MOST RECENT BIR & SEC FILING GUIDELINES ON AFS & GIS + MOST RECENT UPDATE ON NEW TAX REFORM BILLS THROUGH CREATE & ECONOMIC STIMULUS PACKAGE
Other Relevant Tax Updates:
- Bureau of Internal Revenue (BIR) clarifies the manner of filing and acceptance of payment of Annual Income Tax Return (ITR) with extended due date until June 14, 2020
- Securities and Exchange Commission (SEC) advisory on the opening of SEC express system and Express Nationwide Submission (SENS) in relation to upcoming filing of Audited Financial Statements (AFS) and General Information Sheet (GIS)
- Bank bulletin on the acceptance of BIR forms 1600vt and 1600pt
- BIR confirms the tax incentives of dual training system and vocational education
- Philippine Economic Zone Authority (PEZA) eases Letter of Authority (LOA) compliance of ecozone I.T. enterprises in response to COVID-19
- Tax and business-related news [May 22-29]
I. BIR CLARIFIES THE MANNER OF FILING AND ACCEPTANCE OF PAYMENT OF ANNUAL ITR WITH EXTENDED DUE DATE UNTIL JUNE 14, 2020
Revenue Memorandum Circular (RMC) No. 48-2020, issued on May 22, 2020, clarifies the manner of filing and acceptance of payment of annual income tax due on or before June 14, 2020 relative to the Annual ITR filing for the year ended December 31, 2019.
Highlights include:
- Taxpayers are allowed to file and pay their taxes at the nearest AABs, regardless of the Revenue District Office (RDO) jurisdiction;
- Cash payments to Revenue Collection Officers (RCOs) of the nearest RDO, even in areas where there are AABs are allowed up to Php 20,000;
- RCOs may accept check payments without any limitation as to amount, provided that checks are made payable to the Bureau of Internal Revenue (with or without “IFO Name and TIN of the taxpayer” written on the check, as previously required). Likewise, the name and branch of the receiving AAB are dispensed.
II. SEC ADVISORY ON THE OPENING OF SEC SENS IN RELATION TO UPCOMING FILING OF AFS AND GIS
In an advisory dated May 21, 2020 and in relation to SEC Memorandum Circular No. 18, Series of 2020 regarding the orderly filing of AFS and GIS, SEC has announced the following:
- Opening of the following SEC services to the public starting June 1, 2020:
- SEC Express System-for the request of SEC documents, plain or authenticated copy, facilitated thru online or call center;
- SEC Express Nationwide Submission (SENS)-for submission of SEC reportorial requirements such as AFS and GIS, thru courier and/or post office;
- Request for documents shall be done online and thru call center. Appointment System will still be suspended, and the public is not allowed to go to SEC Head Office to request for SEC documents. Delivery of documents shall be done 5 to 7 days after payment confirmation;
- Submission of AFS and GIS in hard copy must be in three (3) sets through the SENS. Filers will not be allowed to go to SEC Head Office or Satellite Offices to file their reports;
- Companies with principal office address near any of the SEC Extension Offices (EO), shall file their reports to the nearest EO;
- All Satellite Offices shall be temporarily closed for receipt of reports since all submissions shall be through SENS;
- Electronic submission of AFS and GIS are allowed in reference to SEC Memorandum Circular No. 10, Series 2020 and SEC Notice dated April 8, 2020;
III. BANK BULLETIN ON THE ACCEPTANCE OF BIR FORMS 1600VT AND 1600PT
In Bank Bulletin No. 2020-06, dated February 17, 2020, BIR instructs the Authorized Agent Banks (AABs) to accept the revised BIR Forms 1600VT (Monthly Remittance Return of VAT Withheld) and 1600PT (Monthly Remittance Return of Other Percentage Tax Withheld) in relation to the changes brought about by TRAIN Law and in reference to the previous circular issued.
IV. BIR CONFIRMS THE TAX INCENTIVES OF DUAL TRAINING SYSTEM AND VOCATIONAL EDUCATION
Revenue Memorandum Circular (RMC) No. 50-2020, issued on May 27, 2020, circularizes the tax incentives granted under Republic Act No. 7686 or An Act to Strengthen Manpower Education and Training in the Philippines, by institutionalizing the Dual Training System and Vocational Education.
V. PEZA EASES LOA COMPLIANCE OF ECOZONE I.T. ENTERPRISES IN RESPONSE TO COVID-19
PEZA Memorandum Circular No. 2020-011, dated March 5, 2020, eases LOA documentary compliance of Ecozone I.T. enterprises by allowing work-from-home option to certain employees without the need of securing LOA, as a prevention and response mechanism to COVID-19. It also allows reassignment and redistribution of employees to other PEZA-registered facilities of the I.T. Enterprise in other PEZA and non-PEZA registered IT Parks and Centers.
VI. TAX AND BUSINESS-RELATED NEWS [MAY 22-29]
- Duterte urges landlords, lessors to allow delay in payments
- Company with foreign firms as clients says Create not in its ‘best form’
- Bitter mix: Liquor bans, ECQ bring sin taxes down by nearly 100 percent
- COVID-19 spending plus low collection equals 10,000 percent deficit jump from 2019 level
- Sotto files bill to save post-lockdown economy from ‘total collapse’
- Corporate tax cut under CREATE seen to keep jobs at ‘high levels’
- Airline industry group appeals for aid under proposed stimulus package
- Special Congress session eyed to pass post-pandemic stimulus bills
- Duterte warns businessmen against profiteering in time of pandemic
- ‘Commendable act’: DOF lauds firms that paid taxes early despite COVID-19 pandemic
- BIR allows tax payments in banks until June 14
- New tax reform bill offers more ‘flexible incentives,’ says Salceda
- Bello: Employers may delay double pay for holiday work amid COVID-19 pandemic
- It’s final: No more tax deadline extensions even under MECQ
- DOF drops proposal to suspend imposition of VAT on power use
- Digital economy tax ‘critical’ as consumers shift to virtual channels: Dominguez
- 50 small firms want to close temporarily putting jobs at risk: labor chief
Duterte urges landlords, lessors to allow delay in payments [ABS-CBN News, May 29, 2020]
In a changed tone, President Rodrigo Duterte on Thursday appealed to landlords and lessors to allow a delay in payments from their tenants and lessees amid the coronavirus disease 2019 (COVID-19) pandemic.
Company with foreign firms as clients says Create not in its ‘best form’ [Philippine Daily Inquirer, May 28, 2020]
The latest version of the Duterte administration’s plan for tax breaks will still make the cost of doing business in the Philippines more expensive for companies that have been operating for more than a decade in economic zones, a professional services firm said.
Source: https://business.inquirer.net/298528/company-with-foreign-firms-as-clients-says-create-not-in-its-best-form#ixzz6NnZRjaDT
Bitter mix: Liquor bans, ECQ bring sin taxes down by nearly 100 percent [Philippine Daily Inquirer, May 27, 2020]
Amid a liquor ban in many areas and restricted deliveries of cigarettes during the enhanced community quarantine (ECQ), the government collected only about P200 million in sin taxes from tobacco and alcohol products in April.
COVID-19 spending plus low collection equals 10,000 percent deficit jump from 2019 level [Philippine Daily Inquirer, May 27, 2020]
Spending on public goods and services more than doubled in April as the government tried to ease the pain inflicted on vulnerable sectors by the COVID-19 pandemic but with barely any revenue coming in, resulting in a P273.9 billion budget deficit, the biggest in a month to date.
Sotto files bill to save post-lockdown economy from ‘total collapse’ [ABS-CBN News, May 27, 2020]
Senate President Vicente Sotto III said Wednesday he filed a bill seeking to save the economy from “total collapse” as the Philippines started to ease a pandemic lockdown that caused GDP to shrink.
Corporate tax cut under CREATE seen to keep jobs at ‘high levels’ [ABS-CBN News, May 27, 2020]
The Philippine Chamber of Commerce and Industry said Wednesday the recalibrated corporate income tax bill would afford companies with more capital to keep more jobs.
Airline industry group appeals for aid under proposed stimulus package [ABS-CBN News, May 27, 2020]
An industry group representing the country’s largest airlines on Tuesday appealed for government aid under a bill aiming to stimulate economic activity following the disruptions caused by the COVID-19 pandemic.
Special Congress session eyed to pass post-pandemic stimulus bills [Philippine Daily Inquirer, May 26, 2020]
President Rodrigo Duterte’s chief economic manager floated the possibility of Congress convening a special session if pending stimulus bills, like the proposed Corporate Recovery and Tax Incentives for Enterprises Act (Create), get shoved in the legislature’s pile of unfinished business for lack of time.
Duterte warns businessmen against profiteering in time of pandemic [ABS-CBN News, May 26, 2020]
President Rodrigo Duterte on Monday warned businesses against profiteering and hoarding essential medical equipment as the country battles the coronavirus disease 2019 (COVID-19) pandemic.
‘Commendable act’: DOF lauds firms that paid taxes early despite COVID-19 pandemic [Philippine Daily Inquirer, May 25, 2020]
The Department of Finance (DOF) on Monday (May 25) lauded the companies that did not wait for extended deadlines to pay their taxes, helping the government raise revenue during the COVID-19 pandemic.
BIR allows tax payments in banks until June 14 [Philippine Daily Inquirer, May 24, 2020]
The Bureau of Internal Revenue (BIR) is allowing taxpayers to settle their dues outside their revenue district office (RDO) until June 14.
Source: https://business.inquirer.net/298106/bir-allows-tax-payments-in-banks-until-june-14#ixzz6NneK1bEU
New tax reform bill offers more ‘flexible incentives,’ says Salceda [Philippine Daily Inquirer, May 23, 2020]
There will be more flexible incentives in the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill, which was previously called as the Corporate Income Tax and Incentives Reform Act (CITIRA), Albay Rep. Joey Salceda said on Saturday.
Bello: Employers may delay double pay for holiday work amid COVID-19 pandemic [ABS-CBN News, May 23 ,2020]
Employers are allowed to delay handing out employees’ double pay for going to work on holidays as businesses bear the brunt of limited operations brought by a coronavirus lockdown, the country’s labor chief said Saturday.
It’s final: No more tax deadline extensions even under MECQ [Philippine Daily Inquirer, May 22, 2020]
It’s final: There would be no more tax deadline extensions despite the ongoing modified enhanced community quarantine (MECQ) in Metro Manila and other parts of the country, according to the Bureau of Internal Revenue (BIR).
DOF drops proposal to suspend imposition of VAT on power use [Philippine Daily Inquirer, May 22, 2020]
The Department of Finance (DOF) has rejected a proposal to suspend the imposition of value-added tax (VAT) on power consumption as the country grapples with the COVID-19 pandemic.
Digital economy tax ‘critical’ as consumers shift to virtual channels: Dominguez [ABS-CBN News, May 22, 2020]
Finance Secretary Carlos Dominguez III said Friday tax for digital services such as e-commerce and video streaming platforms is “critical” as consumption turns digital in the new normal following the devastating coronavirus pandemic.
50 small firms want to close temporarily putting jobs at risk: labor chief [ABS-CBN News, May 22, 2020]
The labor department said Friday it was reviewing the appeal of about small 50 businesses to temporarily close due to losses from the coronavirus pandemic, putting at risk some 190,000 jobs.
If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.
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