JOBLESS FILIPINOS BALLOON TO 7.3 MILLION IN APRIL AS UNEMPLOYMENT SOARS IN LOCKDOWN + HOUSE APPROVES PHP 1.3 TRILLION STIMULUS PACKAGE ARISE ON FINAL READING
Other Relevant Tax Updates:
- Bureau of Internal Revenue (BIR) provides additional payment channel for internal revenue tax
- BIR amends guidelines for the availment of Small Business Wage Subsidy (SBWS)
- BIR clarifies the filing of withdrawal of protest on assessment notice for purposes of availment of extended tax amnesty on delinquencies
- BIR provides additional options in the acceptance and filing of 2019 annual Income Tax Return (ITR) and attachments
- Tax and business-related news [May 30 – June 5]
I. BIR PROVIDES ADDITIONAL PAYMENT CHANNEL FOR INTERNAL REVENUE TAX
Revenue Memorandum Circular (RMC) No. 54-2020, issued on May 28, 2020, introduces PayMaya as additional channel of payment of internal revenue taxes.
II. BIR AMENDS GUIDELINES FOR THE AVAILMENT OF SBWS
RMC No. 53-2020, issued on May 27, 2020, circularizes the amendment to the joint memorandum of DOF, BIR, and SSS on the guidelines for the availment of SBWS Measure. Relevant amendments include:
- Expanded coverage of small business employers who may be allowed to complete application of the program subject to eligibility requirements and availability of funds;
- Refund procedures should there be any excess subsidy granted;
- Authority and limitation of the Secretary of Finance to extend payout periods.
III. BIR CLARIFIES THE FILING OF WITHDRAWAL OF PROTEST ON ASSESSMENT NOTICE FOR PURPOSES OF AVAILMENT OF EXTENDED TAX AMNESTY ON DELINQUENCIES
RMC No. 52-2020, issued on May 27, 2020, clarifies the filing of withdrawal of protest on assessment notices for purposes of availment of tax amnesty. Withdrawal can now be filed through e-mail addressed to dedicated e-mail address as provided in the circular. Scanned copy of first page of the BIR-received protest letter and duly signed by the taxpayer or his authorized representative is required.
IV. BIR PROVIDES ADDITIONAL OPTIONS IN THE ACCEPTANCE AND FILING OF 2019 ANNUAL ITR AND ATTACHMENTS
RMC No. 49-2020, issued on May 22, 2020, provides additional options in the acceptance and filing of 2019 Annual ITR and required attachments. Taxpayers shall now have the option to submit through Revenue Collection Officers (RCOs) or through online eAFS of the BIR. Specific guidelines are as follows:
- Submission through RCOs
- RCOs may accept required attachments to the Annual ITR notwithstanding the Revenue District Office (RDO) having jurisdiction over the taxpayer. Out-of-district filings of ITR and attachments shall be forwarded to the concerned RDOs.
- ITRs with payments made thru online shall be stamped received by RCOs together with the page of Balance Sheet, Income Statement, and Audit Certificate if applicable.
- Only two (2) extra copies of AFS will be stamped for corporate filers for SEC submission compliance.
- For ITRs filed electronically, RCOs shall only accept and stamp “received” the copies of filing reference number generated from eFPS/e-mail confirmation from the BIR.
Submission through eAFS
- Online filing may be accessed through the BIR webpage bir.gov.ph.
- Taxpayer must scan the documents and save them into PDF files.
- Required attachments will be grouped into three (3) document files.
- eAFS portal will issue a system generated Transaction Reference Number and e-mail to the system user, which shall serve as proof of submission in lieu of the manual “Received” stamping.
V. TAX AND BUSINESS-RELATED NEWS [MAY 30-JUNE 5]
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- Jobless Filipinos balloon to 7.3 million in April as unemployment soars in lockdown
- Airlines seek clarity in LGU, gov’t rules
- Gov’t allows hotels, lodges to operate only for ‘basic accommodation purposes’
- House approves P1.3 trillion stimulus package ARISE on final reading
- International airports outside Metro Manila to reopen for OFW repatriates
- JETRO urges Philippines to lift entry ban on foreigners soon
- US says will investigate nations with digital services tax
- Group urges gov’t: Require jobs for corporate tax cuts
- Thailand OKs whopping 90% reduction in land, building tax for 2020
- SEC padlocks 2 firms hawking ‘fraudulent’ investments
- Online sellers must follow suggested retail price, says DTI
- Digital tax during pandemic to discourage online shift: Marcos
- Dominguez: Philippine gov’t eyes $16.7-B package to recover from pandemic
Jobless Filipinos balloon to 7.3 million in April as unemployment soars in lockdown [ABS-CBN News, June 5, 2020]
The Philippines’ unemployment rate jumped to a record 17.7 percent during the coronavirus lockdown, official data released Friday showed, as the government moved to resuscitate the economy and stop further job losses.
Airlines seek clarity in LGU, gov’t rules [Philippine Daily Inquirer, June 4, 2020]
Philippine carriers are set to meet with key national and local government officials on Friday to iron out confusing regulations that greeted them after strict lockdown rules were lifted over their main hub in Metro Manila on June 1.
Source: https://business.inquirer.net/299041/airlines-seek-clarity-in-lgu-govt-rules#ixzz6OSbEH5LY
Gov’t allows hotels, lodges to operate only for ‘basic accommodation purposes’ [ABS-CBN News, June 4, 2020]
The government has allowed hotels and other lodges to operate in the Philippines but only for “accommodation purposes,” Malacañang said Thursday.
House approves P1.3 trillion stimulus package ARISE on final reading [ABS-CBN News, June 4, 2020]
The House of Representatives on Thursday approved on third and final reading the P1.3 trillion economic stimulus package earmarked to help keep and generate jobs.
Source:https://news.abs-cbn.com/business/06/04/20/house-approves-p13-trillion-stimulus-package-arise
International airports outside Metro Manila to reopen for OFW repatriates [ABS-CBN News, June 4, 2020]
The Philippines will reopen international airports outside Metro Manila for repatriated overseas Filipino workers, an official said Thursday as the government moved to bring home more of its nationals.
JETRO urges Philippines to lift entry ban on foreigners soon [ABS-CBN News, June 3, 2020]
Japan’s trade promotion agency appealed Wednesday for Philippine authorities to lift restrictions on the entry of foreign nationals after it eased lockdown measures earlier this month, allowing employees of Japanese companies to return.
US says will investigate nations with digital services tax [ABS-CBN News, June 3, 2020]
US President Donald Trump’s administration on Tuesday announced investigations into foreign digital services taxes it says are aimed squarely at American tech firms.
Group urges gov’t: Require jobs for corporate tax cuts [Philippine Daily Inquirer, June 2, 2020]
Simply lowering corporate income tax might prompt companies to just survive the COVID-19 pandemic, without any assurance that the tax cut would get them to either keep or hire more workers, a group said.
Thailand OKs whopping 90% reduction in land, building tax for 2020 [Philippine Daily Inquirer, June 2, 2020]
Thailand’s Cabinet has approved a 90 percent reduction in land and building taxes for the year 2020 and a two-month postponement in the deadline for filing personal income tax returns, Prime Minister General Prayut Chan-o-cha said today (June 2).
SEC padlocks 2 firms hawking ‘fraudulent’ investments [Philippine Daily Inquirer, June 2, 2020]
The Securities and Exchange Commission (SEC) has issued an order to padlock Fast Track Worldwide Inc. and JOCALS688 Beauty and Wellness Products Trading Inc., two entities flagged for fraudulent investment schemes.
Online sellers must follow suggested retail price, says DTI [ABS-CBN News, June 2, 2020]
Online sellers should follow the government’s suggested retail price for basic goods, the Department of Trade and Industry said Tuesday, as the pandemic shifted more Filipinos to e-commerce.
Digital tax during pandemic to discourage online shift: Marcos [ABS-CBN News, June 1, 2020]
Taxing digital services will discourage people from going online at a time when small businesses reeling from the COVID-19 pandemic seek refuge in e-commerce, the head of the Senate economic affairs committee said Monday.
Dominguez: Philippine gov’t eyes $16.7-B package to recover from pandemic [ABS-CBN News, May 30, 2020]
The Philippine government is eyeing a stimulus package worth 846 billion pesos ($16.7 billion) to enable a full economic recovery from the COVID-19 pandemic, the country’s top economic managers said.
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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