tax news - tmap-home · 2021. 1. 29. · bir issuances • no more extension of deadlines • cash...
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Tax NewsYour guide to the latest developments in Philippine taxation
April – June 2020
Tax News | April – June 2020 2
Contents
BIR Issuances• No more extension of deadlines• Cash conversion of unutilized TCCs• Further extension of filing of application for VAT refund• New BIR Form No. 1709: Information return on related
party transactions• Policies, guidelines, and procedures in the
destruction/disposal of goods/assets declared as waste or obsolete
• ATRIG for VAT exemption on sales and importation of prescription drugs and medicines
• Temporary measures for receipting/invoicing requirements during the ECQ period
• Leniency in acceptance of payment until 14 June 2020• Optional online submission of ITR attachments• Electronic filing of withdrawal of protest on FAN/FLD or
appeal on FDDA for tax amnesty purposes• Additional channel of payment of taxes• Clarification on the filing of tax returns until 14 June 2020• Compliance requirements and suspension of workaround
measures for receipting/invoicing requirements during the quarantine period
• Mandatory registration of persons engaged in digital transactions
• Extended deadline for availing of amnesty on tax delinquencies
• VAT-exempt prescription drugs and medicines as of 27 January 2020
• Tax clearance for POGO companies• Revised procedures on cancellation of PTU of CRMs, POS
machines, and other similar sales machines• Submission of summary list per RMC 36-2020• Acceptance of tax payments by AABs• AAB policies in the acceptance of tax returns whose due
dates fall within the community quarantine period• Acceptance of BIR Forms 1600-VT and 1600-PT by AABs
03
BIR Issuances
PEZA Issuances
SEC Issuances• Submission/filing of securities deposit during the ECQ
period• Authentication of AOI for new domestic corporations• Extended deadline on the submission of AFS and other
SEC reports• Procedures in filing AFS and GIS with SEC after ECQ
30
PEZA Issuances• COVID-19 relief measures for PEZA-registered
enterprises• Tools to assist PEZA clients during the community
quarantine
27SEC Issuances
CTA Decisions• Nature and amount of tax due must be indicated in the
waiver to be valid• Retirement pay due to involuntary separation is
exempt from tax• APIC is not an income but part of capital • Void assessment due to absence of authority on the
part of the examiner• Non-observance of the 15-day period to protest the
PAN violates the taxpayer’s right to due process and renders assessment void
• Association dues, membership fees, and other assessments/charges imposed by condominium corporations are exempt from tax
35
• Reiteration on the acceptance of AITRs and payments by AABs
• Delegation of authority to sign Certificate of Tax Exemption and rulings for energy-related projects
• Delegation of authority to sign EOI documents• Acceptance of BIR Form 2316
CTA Decisions
Annex
Tax News | April – June 2020 3
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 4
No more extension of deadlines
Despite the extension of quarantine under the modified
enhanced community quarantine (MECQ), the Bureau of
Internal Revenue (BIR) has decided not to extend further
the due dates for the filing of tax returns and payment of
taxes, as well as submission of documents, which were
extended under Revenue Regulations (RR) No. 11-2020.
The BIR reminded taxpayers to file their returns and pay
taxes on or before the deadlines as provided under RR 11-
2020.
Kindly refer to the Annex for the list of returns with
extended deadlines.
(Revenue Regulations No. 12-2020, 21 May 2020)
Cash conversion of unutilized TCCs
Any tax credit certificate (TCC) that remains unutilized for
more than one year at any given interval of time during its
validity shall be converted into cash with prior written
notice by the BIR subject to the availability of funds and
procedural requirements to be issued for this purpose.
BIR Issuances
All TCCs that have expired effective 13 June 2020 shall
automatically be cancelled, except for TCCs in the
possession of the BIR for utilization through Tax Debit
Memo (TDM), which can be converted to cash or
revalidated before the expiration of their respective dates
of validity.
The list of expired TCCs and their corresponding owners
shall be circularized/posted in the BIR’s website within 30
days from 13 June 2020 as notice to the concerned TCC
owners.
(Revenue Regulations No. 14-2020, 28 May 2020)
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 5
Further extension of filing of application for VAT refund
The BIR has extended further the deadline for applying for value-added tax (VAT) refund for the following
taxable quarters:
The revised deadlines do not apply to areas not yet declared to be in general community quarantine. In
which case, the deadline shall be 30 days from the lifting of the enhanced community quarantine (ECQ) or
modified ECQ (MECQ) in the affected areas of taxpayer-claimant or the above stated deadlines, whichever
comes later.
Further, for areas under ECQ or MECQ, the BIR’s 90-day period to process VAT refund claims is suspended.
(Revenue Regulations No. 16-2020, 25 June 2020)
BIR Issuances
Taxable Quarter Extended Deadline
Calendar quarter ended 31 March 2018 15 July 2020
Fiscal quarter ended 30 April 2018 31 July 2020
Fiscal quarter ended 31 May 2018 15 August 2020
Calendar quarter ended 30 June 2018 31 August 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 6
New BIR Form No. 1709: Information return on related
party transactions
On 8 July 2020, the BIR released RR 19-2020, which
requires the mandatory submission of BIR Form No. 1709:
Information Return on Related Party Transactions
(Domestic and/or Foreign) along with the filing of
taxpayers’ Annual Income Tax Return (ITR). This regulation
replaces BIR Form No. 1702H: Information Return on
Transactions with Related Foreign Persons, series of 1992.
(Revenue Regulations No. 19-2020, 8 July 2020, effective on 25
July 2020)
Policies, guidelines, and procedures in the
destruction/disposal of goods/assets declared as waste
or obsolete
The BIR issued the following revised policies, guidelines,
and procedures in the conduct of inspection and
supervision of the destruction/disposal of inventories,
machineries, or equipment in relation to the determination
of deductible expense for inventory of goods/assets
declared as waste or obsolete due to spoilage,
deterioration, obsolescence, expiration, or other causes
rendering the same unfit for sale or for use in production.
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 7
A. Taxpayer procedures
BIR Issuances
ProcedureDocumentary
Requirements
Time of
Processing/Submission
The documents shall be
filed with and processed by
the concerned Large
Taxpayers (LT) Office or
Revenue District Office
(RDO) where the principal
place of business of the
taxpayer is registered.
Note: Applications with
complete documents shall
be processed.
Arrangement of
inventory/assets shall also
be observed during
destruction for easy
identification and counting.
Failure to observe these
requirements shall be
grounds for denial of
application.
"Application for Destruction/Disposal of Goods/Assets”
(Annex A)
Attachments:
• Sworn Declaration of Goods/Assets as Waste or
Obsolete
• List of Goods/Assets for Destruction/Disposal
(Annex E); and/or
• List of Machineries/Equipment for
Destruction/Disposal (Annex E-1)
• Letter of intent that taxpayer is considering
availing of the services of third party as witness
in the process of destruction/disposal and
providing the same thereof
• Inventory list of goods duly received by the BIR
• Supporting documents to prove the reason
stated in this application as the cause for
destruction/disposal
• Other documents to prove the correctness of
the value of the goods/assets to be
destroyed/disposed
At least seven days
before the proposed
date of
destruction/disposal
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 8
A. Taxpayer procedures
BIR Issuances
Should a company be required to have a BIR Representative or third party witness the manner of
destruction, the following shall be observed/complied with along with the Application Form:
Submission of the
document to the
concerned BIR Office
where the principal place
of business of the taxpayer
is registered
Duly accomplished and notarized Sworn Declaration of
Asset Disposal (Annex F) executed by the President,
Chief Finance Officer, or any authorized
representative, along with the following:
• If witnessed by BIR Representative (physical or
virtual)
o Photographs of the assets BEFORE, DURING,
and AFTER the destruction/disposal, with
proper labels, numbering, and quantity
following the list in the Sworn Declaration of
Asset Disposal captured in JPEG or other
format acceptable to the BIR, and bearing
the respective date and time when such
were taken
• If witnessed by a third party
o Video footage of the activity BEFORE,
DURING, and AFTER the destruction shall be
submitted in a format (e.g., MP4) acceptable
to the BIR.
Within three days after
the completion of the
actual
destruction/disposal of
the inventory/assets
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 9
A. Taxpayer procedures
BIR Issuances
Should a company be required to have a BIR Representative or third party witness the manner of
destruction, the following shall be observed/complied with along with the Application Form:
Note: Both options shall bear the image of the front
page of a newspaper of national circulation as
evidence of the actual date of the said activity. The
same shall be submitted in any acceptable storage
device (i.e., DVD, USB, memory stick)
• Duly accomplished and notarized Sworn
Declaration (Annex F) executed by the third
party who, under the penalty of perjury,
witnessed the process of destruction/disposal
stating the accuracy as to the quantity of the
items and the manner of destruction or disposal
of inventory or equipment
The taxpayer shall also be responsible for coordinating with and assisting the duly authorized BIR representative in
verifying the value and supervising the actual destruction/disposal of the goods/assets/equipment.
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 10
B. LT Office/RDO procedures
BIR Issuances
ProcedureDocuments/Certification
Produced
Time of
Processing/Submission
The BIR shall accept and stamp the word
"RECEIVED" on the application.
Otherwise, the same shall be returned
noting the missing requirements.
Duly Received "Application for
Destruction/Disposal of Goods/Assets”
(Annex A) with attachments
Upon filing/
application
BEFORE destruction/disposal. The BIR
will assign immediately the application to
a Revenue Officer to verify the accuracy
and completeness of the information
reflected in the application against the
supporting documents, and inform the
taxpayer-applicant as to the approved
manner and date of witnessing, and
schedule of destruction/disposal.
Note: Upon verification of the
information, if any discrepancy is noted,
the taxpayer is required to explain the
discrepancy or to submit additional
document, as the case may be. The BIR
will also request the taxpayer to take
pictures of the assets to be
destroyed/disposed.
If the scheduled destruction/disposal is
to be witnessed by a third party, the BIR
shall issue a letter of “Authorization to
Witness the Conduct of
Destruction/Disposal” (Annex B) to the
third party through the taxpayer.
Within five days after the
receipt of application
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 11
B. LT Office/RDO procedures
BIR Issuances
ProcedureDocuments/Certification
Produced
Time of
Processing/Submission
DURING destruction/disposal. The BIR
will check the existence of the actual
volume/quantity and description of
articles/goods/materials/assets.
The BIR will also supervise and witness
the conduct of actual
destruction/disposal, ensuring that the
goods are actually destroyed.
Date of witnessing, and
schedule of destruction/
disposal
AFTER destruction/disposal. The BIR
shall compare the amounts or value of
inventory per list submitted against
taxpayer's accounting records and
determine the correctness of the
valuation of the goods
destroyed/disposed, and verify that the
goods subject for disposal/destruction
actually formed part of the taxpayer's
inventory or assets as of the time of
disposal/destruction.
• Memorandum report on the result
of disposal/destruction conducted
containing the following but not
limited to:
Nature of the taxpayer’s
business
Brief description of the
activities undertaken during
the inspection or verification
Findings and other relevant
information uncovered during
the inspection or verification
Within five days from the
date of submission of
pictures and other
required documents
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 12
B. LT Office/RDO procedures
BIR Issuances
ProcedureDocuments/Certification
Produced
Time of
Processing/Submission
Corresponding reports as well as the "Certificate of Deductibility of Goods/AssetsDestructed/Disposed" shall be approved by:
a. ACIR-LTS or Regional Director, which may be delegated in writing to the Division Chiefs of the LT Office/RDO having jurisdiction over the applicant-taxpayer for goods not subject to excise tax
b. Excise Tax Divisions of the LTS for goods, products, and articles subject to excise tax
Recommendation relevant to the application (e.g., approve/denied, amount of allowable deduction, etc.)
• "Certificate of Deductibility of Goods/Assets Destructed/Disposed” (Annex C) or (Annex C-1)
C. Other guidelines
1. The valuation that will be used for the inventory of assets to be disposed/destroyed shall be the actual cost. Currently, where the actual cost cannot be accurately determined, the inventory valuation maintained and used by the taxpayer shall be adopted subject to adjustment upon verification during the audit. In the case of fixed assets, the carrying book value shall be considered.
2. In case the inventories/assets applied for disposal are, for any reason or cause, replaced/substituted by its supplier, or the taxpayer shall become entitled to reimbursement for the partial or equivalent value thereof by an insurance company, the claim for the deductibility of the value thereof shall be denied.
(Revenue Memorandum Order No. 21-2020, 10 July 2020)
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 13
ATRIG for VAT exemption on sales and
importation of prescription drugs and
medicines
For VAT purposes, the Authority to
Release Imported Goods (ATRIG) shall be
issued on all importations of articles
exempt from VAT pursuant to Revenue
Memorandum Order (RMO) No. 35-2002,
as currently being implemented by RDO
33. Said RDO shall process the application
for ATRIG by the manufacturers,
distributors, wholesalers, and retailers of
drugs and medicines included in the list of
approved drugs and medicines issued by
the Department of Health.
(Revenue Memorandum Order No. 23-2020,
15 July 2020)
Temporary measures for
receipting/invoicing requirements
during the ECQ period
The BIR issued the following
guidelines/alternative documentation that
taxpayers may use to address the
concerns regarding the issuance of
invoices and/or receipts during the ECQ
period, such as expired Authority to
Print (ATP), inaccessible
receipts/invoices due to office closure,
or difficulties in mailing/sending
receipts/invoices:
1. BIR Printed Receipts/Invoices
(BPR/BPI) pursuant to Revenue
Memorandum Circular (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 transmitted
electronically in JPEG, PDF, or
any equivalent format to the
customer
4. Supplementary
Receipts/Invoices (e.g., Delivery
Receipts, Acknowledgment
Receipts, etc.) are issued in lieu
of the Principal
Receipts/Invoices (i.e., Official
Receipt 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
electronically sent to the
customer in JPEG, PDF, or similar
format
6. Receipt/Invoice under a newly
developed receipting/invoicing
software or CAS or its
components without duly
approved PTU or
Acknowledgment Certificate
used to temporarily
generate/issue receipts/invoices
sent to the customer in JPEG,
PDF, or similar format
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 14
The adoption of any of these alternatives
or work-around procedures shall be
allowed provided that the following
guidelines and procedures are strictly
observed and performed:
1. Submission of a formal letter to the
BIR informing it of the alternative to
be adopted by the taxpayer within
three days from the effectivity of
this RMC with the following
information:
a. Name of taxpayer
b. Taxpayer’s registered address
c. Taxpayer Identification Number
with Branch Code
d. Temporary measures to be used
or being used during the ECQ
indicating the serial numbers of
the receipts/invoices that will be
issued
e. Statement that the taxpayer is
amenable to a post-verification
of the reported sales during the
period
f. Signature of taxpayer or its
authorized representative and
designation
The letter must be submitted via email
to the following:
• For Non-Large Taxpayers
(Regular Taxpayers):
Client Support Service (CSS)
Attention: Taxpayer Service
Programs and Monitoring Division
(TSPMD) at
• For Large Taxpayers:
LTs registered under RDOs 116,
125, and 126
- Large Taxpayers Assistance
Division (LTAD) at
LTs registered under RDOs 121
and 124
- Excise Large Taxpayers
Regulatory Division (ELTRD) at
LTs registered under RDO 123
- LT District Office Cebu at
LTs registered under RDO 127
- LT District Office Davao at
and/or [email protected]
2. Upon lifting of ECQ, the duly
authorized receipts/invoices
should be issued or provided by
the taxpayer/seller immediately
to their clients to cover all sales
transactions that were issued
with temporary receipts/invoices
during the ECQ period. Priority
in the issuance of authorized
receipts/invoices should be
given to the temporary
receipts/invoices over current
transactions. The authorized
manual receipts/invoices should
indicate the actual date of
transaction with the copy of
the temporary receipts/invoices
attached for audit purposes.
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 15
For taxpayers using a receipting/invoicing
system or CAS that automatically indicates
the date of transaction, i.e., date
generated, the actual date of transaction
should also appear on the system-
generated documents. These documents
shall not be considered “out of period”
receipts/invoices since they were issued
during the ECQ as temporary measures
taken by the taxpayer.
3. Submission of Summary of
Temporary Receipts/Invoices
Issued to respective BIR Offices
within 90 days from the lifting of
the ECQ, following the format of
Annex A of the RMC
All taxpayers with access to their duly
authorized receipts/invoices and did not
adopt any temporary measures in the
issuance of receipts/invoices during the
ECQ shall not be covered by this RMC.
(Revenue Memorandum Circular No. 47-
2020, 11 May 2020)
Leniency in acceptance of payment
until 14 June 2020
The leniency as provided in RMC 43-
2020 to file returns and pay
corresponding taxes (including
payment of amnesty tax) was
extended to 14 June 2020. Taxpayers
have the following options:
1. File the tax return and pay
corresponding taxes at the
nearest Authorized Agent Banks
(AABs) in any RDO jurisdiction;
or
2. File the tax return and pay
corresponding tax to the
concerned Revenue Collection
Officers (RCOs) of the nearest
RDO even if there are AABs
nearby.
Any cash payment of taxes should not
exceed P20,000.00, while check
payments will have no limitation as to
the amount as long as they are paid to
the RCO in the district until 14 June
2020.
Note that checks payable to the BIR
shall be accepted whether or not the
check has “IFO Name and TIN of the
taxpayer” written on the back or
indication of the name and branch of
the receiving AAB.
(Revenue Memorandum Circular No. 48-
2020, 22 May 2020)
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 16
Optional online submission of ITR attachments
The BIR issued the guidelines on the optional online
submission of the 2019 filed ITR and the required
attachments via eAFS.
(Revenue Memorandum Circular No. 49-2020, 22 May 2020)
Electronic filing of withdrawal of protest on FAN/FLD or
appeal on FDDA for tax amnesty purposes
The BIR has issued the guidelines for the electronic filing of
withdrawal of the protest on Final Assessment Notice
(FAN)/Formal Letter of Demand (FLD) or appeal on Final
Decision on Disputed Assessment (FDDA) for purposes of
tax amnesty as previously mentioned in RMC 57-2019, as
amended by RMC 11-2020.
The regular filing of papers or pleadings will resume once
the ECQ or general community quarantine (GCQ) is lifted.
Thereafter, the option for online filing of withdrawal of any
protest or appeal shall no longer be allowed.
(Revenue Memorandum Circular No. 52-2020, 27 May 2020)
BIR Issuances
Additional channel of payment of taxes
The BIR announced the availability of electronic/online tax
payment for taxpayers using the electronic filing facilities
of eBIRForms system and/or Electronic Filing and Payment
System (eFPS) through the use of a mobile application.
(Revenue Memorandum Circular No. 54-2020, 28 May 2020)
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 17
Clarification on the filing of tax returns until 14 June
2020
The BIR has issued the following on the manner of filing of
tax returns and payment of corresponding taxes due
thereon until 14 June 2020, pursuant to RMC 48-2020:
1. File the return and pay taxes at the nearest AAB,
notwithstanding RDO jurisdiction.
2. File the tax return and pay corresponding tax to the
concerned RCOs of the nearest RDO even if there
are AABs nearby. Any cash payment of taxes should
not exceed P20,000.00, while check payments will
have no limit as to amount as long as the checks are
paid to the RCO in the district until 14 June 2020.
Note that checks payable to the BIR shall be
accepted whether or not the check has “IFO Name
and TIN of the taxpayer” written on it or indication
of the name and branch of the receiving AAB.
3. Taxpayers filing through eBIRForms may pay
corresponding taxes through the following payment
options:
a. Over-the-counter (OTC) payment through AAB
b. RCOs of the nearest RDO even if there are AABs
nearby
c. Other electronic/online payment channels
BIR Issuances
4. eFPS users shall continue to file through the system
and pay corresponding taxes with their registered
AAB.
5. Non-eFPS users can either file through eBIRForms or
manually while no payment returns shall be filed
through eBIRForms. In case internet connection is
unavailable, taxpayers shall manually file at the
nearest RDO.
6. In case the BIR’s electronic filing facilities are
unavailable, taxpayers shall manually file the returns
and pay the taxes due thereon through the
abovementioned payment venues.
(Revenue Memorandum Circular No. 56-2020, 2 June 2020)
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 18
Compliance requirements and suspension of
workaround measures for receipting/invoicing
requirements during the quarantine period
Under RMC 47-2020, taxpayers were allowed to adopt
temporary measures when complying with the
receipting/invoicing requirements during the ECQ and
MECQ. Those who adopted the temporary or workaround
procedures during the ECQ and MECQ under RMC 47-2020
are required to submit their Summary of Temporary
Receipts/Invoices Issued within 90 days from the lifting of
ECQ and/or MECQ.
Moreover, since the difficulties addressed under RMC 47-
2020 no longer exist under the GCQ, taxpayers who
adopted the workaround procedures during ECQ and
MECQ should already discontinue the use of these
temporary measures. The continued use of such measures
under RMC 47-2020 during the GCQ and/or modified GCQ
shall be considered a violation of the receipting/invoicing
requirements.
(Revenue Memorandum Circular No. 59-2020, 9 June 2020)
BIR Issuances
Mandatory registration of persons engaged in digital
transactions
The BIR has reminded all persons doing business and
earning income from digital transactions through the use
of electronic platforms, media, and other digital means,
which include sellers, merchants, and other stakeholders
such as payment gateways, delivery channels, internet
service providers, and other facilitators, to register their
business with the BIR.
For those who will register their business activity and/or
update their registration status not later than 31 July 2020,
the BIR shall not impose a penalty for late registration.
Likewise, no penalty will be imposed when they voluntarily
declare their past transactions and pay the taxes due on or
before 31 July 2020. All those who will be found later to be
doing business without complying with the
registration/update requirements and failing to declare
past due taxes/unpaid taxes will have to reckon with
applicable penalties under the law and existing rules and
regulations.
(Revenue Memorandum Circular No. 60-2020, 10 June 2020)
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 19
Extended deadline for availing of amnesty on tax
delinquencies
The BIR has extended the deadline for availing of tax
amnesty on delinquencies from 22 June 2020, as provided
under RR 11-2020, to 31 December 2020.
(Revenue Memorandum Circular No. 61-2020, 15 June 2020)
VAT-exempt prescription drugs and medicines as of 27
January 2020
The BIR, in coordination with the Food and Drug
Administration (FDA), issued the list of prescription drugs
and medicines for diabetes, high cholesterol, and
hypertension that are exempt from VAT beginning 27
January 2020.
(Revenue Memorandum Circular No. 62-2020, 23 June 2020)
Tax clearance for POGO companies
The BIR issued the revised guidelines and requirements for
Philippine Offshore Gaming Operators (POGO) licensees
and service providers for the processing of their
application for a clearance in connection with the
resumption of operations.
(Revenue Memorandum Circular No. 64-2020, 24 June 2020)
BIR Issuances
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 20
Revised procedures on cancellation of
PTU of CRMs, POS machines, and other
similar sales machines
The BIR issued the following guidelines
and procedures on the cancellation of
PTU of cash register machines (CRMs),
point of sales (POS) machines, and other
similar sales machines generating
receipts/invoices.
1. The cancellation of the PTU
CRM/POS machine shall be
processed by the RDO/LT Office
having jurisdiction over the
taxpayer’s business address where
the machine was registered.
2. The taxpayer shall notify the
concerned RDO/LT Office, in
writing, on their request for
cancellation of the PTU within five
days from the date the machine
was last used/withdrawn from use
stating the reason(s) for the
cancellation and other information
such as, but not limited to, the
following:
• Permit Number
• Machine Identification
Number (MIN)
• Type of Machine
• Machine serial number,
brand/model
• Software name and/or version
• Grand accumulated sales as of
last day of use of the machine
3. The taxpayer shall submit the
following documents as an
attachment to the Letter or to
the assigned Revenue Officer at
the time of machine inspection:
• Copy of the Z-Reading (for POS
machines)/audit tape (for
CRM) showing the reset
counter number and End of
Day (EOD)/Z-Counter Reading
as of last day of use of the
machine/s
• Copy of the back-end report
(for POS machines)/cash
register sales book page (for
CRM) as of last day of use of
the machine/s
• Original copy of the PTU
issued
• Original copy of the Decal
• Reprint copy of the last
invoice/receipt generated as of
last day of use showing the
serial number of such
invoice/receipt
• Copy of the Z-Reading/EOD
Report or its equivalent
showing that the sales
machine was reset to zero or
initialized
• For new/upgraded software
(loaded in the same machine
where the old software is
installed): Copy of the Z-
Reading/EOD Report or its
equivalent showing the initial
reading of the newly installed
software
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4. Actual inspection of the CRM/POS
shall be mandatory in case of its
withdrawal from use or its transfer
to another branch of the company.
However, in case of
modification/upgrading of the
software being used, actual
inspection of the machine may be
dispensed with so as not to disrupt
the normal business operation of
the taxpayer under the following
conditions:
• New/upgraded software shall be
set up in the same
hardware/machines where the
old POS software are installed
• POS machines are with existing
PTU issued through the Electronic
Accreditation and Registration
(eAccReg) System
• The new or upgraded software
will be
implemented/deployed/rolled out
nationwide or in
branches/franchisees located in
different RDOs
• The changing/loading of the
new/upgraded software in the
POS machines will be
implemented immediately
after the close of business
hours
5. In case of withdrawal from use
or transfer of the CRM/POS to
another branch of the taxpayer,
the assigned Revenue Officer
shall conduct an inspection of
the machine and perform the
following:
• Check the specifications and
details of the said machine/s
as against the specifications
indicated in the letter of the
taxpayer
• Request taxpayer to generate
the Z-Reading as of the day of
inspection and match it with
the Z-Reading (as of last day of
use) submitted by the
taxpayer. The grand
accumulated sales should be
the same. This means that the
taxpayer did not use the
machine after the reported
last day of use.
• Request taxpayer to generate
the back end report (for POS)
of the machine as of the date
of inspection and compare
with the grand accumulated
sales as reflected in the Z-
Reading as of the last day of
use of the machine. For CRM,
check the entries in the Cash
Register Sales Book if updated
(last entry should be the
declared last day of use of the
machine).
• Initialize the resetting to zero
of the machine
• Impose penalty for any
violation pertaining to the use
of CRM/POS machines that
may be found during the
inspection
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6. Non-payment of the penalties at
the time of the request for
cancellation of the PTU shall not be
grounds for the non-issuance of the
Cancellation Certificate.
7. The assigned Revenue Officer shall
submit a Memorandum Report on
the result of the inspection upon
completion of the machine
inspection and submission of the
required documents by the
taxpayer for approval by the
Assistant Commissioner, LTS/RDO.
8. Upon approval of the Memo Report
of the assigned Revenue Officer,
the Chief, Client Support Section of
the RDO/Chief, LT concerned office
or its authorized staff shall cancel
the PTU and the MIN of the
machine in the eAccReg system and
generate the Cancellation
Certificate.
9. The Cancellation Certificate must
be issued within seven days from
receipt of the letter request of
the taxpayer by the concerned
RDO/LT Office. In case the
inspection of the machine was
dispensed with, the
Cancellation Certificate shall be
issued to the taxpayer within
three working days from
receipt of the complete
requirements by the
RDO/concerned LT Office.
10. The concerned LT Office/RDO
shall approve the application
for PTU through the eAccReg
within three days from receipt
of such application as
mandated under the Citizen’s
Charter of the BIR.
11. In order to authorize the
simultaneous registration in
eAccReg system of the new
accredited software or
upgraded software to be
installed in the same machine
with application for
cancellation of the old
software, the taxpayer shall
secure approval in writing from
the concerned LT Office/RDO to
add a distinct prefix/suffix to
the serial number of the sales
machine to allow registration of
the new software consisting of
serial number of machine
followed by prefix/suffix e.g.,
123456A.
Some of the procedures set herein are
reiterations of the provisions of RMC
72-2018. To clarify, the policies,
requirements, and procedures in the
said RMC apply only to machines
found during Post-Evaluation to have
requested for cancellation of PTU but
have not been acted upon by the
concerned LT Office/RDO. Otherwise,
the provisions on cancellation of PTU
under this Circular shall apply.
(Revenue Memorandum Circular No. 69-
2020, 13 July 2020)
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Submission of summary list per RMC 36-2020Part C of RMC 36-2020 was amended to remove the requirement of submission of photocopies of documents evidencing credit extensions and credit restructurings granted by covered institutions during the ECQ period. This will be subjected to post audit/verification by the BIR if the summary list pertains to qualified loans only.
(Revenue Memorandum Circular No. 72-2020, 17 July 2020)
Acceptance of tax payments by AABsThe BIR advised all AABs to accept over-the-counter filing and payment of returns by eFPS filers whether the printed copy of the pop-up message screenshot of unsuccessful e-filing is available or not.
Further, AABs are advised to accept check payments during the ECQ period from any taxpayer even if the name of the receiving AAB branch is not indicated on the check, provided that all check payments shall be made payable to the BIR.
(Bank Bulletin No. 2020-04, 15 April 2020)
AAB policies in the acceptance of tax returns whose due dates fall within the community quarantine periodThe following are the policies of AABs in the acceptance of tax returns that fall due during the quarantine period:
1. Accept all tax payments, even out-of-district returns.
2. Accept all tax payments being made by the taxpayers in any of the following forms:a. BIR official printed forms and
copies of system-generated Filing Reference Numbers (FRNs)
b. Photocopies of returns/computer-generated or electronically-filed tax returns
c. Downloaded BIR Forms/tax returns originally filled out and signed by the taxpayers or their duly authorized representative
3. Receive the tax returns with the stamp of the official receiving seal on the space provided for in three copies of each type of return regardless if the taxpayer is under the jurisdiction of a regional office. Any excess copy of a return shall not be stamped “RECEIVED” by the AAB.
For corporations and other juridical persons covered by BIR Form No. 1702, the stamp “RECEIVED” shall extend to at least two additional copies of the audited financial statements (AFSs), aside from those attached to the ITRs, to satisfy the requirements of the Securities and Exchange Commission (SEC).
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4. Stamp “Received” the attached
financial statements to the ITRs
only on the page of the Audit
Certificate, Balance Sheet, and
Income Statement.
5. Ensure that notable portions of the
returns are machine-validated and
the tax payment details are clearly
printed on all copies.
Any check payable to the BIR shall
be accepted, whether or not it has
“IFO Name and TIN of the taxpayer”
written on the back of the check.
6. Accept payments made through
checks or combination of cash and
check/s or combination of two or
more checks in the payment for
single tax liability/return.
7. Accept tax payments from
taxpayers who are within the bank’s
premises by the close of the AAB
banking hours.
8. Accept check payments even
after the bank clearing/cut-off
time and just stamp the tax
return “Received after cut-
off/clearing” or similar stamp.
9. Accept the payment of
manually filed and out-of-
district returns from taxpayers
enrolled under the eFPS in case
of unavailability of the eFPS
facility as announced by the BIR
through an advisory.
10. Imposition of penalties shall be
made only by the BIR and not
by the AABs.
(Bank Bulletin No. 2020-05, 20 May 2020)
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Acceptance of BIR Forms 1600-VT and 1600-PT by AABs
All AABs are advised to accept the revised Monthly
Remittance Return of Value-Added Tax Withheld (BIR Form
1600-VT) and the new Monthly Remittance Return of Other
Percentage Taxes Withheld (BIR Form 1600-PT), as made
available under RMC 13-2020.
(Bank Bulletin No. 2020-06, 17 February 2020)
Reiteration on the acceptance of AITRs and payments
by AABs
The BIR reminded AABs of their responsibilities regarding
the acceptance of ITRs and payments of the corresponding
taxes.
1. Since 14 June 2020 falls on a Sunday, the deadline
for filing and payment of ITR is automatically moved
to the next working day, which is 15 June 2020.
2. Until 15 June 2020, banking hours shall be extended
to 5:00 PM to accept ITRs.
3. Tax payments will be accepted from taxpayers who
are already within the bank’s premises by the time of
the said extended banking hour.
(Bank Bulletin No. 2020-08, 10 June 2020)
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Delegation of authority to sign Certificate of Tax
Exemption and rulings for energy-related projects
In compliance with Republic Act (RA) No. 11234 (otherwise
known as the Energy Virtual One-Stop Shop Act) and to
enhance administrative efficiency, the Commissioner of
Internal Revenue has delegated the authority to address
and sign Certificates of Tax Exemptions and rulings on
energy-related projects to the Assistant Commissioner for
Legal Service.
(Revenue Delegation Authority Order No. 2-2020, 18 May 2020)
Delegation of authority to sign EOI documents
The following exchange of information (EOI) documents
shall be signed by the following officials:
1. Letter to banks and other financial institutions –
Deputy Commissioner, Legal Group
2. Final reply to foreign tax authority – Assistant
Commissioner, Legal Service
3. Outgoing EOI requests – Deputy Commissioner,
Legal Group
(Revenue Delegation Authority Order No. 3-2020, 24 July 2020)
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Acceptance of BIR Form 2316
The BIR will accept the submission of BIR Form No. 2316
(Certificate of Compensation Payment/Tax Withheld For
Compensation Payment With or Without Tax Withheld)
even without the signature of the concerned employee
during the state of public health emergency.
(BIR Memorandum dated 22 May 2020)
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Tax News | April – June 2020 27
PEZA Issuances
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COVID-19 relief measures for PEZA-registered
enterprises
The Philippine Economic Zone Authority (PEZA) has
implemented the following measures to cushion the
impact of the ECQ on PEZA-registered enterprises:
1. Deferment of rental payment in the public
ecozones
Rental payments for the months of April and May
2020 in the public ecozones [i.e., Cavite Economic
Zone (CEZ), Mactan Economic Zone (MEZ), Baguio
City Economic Zone (BCEZ), and Pampanga
Economic Zone (PEZ)] are deferred for 90 days from
the due date without the imposition of interest or
penalty during the grace period.
2. Deferment of utility payments in the public
ecozones
Payments for utilities (i.e., electricity, water,
wastewater treatment) in the public ecozones are
deferred for 30 days without the imposition of
interest or penalty during the grace period.
3. Grace period for old unpaid accounts
Unpaid accounts covering the months of January to
March 2020 prior to the implementation of the ECQ
shall be given a grace period for payment of 90 days.
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4. Deferment of processing fee payments
Payments for fees of PEZA services and permits,
particularly for Letter of Authority (LOA), building
permits, visa processing, etc., may be paid within 15
days from lifting of the ECQ. The LOA and visa
processing permit fees deferment are limited to
transactions with the PEZA Head Office in BGC,
Taguig City, since applicants in the private ecozones
are able to pay these transactions in the zones.
(PEZA Memorandum Circular No. 2020-0023, 18 April 2020)
Tools to assist PEZA clients during the community
quarantine
The PEZA developed the following assistive tools for
registered enterprises during the community quarantine:
1. Client Assistance Portal
PEZA clients may request assistance for applications,
raise issues on movements of goods, inquire about
PEZA requirements, request for appointment to visit
the Head Office or meet through teleconferencing,
and others through the Client Assistance Portal.
PEZA units shall respond to the concerns raised
within 24 hours from the receipt of the entry.
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Tax News | April – June 2020 29
2. Mobile numbers
All mobile numbers of Head Office officials with
frontline functions will be posted on the PEZA
website.
3. Safety guidelines when visiting PEZA offices
PEZA shall provide a one-pager reminder on the
PEZA website regarding the safety protocols that
visitors should follow when they visit PEZA offices.
This will also be posted in the reception areas of
PEZA offices so clients will be guided accordingly.
(PEZA Memorandum Circular No. 2020-0033, 8 June 2020)
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Tax News | April – June 2020 30
Securities and Exchange Commission Issuances
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Submission/filing of securities deposit during the ECQ
period
The SEC has extended by 30 days from the lifting of the
ECQ the filing or submission of initial securities deposit
required for newly registered branch offices of foreign
corporations, wherein the 60-day deadline falls due within
the ECQ period. The extension also covers the submission
of additional securities deposit and application for
substitution of securities that are due or have matured
during the ECQ period.
(SEC Memorandum Circular No. 11 Series of 2020, 26 March
2020)
Authentication of AOI for new domestic corporations
The SEC has issued the following guidelines on the
registration of new domestic corporations:
1. The registration of Articles of Incorporation (AOI)
shall be accompanied by a Certificate of
Authentication signed by all incorporators in the
form prescribed by the SEC. The AOI and the
Certificate of Authentication need not be notarized
nor consularized.
2. The incorporators may opt to have the AOI
acknowledged before a notary public. Further, if
executed outside the Philippines, the AOI may be
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apostilled or notarized/authenticated by a Philippine
diplomatic or consular officer.
3. The application for registration of a new domestic
corporation with more than 40% foreign equity shall
be accompanied by an application for registration of
investments of non-Philippine national using SEC
Form F-100, if applicable, which must be
authenticated if executed outside the Philippines.
A Certificate of Registration obtained through
fraud/misrepresentation as well as willful certification of
incomplete, inaccurate, false, or misleading
statements/reports shall be subject to the applicable
penalties under the existing rules and regulations.
(SEC Memorandum Circular No. 16 Series of 2020, 29 April
2020)
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Extended deadline on the submission of AFS and other SEC reportsThe SEC has extended the submission deadline for the following reports of companies with fiscal years ending 31 January 2020 to 31 March 2020, for a period of 60 calendar days from the regular filing deadlines, and 45 calendar days for companies with fiscal year ending 30 April 2020 from the regular filing deadline.
1. Annual Reports (SEC Form 17-A) and AFS of publicly-listed companies (PLC)
2. Annual Reports and AFS of issuers of registered securities (other than PLC)
3. AFS of all other companies other than items (1) and (2) above
The deadline for the submission of Quarterly Reports (SEC 17-Q) for the first quarter has likewise been extended by 45 calendar days from the regular filing deadlines, without the need for a request for extension.
However, PLC and issuers of registered securities under the supervision of the Market and Securities Regulation Department must file the special disclosure form SEC Form 17-LC not later than five calendar days before the regular filing deadline to avail of the extended period for filing of the SEC Form 17-A and SEC Form 17-Q Reports.
(SEC Memorandum Circular No. 17 Series of 2020, 7 May 2020)
SEC Issuances
Procedures in filing AFS and GIS with SEC after ECQThe SEC revised its Memorandum Circular 18 series of 2020, and adopted procedures for receiving reports (Audited Financial Statements and General Information Sheets) during the period of filing after the ECQ.
Audited Financial Statements and General Information Sheet (GIS)
I. All corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations, shall file their AFS and GIS through the SEC Express Nationwide Submission (SENS) to any courier of their choice and/or the Philippine Postal Office (PHLPost). All corporations with principal office under the jurisdiction of any of the SEC’s Extension Offices (EO) shall file their reports at the nearest EO.
II. All SEC Satellite Offices shall be temporarily closed for receiving of reports. All filings shall be delivered to the SEC Head Office, Ground Floor, Secretariat Building, PICC Complex, Pasay City by the PHLPostand/or the corporation’s chosen courier.
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III. This Circular covers and allows the filing of the
following documents through electronic mail (email):
a. General Information Sheet
b. Audited Financial Statements
prior to the submission of the hard copy through the
SENS. However, upon lifting of the ECQ, the
corporation may directly file the hard copy of the
reports through SENS (courier/PHLPost).
IV. The AFS, other than the consolidated financial
statements, shall be stamped “received by the
Bureau of Internal Revenue” or its authorized banks,
unless the BIR allows an alternative proof of
submission for its authorized banks (e.g., bank slips).
V. To maintain an organized and orderly filing of AFS,
all corporations, including branch offices,
representative offices, regional headquarters, and
regional operating headquarters of foreign
corporations, shall file their AFS through SENS using
a courier of their choice or PHLPost, depending on
the last numerical digit of their SEC registration or
license number in accordance with the following
schedule:
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VI. All corporations may file their AFS through SENS
regardless of the last numerical digit of their
registration or license number on or before the first
day stated in the above coding schedule.
VII. All corporations may file their AFS through SENS
regardless of the last numerical digit of their
registration or license number on or before the first
day stated in the coding schedule in paragraph 5.
a. SENS
b. Any courier/regular mail
The date of mailing of reports such as the GIS and AFS, as
shown by the registry receipt of the courier, shall be
considered the reckoning date of submission of the GIS and
AFS. For reports filed through registered mail in PHLPost,
the reckoning date of receipt shall be the date of receipt by
PHLPost.
June 29, 30, July 1, 2, 3, 6, 7, 8, 9, 10 1 and 2
July 13, 14, 15, 16, 17 3 and 4
July 20, 21, 22, 23, 24 5 and 6
July 27, 28, 29, 30 7 and 8
August 3, 4, 5, 6, 7 9 and 0
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For reports filed through email during the ECQ, the
reckoning date of receipt shall be the date in the
Acknowledgment Confirmation (AC) stated in the email as
attached to the hard copy of the reports submitted.
The revised SEC MC 18 series of 2020 includes the
following items:
1. This Memorandum Circular shall cover the filing of
AFS of corporations whose fiscal year ends 30
November 2019 and 31 December 2019. Those
who are required to file Annual Reports with fiscal
year end December 31, 2019 or on dates other than
December 31, 2019, shall file their AFS/Annual
Report, subject to the filing deadlines as stated in
Memorandum Circular Nos. 5 and 17, series of 2020.
2. This Memorandum Circular likewise excludes the
following from the number coding schedule as
stated in Memorandum Circular Nos. 5 and 17,
series of 2020, in which the filing deadline for
AFS/Annual Report remains 30 June 2020:
a. Publicly-listed companies
b. Issuers of registered securities under the
supervision of the Market and Securities
Regulation Department
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c. Investment companies, issuers of proprietary and
non-proprietary shares/timeshares, and public
companies
(SEC Memorandum Circular No. 18 Series of 2020, 11 May
2020)
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Court of Tax Appeals Decisions
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Nature and amount of tax due must be indicated in
the waiver to be valid
Section 203 of the National Internal Revenue Code of 1997,
as amended (Tax Code), mandates the BIR to assess
internal revenue taxes within three years from the last day
prescribed by law for the filing of the tax return or the
actual date of filing of such return, whichever comes later.
Hence, an assessment notice issued after the three-year
prescriptive period is no longer valid and effective unless a
waiver is executed by the taxpayer and accepted by the
BIR.
In the instant case, a domestic corporation was assessed
by the BIR for deficiency taxes for calendar year 2011. The
taxpayer executed a Waiver of the Defense of Prescription
under the Statute of Limitation of the National Internal
Revenue Code (Waiver) on 7 May 2014, consenting to the
assessment and/or collection of tax/es for the subject year,
which may be found after investigation not later than 30
June 2015. The waiver was accepted by the Revenue
District Officer on the same date. The BIR issued the
Preliminary Assessment Notice (PAN) on 29 May 2015,
while the FAN and FLD was received on 15 June 2015. After
the BIR concluded its tax audit, the taxpayer received the
FDDA on 7 June 2016.
CTA Decisions
Bearing in mind this timeline, the taxpayer argued that the
BIR’s right to assess had prescribed and the waiver was
invalid and, therefore, did not extend the period to assess
deficiency taxes. The BIR countered that the taxpayer is
liable to the assessed taxes.
According to the Court of Tax Appeals (CTA), under Section
222(b) of the Tax Code, the three-year prescriptive period
under Section 203 of the same Code may be extended if
before the expiration thereof, both the BIR and the
taxpayer agree in writing to its assessment, but only within
the period agreed upon. The original period so agreed
upon may be extended by a subsequent written
agreement made before the expiration of such period.
A waiver is a bilateral agreement between a taxpayer and
the BIR to extend the period of assessment and collection
to a certain date. However, it is likewise a derogation of the
taxpayer’s right to security against prolonged and
unscrupulous investigations and, thus, it must be carefully
and strictly construed. The waiver must also faithfully
comply with the provisions of RMO 20-90 and Revenue
Delegation Authority Order (RDAO) No. 5-2001 in order to
be valid and binding.
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Upon perusal of the waiver, the CTA found that it was
invalid because the kind and exact amount of the taxes to
be assessed or collected were not indicated in the waiver.
Considering that the BIR issued, and the taxpayer received
the subject FAN and FLD only on 15 June 2015, the same
were issued and received beyond the three-year
prescriptive period under Section 203 of the Tax Code.
Hence, the subject assessments are void.
(GMA Network Films, Inc. vs. Commissioner of Internal
Revenue, CTA Case No. 9381, 30 June 2020)
Retirement pay due to involuntary separation is
exempt from tax
Section 32(B)(6)(b) of the Tax Code provides that any
amount received by an official or employee or by his heirs
from the employer as a consequence of separation of such
official or employee from the service of the employer
because of death, sickness, or other physical disability or
for any cause beyond the control of the said official or
employee are excluded from gross income and, thus,
exempt from tax.
In the instant case, a Filipino citizen sought a refund for
erroneous/overpayment of withholding tax on
compensation (WTC) from her retirement pay in 2014. In
said year, she received a Confirmation of Redundancy
stating that her company had undertaken a restructuring
CTA Decisions
program and that her role as managing director was
declared redundant, thus, terminating her employment
with her employer in 2014. She was 46 years old at that
time.
As a consequence, she was given separation pay and
retirement pay, with the latter being included as part of her
taxable income subject to WTC. Her employer viewed
retirement pay as not exempt from income tax since she
failed to satisfy one of the requisites provided in Section
32(B)(6)(a) of the Tax Code, i.e., the employee must be at
least 50 years of age at the time of retirement. However,
she posits that her retirement pay is exempt from income
tax under Section 32(B)(6)(b) of the Tax Code as a
consequence of her involuntary separation from her
employer and that it is not a retirement benefit
contemplated under Section 32(B)(6)(a) of the Tax Code.
The refund claim was filed by the individual with the BIR.
Although all required documents were submitted to the
BIR, it was not acted upon, hence, it was elevated to the
CTA.
Section 2.78.1(B)(1)(b) of RR 2-98 provides for the
exemptions from WTC for remunerations received as an
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Tax News | April – June 2020 38
incident of employment such that any amount paid by an
employer to an employee as a consequence of the latter’s
involuntary termination from service (i.e. redundancy of
service), is exempt from income tax and consequently from
withholding tax, regardless of the employee’s age and
length of service.
Based on the CTA’s evaluation of the presented documents,
the separation from the service was not of the employee’s
own making and was beyond her control. Under Section
32(B)(6)(b) of the Tax Code and Section 2.78.1(B)(1)(b) of RR
2-98, separation due to redundancy of service is
categorically identified as one of the valid causes for tax
exemption. After identifying that the retirement pay was
included in her taxable compensation income per BIR
Form 2316, the CTA concluded that the retirement pay was
erroneously subjected to WTC. Thus, the claimed income
taxes withheld thereon constitutes erroneously paid taxes,
which are refundable under Sections 204(C) and 229 of the
Tax Code.
(Ma. Jethra B. Pascual vs. Commissioner of Internal Revenue,
CTA Case No. 9566, 30 June 2020)
CTA Decisions
APIC is not an income but part of capital
Improperly accumulated earnings tax (IAET) is the income
tax imposed at the rate of 10% on the improperly
accumulated taxable income of a corporation if its
earnings and profits are accumulated (i.e., undistributed)
instead of distributed to the stockholders. It is essentially a
penalty tax designed to compel corporations to distribute
earnings so that the said earnings by shareholders could,
in turn, be taxed.
In the instant case, a domestic corporation engaged in the
business of air transportation was assessed by the BIR for
IAET covering taxable year 2010. The BIR argued that 100%
paid-up capital (which is used to compute the IAET of a
corporation) is the amount actually paid by the
shareholders, which is equivalent to but not more than the
par value of the subscribed or outstanding capital stock.
Hence, paid-up capital should not include the additional
paid in capital (APIC), which is in excess of par value, under
RMC 35-2011.
The taxpayer countered that APIC should not be included
in the counting of paid-up capital of the corporation.
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RR 2-2001, the regulation implementing Section 29 of the Tax Code, provides the formula on how to
determine if there is an improperly accumulated taxable income, as follows:
The CTA En Banc, after considering the documents presented and after a review of the CTA Division,
confirmed that APIC is not earnings or profit, but a part of capital, hence, should be included as part of the
paid-up capital, and that only the excess of the 100% paid-up capital and those deemed reasonable needs of
the business are subject to IAET.
CTA Decisions
Taxable Income
Add:
• Income Exempt from Tax
• Income Excluded from Gross Income
• Income Subject to Final Tax
• Amount of Net Operating Loss Carry-Over (NOLCO) Deducted
Deduct:
• Income Tax Paid/Payable for the Taxable Year
• Dividends Actually or Constructively Paid/Issued from the Applicable
Year's Taxable Income
• Amount Reserved for the Reasonable Needs of the Business
Improperly Accumulated Taxable Income
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The Court cited National Telecommunications Commission vs.
Honorable Court of Appeals and Philippine Long Distance
Telephone Company (G.R. No. 127937, 28 July 1999), which
defined ‘capital’ to include both the par value and the
premium over par value. As further explained, the
premium over par value in accounting parlance is termed
as APIC. It is the money an investor pays above and
beyond the par value of a stock. It occurs when an investor
buys a stock that is over the par value. The amount
pertaining to the par value shall be recorded as capital
stock, while the amount that is in excess of the par shall be
recorded as APIC.
As an aid to taxation law, resort to corporate law may be
made. In Section 2 of SEC MC 11-2008, the SEC
categorically defined paid-in capital as “the amount of
outstanding capital stock and additional paid in capital or
premium paid over the par value of shares.” It was issued
in relation to the second paragraph of Section 43 of the
Corporation Code, which prohibits corporations from
retaining surplus profits in excess of 100% of their paid in
capital stock, subject to certain exceptions.
Notably, Section 29 of the Tax Code and the second
paragraph of Section 43 of the Corporation Code cover the
same specific subject matter, i.e., accumulation of profits
beyond the reasonable needs of business. They also have
the same purpose, which is to discourage tax avoidance
CTA Decisions
through corporate earnings accumulation.
Although the definition of paid-up capital is not found in
RR 2-2001, the same is defined in at least two regulations
of the BIR: RR 14-2001 and RR 10-2007.
In RR 14-2001, which implements the application of NOLCO
under Section 34(D)(3) of the Tax Code, “paid-up capital of
a corporation” is defined in Section 3.5 as the “total
amount paid by stockholders for their subscriptions in
shares of stock of the corporation, including any amount
paid over and above the par value or stated value of the
share of stock (e.g., premium on capital).” Whereas in RR
10-2007, which provides for guidelines on tax payments
through eFPS, “paid-up capital stock” is defined in Section
2.13 as “the portion of authorized capital stock which has
been both subscribed and paid. It also includes amount
paid for the subscription of stock in a corporation,
including amount paid in excess of par value, net of
treasury stock.”
The interpretation in RMC 35-2001 is inconsistent with the
above BIR issuances on what constitutes paid-up capital. In
case of conflicting provisions found in BIR regulations, the
provisions of revenue regulations, which are issued by the
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Secretary of Finance upon the recommendation of the
Commissioner of Internal Revenue (CIR), prevail over that
of revenue memorandum circulars, which are issued by the
CIR.
Having established that the APIC is part of paid-up capital
and that the taxpayer was able to fully substantiate that it
declared and paid cash dividends to its stockholders
during 2011, the CTA En Banc found no error reversing the
Court in Division’s decision to cancel and withdraw the IAET
assessment of the BIR.
[Commissioner of Internal Revenue vs. Cargill Philippines, Inc.,
CTA EB No. 1986 (CTA Case Nos. 6714 & 7262) and CTA EB No.
2001 (CTA Case Nos. 6714 & 7262), 30 June 2020]
Void assessment due to absence of authority on the
part of the examiner
Section 6(A) of the Tax Code mandates that only the CIR or
his duly authorized representative can authorize the
examination of taxpayers for purposes of assessment of
any deficiency taxes. Relatively, Section 13 of the Tax Code
provides that the authority to examine or assess any
deficiency taxes by a Revenue Officer (RO) must be
exercised through an LOA.
In the instant case, the BIR issued an LOA dated 11
October 2011 to a non-resident foreign corporation duly
CTA Decisions
licensed to operate a branch office in the Philippines,
covering taxable year ended 31 March 2011. The taxpayer
received the PAN on 22 July 2014 and the FLD on 27 August
2014. Subsequently, the FDDA was issued by the BIR on 14
March 2016. After the taxpayer filed a request for
reconsideration with the BIR, an amended FDDA was
issued on 12 July 2016, upholding the VAT deficiency
assessment.
The taxpayer filed a Petition for Review with the CTA on 10
August 2016, seeking the cancellation of the assessment
covering taxable year ended 31 March 2011 on the basis
that the assessment was made without authority.
On the other hand, the BIR maintained its position that the
taxpayer is liable for the deficiency VAT as it failed to
defend its stand and disprove the correctness of the
assessment.
In its ruling, the CTA established that the Chief of Regular
LT Audit Division 1 of the BIR issued a Memorandum of
Assignment (MOA) assigning a new RO and group
supervisor to continue the audit, replacing the previously
assigned ROs. The investigation of the new ROs eventually
led to the issuance of assessment notices. Thereafter,
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Tax News | April – June 2020 42
another MOA was issued by the Chief of Regular LT Audit
Division 1 assigning a new RO to continue the audit due to
the transfer of the previous RO, which led to the issuance
of an Amended FDDA.
The CTA resolved that unless authorized by the CIR or his
duly authorized representative through an LOA,
examination of the taxpayer cannot ordinarily be
undertaken. The CTA cited RMO 29-07, which provides that
the Assistant Commissioner/Head Revenue Executive
Assistant is the equivalent of a Regional Director in the
Large Taxpayer Service (LTS) that is authorized to issue an
LOA.
Considering that the new ROs who conducted the
assessment did not have valid authority to do so, the CTA
ruled that the tax assessment issued is void, hence, cannot
be enforced against the taxpayer.
(Sumitomo Corporation - Philippine Branch vs. Commissioner
of Internal Revenue, CTA Case No. 9422, 30 June 2020)
Non-observance of the 15-day period to protest the
PAN violates the taxpayer’s right to due process and
renders assessment void
Section 228 of the Tax Code provides that a taxpayer is
required to respond to the notice of deficiency taxes
issued by the CIR or his duly authorized representative
CTA Decisions
within the prescribed period. Pursuant to Section 3.1.2 of
RR 12-99, a taxpayer has 15 days within which to respond
to the PAN.
In the instant case, a domestic corporation received the
PAN on 17 January 2017, assessing various deficiency taxes
for the taxable year 2013. Subsequently, on 27 January
2017, the taxpayer received the FAN, to which the taxpayer
filed a protest letter dated 23 February 2017, contesting
that the assessment is devoid of any legal and factual
bases.
Following the BIR’s inaction, the taxpayer then filed a
Petition for Review with the CTA on 21 November 2017,
seeking the cancellation of the assessment covering
taxable year 2013. The taxpayer argued that the non-
observance of the 15-day period to protest the PAN
violated its right to due process, rendering the assessment
void.
On the other hand, the BIR maintained that the
assessment issued is prima facie presumed correct and
made in good faith.
The CTA upheld that the CIR is mandated to strictly comply
with the requirements laid down by law and its own rules.
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Examination of records showed that the taxpayer received
the PAN on 17 January 2017 and should have had until 1
February 2017 to file its protest thereto. However, the FAN
was received by the taxpayer on 27 January 2017. The CTA
ruled that the subject assessment is void and bears no
fruit as it is clear that the taxpayer was deprived of the
opportunity to file its protest to the PAN, thus, violating its
right to due process.
(Global Fresh Products, Inc. vs. Commissioner of Internal
Revenue, CTA Case No. 9718, 30 June 2020)
Association dues, membership fees, and other
assessments/charges imposed by condominium
corporations are exempt from tax
RMC 65-2012 provides that gross receipts of condominium
corporations, including association dues, membership
fees, and other assessments/charges, are subject to VAT
and income tax, while income payments made to it are
subject to applicable withholding taxes.
In the instant case, the taxpayer filed a petition for
declaratory relief seeking to declare as invalid RMC 65-
2012, which was raffled to the Regional Trial Court (RTC) of
Makati City. According to the taxpayer, RMC 65-2012
burdened the owners of the condominium units with
income tax and VAT on their own money, which they
exclusively used for the maintenance and preservation of
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the building and its premises. The BIR contended that it is
only a clarificatory issuance on pertinent laws, specifically
the Tax Code, and was merely a restatement of the BIR’s
prevailing position on the issue of taxation.
The RTC ruled that the taxpayer properly resorted to a
petition for declaratory relief for the purpose of
invalidating RCM 65-2012 for it purportedly expanded the
law, created an additional tax burden on condominium
corporations, and was issued without the requisite notice
and hearing. The BIR argued that the petition was
premature, RMC 65-2012 was valid, and the petition for
declaratory relief should be dismissed for violating the
principle of primary jurisdiction.
Aggrieved, both parties appealed to the Court of Appeals
(CA). However, the appeal was dismissed on the ground of
lack of jurisdiction as the case should be with the CTA
because it is a tax matter.
Eventually, the case was elevated to the Supreme Court
(SC). Answering the parties’ concerns, the SC ruled that the
petition for declaratory relief was not the proper remedy.
Instead, a petition for certiorari or prohibition should have
been filed since the case has far-reaching implications and
raises questions that need to be resolved for the public
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good. Considering that the issue has been pending for six years, the SC waived the technical requirements under Rule 65 of the Rules of Court (Certiorari, Prohibition and Mandamus) when the legal questions to be resolved are of great importance to the public, hence, this decision.
The SC likewise deemed proper the parties’ resort to the CA due to the prevailing jurisprudence at the time of filing.
As to the validity of RMC 65-2012, the SC ruled to the negative as follows:
1. A condominium corporation is not engaged in trade or business.
As exemplified in Yamane vs. BA Lepanto Condominium Corp. (G.R. No. 215801), corporation condominium is not designed to engage in activities that generate income or profit, which can be gleaned from RA 4726 (The Condominium Act). As held in Yamane, "the profit motive in such cases is hardly the driving factor behind such improvements, if it were contemplated at all. Any profit that would be derived under such circumstances would merely be incidental, if not accidental." Moreover, a condominium corporation is especially formed for the purpose of holding title to the common area and exists only for the benefit of the condominium owners and nothing more.
CTA Decisions
RMC 65-2012 sharply departs from Yamane and the law on condominium corporations. It invalidly declares that the amounts paid as dues or fees by members and tenants of a condominium corporation form part of the gross income of the latter, thus, subject to income tax, VAT, and withholding tax.
2. Association dues, membership fees, and other assessments/charges are not subject to income tax, VAT, and withholding tax.
• Association dues, membership fees, and other assessments/charges do not constitute profit or gain as they are collected purely for the benefit of the condominium owners and are the incidental consequence of a condominium corporation's responsibility to effectively oversee, maintain, or even improve the common areas of the condominium as well as its governance. Section 32 of the Tax Code does not include these fees as sources of gross income subject to income tax.
• Association dues, membership fees, and other assessments/charges do not arise from transactions involving the sale, barter, or exchange of goods or property and/or services that would entail 12% VAT.
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• In ANPC vs. BIR (G.R. No. 228539, 26 June 2019), the Court pronounced that membership fees, assessment dues, and other fees collected by recreational clubs are not subject to income tax and VAT. This equally applies to condominium corporations, which are similarly situated with recreational clubs insofar as membership fees, assessment dues, and other fees of similar nature collected from condominium owners are devoted to the operations and maintenance of the facilities of the condominium.
• Only income, be it active or passive, earned by a payor-corporation can be subject to withholding tax.
• The BIR Commissioner is empowered to interpret our tax laws but not expand or alter them. In the case of RMC 65-2012, however, the BIR Commissioner went beyond, if not gravely abused, such authority.
In sum, RMC 65-2012 is invalid for ordaining that "gross receipts of condominium corporations including association dues, membership fees, and other assessments/charges are subject to VAT, income tax and income payments made to it are subject to applicable withholding taxes." A law will not be construed as imposing a tax unless it does so clearly and expressly. In case of doubt, tax laws must be construed
CTA Decisions
strictly against the government and in favor of the taxpayer. Taxes, as burdens that must be endured by the taxpayer, should not be presumed to go beyond what the law expressly and clearly declares.
(Bureau of Internal Revenue vs. First E-Bank Tower Condominium Corp., G.R. Nos. 215801 and 218924, 15 January 2020)
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Annex
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Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of Transaction/Document
BIR Form Name of Form PeriodOriginal
Due DateExtended Due Date
A. Income Tax Returns
Submission of Required Hard Copies of Financial Statements and Scanned Copies of BIR Form 2307 to e-filed 1702RT, MX, EX
AFS
2307
Audited Financial Statements
Certificate of Creditable Tax Withheld at Source
For fiscal year ended 30 November 2019
30 March 2020 29 May 2020
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
A. Income Tax Returns
Submission of Required Hard Copies of Financial Statements and Scanned Copies of BIR Form 2307 to e-filed 1702RT, MX, EX
AFS
2307
1702RT
1702MX
Audited Financial Statements
Certificate of Creditable Tax Withheld at Source
Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate
Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE
For fiscal year ended 30
November 2019
30 March 2020 29 May 2020
For calendar year 2019
30 April 2020 30 June 2020
For fiscal year ended 31
January 2020
30 May 2020 15 July 2020
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Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
1702EX Annual Income Tax Returns
for Corporation, Partnership
and Other Non-Individual
Taxpayers EXEMPT Under the
Tax Code, as Amended, [Sec.
30 and those exempted in Sec.
27(C)] and Other Special Laws,
with NO Other Taxable Income
For fiscal year
ended 29
February 2020
30 June 2020 30 July 2020
Quarterly eFiling/Filing and
ePayment/Payment
(eFPS and non-eFPS filers)
1702Q
SAWT
Quarterly Income Tax Return
for Corporation, Partnerships
and other Non-Individual
Taxpayers
Summary Alphalist of
Withholding Taxes
For fiscal quarter ended 31 January
2020
31 March 2020 30 May 2020
For fiscal quarter
ended 29
February 2020
29 April 2020 13 June 2020
For the first
quarter ended 31
March 2020
30 May 2020 29 June 2020
Annual eFiling/Filing and
ePayment/Payment
1700 Annual Income Tax Return for
Individuals Earning Purely
Compensation Income
(Including Non-Business/Non-
Profession Related Income)
For calendar year
ended 31
December 2019
15 April 2020 14 June 2020
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Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
1701
1701A(with required attachments)
Annual Income Tax Return for Individual (including MIXED Income Earners), Estates and Trusts
Annual Income Tax Return for Individuals Earning Income PURELY from Business/Profession (Those under the graduated income tax rates with OSD as mode of deduction OR those who opted to avail of the 8% flat income tax rate)
Annual eFiling/Filing and ePayment/Payment
1702RT
1702MX
Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate
Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE
For calendar year ended 31
December 2019
15 May 2020 14 June 2020
For fiscal year ended 31
January 2020
15 May 2020 14 June 2020
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Tax News | April – June 2020 50
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
1702EX Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayers EXEMPT Under the Tax Code, as Amended, [Sec. 30 and those exempted in Sec. 27(C)] and Other Special Laws, with NO Other Taxable Income
For fiscal year ended 29
February 2020
15 June 2020 15 July 2020
Required Submission of Attachments to e-Filed Annual Income Tax Return (Annual ITR)
17001701
1701A
N/A For calendar year ended 31
December 2019
Manually filed together with the filing of
Annual ITR or within 15 days from electronic
filing of the Annual ITR
30 June 2020
Submission of Soft Copies of BIR 2307 contained in a DVD-R and Sworn Declaration as Attachments to eFiled1702Q
DVD-R (Soft Copies of BIR Form No.
2307)
Certificate of Creditable Tax Withheld at Source
For fiscal quarter ended 31
January 2020
15 April 2020 14 June 2020
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Tax News | April – June 2020 51
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Sworn
DeclarationSworn Declaration stating soft
copies are complete and exact
copies of original
For fiscal quarter
ended 29
February 2020
15 May 2020 14 June 2020
Quarterly Filing for the
First Quarter
(for Individuals)
1701Q Quarterly Income Tax Return
for Self-Employed Individuals,
Estates and Trusts
For quarter
ended 31 March
2020
15 May 2020 14 June 2020
B. Withholding Tax Returns
Monthly eFiling/Filing and
ePayment/Remittance
1600 Withholding Tax Remittance
Return for National
Government Agencies (NGAs)
For the month of
March 2020
10 April 2020 9 June 2020
For the month of
April 2020
10 May 2020 9 June 2020
Monthly eFiling/Filing and
ePayment/Payment
(eFPS and non-eFPS)
1600 with
MAP
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
For the month of
March 2020
10 April 2020 9 June 2020
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Tax News | April – June 2020 52
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
1606 Withholding Tax Remittance Return for Onerous Transfer of Real Property Other than Capital Asset (including taxable and exempt)
For the month of April 2020
10 May 2020 9 June 2020
Monthly Filing and Payment(non-eFPS)
1601C Monthly Remittance Return for Income Taxes Withheld on Compensation
For the month of March 2020
10 April 2020 9 June 2020
For the month of April 2020
10 May 2020 9 June 2020
Monthly eFiling
(for eFPS users under
Group E)
1601C Monthly Remittance Return of Income Taxes Withheld on Compensation
For the month of March 2020
11 April 2020 10 June 2020
Monthly eFiling
(for eFPS users under
Group D)
12 April 2020 11 June 2020
Monthly eFiling
(for eFPS users under
Group C)
13 April 2020 12 June 2020
Monthly eFiling
(for eFPS users under
Group B)
14 April 2020 13 June 2020
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Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of Transaction/Document BIR Form Name of Form Period Original Due
Date
Extended Due
Date
Monthly eFiling
(for eFPS users under Group A)
15 April 2020 14 June 2020
Monthly ePayment
(for Groups E, D, C, B, and A)
15 April 2020 14 June 2020
Monthly eFiling
(for eFPS users under Group E)
For the month of April 2020
11 May 2020 10 June 2020
Monthly eFiling
(for eFPS users under Group D)
12 May 2020 11 June 2020
Monthly eFiling
(for eFPS users under Group C)
13 May 2020 12 June 2020
Monthly eFiling
(for eFPS users under Group B)
14 May 2020 13 June 2020
Monthly eFiling
(for eFPS users under Group A)
15 May 2020 14 June 2020
Monthly ePayment
(for Groups E, D, C, B, and A)
15 May 2020 14 June 2020
Monthly Filing and Payment
(non-EFPS)
0619-E Monthly Remittance Return of Income Taxes Withheld (Expanded)
For the month of March 2020
10 April 2020 9 June 2020
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Tax News | April – June 2020 54
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
0619-F Monthly Remittance Return of Final Income Taxes Withheld
For the month of April 2020
10 May 2020 9 June 2020
Monthly eFiling(for eFPS users under Group E)
0619-E Monthly Remittance Return of Income Taxes Withheld (Expanded)
For the month of March 2020
11 April 2020 10 June 2020
Monthly eFiling(for eFPS users under Group D)
0619-F Monthly Remittance Return of Final Income Taxes Withheld
12 April 2020 11 June 2020
Monthly eFiling(for eFPS users under Group C)
13 April 2020 12 June 2020
Monthly eFiling(for eFPS users under Group B)
14 April 2020 13 June 2020
Monthly eFiling(for eFPS users under Group A)
15 April 2020 14 June 2020
Monthly ePayment(for Groups E, D, C, B, and A)
15 April 2020 14 June 2020
Monthly eFiling(for eFPS users under Group E)
For the month of April 2020
11 May 2020 10 June 2020
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Tax News | April – June 2020 55
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Monthly eFiling
(for eFPS users under Group D)
12 May 2020 11 June 2020
Monthly eFiling
(for eFPS users under Group C)
13 May 2020 12 June 2020
Monthly eFiling
(for eFPS users under Group B)
14 May 2020 13 June 2020
Monthly eFiling
(for eFPS users under Group A)
15 May 2020 14 June 2020
Monthly ePayment
(for Groups E, D, C, B, and A)
15 May 2020 14 June 2020
Quarterly eFiling/Filing and
ePayment/Payment
(eFPS and non-eFPS)
1601EQ
1601FQ
Quarterly Remittance
Return of Creditable
Income Taxes
Withheld (Expanded)
Quarterly Remittance
Return of Final
Income Taxes
Withheld
For calendar
quarter ended
31 March 2020
30 April 2020 14 June 2020
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Tax News | April – June 2020 56
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
1602Q
1603Q
Quarterly Remittance Return of Final Taxes Withheld on Interest Paid on Deposits and Deposit Substitutes/Trusts/etc.
Quarterly Remittance Return of Final Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File
Submission of Quarterly
Alphabetical list of Payees
(QAP) as attachments to
1601EQ and 1601FQ
QAP Quarterly Alphabetical List of Payees
For calendar quarter ended 31 March 2020
30 April 2020 14 June 2020
Annual Filing/Submission 1604CF Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes
N/A 31 March 2020 30 May 2020
Annual Filing/Submission 1604E and related
alphalist
Annual Information Return of Creditable Income Taxes Withheld and Alphalist
N/A 31 March 2020 30 May 2020
Submission Deadline 2316 Certification of Compensation Payment
N/A 31 March 2020 30 May 2020
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Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
C. Value-Added Tax Returns
VAT Refund 1914 Application for VAT Credit/Refund Claims
Covering calendar quarter ended 31 March
2018
31 March 2020 30 May 2020 or 30 days from the lifting of quarantine,
whichever comes later
Covering fiscal quarter ended 30 April 2018
30 April 2020 14 June 2020 or 30 days from the lifting of quarantine,
whichever comes later
Covering fiscal quarter ended 31 May 2018
31 May 2020 30 June 2020 or 30 days from the lifting of quarantine,
whichever comes later
Monthly Filing and Payment(non-EFPS)
2550M Monthly VAT Declaration For the month of February 2020
20 March 2020 19 May 2020
For the month of March 2020
20 April 2020 4 June 2020
For the month of April 2020
20 May 2020 19 June 2020
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Tax News | April – June 2020 58
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Monthly Filing and Payment
(non-EFPS)
2550M Monthly VAT
Declaration
For the month of
February 2020
20 March 2020 19 May 2020
For the month of
March 2020
20 April 2020 4 June 2020
For the month of
April 2020
20 May 2020 19 June 2020
Monthly eFiling
(for eFPS filers under Group E)
2550M Monthly VAT Declaration
For the month of February 2020
21 March 2020 20 May 2020
Monthly eFiling
(for eFPS filers under Group D)
22 March 2020 21 May 2020
Monthly eFiling
(for eFPS filers under Group C)
23 March 2020 22 May 2020
Monthly eFiling
(for eFPS filers under Group B)
24 March 2020 23 May 2020
Monthly eFiling
(for eFPS filers under Group A)
25 March 2020 24 May 2020
Monthly ePayment
(for Groups E, D, C, B, and A)
25 March 2020 24 May 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 59
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Monthly eFiling(for eFPS filers under Group E)
For the month of March 2020
21 April 2020 5 June 2020
Monthly eFiling(for eFPS filers under Group D)
22 April 2020 6 June 2020
Monthly eFiling(for eFPS filers under Group C)
23 April 2020 7 June 2020
Monthly eFiling(for eFPS filers under Group B)
24 April 2020 8 June 2020
Monthly eFiling(for eFPS filers under Group A)
25 April 2020 9 June 2020
Monthly ePayment(for Groups E, D, C, B, and A)
25 April 2020 9 June 2020
Monthly eFiling(for eFPS filers under Group E)
For the month of April 2020
21 May 2020 20 June 2020
Monthly eFiling(for eFPS filers under Group D)
22 May 2020 21 June 2020
Monthly eFiling(for eFPS filers under Group C)
23 May 2020 22 June 2020
Monthly eFiling(for eFPS filers under Group B)
24 May 2020 23 June 2020
Monthly eFiling(for eFPS filers under Group A)
25 May 2020 24 June 2020
Monthly ePayment(for Groups E, D, C, B, and A)
25 May 2020 25 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 60
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS filers)
2550Q Quarterly VAT Return For fiscal quarterended 29
February 2020
25 March 2020 24 May 2020
For calendar quarter ended 31
March 2020
25 April 2020 9 June 2020
For fiscal quarter ended 30 April
2020
25 May 2020 24 June 2020
Quarterly SLSPI Submission(non-eFPS)
N/A Summary Lists of Sales/Purchases/Importations
For fiscal quarter ended 29
February 2020
25 March 2020 24 May 2020
For calendar quarter ended 31
March 2020
25 April 2020 9 June 2020
For fiscal quarter ended 30 April
2020
25 May 2020 24 June 2020
Quarterly SLSPI eSubmission(eFPS)
N/A Summary List of Sales/Purchases/Importations
For fiscal quarter ended 29
February 2020
30 March 2020 29 May 2020
For calendar quarter ended 31
March 2020
30 April 2020 14 June 2020
For fiscal quarter ended 30 April
2020
30 May 2020 29 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 61
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
D. Other Tax Returns
ONETT 1606 Withholding Tax Remittance
Return for Onerous Transfer of
Real Property Other than
Capital Asset (including taxable
and exempt)
N/A Date of
payment falls
within the
period of
national
emergency
starting from 16
March 2020
30 days from
the lifting of
quarantine
1706 Capital Gains Tax Return for
Onerous Transfer of Real
Property Classified as Capital
Asset (both taxable and
exempt)
1707 Capital Gains Tax Return for
Onerous Transfer of Shares of
Stocks Not Traded Through the
Local Stock Exchange
1800 Donor’s Tax Return
1801 Estate Tax Return
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 62
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Monthly eFiling/Filing and
ePayment/Payment
(eFPS)
1600WP Monthly Remittance of
Percentage Tax on Winnings
and Prizes Withheld by Race
Track Operators
For the month of
February 2020
20 March 2020 19 May 2020
For the month of
March 2020
20 April 2020 4 June 2020
For the month of
April 2020
20 May 2020 19 June 2020
eFiling/Filing and
ePayment/Payment
2000 Documentary Stamp Tax
Declaration
For the month of
March 2020
5 April 2020 4 June 2020
2000-OT Documentary Stamp Tax
Declaration (One-Time
Transaction)
For the month of
April 2020
5 May 2020 4 June 2020
Monthly Filing and
Payment/Remittance for
the amount of excise taxes
collected from payment
made to Sellers of Metallic
Minerals
2200M Excise Tax Return for Mineral
Products
For the month of
March 2020
10 April 2020 9 June 2020
For the month of
April 2020
10 May 2020 9 June 2020
Tax Amnesty on
Delinquencies
2118DA Tax Amnesty Return on
Delinquencies
N/A 23 April 2020 22 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 63
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)
2551Q Quarterly Percentage Tax Return – In General
For calendar quarter ended 31 March 2020
25 April 2020 9 June 2020
For fiscal quarter ended 30 April
2020
25 May 2020 24 June 2020
Quarterly Percentage Tax for Overseas Communications Tax (OCT) – Section 120 of the Tax Code
For calendar quarter ended 31 March 2020
20 April 2020 4 June 2020
For fiscal quarter ended 30
April 2020
20 May 2020 19 June 2020
Quarterly Percentage Tax for Amusement Taxes – Section 125 of the Tax Code
For calendar quarter ended 31 March 2020
20 April 2020 4 June 2020
For fiscal quarter ended 30
April 2020
20 May 2020 19 June 2020
eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)
2552 Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial and/or Secondary Public Offering
Within 5 banking days
from collection date
30 days from the lifting of quarantine
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 64
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)
2553 Return of Percentage Tax Payable under Special Laws
On designated due date under
special law
30 days from lifting of
quarantine
Monthly eFiling/Filing and ePayment/Payment(eFPS and non-EFPS)
0620 Monthly Remittance Form of Tax Withheld on the Amount Withdrawn from the Descendant’s Deposit Account
For the month of March 2020
10 April 2020 9 June 2020
For the month of April 2020
10 May 2020 9 June 2020
Filing and Payment 1707-A Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock not Traded through the Local Stock Exchange)
For calendar year ended 31
December 2019
15 April 2020 14 June 2020
For fiscal year ended 31
January 2020
15 May 2020 14 June 2020
eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)
1704 Improperly Accumulated Earnings Tax Return
For fiscal year ended 31 March
2019
15 April 2020 14 June 2020
For fiscal year ended 30 April
2019
15 May 2020 14 June 2020
Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)
1621 Quarterly Remittance Return of Tax Withheld on the Amount Withdrawn from Decedent’s Deposit Account
For the quarter ended 31 March
2020
30 April 2020 14 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 65
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
eFiling/Filing and
ePayment/Payment
(eFPS and non-eFPS)
2200-A
2200-AN
2200-P
2200-T
2200-S
Excise Tax Return for Alcohol
Products
Excise Tax Return for
Automobiles and Non-Essential
Goods
Excise Tax Return for
Petroleum Products
Excise Tax Return for Tobacco
Products
Excise Tax Return for
Sweetened Beverages
Every removal Before removal
of the excisable
products from
the place of
production
Before removal
of the excisable
products from
the place of
production
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 66
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
E. Other Documents
Sworn Statement of Manufacturer or Importer’s Volume of Sales of each particular brand of Alcohol, Tobacco Product, and Sweetened Beverage Product
N/A Sworn Statement For fiscal quarter ended 29
February 2020
25 March 2020 24 May 2020
For calendar quarter ended 31
March 2020
25 April 2020 9 June 2020
For fiscal quarter ended 30 April
2020
25 May 2020 24 June 2020
Registration of Computerized Books of Accounts and Other Accounting Records in Electronic Format
N/A N/A For fiscal year ended 29
February 2020
30 March 2020 29 May 2020
For fiscal year ended 31 March
2020
30 April 2020 14 June 2020
For fiscal year ended 30 April
2020
30 May 2020 29 June 2020
Submission of 2019 Inventory List
N/A Inventory List For fiscal year ended 29
February 2020
30 March 2020 29 May 2020
For fiscal year ended 31 March
2020
30 April 2020 14 June 2020
For fiscal year ended 30 April
2020
30 May 2020 29 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 67
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Monthly eSubmission of
eSales Report of All
Taxpayers using CRM/POS
with TIN ending in an even
number
N/A Monthly eSales Report For the month of
March 2020
8 April 2020 7 June 2020
For the month of
April 2020
8 May 2020 7 June 2020
Monthly eSubmission of
eSales Report of All
Taxpayers using CRM/POS
with TIN ending in an odd
number
N/A Monthly eSales Report For the month of
March 2020
10 April 2020 9 June 2020
For the month of
April 2020
10 May 2020 9 June 2020
Quarterly eSubmission of
Summary List of Machines
CRM/POS sold by all
Machine
Distributors/Dealers/
Vendors/Suppliers
N/A Summary List of Machines For taxable
quarter ended
31 March 2020
15 April 2020 14 June 2020
For fiscal quarter
ended 30 April
2020
15 May 2020 14 June 2020
Registration of Bound
Loose-Leaf Books of
Accounts/Invoices/
Receipts and Other
Accounting Records
N/A N/A For fiscal year
ended 31
March 2020
15 April 2020 14 June 2020
For fiscal year
ended 30
April 2020
15 May 2020 14 June 2020
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 68
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Submission of List of Medical Practitioners
N/A List of Medical Practitioners For calendar quarter ended 31
March 2020
15 April 2020 14 June 2020
Filing of Position Paper to Notice of Informal Conference (NIC)
N/A N/A N/A Filing date falls due during the
national emergency
period starting on 16 March
2020 and those where the due
dates fall within 30 days from lifting of ECQ
30 days from the lifting of
quarantine
Note: The running of the period
within which to file the Position Paper, Protest
Letter, Transmittal Letter, Appeal and correspondencesreferred under the first column shall
be suspended.
Filing of Position Paper to Preliminary Assessment Notice (PAN)
Protest Letter to Final Assessment Notice (FAN)/Formal Letter of Demand (FLD)
60-day Transmittal Letter of Additional Relevant Supporting Documents
Appeal/Request for Reconsideration to the Commissioner of Internal Revenue (CIR) on the Final Decision on Disputed Assessment (FDDA)
Other similar letters and correspondences with due dates
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 69
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Certificate of Residence for Tax Treaty Relief (CORTT) Form
N/A Certificate of Residence for Tax Treaty Relief Parts I and II
FWT on dividend,
interest, and royalty for the
month of February 2020
paid and remitted in March 2020
Within 30 days after payment of withholding
tax
30 days from the lifting of quarantine
FWT on dividend,
interest, and royalty for the
month of March 2020 paid and
remitted in April 2020
FWT on dividend,
interest, and royalty for the month of April 2020 paid and
remitted in May 2020
Suspension of Running of Limitation under Sections 203 and 222 pursuant to Section 223 of the Tax Code
N/A Assessment Notices, Warrant of Distraints and/or Levy, Warrants of Garnishments
Period of emergency
starting from 16 March 2020
Before the expiration of
Statute of Limitations
60 days after the lifting of quarantine
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 70
Tax filing deadlines extended anew
The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax
returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the
enhanced community quarantine (ECQ) until 15 May:
Annex
Type of
Transaction/DocumentBIR Form Name of Form Period
Original Due
Date
Extended Due
Date
Application for credit or
refund of taxes
erroneously or illegally
received or penalties
imposed without authority
under Section 204(C) of
the Tax Code
1914 Application for Tax Credits/Refunds
For erroneous
payments made
from 17 March
2018 to 30 April
2018
2 years after
the payment of
the tax or
penalty
14 June 2020
For erroneous
payments made
from 1 May
2018 to 31 May
2018
30 June 2020
All Other
Filings/Submissions
N/A Other Reportorial Requirements Omitted
N/A Date of
submission falls
within the
period of
national
emergency
starting from
16 March 2020
30 days from
the lifting of
quarantine
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
Tax News | April – June 2020 71
Notes:
• The extended due dates are applicable nationwide.
• If the new extended due dates fall on a holiday or a non-working day, the submission and/or filing
shall be made on the next working day.
• The term “quarantine” shall refer to any announcement by the National Government that will limit
operations and mobility (e.g., community quarantine, enhanced community quarantine, modified
community quarantine, and general community quarantine).
• Further extension by 15 calendar days shall be made in case of another quarantine extension.
• Taxpayers who will file their tax returns and pay their corresponding taxes earlier than the
extended deadline can amend their tax returns at any time on or before the extended due date. An
amendment resulting in additional tax due shall not be subjected to any tax penalties (surcharge,
interest, and compromise penalties) as long as the taxpayer files and pays not later than the
extended deadline.
In the case of amended tax returns that result in an overpayment of taxes, the taxpayer has the option to
carry over the overpayment as tax credit in the succeeding periods, aside from the option to file for a claim
for refund.
Please see attached Revenue Regulations No. 11-2020 for your reference and guidance.
Annex
BIR Issuances
PEZA Issuances
SEC Issuances
CTA Decisions
Annex
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