Philippines - Extensions of Deadlines to Pay National and Local Taxes

1. National Taxes
 
a. Revenue Regulations (RR) No. 11-2020 (Amends Section 2 of Revenue Regulations No. 10-2020 relative to the extension of statutory deadlines and timelines for the filing and submission of any document and the payment of taxes pursuant to Section 4(z) of Republic Act No. 11469, otherwise known as “Bayanihan to Heal As One Act”) dated April 29, 2020 has been issued by the Secretary of Finance to amend RR No. 10-2020 [9] in view of the extension of the ECQ period until May 15, 2020 over high risk areas including the NCR. The full text of RR No. 11-2020 is at [10].
 
The term “quarantine” in RR No. 11-2020 refers to “any announcement by the National Government resulting to limited operations and mobility, including, but not limited to, community quarantine, enhanced community quarantine, modified community quarantine, and general community quarantine.”
 
The RR applies to the entire Philippines even if some areas are already under GCQ.
 
b. RR No. 11-2020 further extends the due dates for the filing and submission of documents and payment of taxes falling within the extended period in RR 10-2020.
 
A summary of the extended deadlines is set out in the table below:
 
Type of Tax/Filing
 		 Extended Deadline under RR No. 11-2020
 
Income Tax
 
 
Filing and payment of annual income tax of corporations for calendar year 2019, as provided in Section 2 (item 10) of RR No. 11-2020
 		  
June 30, 2020
 
 
Filing and payment of annual income tax for individuals for calendar year 2019, as provided in Section 2 (item 25) of RR No. 11-2020
 		  
June 14, 2020
 
Filing of “quarterly income tax return for corporations” for the 1st calendar quarter of 2020, as provided in Section 2 (item 46) of RR No. 11-2020
 		  
June 29, 2020
 
Filing and payment of “quarterly income tax return for self-employed individuals, estates, and trusts” for the 1st calendar quarter of 2020, as provided in Section 2 (item 47) of RR No. 11-2020
 		  
June 14, 2020
“Annual Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange” (Annual CGT Return)
 
 
Deadline for filing and payment of Annual CGT Return for calendar year 2019, as provided in Section 2 (item 44) of RR No. 11-2020
 		  
June 14, 2020
 
Deadline for filing and payment of Annual CGT Return for fiscal year ending January 31, 2020, as provided in Section 2 (item 44) of RR No. 11-2020
 		  
June 14, 2020
Value-added tax (VAT) Refund Applications
 
 
Deadline for VAT refund applications for the period covering the calendar quarter ending March 31, 2018, as provided in Section 2 (item 1) of RR No. 11-2020
 		  
May 30, 2020, or 30 days from the lifting of the quarantine, whichever comes later
 
Deadline for VAT refund applications for the period covering the fiscal quarter ending April 30, 2018
 		  
June 14, 2020, or 30 days from the date of the lifting of the quarantine, whichever comes later
 
Deadline for VAT refund applications for the period covering the fiscal quarter ending May 31, 2018
 		  
June 30, 2020, or 30 days from the date of the lifting of the quarantine, whichever comes later
Tax Amnesty Return on Delinquencies
 
 
Deadline of Filing Tax Amnesty Return on Delinquencies as provided in Section 2 (item 34) of RR No. 11-2020
 		  
June 22, 2020
The deadlines for the following filings and submissions (including those falling within the extension period) remained to be reckoned from the lifting of the quarantine
 
 
“One-time transactions” as provided in Section 2 (item 2) of RR No. 11-2020
 		  
30 days from the date of the lifting of the quarantine
 
Position papers, protests, additional documents and other documents as provided in Section 2 (item 31) of RR No. 11-2020
 		  
30 days from the date of the lifting of the quarantine
 
“Suspension of running of limitations under Sections 203 and 222 pursuant to Section 223 of the Tax Code of 1997, as amended” as provided in Section 2 (item 32) of RR No. 11-2020
 		  
60 days after the lifting of the quarantine
 
Deadline for submission of “Certificate of Residence for Tax Treaty Relief” [11] for final withholding taxes on dividends, interests, and royalties paid in March, April, and May 2020, as provided in Section 2 (item 33) of RR No. 11-2020
 		  
30 days from the date of the lifting of the quarantine
 
“All other filings/submissions” as provided in Section 2 (item 40) of RR No. 11-2020
 		  
30 days from the date of the lifting of the quarantine


c. RR No. 11-2020 also extends the deadlines for the filing and payment various withholding, percentage and excise taxes as provided in Section 2 (items 41 to 50) of RR No. 11-2020.
 
d. RR No. 11-2020 expressly provides that “if the new extended due dates fall on a holiday or non-working day, then, the submission and/or filing contemplated herein shall be made on the next working day.” However, in news releases, the Commissioner of Internal Revenue has stated that “since the newest June 14 deadline fell on a Sunday while the Friday before that, June 12, is a holiday (Independence Day), the actual cut-off date will be on June 11, a Thursday.” [12]
 
“In case of another quarantine extension,” the extended due dates in RR No. 11-2020 “shall be further extended for 15 calendar days” from the extended due dates in RR No. 11-2020.
 
e. RR No. 11-2020 reiterates the guidelines in RR No. 10-2020 for tax returns filed on or before the extended deadlines.
 

2. Local Taxes
 
a. The DOF has issued Department Circular No. 002-2020 dated April 23, 2020 [13] and it allows taxpayers until June 25, 2020 to pay “taxes, fees, and charges of local government units (LGUs)” which are due as of March 25, 2020.
 
This circular is issued pursuant to Section 4(z) of R.A. No. 11469 or the Bayanihan to Heal As One Act (Bayanihan Act). It is effective “immediately upon publication in a newspaper of general circulation” and will remain effective “until the state of public health emergency is lifted, subject to changes issued or instructed by the Office of the President.”
 
b. The circular provides the following:
 
(i) The deadlines for the payment “of all local taxes, fees and charges duly authorized and imposed by LGUs within their respective territorial jurisdictions as of March 25, 2020” is extended to June 25, 2020. In addition, “the counting of the period within which to pay local taxes, fees, and charges shall likewise be suspended during the said period.”
 
(ii) If a LGU has previously extended the deadlines prior to the effectivity of the Bayanihan Act on March 26, 2020, such deadlines “shall be deemed modified with the period set [in the circular].” Any further extensions “shall be authorized in accordance with the provisions of the Local Government Code.”
 
(iii) As a result of the extension, “no interest, surcharge or any form of penalty shall be applied on any local tax, fee or charge accruing on or due and demandable” during the extension period.”
 
The DOF has clarified that “all previous delinquencies shall be due and the accrual of interest, penalties and surcharges shall begin after the extension.”
 
(iv) Local treasurers and assessors are instructed to defer the following:
 
- “issuing written authority for the conduct of examination of books of accounts and pertinent business records;”
 
- “activities related to appraisal and assessment of real properties,”
 
- “posting and publishing of notices of delinquencies, warrants of levy, and advertisements for sale or auction,” and
 
-“pursuing administrative or judicial action for the enforcement and/or collection of local taxes, fees, or charges.” 
 
 
For more information about tax issuances, please contact your account partner or the author of this client bulletin:

Carina C. Laforteza
Partner; Head of the Tax Department
[email protected]

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