The BIR has provided taxpayers in the Philippines with an extension on upcoming deadlines in relation to their tax filing, payment and compliance obligations falling due in August.
This comes in response to the Government’s recent imposition of ECQ and MECQ periods in the National Capital Region (NCR) and across the rest of the country.
Below, we outline the key points that PH businesses need to know about the BIR’s most recent Memorandum Circular and what it means for taxpayers in the Philippines!
Background to BIR Deadlines Extension
The Government of the Philippines recently announced the imposition of an Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ) in the National Capital Region and other parts of the Philippines.
The purpose of the new community quarantine measures in the Philippines is to safeguard against a possible surge of COVID-19 cases in the country due to the Delta Variant of the coronavirus.
In response to the imposition of the new community quarantine measures, the Bureau of Internal Revenue, or the BIR, issued Revenue Memorandum Circular No. 91-2021 which provides for an extension on certain tax filings and payments that would normally fall due in August 2021.
BIR History of Extensions Due to COVID-19
This is not the first time that the BIR has extended tax filings as a result of COVID-19.
Throughout the 2020 calendar year, in response to various community quarantine measures imposed by the Government, the BIR regularly released communications to defer tax filing and payment deadlines in order to alleviate the administrative and operational burden for taxpayers during periods of community quarantine.
Previous extensions were also regularly communicated to taxpayers via the release of Revenue Memorandum Circulars.
Revenue Memorandum Circular No. 91-2021
Revenue Memorandum Circular No. 91-2021 is dated 3 August 2021.
The Memorandum Circular provides that the deadlines for the filing of tax returns and submission of payments for relevant taxes due which fall between 6 August 2021 and 20 August 2021 have been extended.
It is important to note that any deadlines for the submission of reports and relevant attachments to tax filings which fall during the above period have also been extended.
The extension of the relevant deadlines is only applicable to taxpayers registered in areas under ECQ and MECQ.
Until When Are The Deadlines Extended?
Tax filing or payments deadlines that fall within the period of 6 August 2021 to 20 August 2021 will be extended for a period of 15 calendar days from the 20 August 2021.
As usual with BIR tax filing dates throughout the fiscal year, if an extended deadline date falls on a non-working day or a holiday, the deadline shall automatically move to the next working/business day.
What If ECQ or MECQ Periods Are Extended Beyond 20 August 2021?
If the periods of ECQ and MECQ are extended beyond the 20 August 2021, then the deadlines for the filing of returns and submission of payments (and filing of reports and relevant attachments) will also be extended by a period of 15 days.
The “extended” period of 15 days will be from whatever date the relevant period of community quarantine is lifted in the area of the taxpayer.
What if Taxpayers Still Wish to Submit Tax Filings and Tax Payments During This Time?
Taxpayers can still file and submit payments during the deadline extension period (i.e. between 6 August and 20 August) if they wish and are able.
Taxpayers can file or pay via three different mechanisms:
- Payment of taxes can be processed at the taxpayer’s nearest bank which has been identified as an authorized bank by the BIR – also known as an Authorized Agent Bank (AAB);
- Submission of tax filings and paying of taxes can also be submitted to the relevant Revenue Collection Officers (RCOs) of the nearest RDO. Tax payments via cash must not exceed PHP20,000.
- Payment of taxes by taxpayers can also be actioned through a number of online payment platforms and facilities, as follows:
- Payment Platforms on Mobile. For example, GCash or PayMaya
- If the taxpayer has a registered bank account with Union Bank, they can pay through the UB Online Web App or Mobile App
- If the taxpayer has a registered bank account with Land Bank of the Philippines, they can use the Biz Portal and/or PesoNet facility
- If the taxpayer has a registered bank account with Development Bank of the Philippines, or DBP, holders of debit or credit cards can pay online.
Here at CloudCfo, we would always recommend the use of digital platforms and digital banking to help ensure that the finance function of our clients can run as smoothly and as efficiently as possible, particularly in times of operational uncertainty such as periods of community quarantine!
CloudCfo – Expert Tax Services Provider For Startups and SMEs in the Philippines
During lockdowns, whether ECQs, MECQs, GCQs or other forms of community quarantine, taxpayers in the Philippines can often find it difficult to navigate their way through the various BIR compliance updates in order to remain fully updated on their obligations from a PH tax and compliance perspective.
No worries! CloudCfo is here to support startups and SMEs in the Philippines with their tax compliance requirements!
First, we can support businesses across the Philippines through the provision of expert tax and compliance consultancy services. Our tax experts will help your company understand exactly what tax filings and tax payments are required as your PH business operates and grows!
Secondly, if you want to stay updated on all relevant SEC, DOLE and BIR updates and receive regular information and insights on the local Philippine tax and compliance framework directly to your email inbox, Sign Up to Our Monthly Insights Newsletter. Stay informed – always!
Contact the CloudCfo Team today and let’s discuss your tax requirements and identify how CloudCfo can help ensure 100% compliance for your PH business!