By: Anna Isabella C. Galvez

On May 14, 2020, the Department of Finance issued Revenue Regulations (R.R.) No. 12-2020 which provides that the deadlines mentioned in R.R. No. 11-2020 shall remain in force regardless of the extension of the quarantine until May 31, 2020.

Below are the frequently asked questions relative to the filing of tax returns, submission of tax-related documents and the filing and processing of various applications with the BIR during the quarantine:

DEADLINES FOR FILING OF TAX RETURNS

 

When is the deadline for filing of the Annual Income Tax Returns (AITR)?

The deadline for the filing of AITR has been further moved from May 15, 2020 to June 14, 2020, without the imposition of penalties.

When is the deadline for filing and payment of Value-Added Tax (VAT), Withholding Tax, Documentary Stamp Tax (DST) and other taxes?

The following are the new deadlines for filing of VAT, Withholding Tax, DST and other tax returns and the payment thereof:

BIR Forms/Returns Original Due Date Extended Due Date
Filing and payment of 2550M – Monthly VAT for non-eFPS filers (for the month of February 2020) March 20, 2020 May 19, 2020
Filing and payment of 2550M – Monthly VAT for non-eFPS filers (for the month of March 2020) April 20, 2020 June 4, 2020
Filing and payment of 2550M – Monthly VAT for non-eFPS filers (for the month of April 2020) May 20, 2020 June 19, 2020
eFiling / Filing and ePay / Remittance of 1600WP – Monthly Remittance of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators (for the month of February 2020) March 20, 2020 May 19, 2020
eFiling / Filing and ePay / Remittance of 1600WP – Monthly Remittance of Percentage Tax on Winnings and Prizes Withheld by RaceTrack Operators (for the month of March 2020) April 20, 2020 June 4, 2020
eFiling / Filing and ePay / Remittance of 1600WP – Monthly Remittance of Percentage Tax on Winnings and Prizes Withheld by RaceTrack Operators (for the month of April 2020) May 20, 2020 June 19, 2020
eFiling of 2550M- EFPS filers under Group E (for the month of February 2020) March 21, 2020 May 20, 2020
eFiling of 2550M- EFPS filers under Group D (for the month of February 2020) March 22, 2020 May 21, 2020
eFiling of 2550M- EFPS filers under Group C (for the month of February 2020) March 23, 2020 May 22, 2020
eFiling of 2550M- EFPS filers under Group B (for the month of February 2020) March 24, 2020 May 23, 2020
eFiling and ePayment of 2550M- EFPS filers under Group A (for the month of February 2020) March 25, 2020 May 24, 2020
ePayment of 2550M for Groups E, D, C, B (for the month of February 2020) March 25, 2020 May 24, 2020
eFiling of 2550M- EFPS filers under Group E (for the month of March 2020) April 21, 2020 June 5, 2020
eFiling of 2550M- EFPS filers under Group D (for the month of March 2020) April 22, 2020 June 6, 2020
eFiling of 2550M- EFPS filers under Group C (for the month of March 2020) April 23, 2020 June 7, 2020
eFiling of 2550M- EFPS filers under Group B (for the month of March 2020) April 24, 2020 June 8, 2020
eFiling and ePayment of 2550M- EFPS filers under Group A (for the month of March 2020) April 25, 2020 June 9, 2020
ePayment of 2550M for Groups E, D, C, B (for the month of March 2020) April 25, 2020 June 9, 2020
eFiling of 2550M- EFPS filers under Group E (for the month of April 2020) May 21, 2020 June 20, 2020
eFiling of 2550M- EFPS filers under Group D (for the month of April 2020) May 22, 2020 June 21, 2020
eFiling of 2550M- EFPS filers under Group C (for the month of April 2020) May 23, 2020 June 22, 2020
eFiling of 2550M- EFPS filers under Group B (for the month of April 2020) May 24, 2020 June 23, 2020
eFiling and ePayment of 2550M- EFPS filers under Group A (for the month of April 2020) May 25, 2020 June 24, 2020
ePayment of 2550M for Groups E, D, C, B (for the month of April 2020) May 25, 2020 June 25, 2020
eFiling / Filing and ePayment / Payment of 2550Q – Quarterly VAT Declaration (Cumulative for 3 months) for EFPS and non-EFPS filers (for FQ ending February 29, 2020) March 25, 2020 May 24, 2020
eFiling / Filing and ePayment / Payment of 2550Q – Quarterly VAT Declaration (Cumulative for 3 months) for EFPS and non-EFPS filers (for FQ ending March 31, 2020) April 25, 2020 June 9, 2020
eFiling / Filing and ePayment / Payment of 2550Q – Quarterly VAT Declaration (Cumulative for 3 months) for EFPS and non-EFPS filers (for FQ ending April 30, 2020) May 25, 2020 June 24, 2020
Submission of Quarterly Summary Lists of Sales/ Purchases by VAT Taxpayer- Non-EFPS (for FQ Ending February 29, 2020) March 25, 2020 May 24, 2020
Submission of Quarterly Summary Lists of Sales/ Purchases by VAT Taxpayer- Non-EFPS (for FQ Ending March 31, 2020) April 25, 2020 June 9, 2020
Submission of Quarterly Summary Lists of Sales/ Purchases by VAT Taxpayer- Non-EFPS (for FQ Ending April 30, 2020) May 25, 2020 June 24, 2020
Submission of Sworn Statement of Manufacturer’s or Importer’s Volume of Sales of Each Particular Brand of Alcohol, Tobacco Products and Sweetened Beverage Products (for FQ ending February 29, 2020) March 25, 2020 May 24, 2020
Submission of Sworn Statement of Manufacturer’s or Importer’s Volume of Sales of Each Particular Brand of Alcohol, Tobacco Products and Sweetened Beverage Products (for FQ ending March 31, 2020) April 25, 2020 June 9, 2020
Submission of Sworn Statement of Manufacturer’s or Importer’s Volume of Sales of Each Particular Brand of Alcohol, Tobacco Products and Sweetened Beverage Products (for FQ ending April 30, 2020) May 25, 2020 June 24, 2020
Registration of Computerized Books of Accounts & Other Accounting Records in electronic format (for FY ending February 29, 2020) March 30, 2020 May 29, 2020
Registration of Computerized Books of Accounts & Other Accounting Records in electronic format (for FY ending March 31, 2020) April 30, 2020 June 14, 2020
Registration of Computerized Books of Accounts & Other Accounting Records in electronic format (for FY ending April 30, 2020) May 30, 2020 June 29, 2020
Submission of required hard copies of Financial Statements & scanned copies of Form 2307 to e-Filed 1702RT, MX & EX (for FY ending November 30, 2019) March 30, 2020 May 29, 2020
Submission of required hard copies of Financial Statements & scanned copies of Form 2307 to e-Filed 1702RT, MX & EX (for CY 2019) April 30, 2020 June 30, 2020
Submission of required hard copies of Financial Statements & scanned copies of Form 2307 to e-Filed 1702RT, MX & EX (for FY ending January 31, 2020) May 30, 2020 July 15, 2020
Submission of required hard copies of Financial Statements & scanned copies of Form 2307 to e-Filed 1702RT, MX & EX (for FY ending February 29, 2020) June 30, 2020 July 30, 2020
Submission of 2019 Inventory List (for FY ending February 29, 2020) March 30, 2020 May 29, 2020
Submission of 2019 Inventory List (for FY ending March 31, 2020) April 30, 2020 June 14, 2020
Submission of 2019 Inventory List (for FY ending April 30, 2020) May 30, 2020 June 29, 2020
eSubmission – Quarterly List of Sales/Purchases/Importations (for FQ ending February 29, 2020) March 30, 2020 May 29, 2020
eSubmission – Quarterly List of Sales/Purchases/Importations (for FQ ending March 31, 2020) April 30, 2020 June 14, 2020
eSubmission – Quarterly List of Sales/Purchases/Importations (for FQ ending April 30, 2020) May 30, 2020 June 29, 2020
eFiling / Filing and ePayment / Payment of 1702Q – Quarterly Income Tax Returns for Corporations, Partnerships and Other Non-Individual Taxpayers (for FQ ending January 31, 2020) and filing/e-filing of Summary Alphalist of Withholding Taxes March 31, 2020 May 30, 2020
eFiling / Filing and ePayment / Payment of 1702Q – Quarterly Income Tax Returns for Corporations, Partnerships and Other Non-Individual Taxpayers (for FQ ending February 29, 2020) and filing/e-filing of Summary Alphalist of Withholding Taxes April 29, 2020 June 13, 2020
eFiling / Filing and ePayment / Payment of 1702Q – Quarterly Income Tax Returns for Corporations, Partnerships and Other Non-Individual Taxpayers (for Q1 ending March 31, 2020) and filing/e-filing of Summary Alphalist of Withholding Taxes May 30, 2020 June 29, 2020
Filing/submission of Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF) March 31, 2020 May 30, 2020
Submission of the Deadline of Certificate of Compensation Payment (BIR Form No. 2316) March 31, 2020 May 30, 2020
Filing/Submission of Annual Information Return of Creditable Income Taxes Withheld (Expanded) (BIR Form No. 1604-E), together with its Alphalist March 31, 2020 May 30, 2020
eFiling /Filing and ePayment /Payment of 2000 (DST) &
2000-OT (One Time Transactions) for the month of March 2020
April 5, 2020 June 4, 2020
eFiling /Filing and ePayment /Payment of 2000 (DST) &
2000-OT (One Time Transactions) for the month of April 2020
May 5, 2020 June 4, 2020
eSubmission of Monthly eSales Report of all Taxpayers using CRM/POS with TIN ending in even number – month of March 2020 April 8, 2020 June 7, 2020
eSubmission of Monthly eSales Report of all Taxpayers using CRM/POS with TIN ending in even number – month of April 2020 May 8, 2020 June 7, 2020
eFiling / Filing and ePayment / Payment of 1600 with Monthly Alphalist of Payees and 1606 (for the month of March 2020) April 10, 2020 June 9, 2020
eFiling / Filing and ePayment / Payment of 1600 with Monthly Alphalist of Payees and 1606 (for the month of April 2020) May 10, 2020 June 9, 2020
eFiling / Filing and ePayment / Payment of 1600 and 1601C – Withholding Tax Remittance Return for National Government Agencies (NGAs)- For the month of March 2020 April 10, 2020 June 9, 2020
eFiling / Filing and ePayment / Payment of 1600 and 1601C – Withholding Tax Remittance Return for National Government Agencies (NGAs)- For the month of April 2020 May 10, 2020 June 9, 2020
Filing & Payment / Remittance of 2200M Excise Tax Return for the amount of Excise taxes collected from payment made to Sellers of Metallic Minerals (for the month of March 2020) April 10, 2020 June 9, 2020
Filing & Payment / Remittance of 2200M Excise Tax Return for the amount of Excise taxes collected from payment made to Sellers of Metallic Minerals (for the month of April 2020) May 10, 2020 June 9, 2020
Filing and Payment / Remittance of 1601C – non-EFPS Filers for the month of March 2020 April 10, 2020 June 9, 2020
Filing and Payment / Remittance of 1601C – non-EFPS Filers for the month of April 2020 May 10, 2020 June 9, 2020
eSubmission of eSales Report of all taxpayers using CRM/POS with TIN ending in odd number – Month of March 2020 April 10, 2020 June 9, 2020
eSubmission of eSales Report of all taxpayers using CRM/POS with TIN ending in odd number – Month of April 2020 May 10, 2020 June 9, 2020
eFiling of 1601C- EFPS Filers under Group E (for the month of March 2020) April 11, 2020 June 10, 2020
eFiling of 1601C- EFPS Filers under Group D (for the month of March 2020) April 12, 2020 June 11, 2020
eFiling of 1601C- EFPS Filers under Group C (for the month of March 2020) April 13, 2020 June 12, 2020
eFiling of 1601C- EFPS Filers under Group B (for the month of March 2020) April 14, 2020 June 13, 2020
eFiling and ePayment of 1601C- EFPS Filers under Group A (for the month of March 2020) April 15, 2020 June 14, 2020
ePayment of 1601C- EFPS Filers under Group E, D, C, B (for the month of March 2020) April 15, 2020 June 14, 2020
eFiling of 1601C- EFPS Filers under Group E (for the month of April 2020) May 11, 2020 June 10, 2020
eFiling of 1601C- EFPS Filers under Group D (for the month of April 2020) May 12, 2020 June 11, 2020
eFiling of 1601C- EFPS Filers under Group C (for the month of April 2020) May 13, 2020 June 12, 2020
eFiling of 1601C- EFPS Filers under Group B (for the month of April 2020) May 14, 2020 June 13, 2020
eFiling and ePayment of 1601C- EFPS Filers under Group A (for the month of April 2020) May 15, 2020 June 14, 2020
ePayment of 1601C- EFPS Filers under Group E, D, C, B (for the month of April 2020) May 15, 2020 June 14, 2020
eFiling/Filing & ePayment/Payment of 1700, 1701 & 1701-A – CY ending December 31, 2019 April 15, 2020 June 14, 2020
eFiling/Filing & ePayment/Payment of 1702 RT, MX & EX- CY ending December 31, 2019 April 15, 2020 June 14, 2020
eFiling/Filing & ePayment/Payment of 1702 RT, MX & EX- FY ending January 31, 2020 May 15, 2020 June 14, 2020
eFiling/Filing & ePayment/Payment of 1702 RT, MX & EX- FY ending February 29, 2020 June 15, 2020 July 15, 2020
eSubmission of Quarterly Summary List of Machines (CRM-POS) sold by all Machine Distributors/ Dealers/ Vendors/ Suppliers- TQ ending March 31, 2020 April 15, 2020 June 14, 2020
eSubmission of Quarterly Summary List of Machines (CRM-POS) sold by all Machine Distributors/ Dealers/ Vendors/ Suppliers- TQ ending April 30, 2020 May 15, 2020 June 14, 2020
Registration of Bound Loose Leaf Books of Accounts/ Invoices/ Receipts & Other Accounting Records- FY ending March 31, 2020 April 15, 2020 June 14, 2020
Registration of Bound Loose Leaf Books of Accounts/ Invoices/ Receipts & Other Accounting Records- FY ending April 30, 2020 May 15, 2020 June 14, 2020
Submission of List of Medical Practitioners- CQ ending March 31, 2020 April 15, 2020 June 14, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax Return – In General – Quarter ending March 31, 2020 April 25, 2020 June 9, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax Return – In General – FQ ending April 30, 2020 May 25, 2020 June 24, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax for Overseas Communications Tax (OCT)- Quarter ending March 31, 2020 April 20, 2020 June 4, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax for Overseas Communications Tax (OCT)- FQ ending April 30, 2020 May 20, 2020 June 19, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax for Amusement Taxes Sec. 125 of the Tax Code- Quarter ending March 31, 2020 April 20, 2020 June 4, 2020
Filing/submission of BIR Form No. 2551Q – Quarterly Percentage Tax for Amusement Taxes Sec. 125 of the Tax Code- FQ ending April 30, 2020 May 20, 2020 June 19, 2020
Submission of attachments to e-filed Annual Income Tax Returns (BIR Forms 1700, 1701, 1701-A)- FY ending December 31, 2019 Manually filed together with the filing of the Annual ITR or within 15 days from electronic filing of the Annual ITR June 30, 2020
Submission of soft copies of BIR Form 2307 contained in DVD-R and Sworn Declaration as Attachment to eFiled 1702Q- FQ ending January 31, 2020 April 15, 2020 June 14, 2020
Submission of soft copies of BIR Form 2307 contained in DVD-R and Sworn Declaration as Attachment to eFiled 1702Q- FQ ending February 29, 2020 May 15, 2020 June 14, 2020
Quarterly eFiling/filing and ePayment/Payment (eFPS and non-eFPS filers) of BIR Forms 1601EQ, 1601FQ, 1603Q, 1602Q- Quarter Ending March 31, 2020 April 30, 2020 June 14, 2020
Submission of Quarterly Alphabetical list of Payees (QAP) as attachments to 1601EQ and 1601FQ- Quarter Ending March 31, 2020 April 30, 2020 June 14, 2020
Monthly filing and payment (non-EFPS) of BIR Forms 0619-E and 0619-F- Month of March 2020 April 10, 2020 June 9, 2020
Monthly filing and payment (non-EFPS) of BIR Forms 0619-E and 0619-F- Month of April 2020 May 10, 2020 June 9, 2020
Monthly eFiling/filing and ePayment/Payment (eFPS and non-EFPS filers) of BIR Forms 0620- Month of March 2020 April 10, 2020 June 9, 2020
Monthly eFiling/filing and ePayment/Payment (eFPS and non-EFPS filers) of BIR Forms 0620- Month of April 2020 May 10, 2020 June 9, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group E- Month of March 2020 April 11, 2020 June 10, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group D- Month of March 2020 April 12, 2020 June 11, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group C- Month of March 2020 April 13, 2020 June 12, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group B- Month of March 2020 April 14, 2020 June 13, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F and ePayment for EFPS users under Group A- Month of March 2020 April 15, 2020 June 14, 2020
Monthly ePayment of BIR Forms 0619-E and 0619-F for EFPS users under Groups E, D, C and B- Month of March 2020 April 15, 2020 June 14, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group E- Month of April 2020 May 11, 2020 June 10, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group D- Month of April 2020 May 12, 2020 June 11, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group C- Month of April 2020 May 13, 2020 June 12, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F for EFPS users under Group B- Month of April 2020 May 14, 2020 June 13, 2020
Monthly eFiling of BIR Forms 0619-E and 0619-F and ePayment for EFPS users under Group A- Month of April 2020 May 15, 2020 June 14, 2020
Monthly ePayment of BIR Forms 0619-E and 0619-F for EFPS users under Groups E, D, C and B- Month of April 2020 May 15, 2020 June 14, 2020
eFiling and ePayment of Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock Not Traded through the Local Stock Exchange)- BIR Form 1707-A- CY Ending December 31, 2019 April 15, 2020 June 14, 2020
eFiling and ePayment of Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock Not Traded through the Local Stock Exchange)- BIR Form 1707-A- CY Ending January 31, 2020 May 15, 2020 June 14, 2020
eFiling/Filing and ePayment/Payment of Improperly Accumulated Earnings Tax- BIR Form 1704- FY Ending March 31, 2019 April 15, 2020 June 14, 2020
eFiling/Filing and ePayment/Payment of Improperly Accumulated Earnings Tax- BIR Form 1704- FY Ending April 30, 2019 May 15, 2020 June 14, 2020
Quarterly eFiling/Filing and ePayment/Payment (eFPS and non-eFPS of BIR Forms 1621- For the Quarter Ending March 31, 2020 April 30, 2020 June 14, 2020
Quarterly filing of 1st Quarter Income Tax Return for Individuals (BIR Form 1701Q)- First Quarter 2020 ending March 31, 2020 May 15, 2020 June 14, 2020
eFiling/Filing and ePayment/Payment (eFPs and non-eFPS) of BIR Forms 2552 Within 5 banking days from date of collection 30 days from the date of lifting of the quarantine
eFiling/Filing and ePayment/Payment (eFPS and non-eFPS filers) of BIR Forms 2553 On designated due date under special law 30 days from the date of lifting of the quarantine
eFiling/Filing and ePayment/Payment (eFPS and non-eFPS) of BIR Forms 2200- A, 2200- AN, 2200-P, 2200-T and 2200-S Before the removal of the excisable products from the place of production Before the removal of the excisable products from the place of production

 

When is the deadline for filing of tax returns relative to One-Time Transactions (ONETT) such as Capital Gains Tax Returns, Donor’s Tax Returns, and Estate Tax Returns?

 

BIR Form Description Original Due Date Extension Granted
BIR Form No. 1606 Withholding Tax Remittance Return For Onerous Transfer of Real Property Other Than Capital Asset (Including Taxable and Exempt) Date of payment falls within the period of emergency starting from March 16, 2020 30 days from the date of the lifting of the quarantine
BIR Form No. 1706 Capital Gains Tax Return for Onerous Transfer of Real Property Classified as Capital Asset (both Taxable and Exempt)
BIR Form No. 1707 Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange
BIR Form No. 1800 Donor’s Tax Return
BIR Form No. 1801 Estate Tax Return

 

In case of further extension or modification of quarantine, will the due dates be amended?

R.R. No. 12-2020 provides that the extended due dates shall remain in effect regardless of any extension or modification of quarantine.

 

Will the foregoing extended due dates apply to the entire Philippines?

Yes, the foregoing extended due dates apply to the entire Philippines and not only in areas where the Enhanced Community Quarantine (ECQ) is being implemented. If the new extended due dates fall on a holiday or non-working day, then the submission and/or filing contemplated above shall be made on the next working day.

 

What does the term “quarantine” mean?

The term “quarantine” shall mean any announcement by the National Government resulting to limited operations and mobility, including but not limited to, community quarantine, enhanced community quarantine, and modified enhanced community quarantine.

 

Where will the AITR be filed? Where can the taxpayer make income tax payment?

The filing of AITR and the payment of the corresponding taxes due thereon can be made:

  • In any nearest Authorized Agent Bank (AAB) notwithstanding any RDO jurisdiction; or
  • The concerned Revenue Collection Officers (RCOs) of the nearest Revenue District Office even in areas where there are AABs.

What are the acceptable modes of tax payment and the limits thereof?

Payment in cash should not exceed P20,000.00, while check payments will have no limitation if the same is made with RCO in the RDO until June 14, 2020. Provided further that all checks shall be made payable to the Bureau of Internal Revenue and the name of receiving AAB branch may no longer be indicated in the check for tax payment.

 

May returns filed before the extended deadline still be amended?

Taxpayers who file their tax returns within the original deadline or prior to the extended deadline can amend their tax returns at any time on or before the extended due date.

 

What happens if the amended returns result into additional tax to be paid?

An amendment that will result in additional tax to be paid shall not be subject to corresponding penalties (surcharge, interest and compromise penalties) if the same is done not later than the extended deadline as provided under existing rules and regulations.

 

How about if the amended returns result into an overpayment of taxes already paid?

 A taxpayer whose amended returns will result to overpayment of taxes paid can opt to carry over the overpaid tax as credit against the tax due for the same tax type in the succeeding periods’ tax returns aside from filing for claim for refund.

 

Which taxpayers will not be able to use the EFPS?

 For individuals (including Mixed Income Earner) and Estates and Trusts, the January 2018 version of the BIR Form 1701 [Annual ITR for Individuals (Including Mixed Income Earner), Estates and Trusts] is not yet available in EFPS. Thus, the Offline eBIRForms Package Version 7.6 as circulated in RMC No. 16-2020 shall be used. Consequently, payment for the income tax liability shall be made through manual payment or online payment as prescribed under the existing rules and regulations.

 

VAT REFUND

 

When is the deadline for filing of applications for VAT refund?

 The following are the extended due dates for the filing of VAT refund:

 

Type of Transaction / Document Original Due Date Extended Due Date
Application for VAT Credit/Refund Claims – BIR Form 1914 – Covering the calendar quarter ending March 31, 2018 March 31, 2020 May 30, 2020 or 30 days from the date of the lifting of the quarantine, whichever comes later
Application for VAT Credit/Refund Claims – BIR Form 1914 – Covering the fiscal quarter ending April 30, 2018 April 30, 2020 June 14, 2020 or 30 days from the date of the lifting of the quarantine, whichever comes later
Application for VAT Credit/Refund Claims – BIR Form 1914 – Covering the fiscal quarter ending May 31, 2018 May 31, 2020 June 20, 2020 or 30 days from the date of the lifting of the quarantine, whichever comes later

 

How long will the processing of claims take?

The 90-day period of processing VAT refund claims by the processing offices for those claims that are currently being evaluated and for those that may be received from March 16 to April 14, 2020 is suspended. The counting of the number of processing days shall resume after the lifting of the ECQ.

When is the deadline for filing of the Certificate of Residence for Tax Treaty Relief (CORTT) Forms?

The deadline for the filing of CORTT forms for final withholding taxes on dividends, interest and royalties for the month of February 2020, March 2020, and April 2020, paid and remitted in March 2020, April 2020, and May 2020, respectively, shall be within 30 days from the date of the lifting of the quarantine.

SUSPENSION ON THE RUNNING OF STATUTE OF LIMITATIONS UNDER SECTIONS 203 AND 222 OF THE TAX CODE

 

Did the government suspend the running of the limitations under Sections 203 and 222 of the Tax Code with respect to the issuance of tax assessments and the collection of taxes?

Yes, the BIR suspended the running of the statute of limitations on the period to assess and collect taxes under Sections 203 and 222 of the Tax Code. If the deadline to issue an assessment and/or collect taxes from the taxpayer falls with the period of emergency starting from March 16, 2020, the BIR will have the right to issue the subsequent assessment and/or warrant of distraint or levy for the collection of taxes within 60 days after the lifting of the quarantine.

What if the extended due dates fall on a holiday or non-working day?

If the extended due dates fall on a holiday or non-working day, then, the submission and/or filing contemplated herein shall be made on the next working day.

TAX AMNESTIES ON TAX DELINQUENCIES

 

When is the deadline for the availment of tax amnesty on tax delinquencies?

The deadline for availment of tax amnesty on tax delinquencies under RR No. 4-2019 was moved from June 8, 2020 to June 22, 2020.

 

FILING OF PROTESTS ON ASSESSMENTS AND SUBMISSION OF DOCUMENTS WITH DUE DATES

When is the period of submission for a Letter Answer to Notice of Informal Conference (NIC), Response to the Preliminary Assessment Notice (PAN), and other similar documents?

The following are the extended deadlines for submission of these papers:

 

Document/Correspondence Extension
Filing of Position Paper to Notice of Informal Conference (NIC) 30 days from the date of the lifting of the quarantine

 

Note: The running of the period within which to file the Position Paper, Protest Letter, Transmittal Letter, Appeal and correspondences shall be suspend

Filing of Position Paper to the Preliminary Assessment Notice (PAN)
Protest Letter to Final Assessment Notice (FAN) / Formal Letter of Demand (FLD)
60-day transmittal letter of documents to support the request for reinvestigation of audit cases with FAN/FLD
Appeal/ Request for Reconsideration to the Commissioner on the Final Decision on Disputed Assessment  (FDDA)
Other similar letters and correspondences with due dates

 

What is the coverage of the foregoing extension?

 

The foregoing extension applies throughout the Philippines.

ISSUANCE OF TEMPORARY ELECTRONIC COPIES OF VAT CERTIFICATES (VCs) AND VAT IDENTIFICATION CARDS (VICs)

Who are entitled to the foregoing temporary relief?

  1. Newly-accredited Resident Foreign Missions (RFM) personnel who are qualified for the grant of point-of-sale (POS) VAT exemption, as indorsed by the Department of Foreign Affairs- Office of Protocol (DFA-OP); and
  2. RFMs, RFM personnel and their dependents who will apply for the renewal of their expired VCs and VICs during the effectivity of the ECQ.

What is the validity of VCs and VICs issued under this RMC?

Electronic copies of VCs and VICs shall remain valid only until August 30, 2020. The issued VCs and VICs shall be renewed within 30 calendar days from the lifting of the ECQ following the same requirements and procedures set forth under RMO No. 10-2019.

What are the requirements to be entitled to VAT exemption?

All business establishments shall grant a POS VAT exemption upon presentation by the concerned RFM personnel and their dependents of the electronic copies of VCs and VICs and his/her DFA-issued electronic copy of Certification of Accreditation or a valid DFA Protocol ID. For RFM, its duly authorized representative shall present, in addition of the VC, his/her Identification Card and Special Power of Attorney or authorization letter upon each purchase.

EXEMPTIONS FROM DOCUMENTARY STAMP TAX (DST)

 

What is the tax treatment of loans with extended due dates/ grace periods?

All banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, including GSIS, SSS and Pag-ibig Fund, in extending the grace period for the payment of all loans shall not impose additional DST imposed under Sections 179, 195 and 198 of the Tax Code, for credit extensions and credit restructuring, micro-lending including those obtained from pawnshops and extensions thereof during the covered period.

What is covered by the DST exemption?

Apart from those mentioned in RMC 35-2020, also exempted from DST are all extensions of payment and/or maturity periods of all pre-existing loans, including but not limited to salary, personal, housing, and motor vehicle loans, falling due within the ECQ Period, including the extension of maturity periods that may result from the grant of grace periods for these payments, whether or not such maturity periods originally fall due within the ECQ.

What is a credit extension?

Credit extensions refer to pre-existing loans that fall due during the ECQ period where interest is paid but the principal is converted into a new loan with a new maturity date. This new loan principal and the renewal or extension of the loan’s mortgage, pledge, or deed of trust shall be exempt from DST.

However, where the principal is rolled-over or renewed as a new loan principal in accordance with a pre-agreed roll-over agreement and collateral documentation thereof prior to the COVID-19 situation, it shall remain subject to DST.

What is credit restructuring and is it subject to DST?

Credit restructuring refers to pre-existing loans that fall due during the ECQ period where either:

  1. both the principal and interests are not paid but are consolidated and converted into a new loan principal with a new maturity date, or
  2. there is payment of interest and partial payment of principal on maturity while the remaining unpaid principal is converted into a new loan principal with a new maturity date

Credit restructuring and the renewal or extension of the loan’s mortgage, pledge, or deed of trust shall be exempt from DST.

What types of loans are subject to DST?

Fresh loan availments, top-up to existing loans, and new loan drawdowns during the ECQ period and its collateral documentation remain subject to DST.

What are the reportorial requirements of Covered Institutions, i.e. Banks, Quasi-Banks, financing and lending companies, etc.?

Covered Institutions shall submit in hard and soft copy a summary listing of all pre-existing loans, pledges and other instruments as of March 17, 2020 (commencement date of ECQ) which were granted extension of payment and/or maturity period based on the format provided in RMC No. 36-2020.

The summary listing shall be submitted to the Revenue District Office/Large Taxpayers Service/Large Taxpayers District Office where the taxpayer is registered within 60 days from the lifting of the ECQ. The hard copy of the summary listing together with photocopies of the documents evidencing the credit, extensions and restructuring shall be made under oath as to the completeness, truth and accuracy thereof by a duly authorized officer or representative of the taxpayer.

Are there penalties for non-submission of the summary listing by a covered institution?

In case of failure to submit the summary listing on the date prescribed therefor, there shall upon notice and demand by the Commissioner, be paid by the Covered Institution, the additional DST that should have been imposed on the instrument during the ECQ as imposed under the Tax Code, as amended, plus administrative penalties incident to such failure.

APPLICATION FOR NEW AUTHORITY TO PRINT (ATP) AND USE OF  EXPIRED RECEIPTS/INVOICES

What is the effect of the ECQ on the filing of applications for new ATPs and the use of expired principal and supplementary receipts/invoices of taxpayers?

The BIR extended the deadline for the filing of applications for new ATPs and allowed the use of expired principal and supplementary invoices and receipts within the period of ECQ as follows:

Transaction Extension
Filing of application for new ATP for expiring principal and supplementary receipts/invoices where the expiration dates fall within the period of the ECQ Extended until May 13, 2020 or for 30 calendar days after the lifting of the ECQ (if extended), whichever comes later, without the imposition of penalties
Use of principal and supplementary receipts/invoices which expired within the period of the ECQ shall be allowed provided that:

 

1.       The taxpayer cannot apply for new ATP due to the ECQ or the application has been filed and received by the BIR but the accredited printer cannot deliver the receipts/invoices to the concerned taxpayer due to the ECQ; and

 

2.       Said receipts/invoices to be issued/used shall be stamped “Emergency Extension for Use until May 13, 2020” (if the ECQ is extended, the date shall be 30 days after the last day of ECQ)

Extended until May 13, 2020 or for 30 calendar days after the lifting of the ECQ (if extended), whichever comes later

 

Will the foregoing extensions apply nationwide?

Yes, the foregoing extensions are applicable to all concerned taxpayers nationwide. All existing revenue issuances on receipts/invoices shall be applied after the last day of the extension period.

GUIDELINES ON TEMPORARY MEASURES RELATIVE TO RECEIPTING/INVOICING REQUIREMENTS

 

What are the typical issues and concerns on receipting/invoicing during the ECQ?

The following are the typical issues on receipting and invoicing during the ECQ:

  1. Unavailability of manually issued receipts/invoices due to the expiration of the Authority to Print (ATP) receipts/invoices during ECQ;
  2. Manually issued receipts/invoices with ATP or computer-generated receipts/invoices with approved Permit to Use or Acknowledgment Certificate, whichever is applicable, is not accessible due to the closure of most business establishments;
  3. Mailing/sending by sellers of issued duly authorized receipts/invoices via postal services is impossible due to the non-observance of standard operating hours;
  4. Sending or receiving of the duly authorized receipts/invoices at the place of business of the seller or customer, whichever is found proper, is currently impossible due to the closure of most business establishments; and
  5. Personnel or staff of the business entities to scan the receipts/invoices is similarly unavailable.

What are the options of the taxpayers to address the foregoing concerns?

Business taxpayers may opt to use any of the following:

  1. BIR Printed Receipts/Invoices (BPR/BPI) pursuant to RMC No. 28-2019, as amended;
  2. Scanned Copy of Receipt/Invoice with ATP and electronically transmitted in JPEG, PDF or any equivalent format to the customer;
  3. Computer-aided Receipt/Invoice in Excel format not covered by an ATP and similarly transmitted electronically in JPEG, PDF or any equivalent format to the customer;
  4. Supplementary Receipts/Invoices were issued (i.e., Delivery Receipts, Acknowledgment Receipts, etc.) in lieu of the Principal Receipts/Invoices (i.e., Official Receipts and Sales Invoice);
  5. Receipt/Invoice using the existing Computerized Accounting System (CAS) or its Components with approved Permit to Use (PTU) or Acknowledgment Certificate; however, the said receipt/invoice is being sent electronically or via e-mail in JPEG, PDF or any equivalent format to the customer; or
  6. Receipt/Invoice generated from a newly developed receipting/invoicing software or CAS or its Components without duly approved PTU or Acknowledgment Certificate, which was used to temporarily generate/issue the receipts/invoices and the receipt/invoice is being sent electronically in JPEG, PDF or any equivalent format to the customer.

What are the guidelines and procedures under this RMC?

Business taxpayers may opt to use any of the following:

  1. Formal letter must be submitted to the BIR on the work-around procedures being implemented within three (3) days from the effectivity of RMC No. 47-2020 indicating the following information:
    • Name of taxpayer;
    • Registered address of the taxpayer;
    • TIN with Branch Code;
    • Temporary measures to be used/being used on the issuance of receipts/invoices during the ECQ, indicating the serial numbers of the said receipts/invoices that will be issued;
    • Statement that taxpayer is amenable to a post-verification of the reported sales during the period covered whenever the Commissioner so orders; and
    • Signature of the taxpayer or its authorized representative and designation.
  2. Once the ECQ is lifted, the taxpayer/seller must immediately provide or issue the duly authorized receipts/invoices to their clients/customers to cover all sales transactions that were issued temporary receipts/invoices during the ECQ. These temporary receipts/invoices should be prioritized in the issuance of authorized receipts/invoices over the current transactions. The actual date of transaction must be indicated in the authorized manual receipts/invoices and a copy of the temporary receipt/invoice attached to the file copy for audit purposes.
  3. For those taxpayers/sellers using receipting/invoicing system or CAS where such system automatically indicates the date of the transaction, i.e., date generated, the actual date of transaction should appear on the face of the system-generated receipts/invoices in any manner feasible. Consequently, such receipts/invoices shall not be considered “out of period” receipts/invoices as these were issued during the ECQ through temporary measures implemented by the taxpayer.
  4. A Summary of Temporary Receipts/Invoices Issued must be submitted to the respective BIR Offices listed above within ninety (90) days from the date of the lifting of the ECQ, following the format found in this RMC.

Who are not covered by these guidelines?

All business taxpayers who have access to their duly authorized receipts/invoices and did not adopt any temporary measures during the ECQ shall not be covered by these guidelines.

INCENTIVES FOR THE MANUFACTURE OR IMPORTATION OF HEALTHCARE EQUIPMENT AND SUPPLIES

 

What is the tax treatment on the importation of healthcare equipment and supplies?

The importation of critical or needed healthcare equipment or supplies intended to combat COVID-19, including the importation or materials needed to make such, shall be exempt from VAT, excise tax and other fees.

The importation thereof shall not be subject to the issuance of Authority to Release Imported Goods (ATRIG).

What is the tax treatment on the donation of these imported healthcare equipment and supplies?

Donations of imported articles to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government are exempt from donor’s tax, and subject to the ordinary rules of deductibility under existing rules and issuances.

DONATIONS MADE DURING THE ECQ

 

What is the tax treatment of donations made during the ECQ?

Donations given for the sole and exclusive purpose of combating COVID-19 during the period of the state of national emergency shall be considered fully deductible against the gross income of the donor, subject to the requirements enumerated under Section 34(H) in relation to Section 101 of the NIRC and as implemented by Section 17 of RR No. 12-2018. Documentary requirements for both the donor and the donee are also provided therein.

Donations of healthcare equipment and supplies and relief goods shall not be treated as a transaction deemed sale subject to VAT. Further, any input VAT attributable to such purchase of goods shall be creditable against any other output tax.

EXTENSION OF DEADLINES FOR PAYMENT OF TAXES, FEES AND CHARGES OF LOCAL GOVERNMENT UNITS (LGUs)

 

What is the extended deadline for the payment of taxes, fees and charges of Local Government Units?

The Department of Finance issued Department Circular No. 002-2020 dated April 23, 2020 which moved the deadlines for the payment of all local taxes, fees and charges duly authorized and imposed by LGUs within their respective territorial jurisdictions as of March 25, 2020 to June 25, 2020. The counting of the period within which to pay local taxes, fees and charges shall likewise be suspended during the said period.

In the event that an LGU had already extended the deadlines prior to the effectivity of RA No. 11469, such deadlines shall be deemed modified with the period set forth in the Department Circular. Any further extension shall be authorized in accordance with the provisions of the Local Government Code.


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