Revenue Regulations No. 21-2018

Revenue Regulations (RR) No. 21-2018 provides the revised schedule of compromise penalties for various tax violations, including failure to register, late registration, and non-issuance of receipts. The following key points are relevant to doctors:


Compromise Penalties
RR No. 21-2018 outlines the compromise penalties for tax violations, which are fines that can be paid to settle a tax violation without undergoing litigation or further legal proceedings.

Failure to Register
Doctors who fail to register with the BIR before starting their practice may be subject to compromise penalties. The amount of the penalty depends on the doctor’s gross sales or receipts for the year.

Late Registration
Doctors who register with the BIR after the prescribed period may also be subject to compromise penalties. The penalties vary based on the doctor’s gross sales or receipts for the year.

Non-Issuance of Receipts
Doctors who fail to issue registered sales invoices or official receipts for their services may face compromise penalties. The penalties are calculated as a percentage of the basic tax assessed and depend on the frequency of the violation.

Notes: These penalties can be avoided through the following:

– Registration with BIR prior to the practice of profession
– Proper filing of taxes as outlined in the Certificate of Registration
– Proper issuance of Official Receipts


BIR References:
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