Tax Alert No. 16 [Revenue Memorandum Circular (RMC) No. 26-2021 dated 26 February 2021 in relation to RMC No. 22-2021 dated 18 February 2021]

Extends the deadline of submission of reportorial requirements on the exemption of Documentary Stamp Tax (DST) relief for qualified loans pursuant to Revenue Regulations (RR) No. 24-2020

The Commissioner of Internal Revenue (CIR) has issued RMC No. 26-2021 to extend the deadline for the submission of the summary of listing of all pre-existing loans, pledges and other instruments in relation to the DST exemption of loans extended or credits restructured granted by covered institutions for loans falling due on or before 31 December 2020 pursuant to RR No. 24-2020 implementing Section 4(uu) of Republic Act No. 11494 (Bayanihan to Recover as One Act).

The above extension gives the covered institutions ample time to submit, in hard and soft copy, a summary of listing of all pre-existing loans, pledges and other instruments as of 15 September 2020 which were granted extension of payment and/or maturity periods using the format prescribed in RMC No. 22-2021. The summary of listing shall be submitted to the Revenue District Office(RDO)/Large Taxpayers Service (LTS)/Large Taxpayers District Office (LTDO) where the taxpayer is registered.

Within fifteen (15) days from the date of receipt, the RDO/LTS/LTDO shall submit a soft copy to the BIR National Office through the Audit Information, Tax Exemption and Incentives Division (AITIED).

The hard copy of the summary listing shall be made under oath as to the completeness, truth and accuracy by a duly authorized officer or representative of the taxpayer, and subject to post audit/verification by the BIR.

In case of failure to submit the summary listing required on the prescribed date, the covered institution shall pay the additional DST that should have been imposed on the instrument plus administrative penalties incident to such failure.

You may access the full version of these issuances through the BIR website.