Your sample protest letter must include the following essential components to be considered valid by the BIR:

Below is a sample letter of protest for a deficiency income tax assessment. Customize the bracketed information as needed.

[Your Company Name / Your Full Name]
[Tax Identification Number (TIN)]
[Registered Address]
[Contact Number / Email]

[Date]

The Revenue District Officer
Revenue District No. [RDO Code]
Bureau of Internal Revenue
[City/District Address]

RE: Protest to Formal Letter of Demand and Final Assessment Notice
Assessment No.: [BIR Form/FAN Number]
Tax Period: [Year/Month, e.g., Calendar Year 2022]

Dear Sir/Madam:

I/We, [Name of Taxpayer], respectfully protest the above-captioned Formal Letter of Demand (FLD) and Final Assessment Notice (FAN) received on [date of receipt] (copy attached as Annex “A”), which assessed me/us for deficiency [Income Tax / VAT / Percentage Tax / Withholding Tax] in the amount of [PHP amount], inclusive of surcharges and interests.

Grounds for Protest:

Relief Sought:
In view of the foregoing, I/we respectfully request the cancellation and withdrawal of the subject assessment. Alternatively, I/we request a reinvestigation and recomputation to reflect only the correct tax liability, if any.

I/we submit herewith the following supporting documents:

I/we protest under oath that the facts stated herein are true and correct to the best of my/our knowledge.

Thank you for your favorable action.

Respectfully submitted,

[Signature of Taxpayer or Authorized Representative]
[Printed Name]
[Position/Title, if corporate taxpayer]

SUBSCRIBED AND SWORN before me this [day] of [month], [year], affiant exhibiting to me his/her government-issued ID [ID number and date of issue].

Notary Public
[Name]

A Step-by-Step Guide for Taxpayers

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.

However, receiving a tax assessment does not mean you must pay immediately. Under the Philippine Tax Code, you have the right to dispute the assessment. The very first and most critical step in this legal process is filing a written protest letter.

In this article, we will break down the anatomy of an effective protest letter, provide a sample protest letter for tax assessment in the Philippines, and discuss the legal timelines and common mistakes that could cost you your case.

You argue that the BIR misapplied the tax code. Examples: assessing VAT on an exempt transaction, or applying the wrong tax rate to your income bracket.

Real Property Tax (RPT) in the Philippines is governed by the Local Government Code of 1991 (Republic Act No. 7160). Local government units (LGUs) assess the value of real properties to determine the tax due. However, there are instances where property owners believe the assessment is excessive, unfair, or based on incorrect property details (e.g., wrong land area, incorrect classification).

Under Section 226 of the Local Government Code, a property owner has the right to contest an assessment. This report outlines the procedure and provides a comprehensive sample letter.