What is exact and what is an estimate
- Exact: the 25% / 50% / 10% surcharge, the 12% or 6% yearly interest rate, and the RMO 7-2015 Annex A compromise brackets for late filing or payment of tax.
- Assumption: interest runs from the due date to the payment date on the basic tax, counted as actual days over 365; the BIR may compute deficiency and delinquency interest in separate periods after an assessment.
- Suggested, not imposed: the compromise is an offer to settle criminal liability; the BIR may require a different amount, and you may decline and face the case. Willful or fraudulent cases cannot be compromised, so the calculator shows no compromise for them.
- Withholding taxes: late remittance of taxes withheld (1601-C, 0619-E, 1601-EQ) uses a separate, lower compromise schedule, shown below the main table; the calculator above uses the late filing or payment schedule.
Results are planning estimates. The official BIR return, your employer's payroll and the BIR's own computation govern; rounding and inputs not captured here (for example mid-year rate changes or unusual benefits) can change the figure.
Quick answer
A late BIR return or payment costs a 25% surcharge on the tax due (50% if willful or fraudulent), interest at 12% a year from the due date until paid, and usually a compromise from the BIR's schedule, starting at ₱1,000. Micro and small taxpayers pay a 10% surcharge and 6% interest under RR 6-2024. ₱10,000 of tax paid 90 days late comes to ₱15,795.89 in total.
Key points
- Surcharge: 25% of the basic tax, 50% for willful neglect or a fraudulent return (NIRC Sec. 248 as amended).
- Interest: 12% a year, double the 6% legal rate, counted by days from the due date (Sec. 249 as amended by TRAIN).
- Micro and small taxpayers (sales under ₱20 million): 10% surcharge and 6% interest; the 50% fraud surcharge still applies.
- The compromise for late filing or payment is not halved for micro and small taxpayers; that cut covers only invoicing and printing violations.
- Filing at the 'wrong' RDO no longer draws a surcharge since the Ease of Paying Taxes Act.
Data used in this calculator
In force 2026Planning estimate- Surcharge
- 25%; 50% if willful or fraudulent (NIRC Sec. 248 as amended by RA 11976)
- Interest
- 12% a year, double the legal rate (Sec. 249 as amended by RA 10963)
- Micro and small taxpayers
- 10% surcharge, 6% interest (RR 6-2024, RA 11976 Sec. 45)
- Compromise schedule
- RMO 7-2015 Annex A (Sec. 255): late filing or payment ₱1,000 to ₱50,000 by tax unpaid; late remittance of withheld taxes ₱1,000 to ₱25,000
- Classification
- Micro under ₱3M, small ₱3M to under ₱20M gross sales (RR 8-2024)
- Days
- Interest counted on actual days over 365
Last verified against the issuances on November 11, 2026. Report an error on this page.
BIR compromise penalty schedule for late filing or payment
| Tax unpaid | Compromise |
|---|---|
| Up to ₱5,000 | ₱1,000 |
| Over ₱5,000 to ₱10,000 | ₱3,000 |
| Over ₱10,000 to ₱20,000 | ₱5,000 |
| Over ₱20,000 to ₱50,000 | ₱10,000 |
| Over ₱50,000 to ₱100,000 | ₱15,000 |
| Over ₱100,000 to ₱500,000 | ₱20,000 |
| Over ₱500,000 to ₱1,000,000 | ₱30,000 |
| Over ₱1,000,000 to ₱5,000,000 | ₱40,000 |
| Over ₱5,000,000 | ₱50,000 |
Source: RMO 7-2015 Annex A (Revised Schedule of Compromise Penalties), Sec. 255 "failure to file and/or pay", on the amount of tax unpaid; RR 6-2024 still refers to it. No superseding 2024–2026 order was found. Willful failure implies fraud and cannot be compromised. As of November 2026.
Compromise for late remittance of withholding taxes
| Tax not withheld or remitted | Compromise |
|---|---|
| Up to ₱5,000 | ₱1,000 |
| Over ₱5,000 to ₱15,000 | ₱3,000 |
| Over ₱15,000 to ₱20,000 | ₱5,000 |
| Over ₱20,000 to ₱50,000 | ₱10,000 |
| Over ₱50,000 to ₱500,000 | ₱15,000 |
| Over ₱500,000 to ₱1,000,000 | ₱20,000 |
| Over ₱1,000,000 | ₱25,000 |
Source: RMO 7-2015 Annex A, Sec. 255 "failure to withhold or remit withheld taxes". Employers and other withholding agents filing 1601-C, 0619-E, 0619-F, 1601-EQ or 1601-FQ late use this schedule; surcharge and interest are the same as above. As of November 2026.
Worked example: ₱10,000 paid 90 days late
- 1
Surcharge: 25% × ₱10,000 = ₱2,500.00
Applies once, from the first day late.
- 2
Interest: ₱10,000 × 12% × 90/365 = ₱295.89
From 15 April to 14 July 2026.
- 3
Compromise: tax over ₱5,000 up to ₱10,000 → ₱3,000.00
From the RMO 7-2015 schedule.
Total to pay
₱15,795.89
Penalties of ₱5,795.89 on ₱10,000 of tax. A micro or small taxpayer would pay ₱14,147.95 (10% surcharge, 6% interest, same compromise).
| Tax due | Regular: penalties | Micro or small: penalties |
|---|---|---|
| ₱5,000 | ₱2,545.89 | ₱1,647.95 |
| ₱50,000 | ₱25,458.90 | ₱16,479.45 |
| ₱250,000 | ₱97,294.52 | ₱52,397.26 |
| ₱1,000,000 | ₱339,178.08 | ₱159,589.04 |
Paid 180 days late (15 April to 12 October 2026), not willful, compromise included. Computed with the calculator above.
How penalties on ₱10,000 grow with each month late
| Item | Penalties |
|---|---|
| 1 | ₱5,599 |
| 2 | ₱5,697 |
| 3 | ₱5,796 |
| 4 | ₱5,895 |
| 5 | ₱5,993 |
| 6 | ₱6,092 |
| 7 | ₱6,190 |
| 8 | ₱6,289 |
| 9 | ₱6,388 |
| 10 | ₱6,486 |
| 11 | ₱6,585 |
| 12 | ₱6,684 |
Surcharge, interest and compromise explained
| Penalty | Rule | Who decides | Can it be waived? |
|---|---|---|---|
| Surcharge | 25% of the tax (50% if willful, fraudulent, or sales under-declared by more than 30%) | Fixed by law | Only through abatement under Sec. 204(B) |
| Deficiency interest | 12% a year on a deficiency, from the due date | Fixed by law | Abatement only |
| Delinquency interest | 12% a year after the assessment's due date; never at the same time as deficiency interest | Fixed by law | Abatement only |
| Compromise | Schedule amount to settle the criminal liability | Offered by the BIR, accepted by the taxpayer | Yes: you may decline it and face the case |
Sources: NIRC Secs. 204(B), 248, 249 as amended; RMO 7-2015.
Reduced penalties for micro and small taxpayers
| Penalty | Regular | Micro and small (RR 6-2024) |
|---|---|---|
| Surcharge, late filing or payment | 25% | 10% |
| Surcharge, willful or fraudulent | 50% | 50% |
| Interest | 12% a year | 6% a year |
| Information return, per failure | ₱1,000 (cap ₱25,000 a year) | ₱500 (cap ₱12,500 a year) |
| Compromise, late filing or payment | Schedule | Same schedule (not halved) |
| Compromise, invoicing and printing violations | Schedule | 50% of the schedule |
Micro: gross sales under ₱3 million; small: ₱3 million to under ₱20 million (RR 8-2024).
2026: one-time abatement for micro taxpayers
RR 4-2026 offers micro taxpayers a one-time abatement of delinquencies, assessments and stop-filer cases as of 31 December 2025, with an application deadline of 31 December 2026 and a ₱5,000 fee paid on BIR Form 0605 (ATC MC350 for individuals, MC351 for corporations, per RMC 104-2026). The other terms, including a ₱80,000 cap per taxable year, are as reported by accounting firms because the regulation itself could not be opened on the BIR site; confirm with your RDO before applying.
BIR tax clearance requirements
A tax clearance shows you have no outstanding tax liabilities. Government contractors must present an updated BIR tax clearance before final payment and release of retention money, or both can be suspended (RR 17-2024). Paying late returns and penalties first is usually the fastest route to a clearance. The validity period, document list and online application for clearances used in bidding were not confirmed in an official issuance; get the current checklist from your RDO. Under RMO 1-2026, a clearance request can trigger a separate verification even under the one-audit-a-year rule.
Common mistakes
| Mistake | What happens | Do this instead |
|---|---|---|
| Waiting for a BIR notice before paying | Interest keeps running; compromise and surcharge still apply | File and pay as soon as you notice; interest stops on payment |
| Assuming micro/small halves the compromise | Short payment; the RDO asks for the balance | The 50% cut covers invoicing and printing only |
| Filing an amended return without the original penalties | Deficiency notice later | Compute penalties on the amended tax due from the original deadline |
| Counting interest by months, not days | Small differences the BIR will correct | Use actual days over 365 |
| Paying penalties on a nil-due return as a percentage | Overpayment | Surcharge and interest apply to tax due; a nil return can still draw a compromise or information-return penalty |
Buod sa Tagalog
Kapag na-late ang pag-file o pagbayad sa BIR, may 25% na surcharge sa buwis (50% kung sinadya), 12% na interes kada taon mula sa due date, at karaniwang compromise mula ₱1,000. Para sa micro at small na taxpayer, 10% ang surcharge at 6% ang interes sa ilalim ng RR 6-2024. Ang ₱10,000 na buwis na nabayaran nang 90 araw na huli ay umaabot sa ₱15,795.89.
Frequently asked questions
+How much is the penalty for late filing with the BIR?
A 25% surcharge on the tax due, 12% interest a year from the due date until payment, and usually a compromise penalty from the RMO 7-2015 schedule, starting at ₱1,000. If the return shows no tax due, there is no percentage surcharge, but a compromise or information-return penalty can still apply.
+How is BIR interest computed?
At 12% a year, double the 6% legal rate under Section 249 of the Tax Code as amended by TRAIN, on the unpaid tax, counted by actual days over 365 from the due date until payment. Micro and small taxpayers pay 6% under RR 6-2024. Deficiency and delinquency interest are never charged for the same period.
+What is a compromise penalty?
It is an amount the BIR accepts to settle the criminal liability for a violation, instead of filing a case. For late filing or payment it follows the RMO 7-2015 Annex A schedule, from ₱1,000 when the tax unpaid is up to ₱5,000 to ₱50,000 when it exceeds ₱5,000,000; late remittance of withheld taxes has a lower schedule capped at ₱25,000. It is suggested, not imposed. Willful or fraudulent violations cannot be compromised.
+Do micro and small taxpayers pay lower BIR penalties?
Yes. Under RA 11976 and RR 6-2024, micro and small taxpayers pay a 10% surcharge instead of 25%, interest at 6% instead of 12%, and ₱500 instead of ₱1,000 per late information return. The 50% fraud surcharge still applies, and the compromise is halved only for invoicing and printing violations.
+Is there still a penalty for filing at the wrong RDO?
No. The Ease of Paying Taxes Act removed the 25% surcharge for filing in the wrong venue. Returns can be filed and taxes paid electronically or at any authorized agent bank or RDO collection officer, under RR 4-2024.
+Can BIR penalties be waived?
Surcharge and interest can be abated or cancelled only under Section 204(B) of the Tax Code, for example when the penalty is unjust or excessive. In 2026, RR 4-2026 offers micro taxpayers a one-time abatement; apply by 31 December 2026 and confirm the terms with your RDO.
+How do I pay BIR penalties?
Penalties on a late return are paid with the return itself. Penalties or compromises assessed separately, and some other payments without a specific return, are paid with BIR Form 0605, online or at an authorized agent bank. Keep the proof of payment for your records.
+What are the BIR tax clearance requirements?
Requirements depend on the purpose. Government contractors need an updated tax clearance before final payment under RR 17-2024. For bidding and other purposes, the BIR issues the current checklist; its validity and online application could not be confirmed officially, so ask your RDO. Settle open returns and penalties first.
Sources and references
- RA 11976 (Ease of Paying Taxes Act) — amended Sec. 248 surcharge; reduced penalties for micro and small taxpayers (checked November 12, 2026)
- RA 10963 (TRAIN Law) — Sec. 249 interest at double the legal rate (checked November 12, 2026)
- RR 6-2024 — 10% surcharge, 6% interest, ₱500 information-return penalty for micro and small taxpayers (checked November 12, 2026)
- RMO 7-2015 Annex A — compromise schedules for late filing or payment and for late remittance of withheld taxes (checked November 12, 2026)
- RR 17-2024 — tax clearance before final payment on government contracts (checked November 12, 2026)
- RMC 104-2026 — Form 0605 codes for the 2026 micro-taxpayer abatement (checked November 12, 2026)
- RMO 1-2026 — single audit per year; tax clearance requests as an exception (checked November 12, 2026)
Related calculators and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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