Philippines Tax Demand Cut from PHP 72.40 Mln to PHP 3 Mln; Matter Settled
Ramco's 100% Philippines subsidiary (RSI) had a tax demand of PHP 72.40 Mln (approx Rs.112.00 Mln) for FY2022-23.
- Initial Tax Demand
- PHP 72.40 Mln (approx Rs.112.00 Mln) for FY2022-23
- Final Tax Demand
- PHP 3 Mln (approx Rs.4.60 Mln)
- Compromise Penalty
- PHP 20,000 (approx Rs.0.03 Mln)
- Settlement Date
- 30th September 2026
- Entity
- Ramco System Inc., Philippines (100% subsidiary)
What happened
Ramco Systems Limited has given an update on a tax dispute involving Ramco System Inc., Philippines (RSI), its 100% subsidiary.
Background
- On 10th September 2025, RSI received a final assessment notice / formal letter of demand from the Commissioner of Internal Revenue, dated 29th August 2025, for Financial Year 2022-23.
- The demand was PHP 72.40 Mln. (approximately Rs.112.00 Mln.), covering Income Tax, Value Added Tax, Expanded Withholding Tax, Withholding Tax on Compensation, Final Withholding Tax, Final Withholding of Value-Added Tax, Documentary Stamp Tax and Interest.
- There was also a compromise penalty demand of PHP 45,000 (approximately Rs.0.07 Mln.).
- RSI shared an administrative protest against the claim.
The outcome
- On 30th September 2026, RSI received the 'Final Decision' dated 29th September 2026 from the Commissioner of Internal Revenue, dropping almost all major demands.
- The final demand is PHP 3 Mln. (approximately Rs.4.60 Mln.), including a compromise penalty of PHP 20,000 (approximately Rs.0.03 Mln.).
- RSI paid this amount on 30th September 2026 and the matter has now been settled.
How to read it
The amount the subsidiary finally had to pay is a small fraction of what was originally demanded, and the dispute is now closed. The payment has already been made, so no further liability on this assessment remains open.
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More numbers
- Original tax demand (PHP)PHP 72.40 Mln.
- Original tax demand (INR equivalent)approximately Rs.112.00 Mln.
- Original compromise penalty (PHP)PHP 45,000
- Original compromise penalty (INR equivalent)approximately Rs.0.07 Mln.
- Final demand (PHP)PHP 3 Mln.
- Final demand (INR equivalent)approximately Rs.4.60 Mln.
- Final compromise penalty (PHP)PHP 20,000
- Final compromise penalty (INR equivalent)approximately Rs.0.03 Mln.
- Holding in Ramco System Inc., Philippines100%
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