, withholding tax rates are strictly dependent on the category of the payment made. The Taxpayer strictly complied with the prevailing withholding tax rates relative to its payments to suppliers, as itemized in Annex "C". Arbitrary assessments without concrete factual verification violate the taxpayer’s right to due process. III. PRAYER WHEREFORE, premises considered, the Taxpayer respectfully prays that this Protest / Request for Reinvestigation be given due course, and that the Final Assessment Notice and Formal Letter of Demand dated [Date of FAN] be CANCELLED, WITHDRAWN, and SET ASIDE for lack of factual and legal merit. The Taxpayer further reserves the right to submit additional supporting documents within sixty (60) days from today, and to raise such other arguments as may be necessary to protect its interests. Hoping for your favorable consideration. Very truly yours, [Signature over Printed Name] [Designation/Title, e.g., President / Authorized Representative] [Name of Taxpayer / Company Name] Use code with caution. Step-by-Step Guide on What to Do After Filing [Office Address of BIR Regional Office/RDO] Print at

On behalf of [Your Name/Company Name], with TIN [Insert TIN] and office address at [Insert Address], we formally protest the deficiency tax assessments for the taxable year [Insert Year] amounting to PHP [Insert Total Amount], broken down as follows: Deficiency Income Tax: PHP [Amount] Deficiency VAT: PHP [Amount] [List other taxes as applicable]

Strengthen your case by attaching photocopies of relevant evidence to the back of the letter, such as: The newly received Notice of Assessment.

Below is a template for a protest letter. [ Date ] No valid waiver of the statute of limitations was executed

My/Our tax return for the period was correct and filed in good faith, and all taxes due have been fully paid as shown by [payment confirmation / tax credit certificate].

Here is the post-protest roadmap:

Receuing a Letter of Authority (LOA) or a Formal Assessment Notice from the Bureau of Internal Revenue (BIR) can be a nerve-wracking experience for any taxpayer—whether you are a self-employed professional, a small business owner, or a large corporation. The document often arrives with a daunting demand: pay a substantial deficiency tax liability, including surcharges and interest, within a specific period.