By Atty. Aziza Hannah Bacay on April 16,2020

With the Luzon-wide enhanced community quarantine (ECQ) extended until April 30, it is just proper for the Bureau of Internal Revenue (BIR) to also extend various statutory and tax deadlines. Such an extension is mandated by Republic Act 11469, or the “Bayanihan to Heal as One Act,” which gives President Rodrigo Duterte emergency powers to respond to the coronavirus disease 2019 (Covid-19) pandemic in the country.

Previously, the BIR issued Revenue Regulations (RR) 7-2020, dated March 30, 2020, to implement Section 4(z) of the Bayanihan law. However, some extended deadlines in RR 7-2020 fall on or before April 30 or within May, which gives taxpayers not much time to comply after the ECQ period expires. Thus, the BIR issued RR 10-2020, dated April 14, 2020, which details the new statutory deadlines for the submission and filing of documents and/or returns to the BIR and the payment of taxes.

Annual income tax returns (ITRs) – Deadline for the filing and payment of ITRs, originally extended until May 15, may now be filed until May 30. As for the submission of attachments to electronically filed annual ITRs, its deadline is extended to June 15.

Monthly value-added tax (VAT) – Deadline for the filing and payment of monthly VAT returns for February and March 2020 is now extended to May 6 to 10 and May 21 to May 25, respectively, depending on the group under which the taxpayer is categorized.

– Quarterly VAT – Deadline for the filing and payment of VAT for the fiscal quarter ending February 29 is extended to May 10 and for fiscal quarter ending March 31 to May 25.

– Documentary stamp tax (DST) – Deadline for the filing and payment of DST returns is now extended to May 20.

– Donor’s, estate and capital gains taxes (where the due date falls within the ECQ period) – Their filing and payment must be made within 30 days after the quarantine is lifted.

– Claim for VAT refund – The application for VAT credit/refund for the quarter ending March 31, 2018 may be filed on May 15, 2020 or within 30 days after the quarantine is lifted, whichever comes later; for the quarter ending April 30, 2019, the application may be filed on May 30, 2020 or within 30 days after the quarantine is lifted, whichever is later.

– Tax amnesty on delinquencies – The taxpayer may still avail himself or herself of such amnesty until June 8, 2020.

– The filing of position papers to Notice of Informal Conference, Preliminary Assessment Notice, Protest Letters and other similar letters are still due within 30 days after the quarantine is lifted.

– The suspension of running of limitation under Sections 203 and 222 of the National Internal Revenue Code is extended to 60 days after the quarantine is lifted.

– All other documents not listed in RR 10-2020 may be submitted within 30 days after the quarantine is lifted.

Furthermore, the filing of application for new authority to print for expiring principal and supplementary receipts/invoices where the expiration date falls within the ECQ period is also extended until May 13 or for 30 days after the quarantine is lifted, whichever comes later (RMC 41-2020, dated April 8, 2020).

Taxpayers who filed their returns within the original deadline or prior to the extended deadline may amend their returns at any time on or before the extended due date. If the amendment would result in additional tax to be paid, penalties shall not be imposed. On the other hand, if the amendment will result in the overpayment of tax, the taxpayer may pursue a tax credit for the same tax type in the succeeding period or claim a refund.

However, it should be noted that the BIR is yet to make any issuance extending the two-year period to claim for refunds of erroneously or illegally collected taxes under Section 229 of the Tax Code.

It is important that taxpayers are aware of and able to make the appropriate filings, payments and submissions within the new extended deadlines.

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Aziza A. Bacay is an associate of Mata-Perez, Tamayo & Francisco (MTF Counsel). This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit www.mtfcounsel.com.