BIR reduces interest rate on tax deficiency 1 SHARES Share it! The 12 percent interest doubled the legal interest rate of six percent prescribed by the Bangko Sentral ng Pilipinas (BSP) on loans. Revenue Deputy Commissioner for Operations Arnel SD Guballa said the TRAIN Law’s low interest schedule has eliminated the old punitive interest rate that encourages delinquency in paying correct taxes. Guballa said the current interest rate is no longer oppressive as it only doubles the legal interest rate for loans set by the BSP. In the past, taxpayers would opt to pay the interest penalty, which is more than the deficiency tax due as they are simultaneously imposed.

Source: Manila Bulletin September 17, 2018 08:37 UTC