LCV Tax Law: News & Updates

NEWS & UPDATES

NEW UPDATES

The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. (RR) 12-2020 dated May 14, 2020 repealing Section 3 of RR 11-2020 on the automatic extension of deadlines provided therein by another fifteen (15) days in the event of another quarantine extension. Consequently, the RR 12-2020 provides that the extended deadlines in RR 11-2020 (refer to table below) shall remain in effect regardless of any extension or modification of quarantine.

Revenue Memorandum Circular No. (RMC) 48-2020 dated May 22, 2020 extends until June 14, 2020 leniency in the filing of returns and payment of taxes due as provided under RMC 43-2020 and to include payment of Amnesty Tax. Hence, until June 14, 2020, concerned taxpayers may:

File tax returns and pay internal revenue taxes at the nearest Authorized Agent Banks (AABs), notwithstanding RDO jurisdiction;
File tax returns and pay the corresponding tax due thereon to the concerned Revenue Collection Officers (RCOs) of the nearest Revenue District Office (RD), even in areas where there are AABs.

Payment of internal revenue taxes in cash should not exceed P20,000, while check payments will have no limit if the same is made with the RCO in the district office until June 14, 2020. All checks shall be made payable to the Bureau of Internal Revenue (with or without “IFO Name and TIN of the taxpayer” written on the check as previously required) and the name and branch of the receiving AAB may no longer be indicated therein.

RMC 47-2020 dated May 11, 2020 provides guidelines on the issuance of receipts/invoices by taxpayers having difficulty complying with receipting/invoicing requirements during the imposition of the enhanced community quarantine (ECQ). In case the issuance of receipts/invoices is difficult due to the implementation of the ECQ, taxpayers may opt to use any of the following:

BIR printed receipts/invoices pursuant to RMC 28-2019, as amended; or
Scanned copy of the receipt/invoice with Authority to Print electronically transmitted in JPEG, PDF or any equivalent format to the customer; or
Computer-aided receipt/invoice in excel format not covered by an ATP similarly transmitted in JPEG, PDF or any equivalent format to the customer; or
Supplementary receipts/invoices are issued (i.e., Delivery Receipts, Acknowledgment Receipts, etc.) in lieu of the principal receipts/invoices (i.e., official receipt and sales invoice); or
Receipt/invoice using 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
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 or via e-mail in JPEG, PDF or any equivalent format to the customer.

A taxpayer adopting the foregoing must likewise observe the following guidelines and procedures:

Submit a formal letter to the Bureau on the workaround procedures within 3 calendar days from the effectivity of the circular providing the information enumerated in the RMC by sending the same through electronic mail to the BIR offices indicated in the issuance;
Once the ECQ is lifted, provide or issue the duly authorized receipts/invoices to clients/customers; and
Summary of Temporary Receipts/ invoices must be submitted to taxpayer’s respective BIR offices within 90 days from lifting of the ECQ.

RMC 46-2020 dated May 7, 2020 circularizes the guidelines and requirements for POGO licensees and service providers to apply for a BIR clearance in connection with the resumption of operations.

RMC 45-2020 dated April 30, 2020 circularizes Joint Memorandum Circular No. 001-2020 on the Guidelines for Availment of the Small Business Wage Subsidy Measure.

Court of Tax Appeals (CTA) En Banc Resolution No. 3-2020 dated May 19, 2020 adopts the guidelines for hearings via videoconferencing as set forth in paragraphs 17 and 18 of Supreme Court Administrative Circular No, 39-2020.

PREVIOUS UPDATES

In consideration of the extension of the quarantine period to May 15, 2020, the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. (RR) 11-2020 dated April 29, 2020 amending Section 2 of RR 10-2020 particularly on the extension of deadlines to submit, file and/or pay the necessary documents and/or taxes required under the Tax Code, including, among others, the following:

BIR Form	Name/Nature of Form	Period	Original Due Date	Extended Due Date
INCOME TAX
BIR Form 1700, 1701 and 1701A	Annual Income Tax Return for Individuals Earning Purely Compensation Income, Mixed Income, or Income Purely from Business/Profession, including those who opted to avail of 8% flat rate, Estates and Trusts	For the Calendar Year ending December 31, 2019	April 15, 2020	June 14, 2020
BIR Form 1702RT, 1702MX and 1702EX	Annual Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers Subject to Regular Income Tax, to Mixed Income Subject to Multiple Income Tax Rates or Special/Preferential Rates, or Exempt from Income Tax under the Tax Code	For the Calendar Year ending December 31, 2019	April 15, 2020	June 14, 2020
Required Submission of Attachments to e-filed Annual Income Tax Return (AITR)	BIR Form 1700, 1701, 1701A	For Calendar Year ending December 31, 2019	Manually filed together with the filing of AITR or within 15 days from electronic filing of the AITR	June 30, 2020
Submission of Hard Copies of Audited Financial Statements (AFS) and Scanned Copies of BIR Form 2307 for efiled BIR Form 1702	AFS, BIR Form 2307, BIR Form 1702RT, 1702MS, 1702EX	For Calendar Year 2019	April 30, 2020	June 30, 2020
BIR Form 1701Q	Quarterly Income Tax Return for Self-Employed, Individuals, Estates and Trusts	For 1st Quarter ending March 31, 2020	May 15, 2020	June 14, 2020
BIR Form 1702Q and SAWT eFiling/Filing and ePayment/Payment (eFPS and non-eFPS)	Quarterly Income Tax Return for Corporation, Partnerships, and Non-Individual Taxpayers Summary Alphalist of Withholding Taxes	For 1st Quarter ending March 31, 2020	May 30, 2020	June 29, 2020
BIR Form 1707-A	Annual Capital Gains Tax Return (for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange)	For Calendar Year ending December 31, 2019	April 15, 2020	June 14, 2020
VALUE-ADDED TAX AND PERCENTAGE TAX
BIR Form 2550M (non-eFPS) filing and payment	Monthly VAT Declaration	For the month of February 2020 For the month of March 2020 For the month of April 2020	March 20, 2020 April 20, 2020 May 20, 2020	May 19, 2020 June 4, 2020 June 19, 2020
BIR Form 2550M (eFPS) eFiling	Monthly VAT Declaration	For the month of February 2020 For the month of March 2020 For the month of April 2020	Group Deadline E March 21 D March 22 C March 23 B March 24 A March 25 Group Deadline E April 21 D April 22 C April 23 B April 24 A April 25 Group Deadline E May 21 D May 22 C May 23 B May 24 A May 25	Group Deadline E May 20 D May 21 C May 22 B May 23 A May 24 Group Deadline E June 5 D June 6 C June 7 B June 8 A June 9 Group Deadline E June 20 D June 21 C June 22 B June 23 A June 24
BIR Form 2550M (eFPS) ePayment		For the month of February 2020 For the month of March 2020 For the month of April 2020	March 25 for Group A to E April 25 for Group A to E May 25 for Group A to E	May 24 for Group A to E June 9 for Group A to E June 24 for Group A June 25 for Group B to E
BIR Form 2550Q eFiling/filing and ePayment/Payment (eFPS and non EFPS)	Quarterly VAT Return	For Calendar Quarter ending March 31, 2020	April 25, 2020	June 9, 2020
Quarterly SLS/Purchases/Importations (SLS/P/I) Submission (non-eFPS)	Summary List of Sales, Purchases, Importations	For Calendar Quarter ending March 31, 2020	April 25, 2020	June 9, 2020
Quarterly SLS/P/I Submission (eFPS)	Summary List of Sales, Purchases, Importations	For Calendar Quarter ending March 31, 2020	April 30, 2020	June 14, 2020
BIR Form 2551Q	Quarterly Percentage Tax Return	For the quarter ending March 31, 2020	April 25, 2020	June 9, 2020
BIR Form 1600 with MAP BIR Form 1606	Monthly Remittance Return of Value-Added Tax and Other Percentage Taxes Withheld (Under RAs 1051, 7649, 8241, 8424 and 9337) and Monthly Alphalist of Payees Creditable Withholding Tax for Onerous Transfer of Real Property Other Than Capital Asset	For the month of March 2020 For the month of April 2020	April 10, 2020 May 10, 2020	June 9, 2020 June 9, 2020
WITHHOLDING TAX REMITTANCE / PAYMENT FORMS
BIR Form 1604CF	Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes	N/A	March 31, 2020	May 30, 2020
BIR Form 1604E and Related Alphalist	Annual Information Return of Creditable Income Taxes Withheld and Alphalist	N/A	March 31, 2020	May 30, 2020
BIR Form 2316	Submission Deadline for Certification of Compensation Payment		March 31, 2020	May 30, 2020
BIR Form 1601C (non-eFPS)	Monthly Remittance Return of Income Taxes Withheld on Compensation	For the month of March 2020 For the month of April 2020	April 10, 2020 May 10, 2020	June 9, 2020 June 9, 2020
BIR Form 1601C (eFPS) eFiling	Monthly Remittance Return of Income Taxes Withheld on Compensation	For the month of March 2020 For the month of April 2020	Group Deadline E April 11 D April 12 C April 13 B April 14 A April 15 Group Deadline E May 11 D May 12 C May 13 B May 14 A May 15	Group Deadline E June 10 D June 11 C June 12 B June 13 A June 14 Group Deadline E June 10 D June 11 C June 12 B June 13 A June 14
BIR Form 1601C (eFPS) ePayment	N/A	For the month of March 2020 For the month of April 2020	April 15 for Group A to E May 15 for Group A to E	June 14 for Group A to E June 14 for Group A to E
BIR Form 1601 EQ, 1601FQ, 1602Q, 1603Q	Quarterly Remittance Return of Creditable Income Taxes Withheld Expanded), Final Income Taxes Withheld, Final Taxes Withheld on Interest Paid on Deposits and Deposit Substitutes/Trusts/etc., Final Income Taxes Withheld on Fringe Benefits, respectively	For the quarter ending March 31, 2020	April 30, 2020	June 14, 2020
Submission of Quarterly Alphabetical List of Payees (QAP) as Attachment to 1601EQ and 1601FQ	Quarterly Alphabetical List of Payees	For the quarter ending March 31, 2020	April 30, 2020	June 14, 2020
BIR Form 0619-E, 0619-F Filing and Payment (non-eFPS)	Monthly Remittance Return of Income Taxes Withheld (Expanded) Monthly Remittance Return of Final Income Taxes Withheld	For the month of March 2020 For the month of April 2020	April 10, 2020 May 10, 2020	June 9, 2020 June 9, 2020
BIR Form 0619-E, 0619-F (eFPS) eFiling	Monthly Remittance Return of Income Taxes Withheld on Compensation	For the month of March 2020 For the month of April 2020	Group Deadline E April 11 D April 12 C April 13 B April 14 A April 15 Group Deadline E May 11 D May 12 C May 13 B May 14 A May 15	Group Deadline E June 10 D June 11 C June 12 B June 13 A June 14 Group Deadline E June 10 D June 11 C June 12 B June 13 A June 14
BIR Form 0619-E, 0619-F (eFPS) ePayment	N/A	For the month of March 2020 For the month of April 2020	April 15 for Group A to E May 15 for Group A to E	June 14 for Group A to E June 14 for Group A to E
DOCUMENTARY STAMP TAX RETURN
BIR Form 2000 / 2000-OT	Documentary Stamp Tax Return	For the month of March 2020 For the month of April 2020	April 5, 2020 May 5, 2020	June 4, 2020 June 4, 2020
ONE-TIME TRANSACTIONS
BIR Form 1606	Creditable Withholding Tax for Onerous Transfer of Real Property Other Than Capital Asset	N/A	Date of payment falls within the period of emergency starting March 16, 2020	30 days from the date of lifting of the quarantine
BIR Form 1706	Capital Gains Tax Return for Onerous Transfer of Real Property Classified as Capital Asset
BIR Form 1707	Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through Stock Exchange
BIR Form 1800	Donor's Tax
BIR Form 1801	Estate Tax
REFUND CLAIMS
BIR Form 1914	Application for VAT Credit/Refund	For the quarter ending March 31, 2018	March 31, 2020	May 30, 2020 or 30 days from the date of lifting of the ECQ, whichever comes later
BIR Form 1914	Applications for Tax Credits/Refunds	For erroneous payments made from March 17, 2018 to April 30, 2018 For erroneous payments made from May 1, 2018 to May 31, 2018	Within 2 years after payment of the tax or penalty	June 14, 2020 June 30, 2020
AMNESTY
BIR From 2118DA	Tax Amnesty Return on Delinquencies	N/A	April 23, 2020	June 22, 2020
TAX TREATY
Certificate of Residence for Tax Treaty Relief (CORTT) Form for dividends, interest or royalty	Certificate of Residence for Tax Treaty Relief Part I and II	FWT on dividend, interest and royalty for February 2020 paid and remitted in March 2020	Within 30 days after the payment of the withholding tax	30 days from the date of lifting the quarantine
		FWT on dividend, interest and royalty for March 2020 paid and remitted in April 2020	Within 30 days after the payment of the withholding tax	30 days from the date of lifting the quarantine
		FWT on dividend, interest and royalty for April 2020 paid and remitted in May 2020	Within 30 days after the payment of the withholding tax	30 days from the date of lifting the quarantine
POSITION PAPERS, PROTESTS, APPEALS AND OTHER SUBMISSIONS
Filing of positions papers to Notice of Informal Conferences, protests to Preliminary Assessment Notices and Final Assessment Notices, submission of documents in support of protests, appeals/requests for reconsideration to the office of the CIR of Final Decision on Disputed Assessments, and other similar correspondences	N/A	N/A	Filing date falls during the period starting on March 16, 2020 and those where the due date falls within the period of 30 days from the date of lifting of the ECQ	30 days from the date of the lifting of the quarantine
Suspension of Running of Period of Limitations under Sections 203 and 222 pursuant to Section 223 of the 1997 Tax Code	Assessment Notices Warrants of Distraint and/or Levy Warrant of Garnishment	Period of emergency starting from March 16, 2020	Before the expiration of the statute of limitations	60 days after the lifting of quarantine
All other filings/submissions	Other Reportorial Requirements Omitted	N/A	Date of submission falls within the period of emergency starting March 16, 2020	30 days from date of lifting of the quarantine

Only deadlines of general application are listed above. For other extended deadlines, please refer to RR 11-2020. Please also see additional discussion below on RR 11-2020.

Department of Finance Circular No. 2-2020 signed April 23, 2020 extends the deadline for the payment of all local taxes, fees and charges duly authorized and imposed by the LGUs within their territorial jurisdictions as of March 25, 2020 to June 25, 2020. Further, 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 the Bayanihan Act, such deadlines shall be deemed modified with the period set forth herein. Any further extension shall be authorized in accordance with the provisions of the Local Government Code. No interest, surcharge or any form of penalty shall be applied on any local tax, fee or charge accruing on or due and demandable during the extended period provided. All local tax delinquencies prior to the effectivity of the Bayanihan Act shall remain and shall be due and demandable following the expiration of the deadline herein provided. The applicable interest, penalties and surcharges shall begin to run again and shall be due and demandable after the lapse of the effectivity of the Bayanihan Act.

Until the resumption of normal office operations, all local treasurers and assessors shall defer the following:

Issuing written authority for the conduct of examination of books of accounts and pertinent records of businesses;
Activities related to appraisal and assessment of real properties;
Posting or publishing of notices of delinquencies, warrants of levy and advertisements for sale or auction; and
Pursuing administrative or judicial action for the enforcement and/or collection of local taxes, fees or charges.

OTHER UPDATES

Revenue Memorandum Circular No. (RMC) 44-2020 dated April 17, 2020 provides guidelines in the issuance of electronic copies of temporary VAT Certificates (VCs) and VAT Identification Cards (VICs) to Resident Foreign Missions (RFMs) while the ECQ is in place. The temporary electronic copies of VCs and VICs shall remain valid only until August 30, 2020. The issued electronic copies of VCs and VICs shall be renewed within 30 calendar days from the lifting of the ECQ. All business establishments shall grant point-of-sale 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 RFMs, their respective duly authorized representatives shall present, in addition to the VC issued to the RFM, his/her Identification Card and Special Power of Attorney or authorization letter upon each purchase.

RMC 43-2020 dated April 15, 2020 authorizes taxpayers to pay internal revenue taxes at the nearest authorized agent banks (AABs) notwithstanding RDO jurisdiction and to file and pay the corresponding tax due to the concerned Revenue Collection Officers (RCO) of the nearest Revenue District Office (RDO) even in areas where there are AABs; provided that, payment of internal revenue taxes in cash should not exceed Twenty Thousand Pesos while those for check payment will have no limitation if the same is made with the RCO in the district office during the ECQ period. 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.

RMC 42-2020 dated April 6, 2020 prescribes the guidelines in the filing and payment of 2019 Income Tax Returns.

Revenue Memorandum Order No. (RMO) 11-2020 dated April 20, 2020 amends certain provisions of RMO 28-2017 on the guidelines and procedures in the implementation of RA 9505 or the Personal Equity and Retirement Account (PERA) Act of 2008.

THE FOLLOWING LAWS AND ISSUANCES WERE ALSO PROMULGATED DURING THE ECQ PERIOD:

Republic Act No. (RA) 11469, otherwise known as “The Bayanihan to Heal As One Act” (the “Bayanihan Act”), declares a state of national emergency over the entire country in view of the continuing rise of COVID-19 cases. Pursuant to Article VI, Section 23(2) of the Constitution, the President shall have the power to adopt temporary emergency measures to respond to the crisis brought about by the pandemic, including the following which have tax implications:

Liberalize the grant of incentives for the manufacture and importation of critical or needed equipment or supplies for the carrying-out of the declared national policy, including healthcare equipment and supplies: Provided, That importation of these equipment and supplies shall be exempt from import duties, taxes and other fees;
Move statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees and other charges required by law, and the grant of any benefit, in order to ease the burden on individuals under Community Quarantine;
Direct all banks, lending institutions and other financial institutions to implement a minimum 30-day grace period for payment of all loans, including credit card payments, falling due within the period of the Enhanced Community Quarantine without incurring interest, penalties, fees or charges;
Undertake such other measures as may be reasonable and necessary to enable the President to carry out the declared national policy subject to the Bill of Rights and other constitutional guarantees.

RR 11-2020 dated April 29, 2020 further extends the deadlines to submit, file and/or pay the necessary documents and/or taxes required under the Tax Code, amending for this purpose Section 2 of RR 10-2020 and RR 7-2020. [See Table above.]

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, modified enhanced community quarantine. [As amended by RR 12-2020 dated May 14, 2020.]

Section 3 of RR 11-2020, which provides that in case of another quarantine extension, defined extended due dates shall be allowed further extension of 15 calendar days, has been repealed by RR 12-2020. Hence, any extension or modification of the quarantine period shall not extend the due dates under RR 11-2020.

Taxpayers who will file their tax returns within the original deadline and prior to the extended deadline can amend their tax returns at any time on or before the extended due date. An amendment resulting in an additional tax to be paid can still be paid without the imposition of corresponding penalties if the same is done not later than the extended deadline. A taxpayer whose amended returns will result in 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 a claim for refund.

RR 10-2020 dated April 9, 2020 - Superseded by RR 11-2020.

RR 9-2020 dated April 6, 2020 implements Section 4(z) and 4(EE) of the Bayanihan Act by granting further benefits on donations during the ECQ. The following donations when given for the sole and exclusive purpose of combatting COVID 19 during the period of the state of national emergency shall be considered fully deductible against gross income of the donor-corporation/donor-individual:

Cash donations;
Donations of all critical or needed healthcare equipment of supplies as enumerated above;
Relief goods such as, but not limited to, food packs (rice, canned goods, noodles, etc.) and water; and
Use of property, whether real or personal (shuttle service, use of lots/buildings).

To be entitled to full deductibility, said donations shall be made to any of the following donees:

National Government or any entity created by any of its agencies (including public hospitals) which is not conducted for profit, or to any political subdivision of said Government, including fully-owned government corporations; and
Accredited non-stock, non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization.

The requirement of submission of a Notice of Donation shall be dispensed with for this purpose.

In order to be fully deductible, the donation must be supported by the following:

Donee-Recipient: National government or any entity created by its agencies not conducted for profit, or to any political subdivision, including fully-owned government corporations
Supporting Document: Deed of Donation

Donee-Recipient: Accredited non-stock, non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization
Supporting Document: Certificate of Donation (BIR Form 2322)

The donations above, when made during the period of the state of national emergency, for the sole and exclusive purpose of combatting COVID 19, shall be considered as exempt donations/gifts, when given to the following donees:

Private hospitals and/or non-stock non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization (even if non-accredited), trust or philanthropic organization and/or research institution or organization; and
Local private corporations, civic organizations, and/or international organizations/institutions under certain specified conditions.

The regulations details the documents to be submitted to the respective RDOs of the donor and the donee-recipient within 60 days from lifting of the ECQ for the donation to be considered exempt from donor’s tax and fully deductible.

Donations under (b) and (c) above shall not be treated as transactions deemed sale subject to VAT. Any input VAT attributable to such purchase of goods shall be creditable against any other output tax.

RMC 41-2020 dated March 30, 2020 clarifies that the time of application for new Authority to Print (ATP) Receipts/Invoices of taxpayers with expiring principal and supplementary receipts/invoices where the expiration dates fall within the period of the ECQ is extended until May 13, 2020 or for 30 days after the lifting of the ECQ if extended, whichever comes later, without penalties. The use of expired principal and supplementary receipts/invoices that fall within the period of the ECQ is extended until May 13, 2020 or 30 calendar days after the lifting of the ECQ if extended, whichever is later, subject to certain conditions.

RMC 40-2020 dated April 6, 2020 publishes the implementing rules promulgated by the DOF on the provisions of the Bayanihan Act amending Sections 32 and 151 of the 1997 Tax Code, as amended, on the exemption from income and excise tax of the sale of gold to the Bangko Sentral ng Pilipinas by registered small scale miners and accredited traders.

RMC 39-2020 dated April 7, 2020 provides that with the extension of the ECQ to April 30, 2020, the extended due dates enumerated in Section 2 of RR 7, 2020 are further extended for a period of 15 calendar days, except where the extended due dates granted are reckoned from the lifting of the ECQ, as follows:

Filing of Position Paper to Notice of Informal Conference, etc. up to Other similar letters and correspondences with due dates [ref. Section 2 (items 41 to 46) of RR 7-2020] - extended due date: 30 days from the lifting of the period of emergency
Suspension of Running of Status of Limitations under Sections 203 and 222 pursuant to Section 223 of the Tax Code of 1997, as amended [re. Section 2 (item 49) of RR 7-2020] - extended due date: 60 days after lifting of the order of the state of emergency

Moreover, the filing/submission of BIR Form 2251Q (Quarterly Percentage Tax Return), which is originally due on April 25, 2020, is further extended up to May 25, 2020.

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

RMC 38-2020 dated April 7, 2020 extends further the deadline for availment of tax amnesty on delinquencies from May 23, 2020 to June 8, 2020.

RMC 37-2020 dated April 6, 2020 clarifies that 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. An amendment that will result in an 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. Conversely, a taxpayer whose amended return results in an overpayment of taxes 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 a claim for refund. Moreover, for individuals (including Mixed Income Earners), Estates and Trusts, the January 2018 version of the BIR Form 1701 is not yet available in the eFPS. eFPS filers shall use the Offline eBIRForms Package Version 7.6 as circulated in RMC 16-2020. Payment shall be made through manual payment or online payment as prescribed under existing rules and regulations.

RR 8-2020 dated April 1, 2020 implements the provision in the Bayanihan Act directing all banks, lending institutions and other financial institutions to implement a minimum 30-day grace period for payment of all loans, including credit card payments, falling due within the period of the ECQ without incurring interest, penalties, fees or charges. The issuance provides that no additional DST, including that imposed under Sections 179, 195 and 198 of the Tax Code, shall apply to credit extensions and credit restructuring, micro-lending including those obtained from pawnshops and extensions thereof during the ECQ Period. [Reiterated and further clarified in RMC No. 36-2020 dated April 3, 2020 and 35-2020 dated April 2, 2020.]

RMC 34-2020 dated March 27, 2020 declares the suspension of the running of the Statute of Limitations under Sections 203 and 222 of the 1997 Tax Code, as amended, for a period starting March 16, 2020 until the lifting of the state of national emergency and for 60 days thereafter. The suspension of the running of the Statute of Limitations shall likewise apply with respect to issuance and service of assessment notices, warrants and enforcement and/or collection of deficiency taxes.

RR 7-2020 dated March 27, 2020 [superseded by RR 11-2020] extends the statutory deadlines for the submission of documents and tax returns pursuant to the Bayanihan Act, including:

Application for VAT Credit/Refund for the quarter ending March 31, 2018 from March 31, 2020 to April 30, 2020
CWT or CGT Returns on the sale of real property or shares of stock, Donor’s Tax Returns and Estate Tax Returns when the date of payment falls within the period of emergency starting March 16, 2020 to 30 days from original due date
Monthly VAT Declaration for February 2020 from March 20, 2020 to April 20, 2020
Annual Filing/Submission of BIR Form 1604CF from March 31, 2020 to April 30, 2020
Submission Deadline for BIR Form 2316 from March 31, 2020 to April 30, 2020
Filing and Payment of Annual Income Tax Return for the calendar year ending December 31, 2019 from April 15, 2020 to May 15, 2020
Filing of protests to Preliminary Assessment Notices and Final Assessment Notices, positions papers to Notice of Informal Conferences, submission of documents in support of protests, appeals/requests for reconsideration to the office of the CIR of Final Decision on Disputed Assessments, and other similar correspondences when the filing due date falls within the period of emergency starting March 16, 2020 to 30 days from date of lifting of the period of emergency
Certificate of Residence for Tax Treaty Relief for dividends, interest or royalty for February 2020 paid and remitted starting March 10, 2020 from on or before April 13, 2020 to April 30, 2020
Availment of Tax Amnesty on Delinquencies from April 23, 2020 to May 23, 2020
Suspension of Running of Period of Limitations under Sections 203 and 222 pursuant to Section 223 of the 1997 Tax Code from before the expiration of the statute of limitations to 60 days after the lifting of the order of state of emergency

All other submissions/filings the deadline of which falls within the period of emergency starting March 16, 2020 to 30 days from original due date.

RR 6-2020 dated March 27, 2020 implements the tax exemption provisions of the Bayanihan Act particularly on the importation of healthcare equipment and supplies.

The issuance declares that the importation of critical or needed healthcare equipment or supplies to combat the COVID-19 public health emergency, including personal protective equipment, laboratory equipment, medical equipment and devices, tools and consumables, common medicine, testing kits, and such other supplies or equipment as may be determined by the DOH and other relevant agencies shall be exempt from VAT, excise tax and other fees.

Importation of materials to make health equipment and supplies deemed as critical or necessary to address the current public health emergency shall likewise be exempt from VAT, excise tax and other fees, provided the importing manufacturer is included in the Master List of the DTI and other incentive granting bodies.

An ATRIG shall not be necessary for the release of goods from the BOC.

Donations of these imported articles for use by Government or its non-profit agencies or to any political subdivision are exempt from donor’s tax and subject to ordinary rules of deductibility.

RMO 10-2020 dated March 30, 2020 prescribes the policies and guidelines relative to ATRIG requirements of all goods imported under the Bayanihan Act. Aside from reiterating the non-necessity of an ATRIG, it was declared that the exemption from the ATRIG requirement shall only cover importations of health equipment and supplies under Section 4, paragraph (o) of the Bayanihan Act which arrived and were cleared by the Bureau of Customs during the three-month effectivity of the Bayanihan Act, unless extended or withdrawn by Congress or ended by Presidential Proclamation. The order is automatically repealed upon lifting of the emergency powers through the expiration of the three-month effectivity of the Bayanihan Act, unless extended or withdrawn by Congress or ended by Presidential Proclamation.

RMC 33-2020 dated March 24, 2020 extends the deadline for availing of the tax amnesty on delinquencies under RR No. 4-2019, as amended by RR 5-2020, to May 23, 2020. [Superseded by RR 11-2020.]

RMC 32-2020 dated March 20,2020 extends the deadline for filing Certificate of Residence for Tax Treaty Relief (CORTT) Forms. [Superseded by RR 11-2020.]

RMC 31-2020 dated March 23, 2020 extends the deadline for replying to a Notice of Informal Conference, Preliminary Assessment Notice, Final Assessment Notice, Final Decision on Disputed Assessment, and other correspondences for an additional period of 30 days from lifting of the Enhanced Community Quarantine. [Superseded by RR 11-2020.]

RMC 30-2020 dated March 23, 2020 clarifies RMC 29-2020 on the extension of deadlines for filing income tax, VAT and other returns (with Annex A). [Superseded by RR 11-2020.]

RMC 29-2020 dated March 19, 2020 extends the deadline for filing of VAT and other returns. [Superseded by RR 10-2020.]

RMC 28-2020 dated March 18, 2020 extends the deadline for filing the Annual Income Tax Return for 2019 to May 15, 2020. In addition, taxpayers may file and pay the corresponding taxes to any AAB nearest to the location of the taxpayer. [Superseded by RR 11-2020.]

RMC 27-2020 dated March 18, 2020 extends the deadline for VAT Refund Applications Covering the Quarter Ending March 31, 2018 until April 30, 2020. [Superseded by RR 11-2020.]

CIR Advisory that BIR Offices remain open during the community quarantine.

RR 5-2020 dated March 16, 2020 amends RR 4-2019 stating that the Tax Amnesty on Delinquencies may be availed of within one year from effectivity of the regulations or until April 23, 2020. However said deadline may be extended if circumstances warrant an extension, such as for country-wide economic or health reasons. [To be read in conjunction with RMC 33-2020 dated March 24, 2020 and RR 11-2020 dated April 9, 2020.]

Administrative Order No. 4-2020 issued by the Court of Tax Appeals on the skeleton force of said Court and implementing modified operating hours from 9am - 3pm from March 18 to April 15, 2020.

SEC Memorandum Circular No. (MC) 10 s. of 2020 dated March 20, 2020 provides guidelines on the submission by electronic mail of General Information Sheets (GIS), Audited Financial Statements, forms, documents and other reportorial requirements under existing laws, rules and regulations during the state of public health emergency. The Commission shall require physical copies of required reportorial submissions once the state of public health emergency has been lifted.

SEC MC No. 9 s. of 2020 dated March 18, 2020 provides guidelines for the filing of the GIS during the enhanced community quarantine through mail (ordinary or registered), private courier, or email at specified addresses, as well as the notice requirements where no election of directors or officers is held whether or not due to health and safety reasons in relation to COVID-19.

SEC MC No. 5 s. of 2020 dated March 12, 2020 grants to affected companies an extension of time without penalty to submit the Annual Reports and/or Audited Financial Statements for the period ended December 31, 2019 upon compliance with certain requirements:

For companies doing domestic operations only: an extension of time until June 30, 2020; and
For companies with domestic and foreign operations: an extension of time until June 30, 2020 or 60 days from the date of lifting of travel restrictions/ban by the concerned government authorities, whichever comes later.

Companies whose preparation of financial statements or completion of statutory audit are not affected by the COVID 19 are required to file their Annual Reports and/or AFS for the year ended December 31, 2019 within the period prescribed under existing rules and regulations.

It is advisable to consult tax counsel in interpreting any of these issuances. Should you need assistance, please just call or email LCV Tax Law.