Annual Income Tax Return – No Deadline Extension for PH Taxpayers!

The BIR has confirmed that the deadline for filing the Annual Income Tax Return (AITR), a key financial reporting requirement for PH businesses, will not be extended beyond 15 April, 2021.

However, in light of current community quarantine measures that have been put in place recently in the Philippines, the BIR has made provision for the filing of a tentative AITR.

Here’s all you need to know about the recent BIR clarification on the deadline date for the filing of the AITR this April 2021!

Background

In recent weeks, there has been various media coverage about the possible extension of the deadline for businesses in the Philippines that are required to file their 2020 Annual Income Tax Return (AITR) by 15 April, 2021.

This started as a result of the new community quarantine restrictions put in place in the Philippines and also in response to the changes brought in by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The CREATE Act was signed in March 2021 but the Implementing Rules and Regulations have not yet been released.

In light of the above, many businesses in the Philippines were waiting patiently in recent weeks to see if they would be granted additional time to prepare their AITR and Audited Financial Statement.

In order to clarify the position, the BIR released Revenue Memorandum Circular No. 46-2021 to confirm the deadline date.

Revenue Memorandum Circular No. 46-2021

According to the BIR, RMC No. 46-2021 was issued to address queries from taxpayers and tax practitioners in the Philippines about the potential extension of the AITR filing date,

As mentioned above, such queries were the result of various news reports that the deadline date would be extended due to the additional community quarantine restrictions imposed in the Philippines and the CREATE Act.

Here are the key points for taxpayers in the Philippines to understand regarding the BIR’s recent issuance on the deadline date for filing the AITR:

1. The deadline date for the filing of the AITR and payment of taxes due has not been extended. The deadline date remains at 15 April, 2021.
2. However, in order to alleviate hardships for businesses during this current community quarantine, a tentative AITR may be filed by taxpayers, on or before the deadline of 15 April, 2021.
3. If a tentative AITR is filed, it can be amended anytime up until 15 May, 2021 without incurring a penalty.
4. If an amended AITR results in the overpayment of taxes, the taxpayer can opt to carry over the overpaid tax as a credit against the tax due (within the same tax type) in the next period or alternatively, file for a refund.
5. Referencing the Electronic Commerce Act of 2000, the BIR confirms that all tax returns, related attachments and documents can be signed by the taxpayer (or authorized representative) via the use of an electronic signature.
6. As per RMC 49-2020 (since amended), Taxpayers can also avail of the BIR’s eAFS Facility as an option to submit the hard copies of the electronically filed AITR and related attachments.

Still a Possibility of Deadline Extension?

Don’t count on it – the filing deadline is only one week away!

There remains ongoing requests and appeals amongst the business community and other communities within the Philippines for the BIR and Department of Finance to reconsider their decision not to extend the April 15 deadline.

However, at this time of writing, the official position of the BIR in relation to the filing deadline of the AITR in April 2021 for the fiscal year ending on 31 December 2020 is as outlined above in RMC No. 46-2021.

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