Sample Protest Letter Tax Assessment Philippines ★ (Simple)

Receising a tax assessment notice from the Bureau of Internal Revenue (BIR) can be a nerve-wracking experience. In the Philippines, the BIR has broad powers to examine your books, re-evaluate your declared income, and issue a Formal Letter of Demand (FLD) or Final Assessment Notice (FAN). This document often demands payment of alleged deficiency taxes—sometimes amounting to hundreds of thousands, or even millions, of pesos.

The assessment incorrectly computed the net taxable income by failing to consider the approved carry-over of excess Minimum Corporate Income Tax (MCIT) from prior year. sample protest letter tax assessment philippines

Subject: Formal Letter of Demand No. [FLD Number] dated [Date of FLD] Taxable Year: January 1, [Year] to December 31, [Year] Tax Type: Deficiency Income Tax / Value-Added Tax / [Specify] Amount Assessed: Php [Total, e.g., 1,250,000.00] Receising a tax assessment notice from the Bureau

The BIR disallowed documented operating expenses in the total amount of Php [Amount] for [Reason, e.g., advertising and promotion]. The corresponding official receipts and invoices were presented during the audit, which are valid and duly issued by registered suppliers. The assessment incorrectly computed the net taxable income

[Signature over printed name] Affiant / Taxpayer

(Note: This section must be notarized. You will sign in front of a notary public.)

If you fail to file a protest within this period, the assessment becomes final, executory, and demandable . This means the BIR can legally enforce collection through bank levies, asset garnishment, and even criminal charges without further notice.