Philippines - Briefing on developments of COVID-19, as of March 18, 2020

A. Philippine Government Declares an Enhanced Community Quarantine over Luzon from March 17, 2020 to April 12, 2020

The Philippine President issued Proclamation No. 929 (Declaring a State of Calamity Throughout the Philippines Due to Corona Virus Disease 2019) dated March 16[1] which declared a State of Calamity over the country for six months, and placed the island of Luzon under an Enhanced Community Quarantine from March 17 to April 12.

The Memorandum dated March 16 issued by the Executive Secretary[2] provides that during the Quarantine Period, (1) a strict home quarantine is observed; (2) public mass transport is suspended; and (3) only private establishments providing basic necessities (such as groceries, hospitals, pharmacies, banks, telecommunications facilities) remain open. BPOs and other export-oriented enterprises are allowed to operate provided they observe social distancing measures and procure accommodations for their personnel.

The officials of the Executive Branch of the government will be working from home during this period except for those involved in, among others, health and emergency services and the police.

In a subsequent Memorandum dated March 18, which provides for additional guidelines of the community quarantine over Luzon, the Executive Secretary stated that BPOs and other export-oriented enterprises have until March 20 to (1) transfer “necessary equipment… to facilitate work from home arrangements;” and (2) “make arrangements with hotels for basic lodging.” 


B. Bureau of Internal Revenue (BIR) Confirms that Annual Income Tax Returns are still due on April 15, 2020

The Commissioner of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 25-2020 dated March 16[3] to prescribe the guidelines in the filing of the 2019 Income Tax Returns and submission of required attachments. In the circular, the Commissioner clarified that even with the imposition of the Enhanced Community Quarantine over Luzon, taxpayers observing the calendar year should still file their annual income tax returns (AITR) and settle their taxes by April 15, which is the statutory deadline. However, in the event that the taxpayers make errors in the determination of their income tax, they may file an amended AITR provided their tax year 2019 has not been subject to an audit by the BIR. Additional income taxes that may have to be paid as a result of the amendment may be paid without penalties provided the amended AITR is filed and the additional taxes are paid no later than June 15, 2020.

READ THE REST HERE