BIR rejected my 8% tax election through Taxumo
I’m a freelancer using Taxumo for 3 years.
For 2023–2026, I filed Q1 1701Q with the 8% option selected through Taxumo.
According to the memorandum RMO 23-2018, the 8% option can be renewed through the Q1 1701Q filing. Taxumo says our filings were correct.
However, our local RDO says they also require a sworn statement every year, otherwise they do not honor the 8% election and instead treat us as graduated tax + 3% percentage tax.
Because of this:
- we now have around ₱211k in open case taxes fron 2024, 2025 and now 2026.
- and for 2026 they force us into graduated tax without 40% OSD since Q1 was already filed under 8%
That would massively increase our taxes.
What worries me even more is that the our local accountant is now recommending underdeclaring the income instead of properly resolving the issue.
Has anyone experienced something similar with:
- RDOs rejecting the Q1 1701Q 8% election?
- sworn statement requirements?
- escalation to BIR Head Office?
Our local accountant dont want to question the RDO.
Taxumo say we should report the RDO to BIR Head office.
Advice?