BusinessMindedPinoy logo

BusinessMindedPinoy.com

Ang Iyong Partner sa Pag-angat!

Contact
← Back to BusinessMindedPinoy.com

BIR Late Authority to Print (ATP) Penalty Guide

Step-by-step guide for Philippine businesses on how to address a late BIR Authority to Print (ATP) penalty, including penalties, payment, possible waivers, and compliance tips.

What you’ll learn in this late ATP penalty guide

This guide shows you how to handle a late BIR Authority to Print (ATP) penalty in the Philippines, from understanding the charges to paying, requesting reductions, and regularizing your receipts.

For broader context on registration and systems, you can also read our BIR Business Registration Guide, BIR CMS / CAS Registration Guide, and How to Check for Open BIR Cases.

To avoid future ATP problems, keep your receipts and books organized using our BIR Book of Accounts Tool, so you can track issued ORs/SIs and stay on top of BIR deadlines.

Quick Overview

The BIR imposes penalties when an Authority to Print (ATP) is applied for or renewed late. These penalties can include compromise penalties, surcharges, and interest, but in some cases they may be reduced or waived if you can show reasonable cause and proper documentation. This guide walks you through the typical process.

1

Identify the penalty

BIR may impose any or a combination of the following when ATP is applied for or renewed late:

  • Compromise penalties: often in the range of ₱1,000 to ₱5,000 depending on your business category and circumstances.
  • Surcharge: typically 25% of the basic tax due, if there are related unpaid taxes.
  • Interest: around 12% per year on unpaid taxes, computed until fully paid.
  • Higher penalties for repeated/willful violations: which may include fines (e.g., ₱20,000–₱50,000) or even imprisonment, especially for serious or repeated offenses.

Exact amounts change over time. Always confirm with your Revenue District Office (RDO) or a tax professional for current rates.

2

Secure and file the ATP application

Use BIR Form 1906

File BIR Form 1906 (Application for Authority to Print Receipts and Invoices) with your RDO. This is used both for initial ATP and for renewal/replacement.

  • Coordinate with your accredited printer if applicable.
  • Prepare your Certificate of Registration (Form 2303) and other standard requirements.
  • Submit the application as soon as you discover the lapse.

Timing and best practices

  • Ideally, apply at least 60 days before your existing ATP or ORs/Invoices run out.
  • For late situations, file the application immediately to show good faith and reduce exposure.
  • Keep copies of all submitted documents and stamped receipts as proof of compliance.
3

Pay the penalties and related fees

Once the RDO has assessed your late ATP case, they will issue a computation or payment form showing the amounts due. This may include:

  • Compromise penalty for late ATP filing/renewal.
  • Any related surcharges and interest on unpaid taxes, if applicable.
  • Documentary Stamp Tax (DST) on the ATP form or related documents.

Payment is usually made through:

  • BIR Collection Division or Cashier at the RDO; or
  • Authorized Agent Banks / ePayment channels accredited by the BIR.
4

Explore penalty reduction or waiver (if applicable)

In certain cases, the BIR may reduce or waive penalties if you can show "reasonable cause" supported by documents.

  • Examples include BIR system downtime, force majeure events, or other circumstances beyond the taxpayer's control that can be documented.
  • Requests are typically made through a written letter or formal request, with attachments such as screenshots, notices, or incident reports.
  • Penalty waivers and reductions have been discussed under issuances like BIR Revenue Memorandum Circular (RMC) No. 20-2007 and related guidance.

Acting promptly after system restoration or after discovering the lapse, and keeping all supporting documents, increases your chances of a favorable review.

5

Regularize your ATP and receipt compliance

  • Once penalties are paid and ATP is approved, use only receipts/invoices covered by a valid ATP.
  • Monitor your ATP expiration date and your stock of official receipts to avoid future late applications.
  • Keep a simple compliance calendar for BIR deadlines (ATP, registration, returns, books of accounts, etc.).

Key Takeaways

  • Penalties for late ATP can be substantial, especially if combined with surcharges and interest.
  • However, they can sometimes be negotiated, reduced, or waived if you can prove reasonable cause.
  • Early filing, good documentation, and proactive communication with your RDO are your best tools to prevent or minimize penalties.

If you need help with exact forms, payment amounts, or preparing a waiver request for your specific case, it is advisable to consult with a tax professional or coordinate directly with your BIR Revenue District Office.

© BusinessMindedPinoy.com | This guide is for general information only. Always refer to the latest BIR issuances, circulars, and official guidelines. documentation. This guide walks you through the typical process.

1

Identify the penalty

BIR may impose any or a combination of the following when ATP is applied for or renewed late:

  • Compromise penalties: often in the range of ₱1,000 to ₱5,000 depending on your business category and circumstances.
  • Surcharge: typically 25% of the basic tax due, if there are related unpaid taxes.
  • Interest: around 12% per year on unpaid taxes, computed until fully paid.
  • Higher penalties for repeated/willful violations: which may include fines (e.g., ₱20,000–₱50,000) or even imprisonment, especially for serious or repeated offenses.

Exact amounts change over time. Always confirm with your Revenue District Office (RDO) or a tax professional for current rates.

2

Secure and file the ATP application

Use BIR Form 1906

File BIR Form 1906 (Application for Authority to Print Receipts and Invoices) with your RDO. This is used both for initial ATP and for renewal/replacement.

  • Coordinate with your accredited printer if applicable.
  • Prepare your Certificate of Registration (Form 2303) and other standard requirements.
  • Submit the application as soon as you discover the lapse.

Timing and best practices

  • Ideally, apply at least 60 days before your existing ATP or ORs/Invoices run out.
  • For late situations, file the application immediately to show good faith and reduce exposure.
  • Keep copies of all submitted documents and stamped receipts as proof of compliance.
3

Pay the penalties and related fees

Once the RDO has assessed your late ATP case, they will issue a computation or payment form showing the amounts due. This may include:

  • Compromise penalty for late ATP filing/renewal.
  • Any related surcharges and interest on unpaid taxes, if applicable.
  • Documentary Stamp Tax (DST) on the ATP form or related documents.

Payment is usually made through:

  • BIR Collection Division or Cashier at the RDO; or
  • Authorized Agent Banks / ePayment channels accredited by the BIR.
4

Explore penalty reduction or waiver (if applicable)

In certain cases, the BIR may reduce or waive penalties if you can show "reasonable cause" supported by documents.

  • Examples include BIR system downtime, force majeure events, or other circumstances beyond the taxpayer's control that can be documented.
  • Requests are typically made through a written letter or formal request, with attachments such as screenshots, notices, or incident reports.
  • Penalty waivers and reductions have been discussed under issuances like BIR Revenue Memorandum Circular (RMC) No. 20-2007 and related guidance.

Acting promptly after system restoration or after discovering the lapse, and keeping all supporting documents, increases your chances of a favorable review.

5

Regularize your ATP and receipt compliance

  • Once penalties are paid and ATP is approved, use only receipts/invoices covered by a valid ATP.
  • Monitor your ATP expiration date and your stock of official receipts to avoid future late applications.
  • Keep a simple compliance calendar for BIR deadlines (ATP, registration, returns, books of accounts, etc.).

Key Takeaways

  • Penalties for late ATP can be substantial, especially if combined with surcharges and interest.
  • However, they can sometimes be negotiated, reduced, or waived if you can prove reasonable cause.
  • Early filing, good documentation, and proactive communication with your RDO are your best tools to prevent or minimize penalties.

If you need help with exact forms, payment amounts, or preparing a waiver request for your specific case, it is advisable to consult with a tax professional or coordinate directly with your BIR Revenue District Office.