Sample Protest Letter Tax Assessment Philippines _verified_ -

To formally protest a tax assessment in the Philippines , you must identify whether you are contesting a Bureau of Internal Revenue (BIR) assessment or a Local Government Unit (LGU) assessment (such as Real Property Tax or Local Business Tax), as they follow different legal procedures and deadlines. Draft: Formal Protest Letter (BIR Assessment)

Use this draft if you received a Formal Letter of Demand (FLD) or Final Assessment Notice (FAN) from the BIR. You must file this within 30 days of receipt. Date: [Insert Date]

THE COMMISSIONER OF INTERNAL REVENUEAttention: [Name of Regional Director/Assistant Commissioner][Office Address of Revenue Region/Service that issued the notice]

Subject: Formal Protest against Final Assessment Notice (FAN) / Formal Letter of Demand (FLD) No. [Insert Notice Number] dated [Insert Date of Notice] Dear Sir/Madam:

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]

Nature of ProtestThis is a Request for [choose one: Reconsideration (based on existing records) OR Reinvestigation (based on new evidence)].

Grounds for ProtestThe assessment is contested based on the following facts and laws:

[Point 1]: [e.g., The assessment for deficiency VAT is erroneous because...]

[Point 2]: [e.g., Pursuant to Section [Number] of the NIRC, the taxpayer is exempt from...]

[Point 3]: [Include specific jurisprudence or BIR Revenue Regulations supporting your claim.]

Submission of Documents[If Reinvestigation]: We shall submit all relevant supporting documents within sixty (60) days from the filing of this protest, pursuant to Section 228 of the NIRC.

In view of the foregoing, we respectfully request the cancellation and withdrawal of the aforementioned assessment. Very truly yours, sample protest letter tax assessment philippines

[Signature][Your Name / Authorized Representative][Position/Title] Draft: Protest Letter (Real Property Tax - LGU)

For Real Property Tax (RPT), you must generally pay the tax first before a protest can be entertained ("Payment Under Protest"). The protest must be filed with the local treasurer within 30 days of payment. Date: [Insert Date]

THE CITY/MUNICIPAL TREASURER[Name of City/Municipality][Address of Treasurer’s Office]

Subject: Letter of Protest – Real Property Tax Assessment (Tax Dec. No. [Insert Number]) Dear Sir/Madam:

We are writing to formally protest the real property tax assessment for the year [Insert Year] on the property located at [Insert Address], covered by Tax Declaration No. [Insert Number].

Please be advised that the amount of PHP [Insert Amount] was paid on [Insert Date] under Official Receipt No. [Insert Number], which we have marked "PAID UNDER PROTEST" as required by Section 252 of the Local Government Code.

Grounds for Protest:We believe the assessment is [choose one: erroneous / excessive / illegal] due to:

Error in Classification: The property is currently classified as [e.g., Commercial], but its actual use is [e.g., Residential].

Error in Valuation: The assessed value does not reflect the [e.g., physical damage/actual size] of the property.

Legal Basis: [Cite specific section of the Local Government Code or local ordinance].

We request a review and downward adjustment of the assessment and a refund or credit of the excess taxes paid. Very truly yours, [Signature][Your Name][Owner/Administrator] Key Legal Requirements & Deadlines To formally protest a tax assessment in the

To be considered valid and have "force and effect," a protest letter must include the following details per Revenue Regulations No. 18-2013:

Timely Filing: Must be filed within 30 days of receiving the Final Assessment Notice (FAN) or Formal Letter of Demand (FLD).

Identification: The date of the assessment notice being protested.

Nature of Protest: Explicitly state if it is a Request for Reconsideration (based on existing records) or a Request for Reinvestigation (based on new evidence).

Legal Basis: Specify the applicable laws, rules, regulations, or jurisprudence (court rulings) supporting your arguments.

Supporting Evidence: For reinvestigations, you must submit all relevant documents within 60 days of filing the protest. Sample Protest Letter Template

This template is based on common formats used for BIR disputes. [Date]

[The Commissioner of Internal Revenue / Regional Director]Attention: [Name of Signing Official][Office of the Regional Director / ACIR-LTS / ACIR-ES]Bureau of Internal Revenue[Regional/District Office Address]

RE: LETTER OF PROTEST against Final Assessment Notice No. [Assessment Number] dated [Date of Notice] Sir/Madam:

On behalf of our client, [Taxpayer/Company Name] with TIN [Taxpayer Identification Number], we formally submit this administrative protest against the Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) received on [Date of Receipt], covering the taxable year [Year].

The total deficiency tax assessment is [Total Amount], broken down into: Deficiency Income Tax: [Amount] Deficiency Value Added Tax: [Amount] [Other Tax Types]: [Amount] The Review: The template uses specific legal grounds

I. NATURE OF THE PROTESTThis is a Request for Reinvestigation (or Reconsideration). We intend to present newly discovered evidence to substantiate our claims, which will be submitted within sixty (60) days from the filing of this protest.

II. STATEMENT OF FACTS AND LEGAL GROUNDSOur protest is based on the following:

[Fact 1]: (e.g., The assessment disallowed the expense of [Amount] for [Item], but this was fully documented in the Audited Financial Statements).

[Legal Basis]: (e.g., Under Section 34 of the NIRC, these expenses are deductible as they are ordinary and necessary).

[Fact 2/Jurisprudence]: (e.g., The BIR failed to consider the Reply to the Preliminary Assessment Notice, violating procedural due process as held in [Case Citation]). Protest Letter for Tax Assessment | PDF - Scribd

3. The Grounds for Protest (The "Why")

• The Review: The template uses specific legal grounds (Prescription, Factual Error, Legal Basis).
• Critique: A common mistake taxpayers make is writing a protest that says, "I cannot pay because I have no money" or "This is too high."
  • Correct Approach: The protest must be legal and factual. You must argue why the BIR is wrong (e.g., "The receipt exists," "The calculation is wrong," "The period to assess has expired"). The template demonstrates this correctly by citing specific sections of the NIRC.

III. The Alleged Deficiency Tax Has Already Been Paid

The assessment includes a deficiency VAT of PHP [Amount] for the second quarter. However, as shown in Annex E (BIR Form No. 2550Q filed on [date] and validated bank payment slip), the tax was fully paid on time. This constitutes double assessment.

Part 5: Relief Requested

State clearly: “We respectfully request the cancellation and withdrawal of the above-mentioned assessment.”

Challenging the BIR: A Complete Guide to Writing a Sample Protest Letter for a Tax Assessment in the Philippines

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.

However, a tax assessment is not the final word. Under the National Internal Revenue Code (NIRC) of the Philippines, as amended by the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Ease of Paying Taxes Act (Republic Act No. 11976), taxpayers have the right to dispute an erroneous or unfair assessment.

The most critical step in this dispute process is filing a written protest letter. Failing to file a timely, properly formatted protest can make the assessment final, executory, and demandable, leaving you with no recourse but to pay. This article provides a comprehensive guide on how to craft an effective protest letter, including a detailed template for a "sample protest letter tax assessment Philippines."

4. The "Verification" Requirement

• Critique of Template: The template above is signed by the taxpayer. However, under Revenue Regulations No. 12-2018 and RR 12-99, a protest should technically be sworn to (Verification and Non-Forum Shopping) if you want it to be airtight, especially if it escalates to the Commissioner or the Court of Tax Appeals.
• Recommendation: While a simple signed letter works for the RDO level, adding a Jurats (Subscribed and Sworn to before a Notary Public) makes the document stronger and harder for the BIR to dismiss on technicalities.

2. Protest Based on Law (Invalid Assessment)

You argue that the BIR misapplied the tax code. Examples: assessing VAT on an exempt transaction, or applying the wrong tax rate to your income bracket.