The Bureau of Internal Revenue (BIR) and the Department of Labor and Employment (DOLE) have issued new Memorandum Circulars and an Advisory in response to COVID-19, as follows:
Bureau of Internal Revenue
- Revenue Memorandum Circular No. 30-2020 – This Memorandum addresses the confusion and makes amendments in relation to errors around the due dates and the filing/payment of tax returns as provided under Revenue Memorandum Circular 29-2020. The Memorandum also provides clarification on the process for ITR filings as provided under Revenue Memorandum Circular No. 28-2020.
- Revenue Memorandum Circular No. 31-2020 – This Memorandum extends the due dates for the submission and/or filing of certain documentation or correspondence by companies who are currently the subject of a BIR Audit.
Department of Labor and Employment
- Labor Advisory No. 12, Series of 2020 – The purpose of this Advisory is to provide clarification on the guidelines of DOLE’s COVID-19 Adjustment Measures Programme (CAMP). The Advisory also includes the Establishment Report form for making an application under CAMP.
We have outlined below the key points of information arising under these new BIR and DOLE issuances.
1. BIR – Revenue Memorandum Circular No. 30-2020
The BIR has issued Memorandum Circular No. 30-2020, dated 23 March 2020.
The purpose of the Memorandum is to amend Revenue Memorandum Circular 29-2020 and to clarify certain information contained in Revenue Memorandum Circular 28-2020. Our recent articles summarizing Revenue Memorandum Circular 29-2020 and Revenue Memorandum Circular 28-2020 can be found here and here.
Key points of information:
- Tax Filings/Payments – Revenue Memorandum Circular 29-2020 extended the deadlines for the filing and payment of tax returns falling due within the community quarantine period (i.e. in March 2020 and early April 2020). Under this new Revenue Memorandum Circular 30-2020, the BIR has now issued a new updated list of filing/payment deadlines and their respective extension dates. This list is contained in Annex A of Revenue Memorandum Circular 30-2020. This new list now includes more tax filing/payments and also includes original deadline dates that fall on 15 April 2020 (the previous list only included original dates up to 14 April 2020). The original list of filing/payment dates contained in Revenue Memorandum Circular 29-2020 can now be disregarded.
- ITR Attachments – This new Memorandum clarifies that any required attachments for the filing of the Annual Income Tax Return (AITR) must also be filed by 15 May 2020. Note: The filing date for the AITR was previously extended to 15 May 2020 under Revenue Memorandum Circular 28-2020.
- Other filings – The deadline dates for any other filings/submissions or other reporting requirements to the BIR, which are not included in the Annex A List but which fall due within the Enhanced Community Quarantine period, are also extended for 30 days from their original due dates.
- Further extensions – If the Enhanced Community Quarantine period is extended, then any filing, submissions, payments or reporting requirements that fall due within the extended period shall also be extended by 30 days from the original due date.
2. BIR – Revenue Memorandum Circular No. 31-2020
The BIR has issued Memorandum Circular No. 31-2020, dated 23 March 2020.
This Memorandum extends the due dates for the submission or filing of certain documentation or correspondence by companies who are currently the subject of a BIR Audit.
Key points of information:
- Memorandum Circular No. 31-2020 provides that where the date for submission or filing of, or responses to, the below listed documents falls within the Enhanced Community Quarantine (ECQ) period, the deadline shall be extended for 30 days from the date on which the ECQ period ends. The documents are generally applicable to companies that are subject to a BIR Audit.
- The relevant documents are:
- Letter Answer to Notice of Informal Conference
- Response to the Preliminary Assessment Notice
- Protest Letter to Final Assessment Notice/Formal Letter of Demand
- Submission of relevant supporting documents to support the request for re-investigation of Audit cases
- Appeal/Request for Reconsideration to the Commissioner on the Final Decision on Disputed Assessment
- Other similar letters and correspondences with due dates.
- For clarity, the BIR Memorandum notes that if a taxpayer/company is required to respond to any of the above documents by a date that falls within the ECQ, the extended date shall apply.
3. DOLE – Labor Advisory No. 12, Series of 2020
DOLE has issued Labor Advisory No. 12, Series of 2020, dated 18 March 2020.
This Advisory provides clarification on the guidelines for DOLE’s COVID-19 Adjustment Measures Programme (CAMP). The Advisory also includes the Establishment Report form that must be used by employers when making an application under CAMP.
Key points of information:
- The Advisory clarifies the definition of “Affected Worker”. So, for the purposes of CAMP, an Affected Worker is a worker employed, regardless of status (i.e. permanent, probationary, contractual) in a private establishment whose operations are affected by COVID-19.
- CAMP is available for Affected Workers across the Philippines (i.e. nationwide).
- The Establishment Report, which is the application form that employers must submit to DOLE when applying for CAMP, is contained at Annex A. Note: Company payroll for the month of February 2020 or earlier must be submitted with the Establishment Report.
- The DOLE Regional, Provincial and Field Offices Directory for online submission of the Establishment Report is contained at Annex B.
- The financial support under CAMP shall be disbursed directly to the employee’s bank account through bank transfer without delay after receipt of the fully completed Establishment Report and accompanying documentation. For employers operating a cash payroll, payment shall be completed through money remittance.
- CAMP is effective from 21 March 2020 and shall be applied retrospectively from January 2020.
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