The Tax Compromise Agreement is a crucial document in Philippine tax practice that provides a legal framework for resolving tax disputes between taxpayers and the Bureau of Internal Revenue (BIR). This agreement type is specifically utilized when a taxpayer seeks to settle outstanding tax liabilities for a reduced amount, as permitted under Section 204(A) of the National Internal Revenue Code and related BIR regulations. The Compromise Agreement Tax document outlines the original assessment, the agreed compromise amount, payment terms, and relevant conditions for settlement. It's particularly useful in cases where full payment of the assessed tax liability would be financially burdensome for the taxpayer, or where there are legitimate disputes about the tax assessment. The agreement requires careful consideration of Philippine tax laws, BIR guidelines, and often involves complex negotiations to reach mutually acceptable terms.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership聽of your docs
1. Parties: Identifies the taxpayer and the Bureau of Internal Revenue (BIR) as the parties to the agreement
2. Background: Outlines the history of the tax assessment, disputes, and circumstances leading to the compromise settlement
3. Definitions: Defines key terms used throughout the agreement
4. Tax Liability Details: Specifies the original tax assessment amount, periods covered, and types of taxes involved
5. Compromise Amount: States the agreed compromise amount and the basis for computation
6. Payment Terms: Details the payment schedule, method of payment, and consequences of default
7. Warranties and Representations: Statements by both parties regarding their authority and capacity to enter into the agreement
8. Waiver and Quitclaim: Taxpayer's waiver of rights to contest the compromise and BIR's acknowledgment of settlement
9. Effectivity and Implementation: Specifies when the agreement takes effect and implementation procedures
10. Governing Law: Confirms Philippine law as governing law and BIR's jurisdiction
11. Execution: Formal closing and signature blocks for all parties
1. Installment Payment Provisions: Include when the compromise amount is to be paid in installments rather than lump sum
2. Surety or Guarantee: Include when additional security for payment is required by the BIR
3. Related Party Provisions: Include when the tax liability involves multiple related entities or consolidated returns
4. Confidentiality: Include when parties agree to keep specific terms confidential, subject to legal disclosure requirements
5. Tax Clearance Process: Include when specific procedures for obtaining tax clearance after settlement need to be detailed
6. Compromise Approval Process: Include when the agreement requires approval from specific BIR officials or committees
1. Schedule A - Tax Assessment Details: Detailed breakdown of original tax assessment, including principal, interests, and penalties
2. Schedule B - Compromise Amount Computation: Detailed calculation of the compromise amount based on BIR guidelines
3. Schedule C - Payment Schedule: If applicable, detailed schedule of installment payments
4. Appendix 1 - Supporting Documents: List of all supporting documents submitted to justify the compromise settlement
5. Appendix 2 - BIR Approvals: Copies of relevant BIR approvals or authorizations for the compromise
6. Appendix 3 - Power of Attorney: If applicable, authorization documents for representatives of either party
Find the exact document you need
Compromise Agreement Tax
A Philippine law-governed agreement between a taxpayer and the Bureau of Internal Revenue (BIR) for settling tax liabilities through a compromise payment arrangement.
Download
Transfer Pricing Agreement
A legal agreement governing transfer pricing arrangements between related entities in the Philippines, ensuring compliance with local regulations and international standards.
Download
Bilateral Advance Pricing Agreement
A binding agreement under Philippine law between a taxpayer and two tax authorities establishing agreed transfer pricing methodologies for cross-border intercompany transactions.
Download
Tax Installment Agreement
A formal agreement between a taxpayer and the Philippine Bureau of Internal Revenue (BIR) establishing terms for paying tax liabilities through scheduled installments under Philippine law.
Download
Tax Abatement Agreement
A Philippine legal agreement between government authorities and private entities establishing tax incentives and relief measures under Philippine tax laws.
Download
Voluntary Withholding Agreement
A Philippine law-compliant agreement establishing voluntary tax withholding arrangements between a withholding agent and payee.
Download
Advance Price Agreement
A formal agreement between a taxpayer and the Philippine Bureau of Internal Revenue (BIR) establishing approved transfer pricing methodologies for related-party transactions.
Download
Fuel Tax Agreement
A binding agreement establishing fuel tax compliance and payment procedures under Philippine tax law.
Download
Tax Indemnification Agreement
A Philippine law-governed agreement establishing tax indemnification obligations between parties, outlining tax liability coverage and claim procedures under Philippine tax regulations.
Download
Tax Sharing Agreement
A Philippine law-governed agreement establishing tax revenue sharing arrangements between government entities, aligned with the Local Government Code and national tax regulations.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)