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

A.        Bureau of Internal Revenue (BIR) Extends Deadlines for the Payment of Various Taxes and for the Filing of Annual Income Tax Returns (AITR), Value-Added Tax (VAT) Refund Applications and Various Other Tax Returns

To recall, on March 16, 2020, the Commissioner of Internal Revenue issued –

1.         Revenue Memorandum Circular (RMC) No. 25-2020 (Filing of the 2019 Income Tax Returns and Submission of the Required Attachments), and 

2.         RMC No. 26-2020 (Filing and Payment of the Corresponding Taxes Due Per BIR Form Nos. 2550M – Monthly Value-Added Tax Declaration, 1600WP – Monthly Remittance of Percentage Tax on Winning and Prizes Withheld by Racetrack Operators, 2550Q – Quarterly Value-Added Tax Declaration (Cumulative for Three (3) Months), 1702Q – Quarterly Income Tax Return for Corporation, Partnerships and Other Non-Individual Taxpayers, 2000 – Documentary Stamps, 2000-OT Documentary Stamps (One Time Transaction), 1600 – Monthly Remittance Return of Value-Added Tax and Other Percentage Tax Withheld, 1601C – Monthly Remittance Returns of Income Taxes Withheld on Compensation and 2200M – Excise Tax Return for Mineral Products) 

-- clarifying that the deadlines of payments of various taxes that fall within the period of the Enhanced Community Quarantine over Luzon from March 17 to 12 midnight of April 13, 2020 (ECQ) have not been extended.

On March 17, 2020, the Commissioner issued RMC No. 28-2020 (Filing of the 2019 Income Tax Returns and Submission of Required Attachments)[1], extending the deadline for filing and payment of the 2019 Annual Income Tax Returns (AITR) from April 15, 2020 to May 15, 2020 without the imposition of penalties. However, in a press release dated March 19, 2020[2], the Department of Finance (DOF) appealed to taxpayers who are able to file on or before the original deadline of April 15, 2020 to do so in order to help the government fund measures and programs to respond to the COVID-19 pandemic.

On March 19, 2020, the Commissioner issued RMC No. 29-2020 (Amending Revenue Memorandum Circular No. 26-2020, Relative to the Extension of Deadlines for the Filing of Various Returns and Payment of Taxes Due Thereon)[3], extending the deadline for filing and payment of tax returns associated with the other taxes that were covered by RMC 26-2020.

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