Tax Alert No. 44 [Tax Filing and Payment Guide during the Quarantine]

07 May 2020

Pursuant to Republic Act No. 11469, or the “Bayanihan to Heal As One Act”, declaring a state of national emergency over the country due to the Coronavirus Disease 2019 (COVID-19), we provide you with thisPwC PH Quarantine Tax Filing and/or Payment Guide which consolidates the guidelines for income tax, withholding tax, value-added tax (VAT), and other tax compliance matters.

Deadlines

The filing and/or payment deadlines for tax returns, their corresponding attachments, and other documentary requirements are extended depending on the returns, forms filed, and type/group of filers.
The deadlines for applications on VAT refund, credit or refund of taxes erroneously/illegally received, tax amnesty on delinquencies, Certificate of Residence for Tax Treaty Relief (CORTT), and correspondences with the Bureau of Internal Revenue (BIR) in relation to tax assessments were further extended.
The running of the Statute of Limitations for tax assessments and collections under Sections 203 and 222 of the Tax Code is suspended.
The extension of due dates shall be applicable throughout the Philippines.
No penalties shall be imposed as the deadlines are extended.
The term “quarantine” shall mean any announcement by the National Government resulting in limited operations and mobility, including, but not limited to community quarantine, enhanced community quarantine (ECQ), modified community quarantine, and general community quarantine.

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. AABs, however, can accept over-the-counter filing and payment of returns by eFPS filers during the ECQ period, with or without proof of unsuccessful e-Filing.
During the ECQ period, returns may be filed with and paid to the nearest AAB or the concerned Revenue Collection Officer (RCO) of the nearest Revenue District Office (RDO). AABs are allowed to accept 2019 annual income tax returns (AITR) and other tax returns whose due dates fall within the ECQ period and tax payments, even out-of-district returns.

Given the further extension of the quarantine to 15 May 2020, this Guide summarizes the extended deadlines on filing/payment of taxes based on the issuances released by the Department of Finance and BIR as of 30 April 2020.