The BIR recently extended numerous statutory BIR tax filing deadlines in the Philippines in relation to the month of January 2022!
During January 2022, the BIR issued two important documents for taxpayers in the Philippines – a Revenue Regulation and a Revenue Memorandum Circular.
In this article, we outline what these two BIR issuances mean for taxpayers in the Philippines, particularly when it comes to deadlines for BIR tax return filings and the submission of other types of information required by the BIR in January.
Revenue Regulations No.1-2022 & Revenue Memorandum Circular No.16-2022
Revenue Regulations No.1-2022 were issued by the BIR on 27 January 2022 and they are the very first Revenue Regulations of the 2022 calendar year!
The title of RR. No.1-2022 is particularly long – so we don’t propose to include the entire title text here! However, you can click here to access RR. No.1-2022 on the BIR website if you wish to review the full document.
In summary, the purpose of RR. No.1-2022 is to extend BIR filing and submission deadlines falling due for taxpayers in the Philippines who are registered in a jurisdiction under COVID-19 Alert Level 3 or higher during January 2022.
RMC No.16-2022 was subsequently issued by the BIR on 31 January 2022 in order to clarify certain items and provisions that were included in RR. No.1-2022.
Why Have BIR Tax Filing Deadlines Been Extended?
The BIR tax filing and information submission deadlines have been extended by the BIR in order to provide support and relief for companies and taxpayers during the recent surge in COVID-19 cases in the Philippines.
In particular, to provide support to those taxpayers registered in jurisdictions that the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases) designated as Alert Level 3 or higher during January 2022.
RR. No.1-2022 seeks to take into account the mandate of Presidential Proclamation No. 1218 which provided for all government agencies to render full assistance to and cooperate with each other to help eliminate the threat of COVID-19 in the Philippines.
As such, RR. No.1-2022 shall be applicable to taxpayers registered in areas in the Philippines that were designated as Alert Level 3 or higher in the month of January 2022.
Which Tax Filing Deadlines Have Been Extended?
Under RR. No.1-2022, the BIR outlines a number of tax-related activities that have been extended.
However, the specific deadlines that have been extended in respect of individual tax filings were not specified in RR. No.1-2022.
The tax-related activities extended by the BIR under RR. No.1-2022 are:
- Submission and/or filing of documents and/or returns, as well as the payment of the corresponding taxes due in respect of such filings;
- Filing of positions papers, replies, protests, documents and other similar letters and correspondences in relation to on-going BIR audit investigations;
- Filing of applications for tax refunds, which includes VAT refunds and the processing of VAT refund claims; and
- Issuance and service of Assessment Notices, Warrants of Distraint and/or Levy and Warrants of Garnishment, to enforce collection of deficiency taxes.
As noted above, while the BIR does note in RR No.1-2022 that the deadline for the submission and/or filing of documents and/or returns (and the payment associated with such filings) have been extended, it does not specify exactly which submissions or filings.
However, in response to numerous queries received by the BIR in relation to RR. No.1-2022 (as noted by the BIR itself), the BIR issued Revenue Memorandum Circular No. 16-2022.
RMC. No.16-2022 clarifies the scope and coverage of the extension of the deadlines provided for under RR. No.1-2022, particularly in relation to No. 1 above.
The BIR has now clarified that in relation to No. 1 above, the “submission and/or filing of documents and/or returns” will include the submission of all required documents, including Inventory Lists, and all types of returns, whether they are tax returns or information returns (including BIR Alphalists), in addition to other filings (i.e. this list is not exhaustive). The registration of Books of Accounts shall also be included in this extension.
Does the Filing Deadline Extension Apply to All Taxpayers in the Philippines?
Per RR. No.1-2022, the extension will only apply to taxpayers that are registered within the jurisdiction of the BIR Revenue Regional and BIR Revenue District Offices (RDO) which are in areas that were classified as being under Alert Level 3 or higher by the IATF during January 2022.
RMC No.16-2022 clarified that the extension shall also apply to taxpayers within the jurisdiction of the LTS Offices (Large Taxpayers Services) who are registered in an area that was under Alert Level 3 or higher during the month of January 2022.
However, RMC No.16-2022 provided for an additional clarification in relation to the extension for VAT refund claims (see item No.3 above in RR. No.1-2022) and the actual registered jurisdiction of a relevant taxpayer.
The BIR has clarified that the 30 day extension period will also apply if the taxpayer is registered in an area that is under Alert Level 1 or Alert Level 2, provided that the actual venue for submitting the filing is in an area that has been declared under Alert Level 3 during January 2022.
RMC No.16-2022 also provided that the 30 day extension period shall apply to the prescribed 90 day processing period for VAT refund claims.
For How Long are the Tax Filing Deadlines Extended?
The statutory filing and submission deadlines have been extended by 30 calendar days from the original due date of the filing under the BIR’s regular tax calendar.
Taxpayers in the Philippines – take note! The extension period refers to “calendar days”, not working days! So weekends must be included when computing the extension period for your PH business!
As alway with BIR tax filing deadlines, if the 30 calendar day extended date happens to fall on a weekend or a public holiday or a non-working day, the actual deadline date for filing will automatically move to the next working day.
Could the Statutory Deadlines be Extended Again?
Yes, possibly. There is provision in RR. No.1-2022 for a potential further extension of the BIR tax filing deadlines.
Under RR. No.1-2022, the Commissioner of Internal Revenue can further extend the statutory deadlines beyond the 30 calendar day extension provided for under RR. No.1-2022.
Such an extension can arise in two specific circumstances.
First – if the “factual circumstances warrant for such an extension”. Secondly – if the Secretary of Finance of the Philippines directs for the statutory filing deadlines to be extended again.
In this context, it should be noted that from 1 February 2022, a number of regions and areas around the Philippines have been downgraded and moved to Alert Level 2.
So, in the context of the COVID-19 pandemic, it is always important to understand which Alert Level applies to the area or jurisdiction in which you or your company is registered as a taxpayer and importantly – review what implications this might have for your BIR tax filing deadlines and obligations!
What Tax Filings Were Due in January?
January is always a busy month in the Philippines when it comes to tax and compliance requirements!
The usual monthly BIR tax filings will apply as usual and as required under the BIR tax calendar. However, there are a number of additional filings, that fall on an annual basis, which PH taxpayers must consider!
Some of these annual filings must be submitted to the BIR, while some of these annual filings must be submitted to other government agencies in the Philippines. For example, DOLE, City Hall, SSS, Pag-IBIG and others!
To understand some of the key additional annual filings that fall for PH taxpayers in January each year across the various government agencies, don’t hesitate to check out our recently published article – January Compliance for Companies in the Philippines!
CloudCfo – BIR Tax Filing Deadlines in the Philippines
CloudCfo supports 100+ Startups and SMEs across the Philippines to ensure they meet their BIR tax filing deadlines every month, quarter and every year!
Consult with the CloudCfo Team today and find out how we can support your startup or SME’s tax and compliance requirements and obligations here in the Philippines!