Sample Protest Letter Tax Assessment Philippines -

What is the you received the Formal Letter of Demand (FLD/FAN)?

[Date of Filing - Must be within 30 days of receiving the FAN] THE REGIONAL DIRECTOR [Or THE REVENUE DISTRICT OFFICER] Bureau of Internal Revenue Revenue Region No. [Insert Region Number] / RDO No. [Insert RDO Number] [Complete Address of the BIR Office] Subject: PROTEST AGAINST FINAL ASSESSMENT NOTICE (FAN) / FORMAL LETTER OF DEMAND (FLD) Assessment Notice No.: [Insert Assessment Notice Number] Date of Assessment Notice: [Insert Date on the Notice] Taxable Year: [Insert Taxable Year, e.g., 2024] Date of Receipt of FAN/FLD: [Insert Date You Received It] Formal Request for: [State either "RECONSIDERATION" or "REINVESTIGATION"] Dear Sir/Madam: We write on behalf of [Insert Your Name or Company Name], a corporation organized and existing under Philippine laws, with principal office address at [Insert Business Address] and registered with Taxpayer Identification Number (TIN) [Insert TIN]. This serves as our formal administrative protest against the Formal Letter of Demand (FLD) and Final Assessment Notice (FAN) issued by your office, which was received by the Taxpayer on [Insert Date of Receipt]. The said assessment alleges deficiencies in [State tax types, e.g., Income Tax, Value-Added Tax, and Expanded Withholding Tax] for the taxable year [Insert Year] in the total aggregate amount of Php [Insert Total Amount], inclusive of interest, surcharges, and compromise penalties. The Taxpayer respectfully objects to the aforementioned assessment, both on factual and legal grounds, based on the following itemized arguments: I. STATEMENT OF FACTS AND PROCEDURAL COMPLIANCE 1. On [Insert Date], the Taxpayer received a Preliminary Assessment Notice (PAN) from your office. 2. On [Insert Date], the Taxpayer timely filed its Reply to the PAN. 3. Subsequently, on [Insert Date], the Taxpayer received the subject FLD/FAN. This Protest Letter is being filed within thirty (30) days from the receipt of the FLD/FAN, in strict compliance with Section 228 of the National Internal Revenue Code (NIRC), as amended, and Revenue Regulations (RR) No. 12-99, as amended. II. GROUNDS FOR THE PROTEST / ITEM-BY-ITEM DISPUTE [Item 1: Example - Disallowed Expenses / Income Tax Deficiency] 1. The deficiency Income Tax assessment arising from the disallowance of representation expenses amounting to Php [Amount] is without legal basis. 2. Under Section 34(A)(1)(a) of the NIRC, ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business are deductible. 3. The Taxpayer has complete, valid official receipts and invoices proving that these expenses were directly incurred for business operations. [Mention if you are filing a Request for Reinvestigation]: Additional supporting vouchers and receipts will be submitted within sixty (60) days to substantiate this claim. [Item 2: Example - Alleged Underdeclared VAT] 1. The BIR examiner erred in assessing a deficiency Value-Added Tax based on a discrepancy between the sales reported in the Income Tax Return (ITR) and the VAT returns. 2. The discrepancy is merely a timing difference arising from the accrual method used for income tax purposes versus the cash receipt basis required for VAT on services under the law. 3. Therefore, no actual underdeclaration of taxable sales occurred. III. PRAYER WHEREFORE, premises considered, the Taxpayer respectfully prays that: 1. This formal administrative protest be given due course; 2. The Formal Letter of Demand and Final Assessment Notice No. [Insert Number] for the taxable year [Insert Year] be cancelled, withdrawn, and set aside; and 3. The assessment case for the said taxable year be considered closed and terminated. The Taxpayer prefers to resolve this matter administratively. [Include this line only if you chose Reinvestigation]: Pursuant to existing regulations, the Taxpayer commits to submit the relevant supporting documents within sixty (60) days from the filing of this protest. Thank you for your utmost attention to this matter. Very truly yours, ___________________________________ [Signature over Printed Name] [Designation/Title, e.g., President / Authorized Representative] [Company Name] RECIPIENT COPY ACKNOWLEDGMENT: Received by: _______________________________ Signature: __________________________________ Date Received: ______________________________ Time Received: ______________________________ Use code with caution. Best Practices When Filing Your Protest

On behalf of our client, with TIN [Taxpayer Identification Number] , we formally submit this administrative protest against the Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) received on [Date of Receipt] , covering the taxable year [Year] .

To be considered valid and have "force and effect," a protest letter must include the following details per :

[Your Name] [Your Address] [City, Province, ZIP] [Email Address] [Date] sample protest letter tax assessment philippines

A detailed, itemized explanation of the facts, legal arguments, and specific provisions of the Tax Code or BIR regulations supporting your dispute.

The assessment alleges that the taxpayer underdeclared its sales by Php [Amount] based on a third-party information (TPI) matching.

Pursuant to Section 228 of the NIRC and Revenue Regulations (RR) No. 12-99, as amended, we commit to submit the relevant supporting documents within sixty (60) days from the filing of this protest.

A valid protest letter in the Philippines is an administrative remedy used to dispute a Final Assessment Notice (FAN) Formal Letter of Demand (FLD) issued by the Bureau of Internal Revenue (BIR) What is the you received the Formal Letter

A plea for a re-evaluation of your assessment based on the existing records and documents already submitted.

Specifically, the BIR disallowed [amount] as [ordinary business expenses / cost of sales] without basis. These expenses are fully supported by official receipts and invoices (attached as Annex “B”).

Annex B: Summary of Expenses and valid BIR-registered receipts Annex C: [Other relevant documents]

Explicitly state the Assessment Notice Number, date of the notice, and the tax year/period involved. [Insert RDO Number] [Complete Address of the BIR

: Specify the applicable laws, rules, regulations, or jurisprudence (court rulings) supporting your arguments.

I strongly disagree with the assessment, as I believe it is based on incorrect and incomplete information. [State the reasons for your protest, including any relevant facts, figures, and supporting evidence].

This article provides a comprehensive guide on how to navigate the tax assessment process in the Philippines, legally contest BIR findings, and draft an effective protest letter using a practical template. 1. The BIR Tax Assessment Process: A Quick Overview