COVID-19: BIR and DOLE Updates – 18 March 2020

Please note that certain of the information in this article has since been updated, amended and/or clarified through subsequent issuances by relevant government agencies. Please click here and here to access the relevant updates.

The Bureau of Internal Revenue (BIR) and the Department of Labor and Employment (DOLE) have issued a new Memorandum Circular and Order in response to COVID-19, as follows: 

1. BIR – Revenue Memorandum Circular No. 26-2020 – This Memorandum Circular prescribes the guidelines for the filing and payment of certain taxes due in the Philippines in March and April, including BIR Forms 2550M, 1600WP, 2550Q, 1702Q, 2000, 2000-OT, 1600, 1601C and 2200M. 

2. DOLE – Department Order No. 209, Series of 2020 – This Order provides guidelines on the implementation of the COVID-19 Adjustment Measures Programme, otherwise known as CAMP. This is for workers affected by the imposition of Flexible Work Arrangements (FWAs) or temporary closures by establishments in the private sector. 

We have outlined below the key points of information to consider under the new BIR and DOLE guidelines. 

1. BIR – Revenue Memorandum Circular No.26-2020  

The BIR issued Memorandum Circular No. 26-2020 on 17 March 2020. 

The purpose of the Memorandum is to outline the guidelines around the filing and payment of certain taxes that are normally due in March and April and which now fall within the community quarantine period.

Key points of information: 

• Filing deadlines for the following BIR Forms were previously extended. They have now been extended again – from 31 March 2020 to 30 April 2020:
  
  • BIR Form 1604-CF – Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes. 
  • BIR Form 2316 – Certificate of Compensation Payment/Tax Withheld For Compensation Payment With or Without Tax Withheld
  • BIR Form 1604-E – Annual Information Return of Creditable Income Taxes Withheld (Expanded), together with alphalist. 

• The tax returns listed below, all of which fall within the one-month community quarantine period, must still be filed and/or paid as normal on their respective due dates (see below). However, tentative tax returns can be filed by/before these due dates and taxpayers have 30 days from the relevant due date to ensure the final tax returns are filed and paid. 
  • 2550M – Monthly VAT Declaration for Non-eFPS Filers. To be filed/paid by 20 March 2020. 
  • 1600 WP – Percentage Tax remittance on winnings/prizes withheld by race track operators. To be filed/paid by 20 March 2020. 
  • 2550Q – Quarterly VAT Declaration – eFPS and non-eFPS filers. To be filed/paid by 25 March 2020. 
  • 1702Q – Quarterly Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers. To be filed/paid by 31 March 2020. 
  • 2000DST and 2000OT – To be filed/paid by 5 April 2020
  • 1600 with Monthly Alphalist of Payees and 1606 – To be filed/paid by 10 April 2020.
  • 1601C – For Non-eFPS Filers. To be filed/paid by 10 April 2020.
  • 2200M – Excise Tax Return for Sales of Metallic Minerals. To be filed/paid by 10 April 2020.

Our Tax Calendar for March is live and outlines the tax filings due for the month of March 2020. 

2. DOLE – Department Order No. 209, Series of 2020 

DOLE issued Department Order No.209, Series of 2020 on 17 March 2020.  

The purpose of the Order is to provide guidelines on the implementation of the COVID-19 Adjustment Measures Programme (CAMP) for private sector workers whose work has been affected by COVID-19. 

Key points of information: 

• CAMP is a Government programme designed to offer financial support to affected workers in the private sector due to the adoption by employers of Flexible Work Arrangements (FWAs) or temporary closures in light of COVID-19. Examples of an FWA include reduction of work hours, decrease in work days and rotation of employees. 

• Government employees are excluded from CAMP. 

• The financial support under CAMP consists of a one-time financial assistance payment of PHP5,000 to affected workers. This will be a non-conditional lump sum payment and will be paid regardless of employment status. 

• CAMP shall cover workers affected during the period from January 2020 up until 14 April 2020, unless the social distancing period is extended further by the Inter Agency Task Force for the Management of Emerging Infectious Diseases. 

• DOLE is encouraging large establishments in the Philippines to cover the full wages of employees during the month-long community quarantine period. 

• It is the establishment/employer who must apply for the financial  assistance on behalf of its workers. There are various requirements to avail of CAMP. Firstly, the employer must be a private establishment that has actually implemented a FWA or temporary closure. The employer must also submit (a) an “Establishment Report” stating how the business was affected by COVID-19, and (b) a company payroll register for the month prior to the FWA or temporary closure. 

• To avail of CAMP, private establishments and workers should review the Programme Implementation Procedures contained in Article IV of Department Order No. 209, Series of 2020. 

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