All Collections
Questions on Taxation
How are tax penalties computed?
How are tax penalties computed?

Filing late? You can file through Taxumo too!

EJ Arboleda avatar
Written by EJ Arboleda
Updated over a week ago

When you file your late filings through Taxumo, Taxumo will automatically compute the BIR imposed penalties for you. You can, of course, pay this along with your tax payment to Taxumo.

Tax penalties are composed of:

  1. Surcharge: 25% of the tax due is added as a surcharge

  2. Interest: A 12% per annum interest fee is added on the tax payment

  3. Compromise: Depending on how much your tax due is, you will pay a set amount. For zero filings, a P1000 compromise fee is imposed.

All of this is paid one time when you file + pay through Taxumo so it's a one-time convenient payment.

Did this answer your question?