BIR penalty table: what 90 days late adds
Find your unpaid tax in the first column. Each row applies the 25% surcharge, 12% yearly interest for 90 days and the compromise penalty from the BIR's own schedule. All three rules and their sources are set out below the table.
| Unpaid tax | Surcharge 25% | Interest, 90 days | Compromise | Total added |
|---|---|---|---|---|
| ₱5,000 | ₱1,250.00 | ₱147.95 | ₱1,000 | ₱2,397.95 |
| ₱20,000 | ₱5,000.00 | ₱591.78 | ₱5,000 | ₱10,591.78 |
| ₱50,000 | ₱12,500.00 | ₱1,479.45 | ₱10,000 | ₱23,979.45 |
| ₱100,000 | ₱25,000.00 | ₱2,958.90 | ₱15,000 | ₱42,958.90 |
| ₱500,000 | ₱125,000.00 | ₱14,794.52 | ₱20,000 | ₱159,794.52 |
Each extra 30 days adds the tax × 12% × 30 ÷ 365, which is ₱197.26 on ₱20,000. The surcharge and the compromise do not grow with time. Micro and small taxpayers pay far less on the same return:
| Unpaid tax | Micro or small: total added (10% + 6% + compromise) | Difference |
|---|---|---|
| ₱5,000 | ₱1,573.97 | ₱823.98 less |
| ₱20,000 | ₱7,295.89 | ₱3,295.89 less |
| ₱50,000 | ₱15,739.73 | ₱8,239.72 less |
| ₱100,000 | ₱26,479.45 | ₱16,479.45 less |
| ₱500,000 | ₱77,397.26 | ₱82,397.26 less |
The compromise column is the same for both groups. The 50% compromise cut that RR 6-2024 gives micro and small taxpayers covers violations of NIRC Secs. 113, 237 and 238 only, not late filing under Sec. 255.
How to compute your own BIR penalty
Before you start, have four things ready: the tax shown on the late return, the original due date, the date you will pay, and last year's gross sales (to tell whether you are a micro or small taxpayer).
- Pick your class. Gross sales under ₱3,000,000 make you micro; ₱3,000,000 to under ₱20,000,000 make you small (RR 8-2024). Everyone else uses the regular rates.
- Surcharge. Multiply the tax due by 25%, or by 10% if you are micro or small. Use 50% only for willful neglect to file or a fraudulent return.
- Interest. Count the days from the due date to the payment date. Interest = tax due × 12% × days ÷ 365. Micro and small taxpayers use 6%.
- Compromise. Look up the unpaid tax in the compromise table below. A late return with no tax due uses the gross sales table instead.
- Add them up. Amount to pay = tax due + surcharge + interest + compromise. Pay it with BIR Form 0605 or on the return itself.
Not sure of the tax due itself? Work it out first in the income tax calculator, the percentage tax calculator or the VAT calculator, then come back to step 2.
Surcharge: 25%, 10% or 50%
The surcharge is a one-time charge on the tax due. NIRC Sec. 248(A), as amended by RA 11976 (Ease of Paying Taxes Act), sets 25% for three cases: failing to file and pay on the due date, failing to pay a deficiency within the time in the assessment notice, and failing to pay the tax shown on a return on time. The old 25% charge for filing with the wrong BIR office was dropped by the same law (RR 4-2024).
Micro and small taxpayers pay 10% instead, under RA 11976 Sec. 45(b) and RR 6-2024, which apply prospectively from the Act's effectivity in 2024.
The rate is 50% under NIRC Sec. 248(B) for willful neglect to file, or a willfully false or fraudulent return. The same section treats under-declaring sales or income by more than 30%, or overstating deductions by more than 30%, as prima facie evidence of a fraudulent return. The 50% rate applies to micro and small taxpayers too.
Interest: 12% a year, 6% for micro and small
Interest runs on the unpaid tax "from the date prescribed for payment until the amount is fully paid" (NIRC Sec. 249). Since 1 January 2018 the rate is double the BSP legal rate. RR 21-2018 fixes that at 12% a year, because the legal rate is 6%. Before 2018 it was 20%.
Micro and small taxpayers pay half: 6% a year under RR 6-2024. Deficiency interest and delinquency interest cannot run at the same time for the same period (Sec. 249 as amended by TRAIN).
Example: Juan, a sari-sari store owner in Quezon City, owes ₱30,000 and pays 90 days late. His interest is ₱30,000 × 12% × (90 ÷ 365) = ₱887.67. On a late return you file yourself, interest runs on the tax only. Once the BIR issues a notice and demand, RR 21-2018 lets delinquency interest run on the assessed surcharge and interest as well, so paying before an assessment keeps the base smaller.
BIR compromise penalty table 2026 (RMO 7-2015)
The compromise penalty is a fixed peso amount paid to settle the criminal side of a violation instead of being prosecuted. RMO 7-2015 says compromise amounts "shall follow strictly" its Annex A schedule. RR 6-2024 still refers to that Annex A in April 2024, and no later schedule has replaced it. For failing to file or pay on time (NIRC Sec. 255), the amounts are as listed on the BIR penalties page on 2 October 2026:
| Unpaid tax | Compromise penalty |
|---|---|
| Up to ₱5,000 | ₱1,000 |
| Over ₱5,000 up to ₱10,000 | ₱3,000 |
| Over ₱10,000 up to ₱20,000 | ₱5,000 |
| Over ₱20,000 up to ₱50,000 | ₱10,000 |
| Over ₱50,000 up to ₱100,000 | ₱15,000 |
| Over ₱100,000 up to ₱500,000 | ₱20,000 |
| Over ₱500,000 up to ₱1,000,000 | ₱30,000 |
| Over ₱1,000,000 up to ₱5,000,000 | ₱40,000 |
| Over ₱5,000,000 | ₱50,000 |
A late return with no tax due still carries a compromise, set by gross sales, earnings or receipts instead:
| Gross sales, earnings or receipts | Compromise penalty |
|---|---|
| Up to ₱50,000 | ₱1,000 |
| Over ₱50,000 up to ₱100,000 | ₱3,000 |
| Over ₱100,000 up to ₱500,000 | ₱5,000 |
| Over ₱500,000 up to ₱5,000,000 | ₱10,000 |
| Over ₱5,000,000 up to ₱10,000,000 | ₱15,000 |
| Over ₱10,000,000 up to ₱25,000,000 | ₱20,000 |
| Over ₱25,000,000 | ₱25,000 |
RMO 7-2015 Part III.5 calls these "only amounts suggested in settlement of criminal liability", which "may not therefore be imposed or exacted on the taxpayer". In practice, declining it leaves the criminal case open. Under NIRC Sec. 204, criminal violations can be compromised except those already filed in court or involving fraud.
Worked example: late filing of an income tax return
Liza, a self-employed consultant in Davao, is a regular taxpayer. She owes ₱100,000 of annual income tax due on 15 April 2026. She files and pays on her own on 13 August 2026, 120 days late, before any BIR notice.
| Line | Computation | Amount |
|---|---|---|
| Tax due | From her return | ₱100,000.00 |
| Surcharge | ₱100,000 × 25% (Sec. 248(A)) | ₱25,000.00 |
| Interest | ₱100,000 × 12% × (120 ÷ 365) (Sec. 249) | ₱3,945.21 |
| Compromise | Unpaid tax over ₱50,000 up to ₱100,000 (RMO 7-2015) | ₱15,000.00 |
| Total to pay | ₱143,945.21 |
If Liza were a micro taxpayer, the surcharge falls to ₱10,000 and interest to ₱1,972.60. Her surcharge and interest drop from ₱28,945.21 to ₱11,972.60, and her total to ₱126,972.60. The ₱15,000 compromise stays, so check your class before you pay.
Do micro and small taxpayers get reduced BIR penalties?
Yes. RA 11976 Sec. 45 and RR 6-2024 give micro taxpayers (gross sales under ₱3,000,000) and small taxpayers (₱3,000,000 to under ₱20,000,000) these concessions:
- 10% surcharge instead of 25%. Fraud and willful neglect stay at 50%.
- 6% yearly interest instead of 12%.
- ₱500 per failure to file an information return, statement or list, or keep a required record, capped at ₱12,500 a year.
- 50% off the compromise for violations of Secs. 113, 237 and 238 (invoicing and receipt rules).
If you are a freelancer or solo professional under ₱3,000,000, you are very likely micro. See your obligations as a self-employed taxpayer or freelancer, and compare tax options in the 8% vs graduated guide.
Mistakes that raise the bill
- Waiting for the BIR to find the return. A voluntary late return keeps interest on the tax alone. After a notice and demand, delinquency interest can also run on the assessed surcharge and interest (RR 21-2018).
- Skipping a nil return. "No tax due" still means a compromise of ₱1,000 or more if the return is late, set by your gross sales.
- Paying regular rates as a micro taxpayer. The 10% surcharge and 6% interest cut the Liza example by ₱16,972.61.
- Treating 50% as automatic. Late filing alone is 25% (or 10%). The 50% rate needs willful neglect or a fraudulent return.
- Missing several quarters. Each late return carries its own surcharge, interest and compromise. Track dates in the quarterly tax deadlines guide.
How to pay BIR penalties, and when they can be cut
Pay the tax and penalties together on BIR Form 0605 or on the late return itself, through an authorized agent bank, eFPS, eBIRForms or an accredited e-payment channel. Keep the validated payment confirmation.
NIRC Sec. 204(B) lets the Commissioner abate or cancel a tax liability when it "appears to be unjustly or excessively assessed", or when collection costs "do not justify the collection of the amount due". For micro and small taxpayers, RR 6-2024 also waives the penalty on an amended return when the original return was filed and paid on time.
To avoid the next penalty, register correctly with the BIR registration guide, then file on time with how to file your ITR. Self-employed taxpayers usually file BIR Form 1701 each year and Form 2551Q each quarter.
Sources
- RA 8424 (NIRC of 1997): Secs. 204, 248(B), 249, 255 (Lawphil)
- RA 10963 (TRAIN): Sec. 75 amending NIRC Sec. 249 (Lawphil)
- RA 11976 (Ease of Paying Taxes Act): Sec. 41 amending NIRC Sec. 248(A); Sec. 45 concessions (Lawphil)
- Revenue Regulations No. 21-2018 (12% interest under Sec. 249) (Bureau of Internal Revenue)
- Revenue Regulations No. 4-2024 (civil penalties under the Ease of Paying Taxes Act) (Bureau of Internal Revenue)
- Revenue Regulations No. 6-2024 (reduced penalties for micro and small taxpayers) (Bureau of Internal Revenue)
- Revenue Regulations No. 8-2024 (micro, small, medium and large taxpayer classes) (Bureau of Internal Revenue)
- Revenue Memorandum Order No. 7-2015 (revised schedule of compromise penalties) (Bureau of Internal Revenue)
- BIR penalties page (RMO 7-2015 Annex A tables) (Bureau of Internal Revenue)