COVID-19 – BIR Extends Filing Deadlines for AITR and VAT Refund Claims – 19 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 to access the relevant update.

The Bureau of Internal Revenue (BIR) has issued two new Memorandum Circulars in response to COVID-19, as follows: 

1. BIR – Revenue Memorandum Circular No. 28-2020 – This amends RMC No. 25-2020 and extends the deadline for filing and payment of the 2019 Annual Income Tax Return (AITR).  

2. BIR – Revenue Memorandum Circular No. 27-2020 – This extends the deadline for the filing of VAT refund applications and suspends the 90-day processing period. 

We have outlined below the key points of information arising from each of these BIR Memorandum Circulars. 

1. BIR – Revenue Memorandum Circular No. 28-2020  

The BIR has issued Memorandum Circular No. 28-2020, dated 18 March 2020. 

The purpose of the Memorandum is to amend RMC No. 25-2020 by extending the deadline for the filing and payment of the 2019 Annual Income Tax Return (AITR). These measures have been put in place by the BIR to assist companies that might experience difficulties preparing and filing the AITR in April, as a result of skeletal workforces or otherwise, in light of COVID-19. 

Key points of information: 

• The filing and payment of the 2019 Annual Income Tax Return (AITR) has been extended from 15 April 2020 to 15 May 2020. Taxpayers will therefore not be penalized for filing the AITR after 15 April 2020 and before 15 May 2020. 

• If a taxpayer is in a position to file the AITR by the original deadline date of 15 April 2020, they can and should still go ahead and do so. 

• As outlined in Memorandum Circular No. 25-2020, for eFPS filers, the usual filing/payment procedures should be followed. For eBIR Forms filers, the following payment options are available: 
  • OTC payments through Authorized Agent Banks (AAB);
  • Revenue Collection Officers (if no AAB in the area); or
  • Electronic Online Payments, through Land Bank of the Philippines, Development Bank of the Philippines, Union Bank of the Philippines and payment gateways such as PayMaya and GCash.

2. BIR – Revenue Memorandum Circular No. 27-2020  

The BIR has issued Memorandum Circular No. 27-2020, dated 17 March. 

The Memorandum extends the deadline for the filing of VAT Refund applications and suspends the 90-day period for processing such applications. 

Key points of information: 

• The filing deadline for VAT Refund applications relating to the quarter ending on 31 March 2020 has been extended until 30 April 2020. 

• The 90-day office processing period for VAT Refund claims has been suspended for: 
  • existing claims already within the system; and 
  • claims that are submitted anytime up until 14 April 2020.

• The counting of days under the 90-day processing period shall resume again after the community quarantine period has ended. 

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