Tax Alert No. 25 [Withholding and Value-added Tax (VAT) Guide during the Enhanced Community Quarantine Period]

27 Mar 2020

Withholding and Value-added Tax (VAT) Guide during the Enhanced Community Quarantine Period

In view of the Enhanced Community Quarantine (ECQ) and Stringent Social Distancing Measures implemented by the National Government due to the outbreak of Coronavirus Disease 2019 (COVID-19), we would like to provide you with the PwC PH Withholding and VAT ECQ Guide which sets out the guidelines for withholding and value-added taxes (VAT).

Deadlines

  • The filing and/or payment deadlines for tax returns and forms (other than the annual income tax return) are extended, i.e. until 20 April 2020 to 15 May 2020, depending on the returns and forms filed and type or group of filers.
  • If the ECQ period will be extended further, the filing of returns and payment of the corresponding taxes due thereon, and submission of reports and attachments falling within the extended ECQ period shall also be extended by thirty (30) calendar days from their due dates.


Method of filing and/or payment

  • eFPS filers shall continue to settle tax liabilities with the authorized agent banks (AABs) where the taxpayer is enrolled.
  • Filers using the eBIRForms Facility are provided with certain payment options (e.g. over-the-counter payment through AABs).
  • Taxpayers who are not required to file and pay electronically can use the eBIRForms Facility or file the returns manually.
  • Filing of no payment returns shall be made through the eBIRForms Facility.
  • The venue requirement for filing and/or payment of withholding taxes and VAT is not waived.


Penalties

  • No penalties shall be imposed as the deadlines are extended.

This Guide has updated and consolidated the filing/payment deadlines based on Revenue Memorandum Circular (RMC) No. 26 - 20, as amended by RMC Nos. 29 - 20 and 30 - 20, and may be updated further to cover issuances and guidelines that will be subsequently released by the Bureau of Internal Revenue (BIR).

We recognize the burden and responsibility of the National Government in ensuring sufficient funding to thrive through the crisis, and the challenges to the business industry in trying to keep the stability of the Philippine economy. We trust that this Guide will help spread updates and awareness, and encourage tax compliance during these very challenging times in support of the National Government and the taxpayers.

Contact us

Lyn Golez-Geronan

Tax Librarian, PwC Philippines

Tel: +63 (2) 8845 2728 Ext. 2054

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