MTF UPDATES-BIR RR No. 8-2020
Dear Valued Clients and Friends,
We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 08-2020 dated April 2, 2020, which implements Section 4(aa) of the Republic Act No. 11469, otherwise known as the Bayanihan To Heal As One Act.
Pursuant to Sec. 4(aa) of the Bayanihan To Heal As One Act, all banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, including GSIS, SSS and PAG-IBIG Fund are directed to implement a minimum of a 30-day grace period for payment of loans.
RR No. 8-2020 states that all loans, including but not limited to salary, personal, housing, and motor vehicle loans, as well as credit card payments falling due within the Enhanced Community Quarantine (ECQ) Period are covered under above-cited provision. It shall also include extension of maturity periods that may result from the grant of grace periods for the said payments, whether or not such maturity periods originally fall due within the ECQ.
Further, for implementation of Sec. 4 (n) of the Bayanihan To Heal As One Act, the covered institutions are the following:
- Non-stock savings and loan associations
- Credit card issuers
- Other credit granting financial institutions under the supervision of Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), and Cooperative Development Authority, public or Cooperative Development Authority, public or private, including the GSIS, SSS, and PAG-IBIG Fund.
There shall also be no additional documentary stamp tax on credit extensions and credit restructuring, micro-lending, including those obtained from pawnshops and extensions thereof during the ECQ period.