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Tax Payment Agreement Template for Philippines

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Tax Payment Agreement

"I need a Tax Payment Agreement for our manufacturing company to settle PHP 5.2M in back taxes over 12 monthly installments, starting March 2025, with payments to be made through eFPS."

Document background
The Tax Payment Agreement is a crucial document used in the Philippine tax system when taxpayers require structured payment arrangements for their outstanding tax liabilities. This agreement becomes necessary when a taxpayer cannot make an immediate full payment of their tax obligations but demonstrates the capacity to pay through installments. The document is governed by Philippine tax laws, particularly the National Internal Revenue Code and related BIR regulations, and typically follows approval from the appropriate BIR officials. It includes detailed payment schedules, interest computations, compliance requirements, and consequences of default. The agreement serves both as a collection tool for the government and as a relief mechanism for taxpayers, ensuring transparent and organized tax liability settlement while maintaining compliance with Philippine tax regulations.
Suggested Sections

1. Parties: Identification of the taxpayer and the Bureau of Internal Revenue (BIR) as parties to the agreement

2. Background: Context of the tax obligation, including reference to assessment notices or audit findings

3. Definitions: Key terms used throughout the agreement, including specific tax-related terminology

4. Tax Obligation: Details of the total tax liability, including principal amount, penalties, and interest

5. Payment Terms: Schedule of payments, including installment amounts, due dates, and payment methods

6. Mode of Payment: Specified payment channels and procedures (e.g., electronic filing and payment system, authorized agent banks)

7. Interest and Penalties: Applicable interest rates and penalties for late or missed payments

8. Representations and Warranties: Taxpayer's declarations regarding financial capacity and accuracy of information provided

9. Default and Remedies: Circumstances constituting default and available remedies for the BIR

10. Termination: Conditions under which the agreement may be terminated and consequences

11. Governing Law: Specification of Philippine law and relevant tax regulations

12. Notices: Communication procedures and contact details for both parties

Optional Sections

1. Collateral Security: Required when additional security for tax payment is needed, such as liens or guarantees

2. Tax Compliance Requirements: Additional reporting or compliance obligations, used for high-value or complex cases

3. Compromise Settlement Terms: Used when the agreement includes compromise of tax liabilities under applicable regulations

4. Electronic Filing Provisions: Specific terms for electronic filing and payment, required for eFPS-registered taxpayers

5. Third-Party Guarantor: Included when a third party provides guarantee for the tax payments

6. Waiver of Rights: Specific rights waived by the taxpayer, included in cases of significant compromise

7. Amendment Procedures: Detailed procedures for modifying the agreement, included for long-term payment arrangements

Suggested Schedules

1. Schedule A - Payment Schedule: Detailed breakdown of installment amounts and due dates

2. Schedule B - Tax Assessment Details: Itemized list of tax assessments, including breakdown by tax type and period

3. Schedule C - Supporting Documents: List of required supporting documents submitted with the agreement

4. Schedule D - Authorized Signatories: List of authorized representatives for both parties

5. Appendix 1 - Computation of Tax Liability: Detailed calculation of total tax liability including principal, interests, and penalties

6. Appendix 2 - Payment Instructions: Detailed instructions for making payments, including account details and procedures

7. Appendix 3 - Compliance Requirements: Specific reporting and documentation requirements during the payment period

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































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Relevant Industries

Financial Services

Manufacturing

Retail

Real Estate

Technology

Healthcare

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Mining

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Relevant Teams

Finance

Legal

Tax

Treasury

Compliance

Accounting

Risk Management

Internal Audit

Corporate Secretariat

Accounts Payable

Relevant Roles

Chief Financial Officer

Tax Manager

Finance Director

Compliance Officer

Legal Counsel

Tax Accountant

Treasury Manager

Financial Controller

Tax Compliance Specialist

Corporate Secretary

Finance Manager

Accounts Payable Manager

Tax Director

Risk Management Officer

Internal Auditor

Industries








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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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