Tax News - TMAP-Home · 2021. 1. 29. · BIR Issuances • No more extension of deadlines • Cash...

Tax NewsYour guide to the latest developments in Philippine taxation

April – June 2020

Tax News | April – June 2020 2

Contents

BIR Issuances• No more extension of deadlines• Cash conversion of unutilized TCCs• Further extension of filing of application for VAT refund• New BIR Form No. 1709: Information return on related

party transactions• Policies, guidelines, and procedures in the

destruction/disposal of goods/assets declared as waste or obsolete

• ATRIG for VAT exemption on sales and importation of prescription drugs and medicines

• Temporary measures for receipting/invoicing requirements during the ECQ period

• Leniency in acceptance of payment until 14 June 2020• Optional online submission of ITR attachments• Electronic filing of withdrawal of protest on FAN/FLD or

appeal on FDDA for tax amnesty purposes• Additional channel of payment of taxes• Clarification on the filing of tax returns until 14 June 2020• Compliance requirements and suspension of workaround

measures for receipting/invoicing requirements during the quarantine period

• Mandatory registration of persons engaged in digital transactions

• Extended deadline for availing of amnesty on tax delinquencies

• VAT-exempt prescription drugs and medicines as of 27 January 2020

• Tax clearance for POGO companies• Revised procedures on cancellation of PTU of CRMs, POS

machines, and other similar sales machines• Submission of summary list per RMC 36-2020• Acceptance of tax payments by AABs• AAB policies in the acceptance of tax returns whose due

dates fall within the community quarantine period• Acceptance of BIR Forms 1600-VT and 1600-PT by AABs

03

BIR Issuances

PEZA Issuances

SEC Issuances• Submission/filing of securities deposit during the ECQ

period• Authentication of AOI for new domestic corporations• Extended deadline on the submission of AFS and other

SEC reports• Procedures in filing AFS and GIS with SEC after ECQ

30

PEZA Issuances• COVID-19 relief measures for PEZA-registered

enterprises• Tools to assist PEZA clients during the community

quarantine

27SEC Issuances

CTA Decisions• Nature and amount of tax due must be indicated in the

waiver to be valid• Retirement pay due to involuntary separation is

exempt from tax• APIC is not an income but part of capital • Void assessment due to absence of authority on the

part of the examiner• Non-observance of the 15-day period to protest the

PAN violates the taxpayer’s right to due process and renders assessment void

• Association dues, membership fees, and other assessments/charges imposed by condominium corporations are exempt from tax

35

• Reiteration on the acceptance of AITRs and payments by AABs

• Delegation of authority to sign Certificate of Tax Exemption and rulings for energy-related projects

• Delegation of authority to sign EOI documents• Acceptance of BIR Form 2316

CTA Decisions

Annex


BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


No more extension of deadlines

Despite the extension of quarantine under the modified

enhanced community quarantine (MECQ), the Bureau of

Internal Revenue (BIR) has decided not to extend further

the due dates for the filing of tax returns and payment of

taxes, as well as submission of documents, which were

extended under Revenue Regulations (RR) No. 11-2020.

The BIR reminded taxpayers to file their returns and pay

taxes on or before the deadlines as provided under RR 11-

2020.

Kindly refer to the Annex for the list of returns with

extended deadlines.

(Revenue Regulations No. 12-2020, 21 May 2020)

Cash conversion of unutilized TCCs

Any tax credit certificate (TCC) that remains unutilized for

more than one year at any given interval of time during its

validity shall be converted into cash with prior written

notice by the BIR subject to the availability of funds and

procedural requirements to be issued for this purpose.

BIR Issuances

All TCCs that have expired effective 13 June 2020 shall

automatically be cancelled, except for TCCs in the

possession of the BIR for utilization through Tax Debit

Memo (TDM), which can be converted to cash or

revalidated before the expiration of their respective dates

of validity.

The list of expired TCCs and their corresponding owners

shall be circularized/posted in the BIR’s website within 30

days from 13 June 2020 as notice to the concerned TCC

owners.

(Revenue Regulations No. 14-2020, 28 May 2020)

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Further extension of filing of application for VAT refund

The BIR has extended further the deadline for applying for value-added tax (VAT) refund for the following

taxable quarters:

The revised deadlines do not apply to areas not yet declared to be in general community quarantine. In

which case, the deadline shall be 30 days from the lifting of the enhanced community quarantine (ECQ) or

modified ECQ (MECQ) in the affected areas of taxpayer-claimant or the above stated deadlines, whichever

comes later.

Further, for areas under ECQ or MECQ, the BIR’s 90-day period to process VAT refund claims is suspended.

(Revenue Regulations No. 16-2020, 25 June 2020)

BIR Issuances

Taxable Quarter Extended Deadline

Calendar quarter ended 31 March 2018 15 July 2020

Fiscal quarter ended 30 April 2018 31 July 2020

Fiscal quarter ended 31 May 2018 15 August 2020

Calendar quarter ended 30 June 2018 31 August 2020

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


New BIR Form No. 1709: Information return on related

party transactions

On 8 July 2020, the BIR released RR 19-2020, which

requires the mandatory submission of BIR Form No. 1709:

Information Return on Related Party Transactions

(Domestic and/or Foreign) along with the filing of

taxpayers’ Annual Income Tax Return (ITR). This regulation

replaces BIR Form No. 1702H: Information Return on

Transactions with Related Foreign Persons, series of 1992.

(Revenue Regulations No. 19-2020, 8 July 2020, effective on 25

July 2020)

Policies, guidelines, and procedures in the

destruction/disposal of goods/assets declared as waste

or obsolete

The BIR issued the following revised policies, guidelines,

and procedures in the conduct of inspection and

supervision of the destruction/disposal of inventories,

machineries, or equipment in relation to the determination

of deductible expense for inventory of goods/assets

declared as waste or obsolete due to spoilage,

deterioration, obsolescence, expiration, or other causes

rendering the same unfit for sale or for use in production.

BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


A. Taxpayer procedures

BIR Issuances

ProcedureDocumentary

Requirements

Time of

Processing/Submission

The documents shall be

filed with and processed by

the concerned Large

Taxpayers (LT) Office or

Revenue District Office

(RDO) where the principal

place of business of the

taxpayer is registered.

Note: Applications with

complete documents shall

be processed.

Arrangement of

inventory/assets shall also

be observed during

destruction for easy

identification and counting.

Failure to observe these

requirements shall be

grounds for denial of

application.

"Application for Destruction/Disposal of Goods/Assets”

(Annex A)

Attachments:

• Sworn Declaration of Goods/Assets as Waste or

Obsolete

• List of Goods/Assets for Destruction/Disposal

(Annex E); and/or

• List of Machineries/Equipment for

Destruction/Disposal (Annex E-1)

• Letter of intent that taxpayer is considering

availing of the services of third party as witness

in the process of destruction/disposal and

providing the same thereof

• Inventory list of goods duly received by the BIR

• Supporting documents to prove the reason

stated in this application as the cause for

destruction/disposal

• Other documents to prove the correctness of

the value of the goods/assets to be

destroyed/disposed

At least seven days

before the proposed

date of

destruction/disposal

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex



BIR Issuances

Should a company be required to have a BIR Representative or third party witness the manner of

destruction, the following shall be observed/complied with along with the Application Form:

Submission of the

document to the

concerned BIR Office

where the principal place

of business of the taxpayer

is registered

Duly accomplished and notarized Sworn Declaration of

Asset Disposal (Annex F) executed by the President,

Chief Finance Officer, or any authorized

representative, along with the following:

• If witnessed by BIR Representative (physical or

virtual)

o Photographs of the assets BEFORE, DURING,

and AFTER the destruction/disposal, with

proper labels, numbering, and quantity

following the list in the Sworn Declaration of

Asset Disposal captured in JPEG or other

format acceptable to the BIR, and bearing

the respective date and time when such

were taken

• If witnessed by a third party

o Video footage of the activity BEFORE,

DURING, and AFTER the destruction shall be

submitted in a format (e.g., MP4) acceptable

to the BIR.

Within three days after

the completion of the

actual

destruction/disposal of

the inventory/assets

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex



BIR Issuances

Should a company be required to have a BIR Representative or third party witness the manner of

destruction, the following shall be observed/complied with along with the Application Form:

Note: Both options shall bear the image of the front

page of a newspaper of national circulation as

evidence of the actual date of the said activity. The

same shall be submitted in any acceptable storage

device (i.e., DVD, USB, memory stick)

• Duly accomplished and notarized Sworn

Declaration (Annex F) executed by the third

party who, under the penalty of perjury,

witnessed the process of destruction/disposal

stating the accuracy as to the quantity of the

items and the manner of destruction or disposal

of inventory or equipment

The taxpayer shall also be responsible for coordinating with and assisting the duly authorized BIR representative in

verifying the value and supervising the actual destruction/disposal of the goods/assets/equipment.

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


B. LT Office/RDO procedures

BIR Issuances

ProcedureDocuments/Certification

Produced

Time of


The BIR shall accept and stamp the word

"RECEIVED" on the application.

Otherwise, the same shall be returned

noting the missing requirements.

Duly Received "Application for

Destruction/Disposal of Goods/Assets”

(Annex A) with attachments

Upon filing/

application

BEFORE destruction/disposal. The BIR

will assign immediately the application to

a Revenue Officer to verify the accuracy

and completeness of the information

reflected in the application against the

supporting documents, and inform the

taxpayer-applicant as to the approved

manner and date of witnessing, and

schedule of destruction/disposal.

Note: Upon verification of the

information, if any discrepancy is noted,

the taxpayer is required to explain the

discrepancy or to submit additional

document, as the case may be. The BIR

will also request the taxpayer to take

pictures of the assets to be

destroyed/disposed.

If the scheduled destruction/disposal is

to be witnessed by a third party, the BIR

shall issue a letter of “Authorization to

Witness the Conduct of

Destruction/Disposal” (Annex B) to the

third party through the taxpayer.

Within five days after the

receipt of application

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex



BIR Issuances


Produced

Time of


DURING destruction/disposal. The BIR

will check the existence of the actual

volume/quantity and description of

articles/goods/materials/assets.

The BIR will also supervise and witness

the conduct of actual

destruction/disposal, ensuring that the

goods are actually destroyed.

Date of witnessing, and

schedule of destruction/

disposal

AFTER destruction/disposal. The BIR

shall compare the amounts or value of

inventory per list submitted against

taxpayer's accounting records and

determine the correctness of the

valuation of the goods

destroyed/disposed, and verify that the

goods subject for disposal/destruction

actually formed part of the taxpayer's

inventory or assets as of the time of

disposal/destruction.

• Memorandum report on the result

of disposal/destruction conducted

containing the following but not

limited to:

Nature of the taxpayer’s

business

Brief description of the

activities undertaken during

the inspection or verification

Findings and other relevant

information uncovered during

the inspection or verification

Within five days from the

date of submission of

pictures and other

required documents

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex



BIR Issuances


Produced

Time of


Corresponding reports as well as the "Certificate of Deductibility of Goods/AssetsDestructed/Disposed" shall be approved by:

a. ACIR-LTS or Regional Director, which may be delegated in writing to the Division Chiefs of the LT Office/RDO having jurisdiction over the applicant-taxpayer for goods not subject to excise tax

b. Excise Tax Divisions of the LTS for goods, products, and articles subject to excise tax

Recommendation relevant to the application (e.g., approve/denied, amount of allowable deduction, etc.)

• "Certificate of Deductibility of Goods/Assets Destructed/Disposed” (Annex C) or (Annex C-1)

C. Other guidelines

1. The valuation that will be used for the inventory of assets to be disposed/destroyed shall be the actual cost. Currently, where the actual cost cannot be accurately determined, the inventory valuation maintained and used by the taxpayer shall be adopted subject to adjustment upon verification during the audit. In the case of fixed assets, the carrying book value shall be considered.

2. In case the inventories/assets applied for disposal are, for any reason or cause, replaced/substituted by its supplier, or the taxpayer shall become entitled to reimbursement for the partial or equivalent value thereof by an insurance company, the claim for the deductibility of the value thereof shall be denied.

(Revenue Memorandum Order No. 21-2020, 10 July 2020)

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


ATRIG for VAT exemption on sales and

importation of prescription drugs and

medicines

For VAT purposes, the Authority to

Release Imported Goods (ATRIG) shall be

issued on all importations of articles

exempt from VAT pursuant to Revenue

Memorandum Order (RMO) No. 35-2002,

as currently being implemented by RDO

33. Said RDO shall process the application

for ATRIG by the manufacturers,

distributors, wholesalers, and retailers of

drugs and medicines included in the list of

approved drugs and medicines issued by

the Department of Health.

(Revenue Memorandum Order No. 23-2020,

15 July 2020)

Temporary measures for

receipting/invoicing requirements

during the ECQ period

The BIR issued the following

guidelines/alternative documentation that

taxpayers may use to address the

concerns regarding the issuance of

invoices and/or receipts during the ECQ

period, such as expired Authority to

Print (ATP), inaccessible

receipts/invoices due to office closure,

or difficulties in mailing/sending

receipts/invoices:

1. BIR Printed Receipts/Invoices

(BPR/BPI) pursuant to Revenue

Memorandum Circular (RMC)

No. 28-2019, as amended

2. Scanned copy of receipt/invoice

with ATP and electronically

transmitted in JPEG, PDF, or any

equivalent format to the

customer

3. Computer-aided receipt/invoice

in Excel format transmitted

electronically in JPEG, PDF, or

any equivalent format to the

customer

4. Supplementary

Receipts/Invoices (e.g., Delivery

Receipts, Acknowledgment

Receipts, etc.) are issued in lieu

of the Principal

Receipts/Invoices (i.e., Official

Receipt and Sales Invoice)

5. Receipt/Invoice using the

existing Computerized

Accounting System (CAS) or its

components with approved

Permit To Use (PTU) or

Acknowledgment Certificate

electronically sent to the

customer in JPEG, PDF, or similar

format

6. Receipt/Invoice under a newly

developed receipting/invoicing

software or CAS or its

components without duly

approved PTU or

Acknowledgment Certificate

used to temporarily

generate/issue receipts/invoices

sent to the customer in JPEG,

PDF, or similar format

BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


The adoption of any of these alternatives

or work-around procedures shall be

allowed provided that the following

guidelines and procedures are strictly

observed and performed:

1. Submission of a formal letter to the

BIR informing it of the alternative to

be adopted by the taxpayer within

three days from the effectivity of

this RMC with the following

information:

a. Name of taxpayer

b. Taxpayer’s registered address

c. Taxpayer Identification Number

with Branch Code

d. Temporary measures to be used

or being used during the ECQ

indicating the serial numbers of

the receipts/invoices that will be

issued

e. Statement that the taxpayer is

amenable to a post-verification

of the reported sales during the

period

f. Signature of taxpayer or its

authorized representative and

designation

The letter must be submitted via email

to the following:

• For Non-Large Taxpayers

(Regular Taxpayers):

Client Support Service (CSS)

Attention: Taxpayer Service

Programs and Monitoring Division

(TSPMD) at

[email protected]

• For Large Taxpayers:

LTs registered under RDOs 116,

125, and 126

- Large Taxpayers Assistance

Division (LTAD) at

[email protected]

LTs registered under RDOs 121

and 124

- Excise Large Taxpayers

Regulatory Division (ELTRD) at

[email protected]

LTs registered under RDO 123

- LT District Office Cebu at

[email protected]

LTs registered under RDO 127

- LT District Office Davao at

[email protected]

and/or [email protected]

2. Upon lifting of ECQ, the duly

authorized receipts/invoices

should be issued or provided by

the taxpayer/seller immediately

to their clients to cover all sales

transactions that were issued

with temporary receipts/invoices

during the ECQ period. Priority

in the issuance of authorized

receipts/invoices should be

given to the temporary

receipts/invoices over current

transactions. The authorized

manual receipts/invoices should

indicate the actual date of

transaction with the copy of

the temporary receipts/invoices

attached for audit purposes.

BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex

mailto:[email protected]







For taxpayers using a receipting/invoicing

system or CAS that automatically indicates

the date of transaction, i.e., date

generated, the actual date of transaction

should also appear on the system-

generated documents. These documents

shall not be considered “out of period”

receipts/invoices since they were issued

during the ECQ as temporary measures

taken by the taxpayer.

3. Submission of Summary of

Temporary Receipts/Invoices

Issued to respective BIR Offices

within 90 days from the lifting of

the ECQ, following the format of

Annex A of the RMC

All taxpayers with access to their duly

authorized receipts/invoices and did not

adopt any temporary measures in the

issuance of receipts/invoices during the

ECQ shall not be covered by this RMC.

(Revenue Memorandum Circular No. 47-

2020, 11 May 2020)

Leniency in acceptance of payment

until 14 June 2020

The leniency as provided in RMC 43-

2020 to file returns and pay

corresponding taxes (including

payment of amnesty tax) was

extended to 14 June 2020. Taxpayers

have the following options:

1. File the tax return and pay

corresponding taxes at the

nearest Authorized Agent Banks

(AABs) in any RDO jurisdiction;

or

2. File the tax return and pay

corresponding tax to the

concerned Revenue Collection

Officers (RCOs) of the nearest

RDO even if there are AABs

nearby.

Any cash payment of taxes should not

exceed P20,000.00, while check

payments will have no limitation as to

the amount as long as they are paid to

the RCO in the district until 14 June

2020.

Note that checks payable to the BIR

shall be accepted whether or not the

check has “IFO Name and TIN of the

taxpayer” written on the back or

indication of the name and branch of

the receiving AAB.


2020, 22 May 2020)

BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Optional online submission of ITR attachments

The BIR issued the guidelines on the optional online

submission of the 2019 filed ITR and the required

attachments via eAFS.

(Revenue Memorandum Circular No. 49-2020, 22 May 2020)

Electronic filing of withdrawal of protest on FAN/FLD or

appeal on FDDA for tax amnesty purposes

The BIR has issued the guidelines for the electronic filing of

withdrawal of the protest on Final Assessment Notice

(FAN)/Formal Letter of Demand (FLD) or appeal on Final

Decision on Disputed Assessment (FDDA) for purposes of

tax amnesty as previously mentioned in RMC 57-2019, as

amended by RMC 11-2020.

The regular filing of papers or pleadings will resume once

the ECQ or general community quarantine (GCQ) is lifted.

Thereafter, the option for online filing of withdrawal of any

protest or appeal shall no longer be allowed.


BIR Issuances

Additional channel of payment of taxes

The BIR announced the availability of electronic/online tax

payment for taxpayers using the electronic filing facilities

of eBIRForms system and/or Electronic Filing and Payment

System (eFPS) through the use of a mobile application.


BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Clarification on the filing of tax returns until 14 June

2020

The BIR has issued the following on the manner of filing of

tax returns and payment of corresponding taxes due

thereon until 14 June 2020, pursuant to RMC 48-2020:

1. File the return and pay taxes at the nearest AAB,

notwithstanding RDO jurisdiction.

2. File the tax return and pay corresponding tax to the

concerned RCOs of the nearest RDO even if there

are AABs nearby. Any cash payment of taxes should

not exceed P20,000.00, while check payments will

have no limit as to amount as long as the checks are

paid to the RCO in the district until 14 June 2020.

Note that checks payable to the BIR shall be

accepted whether or not the check has “IFO Name

and TIN of the taxpayer” written on it or indication

of the name and branch of the receiving AAB.

3. Taxpayers filing through eBIRForms may pay

corresponding taxes through the following payment

options:

a. Over-the-counter (OTC) payment through AAB

b. RCOs of the nearest RDO even if there are AABs

nearby

c. Other electronic/online payment channels

BIR Issuances

4. eFPS users shall continue to file through the system

and pay corresponding taxes with their registered

AAB.

5. Non-eFPS users can either file through eBIRForms or

manually while no payment returns shall be filed

through eBIRForms. In case internet connection is

unavailable, taxpayers shall manually file at the

nearest RDO.

6. In case the BIR’s electronic filing facilities are

unavailable, taxpayers shall manually file the returns

and pay the taxes due thereon through the

abovementioned payment venues.

(Revenue Memorandum Circular No. 56-2020, 2 June 2020)

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Compliance requirements and suspension of

workaround measures for receipting/invoicing

requirements during the quarantine period

Under RMC 47-2020, taxpayers were allowed to adopt

temporary measures when complying with the

receipting/invoicing requirements during the ECQ and

MECQ. Those who adopted the temporary or workaround

procedures during the ECQ and MECQ under RMC 47-2020

are required to submit their Summary of Temporary

Receipts/Invoices Issued within 90 days from the lifting of

ECQ and/or MECQ.

Moreover, since the difficulties addressed under RMC 47-

2020 no longer exist under the GCQ, taxpayers who

adopted the workaround procedures during ECQ and

MECQ should already discontinue the use of these

temporary measures. The continued use of such measures

under RMC 47-2020 during the GCQ and/or modified GCQ

shall be considered a violation of the receipting/invoicing

requirements.


BIR Issuances

Mandatory registration of persons engaged in digital

transactions

The BIR has reminded all persons doing business and

earning income from digital transactions through the use

of electronic platforms, media, and other digital means,

which include sellers, merchants, and other stakeholders

such as payment gateways, delivery channels, internet

service providers, and other facilitators, to register their

business with the BIR.

For those who will register their business activity and/or

update their registration status not later than 31 July 2020,

the BIR shall not impose a penalty for late registration.

Likewise, no penalty will be imposed when they voluntarily

declare their past transactions and pay the taxes due on or

before 31 July 2020. All those who will be found later to be

doing business without complying with the

registration/update requirements and failing to declare

past due taxes/unpaid taxes will have to reckon with

applicable penalties under the law and existing rules and

regulations.


BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Extended deadline for availing of amnesty on tax

delinquencies

The BIR has extended the deadline for availing of tax

amnesty on delinquencies from 22 June 2020, as provided

under RR 11-2020, to 31 December 2020.


VAT-exempt prescription drugs and medicines as of 27

January 2020

The BIR, in coordination with the Food and Drug

Administration (FDA), issued the list of prescription drugs

and medicines for diabetes, high cholesterol, and

hypertension that are exempt from VAT beginning 27

January 2020.


Tax clearance for POGO companies

The BIR issued the revised guidelines and requirements for

Philippine Offshore Gaming Operators (POGO) licensees

and service providers for the processing of their

application for a clearance in connection with the

resumption of operations.


BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Revised procedures on cancellation of

PTU of CRMs, POS machines, and other

similar sales machines

The BIR issued the following guidelines

and procedures on the cancellation of

PTU of cash register machines (CRMs),

point of sales (POS) machines, and other

similar sales machines generating

receipts/invoices.

1. The cancellation of the PTU

CRM/POS machine shall be

processed by the RDO/LT Office

having jurisdiction over the

taxpayer’s business address where

the machine was registered.

2. The taxpayer shall notify the

concerned RDO/LT Office, in

writing, on their request for

cancellation of the PTU within five

days from the date the machine

was last used/withdrawn from use

stating the reason(s) for the

cancellation and other information

such as, but not limited to, the

following:

• Permit Number

• Machine Identification

Number (MIN)

• Type of Machine

• Machine serial number,

brand/model

• Software name and/or version

• Grand accumulated sales as of

last day of use of the machine

3. The taxpayer shall submit the

following documents as an

attachment to the Letter or to

the assigned Revenue Officer at

the time of machine inspection:

• Copy of the Z-Reading (for POS

machines)/audit tape (for

CRM) showing the reset

counter number and End of

Day (EOD)/Z-Counter Reading

as of last day of use of the

machine/s

• Copy of the back-end report

(for POS machines)/cash

register sales book page (for

CRM) as of last day of use of

the machine/s

• Original copy of the PTU

issued

• Original copy of the Decal

• Reprint copy of the last

invoice/receipt generated as of

last day of use showing the

serial number of such

invoice/receipt

• Copy of the Z-Reading/EOD

Report or its equivalent

showing that the sales

machine was reset to zero or

initialized

• For new/upgraded software

(loaded in the same machine

where the old software is

installed): Copy of the Z-

Reading/EOD Report or its

equivalent showing the initial

reading of the newly installed

software

BIR Issuances

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


4. Actual inspection of the CRM/POS

shall be mandatory in case of its

withdrawal from use or its transfer

to another branch of the company.

However, in case of

modification/upgrading of the

software being used, actual

inspection of the machine may be

dispensed with so as not to disrupt

the normal business operation of

the taxpayer under the following

conditions:

• New/upgraded software shall be

set up in the same

hardware/machines where the

old POS software are installed

• POS machines are with existing

PTU issued through the Electronic

Accreditation and Registration

(eAccReg) System

• The new or upgraded software

will be

implemented/deployed/rolled out

nationwide or in

branches/franchisees located in

different RDOs

• The changing/loading of the

new/upgraded software in the

POS machines will be

implemented immediately

after the close of business

hours

5. In case of withdrawal from use

or transfer of the CRM/POS to

another branch of the taxpayer,

the assigned Revenue Officer

shall conduct an inspection of

the machine and perform the

following:

• Check the specifications and

details of the said machine/s

as against the specifications

indicated in the letter of the

taxpayer

• Request taxpayer to generate

the Z-Reading as of the day of

inspection and match it with

the Z-Reading (as of last day of

use) submitted by the

taxpayer. The grand

accumulated sales should be

the same. This means that the

taxpayer did not use the

machine after the reported

last day of use.

• Request taxpayer to generate

the back end report (for POS)

of the machine as of the date

of inspection and compare

with the grand accumulated

sales as reflected in the Z-

Reading as of the last day of

use of the machine. For CRM,

check the entries in the Cash

Register Sales Book if updated

(last entry should be the

declared last day of use of the

machine).

• Initialize the resetting to zero

of the machine

• Impose penalty for any

violation pertaining to the use

of CRM/POS machines that

may be found during the

inspection

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6. Non-payment of the penalties at

the time of the request for

cancellation of the PTU shall not be

grounds for the non-issuance of the

Cancellation Certificate.

7. The assigned Revenue Officer shall

submit a Memorandum Report on

the result of the inspection upon

completion of the machine

inspection and submission of the

required documents by the

taxpayer for approval by the

Assistant Commissioner, LTS/RDO.

8. Upon approval of the Memo Report

of the assigned Revenue Officer,

the Chief, Client Support Section of

the RDO/Chief, LT concerned office

or its authorized staff shall cancel

the PTU and the MIN of the

machine in the eAccReg system and

generate the Cancellation

Certificate.

9. The Cancellation Certificate must

be issued within seven days from

receipt of the letter request of

the taxpayer by the concerned

RDO/LT Office. In case the

inspection of the machine was

dispensed with, the

Cancellation Certificate shall be

issued to the taxpayer within

three working days from

receipt of the complete

requirements by the

RDO/concerned LT Office.

10. The concerned LT Office/RDO

shall approve the application

for PTU through the eAccReg

within three days from receipt

of such application as

mandated under the Citizen’s

Charter of the BIR.

11. In order to authorize the

simultaneous registration in

eAccReg system of the new

accredited software or

upgraded software to be

installed in the same machine

with application for

cancellation of the old

software, the taxpayer shall

secure approval in writing from

the concerned LT Office/RDO to

add a distinct prefix/suffix to

the serial number of the sales

machine to allow registration of

the new software consisting of

serial number of machine

followed by prefix/suffix e.g.,

123456A.

Some of the procedures set herein are

reiterations of the provisions of RMC

72-2018. To clarify, the policies,

requirements, and procedures in the

said RMC apply only to machines

found during Post-Evaluation to have

requested for cancellation of PTU but

have not been acted upon by the

concerned LT Office/RDO. Otherwise,

the provisions on cancellation of PTU

under this Circular shall apply.


2020, 13 July 2020)

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Submission of summary list per RMC 36-2020Part C of RMC 36-2020 was amended to remove the requirement of submission of photocopies of documents evidencing credit extensions and credit restructurings granted by covered institutions during the ECQ period. This will be subjected to post audit/verification by the BIR if the summary list pertains to qualified loans only.

(Revenue Memorandum Circular No. 72-2020, 17 July 2020)

Acceptance of tax payments by AABsThe BIR advised all AABs to accept over-the-counter filing and payment of returns by eFPS filers whether the printed copy of the pop-up message screenshot of unsuccessful e-filing is available or not.

Further, AABs are advised to accept check payments during the ECQ period from any taxpayer even if the name of the receiving AAB branch is not indicated on the check, provided that all check payments shall be made payable to the BIR.

(Bank Bulletin No. 2020-04, 15 April 2020)

AAB policies in the acceptance of tax returns whose due dates fall within the community quarantine periodThe following are the policies of AABs in the acceptance of tax returns that fall due during the quarantine period:

1. Accept all tax payments, even out-of-district returns.

2. Accept all tax payments being made by the taxpayers in any of the following forms:a. BIR official printed forms and

copies of system-generated Filing Reference Numbers (FRNs)

b. Photocopies of returns/computer-generated or electronically-filed tax returns

c. Downloaded BIR Forms/tax returns originally filled out and signed by the taxpayers or their duly authorized representative

3. Receive the tax returns with the stamp of the official receiving seal on the space provided for in three copies of each type of return regardless if the taxpayer is under the jurisdiction of a regional office. Any excess copy of a return shall not be stamped “RECEIVED” by the AAB.

For corporations and other juridical persons covered by BIR Form No. 1702, the stamp “RECEIVED” shall extend to at least two additional copies of the audited financial statements (AFSs), aside from those attached to the ITRs, to satisfy the requirements of the Securities and Exchange Commission (SEC).

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4. Stamp “Received” the attached

financial statements to the ITRs

only on the page of the Audit

Certificate, Balance Sheet, and

Income Statement.

5. Ensure that notable portions of the

returns are machine-validated and

the tax payment details are clearly

printed on all copies.

Any check payable to the BIR shall

be accepted, whether or not it has

“IFO Name and TIN of the taxpayer”

written on the back of the check.

6. Accept payments made through

checks or combination of cash and

check/s or combination of two or

more checks in the payment for

single tax liability/return.

7. Accept tax payments from

taxpayers who are within the bank’s

premises by the close of the AAB

banking hours.

8. Accept check payments even

after the bank clearing/cut-off

time and just stamp the tax

return “Received after cut-

off/clearing” or similar stamp.

9. Accept the payment of

manually filed and out-of-

district returns from taxpayers

enrolled under the eFPS in case

of unavailability of the eFPS

facility as announced by the BIR

through an advisory.

10. Imposition of penalties shall be

made only by the BIR and not

by the AABs.

(Bank Bulletin No. 2020-05, 20 May 2020)

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Acceptance of BIR Forms 1600-VT and 1600-PT by AABs

All AABs are advised to accept the revised Monthly

Remittance Return of Value-Added Tax Withheld (BIR Form

1600-VT) and the new Monthly Remittance Return of Other

Percentage Taxes Withheld (BIR Form 1600-PT), as made

available under RMC 13-2020.

(Bank Bulletin No. 2020-06, 17 February 2020)

Reiteration on the acceptance of AITRs and payments

by AABs

The BIR reminded AABs of their responsibilities regarding

the acceptance of ITRs and payments of the corresponding

taxes.

1. Since 14 June 2020 falls on a Sunday, the deadline

for filing and payment of ITR is automatically moved

to the next working day, which is 15 June 2020.

2. Until 15 June 2020, banking hours shall be extended

to 5:00 PM to accept ITRs.

3. Tax payments will be accepted from taxpayers who

are already within the bank’s premises by the time of

the said extended banking hour.

(Bank Bulletin No. 2020-08, 10 June 2020)

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Delegation of authority to sign Certificate of Tax

Exemption and rulings for energy-related projects

In compliance with Republic Act (RA) No. 11234 (otherwise

known as the Energy Virtual One-Stop Shop Act) and to

enhance administrative efficiency, the Commissioner of

Internal Revenue has delegated the authority to address

and sign Certificates of Tax Exemptions and rulings on

energy-related projects to the Assistant Commissioner for

Legal Service.

(Revenue Delegation Authority Order No. 2-2020, 18 May 2020)

Delegation of authority to sign EOI documents

The following exchange of information (EOI) documents

shall be signed by the following officials:

1. Letter to banks and other financial institutions –

Deputy Commissioner, Legal Group

2. Final reply to foreign tax authority – Assistant

Commissioner, Legal Service

3. Outgoing EOI requests – Deputy Commissioner,

Legal Group

(Revenue Delegation Authority Order No. 3-2020, 24 July 2020)

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Acceptance of BIR Form 2316

The BIR will accept the submission of BIR Form No. 2316

(Certificate of Compensation Payment/Tax Withheld For

Compensation Payment With or Without Tax Withheld)

even without the signature of the concerned employee

during the state of public health emergency.

(BIR Memorandum dated 22 May 2020)

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PEZA Issuances

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COVID-19 relief measures for PEZA-registered

enterprises

The Philippine Economic Zone Authority (PEZA) has

implemented the following measures to cushion the

impact of the ECQ on PEZA-registered enterprises:

1. Deferment of rental payment in the public

ecozones

Rental payments for the months of April and May

2020 in the public ecozones [i.e., Cavite Economic

Zone (CEZ), Mactan Economic Zone (MEZ), Baguio

City Economic Zone (BCEZ), and Pampanga

Economic Zone (PEZ)] are deferred for 90 days from

the due date without the imposition of interest or

penalty during the grace period.

2. Deferment of utility payments in the public

ecozones

Payments for utilities (i.e., electricity, water,

wastewater treatment) in the public ecozones are

deferred for 30 days without the imposition of

interest or penalty during the grace period.

3. Grace period for old unpaid accounts

Unpaid accounts covering the months of January to

March 2020 prior to the implementation of the ECQ

shall be given a grace period for payment of 90 days.

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4. Deferment of processing fee payments

Payments for fees of PEZA services and permits,

particularly for Letter of Authority (LOA), building

permits, visa processing, etc., may be paid within 15

days from lifting of the ECQ. The LOA and visa

processing permit fees deferment are limited to

transactions with the PEZA Head Office in BGC,

Taguig City, since applicants in the private ecozones

are able to pay these transactions in the zones.

(PEZA Memorandum Circular No. 2020-0023, 18 April 2020)

Tools to assist PEZA clients during the community

quarantine

The PEZA developed the following assistive tools for

registered enterprises during the community quarantine:

1. Client Assistance Portal

PEZA clients may request assistance for applications,

raise issues on movements of goods, inquire about

PEZA requirements, request for appointment to visit

the Head Office or meet through teleconferencing,

and others through the Client Assistance Portal.

PEZA units shall respond to the concerns raised

within 24 hours from the receipt of the entry.

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http://www.peza.gov.ph/assistanceportal


2. Mobile numbers

All mobile numbers of Head Office officials with

frontline functions will be posted on the PEZA

website.

3. Safety guidelines when visiting PEZA offices

PEZA shall provide a one-pager reminder on the

PEZA website regarding the safety protocols that

visitors should follow when they visit PEZA offices.

This will also be posted in the reception areas of

PEZA offices so clients will be guided accordingly.

(PEZA Memorandum Circular No. 2020-0033, 8 June 2020)

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Securities and Exchange Commission Issuances

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Submission/filing of securities deposit during the ECQ

period

The SEC has extended by 30 days from the lifting of the

ECQ the filing or submission of initial securities deposit

required for newly registered branch offices of foreign

corporations, wherein the 60-day deadline falls due within

the ECQ period. The extension also covers the submission

of additional securities deposit and application for

substitution of securities that are due or have matured

during the ECQ period.

(SEC Memorandum Circular No. 11 Series of 2020, 26 March

2020)

Authentication of AOI for new domestic corporations

The SEC has issued the following guidelines on the

registration of new domestic corporations:

1. The registration of Articles of Incorporation (AOI)

shall be accompanied by a Certificate of

Authentication signed by all incorporators in the

form prescribed by the SEC. The AOI and the

Certificate of Authentication need not be notarized

nor consularized.

2. The incorporators may opt to have the AOI

acknowledged before a notary public. Further, if

executed outside the Philippines, the AOI may be

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apostilled or notarized/authenticated by a Philippine

diplomatic or consular officer.

3. The application for registration of a new domestic

corporation with more than 40% foreign equity shall

be accompanied by an application for registration of

investments of non-Philippine national using SEC

Form F-100, if applicable, which must be

authenticated if executed outside the Philippines.

A Certificate of Registration obtained through

fraud/misrepresentation as well as willful certification of

incomplete, inaccurate, false, or misleading

statements/reports shall be subject to the applicable

penalties under the existing rules and regulations.

(SEC Memorandum Circular No. 16 Series of 2020, 29 April

2020)

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Extended deadline on the submission of AFS and other SEC reportsThe SEC has extended the submission deadline for the following reports of companies with fiscal years ending 31 January 2020 to 31 March 2020, for a period of 60 calendar days from the regular filing deadlines, and 45 calendar days for companies with fiscal year ending 30 April 2020 from the regular filing deadline.

1. Annual Reports (SEC Form 17-A) and AFS of publicly-listed companies (PLC)

2. Annual Reports and AFS of issuers of registered securities (other than PLC)

3. AFS of all other companies other than items (1) and (2) above

The deadline for the submission of Quarterly Reports (SEC 17-Q) for the first quarter has likewise been extended by 45 calendar days from the regular filing deadlines, without the need for a request for extension.

However, PLC and issuers of registered securities under the supervision of the Market and Securities Regulation Department must file the special disclosure form SEC Form 17-LC not later than five calendar days before the regular filing deadline to avail of the extended period for filing of the SEC Form 17-A and SEC Form 17-Q Reports.

(SEC Memorandum Circular No. 17 Series of 2020, 7 May 2020)

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Procedures in filing AFS and GIS with SEC after ECQThe SEC revised its Memorandum Circular 18 series of 2020, and adopted procedures for receiving reports (Audited Financial Statements and General Information Sheets) during the period of filing after the ECQ.

Audited Financial Statements and General Information Sheet (GIS)

I. All corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations, shall file their AFS and GIS through the SEC Express Nationwide Submission (SENS) to any courier of their choice and/or the Philippine Postal Office (PHLPost). All corporations with principal office under the jurisdiction of any of the SEC’s Extension Offices (EO) shall file their reports at the nearest EO.

II. All SEC Satellite Offices shall be temporarily closed for receiving of reports. All filings shall be delivered to the SEC Head Office, Ground Floor, Secretariat Building, PICC Complex, Pasay City by the PHLPostand/or the corporation’s chosen courier.

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III. This Circular covers and allows the filing of the

following documents through electronic mail (email):

a. General Information Sheet

b. Audited Financial Statements

prior to the submission of the hard copy through the

SENS. However, upon lifting of the ECQ, the

corporation may directly file the hard copy of the

reports through SENS (courier/PHLPost).

IV. The AFS, other than the consolidated financial

statements, shall be stamped “received by the

Bureau of Internal Revenue” or its authorized banks,

unless the BIR allows an alternative proof of

submission for its authorized banks (e.g., bank slips).

V. To maintain an organized and orderly filing of AFS,

all corporations, including branch offices,

representative offices, regional headquarters, and

regional operating headquarters of foreign

corporations, shall file their AFS through SENS using

a courier of their choice or PHLPost, depending on

the last numerical digit of their SEC registration or

license number in accordance with the following

schedule:

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VI. All corporations may file their AFS through SENS

regardless of the last numerical digit of their

registration or license number on or before the first

day stated in the above coding schedule.

VII. All corporations may file their AFS through SENS

regardless of the last numerical digit of their

registration or license number on or before the first

day stated in the coding schedule in paragraph 5.

a. SENS

b. Any courier/regular mail

The date of mailing of reports such as the GIS and AFS, as

shown by the registry receipt of the courier, shall be

considered the reckoning date of submission of the GIS and

AFS. For reports filed through registered mail in PHLPost,

the reckoning date of receipt shall be the date of receipt by

PHLPost.

June 29, 30, July 1, 2, 3, 6, 7, 8, 9, 10 1 and 2

July 13, 14, 15, 16, 17 3 and 4

July 20, 21, 22, 23, 24 5 and 6

July 27, 28, 29, 30 7 and 8

August 3, 4, 5, 6, 7 9 and 0

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For reports filed through email during the ECQ, the

reckoning date of receipt shall be the date in the

Acknowledgment Confirmation (AC) stated in the email as

attached to the hard copy of the reports submitted.

The revised SEC MC 18 series of 2020 includes the

following items:

1. This Memorandum Circular shall cover the filing of

AFS of corporations whose fiscal year ends 30

November 2019 and 31 December 2019. Those

who are required to file Annual Reports with fiscal

year end December 31, 2019 or on dates other than

December 31, 2019, shall file their AFS/Annual

Report, subject to the filing deadlines as stated in

Memorandum Circular Nos. 5 and 17, series of 2020.

2. This Memorandum Circular likewise excludes the

following from the number coding schedule as

stated in Memorandum Circular Nos. 5 and 17,

series of 2020, in which the filing deadline for

AFS/Annual Report remains 30 June 2020:

a. Publicly-listed companies

b. Issuers of registered securities under the

supervision of the Market and Securities

Regulation Department

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c. Investment companies, issuers of proprietary and

non-proprietary shares/timeshares, and public

companies

(SEC Memorandum Circular No. 18 Series of 2020, 11 May

2020)

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Court of Tax Appeals Decisions

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Nature and amount of tax due must be indicated in

the waiver to be valid

Section 203 of the National Internal Revenue Code of 1997,

as amended (Tax Code), mandates the BIR to assess

internal revenue taxes within three years from the last day

prescribed by law for the filing of the tax return or the

actual date of filing of such return, whichever comes later.

Hence, an assessment notice issued after the three-year

prescriptive period is no longer valid and effective unless a

waiver is executed by the taxpayer and accepted by the

BIR.

In the instant case, a domestic corporation was assessed

by the BIR for deficiency taxes for calendar year 2011. The

taxpayer executed a Waiver of the Defense of Prescription

under the Statute of Limitation of the National Internal

Revenue Code (Waiver) on 7 May 2014, consenting to the

assessment and/or collection of tax/es for the subject year,

which may be found after investigation not later than 30

June 2015. The waiver was accepted by the Revenue

District Officer on the same date. The BIR issued the

Preliminary Assessment Notice (PAN) on 29 May 2015,

while the FAN and FLD was received on 15 June 2015. After

the BIR concluded its tax audit, the taxpayer received the

FDDA on 7 June 2016.

CTA Decisions

Bearing in mind this timeline, the taxpayer argued that the

BIR’s right to assess had prescribed and the waiver was

invalid and, therefore, did not extend the period to assess

deficiency taxes. The BIR countered that the taxpayer is

liable to the assessed taxes.

According to the Court of Tax Appeals (CTA), under Section

222(b) of the Tax Code, the three-year prescriptive period

under Section 203 of the same Code may be extended if

before the expiration thereof, both the BIR and the

taxpayer agree in writing to its assessment, but only within

the period agreed upon. The original period so agreed

upon may be extended by a subsequent written

agreement made before the expiration of such period.

A waiver is a bilateral agreement between a taxpayer and

the BIR to extend the period of assessment and collection

to a certain date. However, it is likewise a derogation of the

taxpayer’s right to security against prolonged and

unscrupulous investigations and, thus, it must be carefully

and strictly construed. The waiver must also faithfully

comply with the provisions of RMO 20-90 and Revenue

Delegation Authority Order (RDAO) No. 5-2001 in order to

be valid and binding.

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Upon perusal of the waiver, the CTA found that it was

invalid because the kind and exact amount of the taxes to

be assessed or collected were not indicated in the waiver.

Considering that the BIR issued, and the taxpayer received

the subject FAN and FLD only on 15 June 2015, the same

were issued and received beyond the three-year

prescriptive period under Section 203 of the Tax Code.

Hence, the subject assessments are void.

(GMA Network Films, Inc. vs. Commissioner of Internal

Revenue, CTA Case No. 9381, 30 June 2020)

Retirement pay due to involuntary separation is

exempt from tax

Section 32(B)(6)(b) of the Tax Code provides that any

amount received by an official or employee or by his heirs

from the employer as a consequence of separation of such

official or employee from the service of the employer

because of death, sickness, or other physical disability or

for any cause beyond the control of the said official or

employee are excluded from gross income and, thus,

exempt from tax.

In the instant case, a Filipino citizen sought a refund for

erroneous/overpayment of withholding tax on

compensation (WTC) from her retirement pay in 2014. In

said year, she received a Confirmation of Redundancy

stating that her company had undertaken a restructuring

CTA Decisions

program and that her role as managing director was

declared redundant, thus, terminating her employment

with her employer in 2014. She was 46 years old at that

time.

As a consequence, she was given separation pay and

retirement pay, with the latter being included as part of her

taxable income subject to WTC. Her employer viewed

retirement pay as not exempt from income tax since she

failed to satisfy one of the requisites provided in Section

32(B)(6)(a) of the Tax Code, i.e., the employee must be at

least 50 years of age at the time of retirement. However,

she posits that her retirement pay is exempt from income

tax under Section 32(B)(6)(b) of the Tax Code as a

consequence of her involuntary separation from her

employer and that it is not a retirement benefit

contemplated under Section 32(B)(6)(a) of the Tax Code.

The refund claim was filed by the individual with the BIR.

Although all required documents were submitted to the

BIR, it was not acted upon, hence, it was elevated to the

CTA.

Section 2.78.1(B)(1)(b) of RR 2-98 provides for the

exemptions from WTC for remunerations received as an

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incident of employment such that any amount paid by an

employer to an employee as a consequence of the latter’s

involuntary termination from service (i.e. redundancy of

service), is exempt from income tax and consequently from

withholding tax, regardless of the employee’s age and

length of service.

Based on the CTA’s evaluation of the presented documents,

the separation from the service was not of the employee’s

own making and was beyond her control. Under Section

32(B)(6)(b) of the Tax Code and Section 2.78.1(B)(1)(b) of RR

2-98, separation due to redundancy of service is

categorically identified as one of the valid causes for tax

exemption. After identifying that the retirement pay was

included in her taxable compensation income per BIR

Form 2316, the CTA concluded that the retirement pay was

erroneously subjected to WTC. Thus, the claimed income

taxes withheld thereon constitutes erroneously paid taxes,

which are refundable under Sections 204(C) and 229 of the

Tax Code.

(Ma. Jethra B. Pascual vs. Commissioner of Internal Revenue,

CTA Case No. 9566, 30 June 2020)

CTA Decisions

APIC is not an income but part of capital

Improperly accumulated earnings tax (IAET) is the income

tax imposed at the rate of 10% on the improperly

accumulated taxable income of a corporation if its

earnings and profits are accumulated (i.e., undistributed)

instead of distributed to the stockholders. It is essentially a

penalty tax designed to compel corporations to distribute

earnings so that the said earnings by shareholders could,

in turn, be taxed.

In the instant case, a domestic corporation engaged in the

business of air transportation was assessed by the BIR for

IAET covering taxable year 2010. The BIR argued that 100%

paid-up capital (which is used to compute the IAET of a

corporation) is the amount actually paid by the

shareholders, which is equivalent to but not more than the

par value of the subscribed or outstanding capital stock.

Hence, paid-up capital should not include the additional

paid in capital (APIC), which is in excess of par value, under

RMC 35-2011.

The taxpayer countered that APIC should not be included

in the counting of paid-up capital of the corporation.

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RR 2-2001, the regulation implementing Section 29 of the Tax Code, provides the formula on how to

determine if there is an improperly accumulated taxable income, as follows:

The CTA En Banc, after considering the documents presented and after a review of the CTA Division,

confirmed that APIC is not earnings or profit, but a part of capital, hence, should be included as part of the

paid-up capital, and that only the excess of the 100% paid-up capital and those deemed reasonable needs of

the business are subject to IAET.

CTA Decisions

Taxable Income

Add:

• Income Exempt from Tax

• Income Excluded from Gross Income

• Income Subject to Final Tax

• Amount of Net Operating Loss Carry-Over (NOLCO) Deducted

Deduct:

• Income Tax Paid/Payable for the Taxable Year

• Dividends Actually or Constructively Paid/Issued from the Applicable

Year's Taxable Income

• Amount Reserved for the Reasonable Needs of the Business

Improperly Accumulated Taxable Income

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The Court cited National Telecommunications Commission vs.

Honorable Court of Appeals and Philippine Long Distance

Telephone Company (G.R. No. 127937, 28 July 1999), which

defined ‘capital’ to include both the par value and the

premium over par value. As further explained, the

premium over par value in accounting parlance is termed

as APIC. It is the money an investor pays above and

beyond the par value of a stock. It occurs when an investor

buys a stock that is over the par value. The amount

pertaining to the par value shall be recorded as capital

stock, while the amount that is in excess of the par shall be

recorded as APIC.

As an aid to taxation law, resort to corporate law may be

made. In Section 2 of SEC MC 11-2008, the SEC

categorically defined paid-in capital as “the amount of

outstanding capital stock and additional paid in capital or

premium paid over the par value of shares.” It was issued

in relation to the second paragraph of Section 43 of the

Corporation Code, which prohibits corporations from

retaining surplus profits in excess of 100% of their paid in

capital stock, subject to certain exceptions.

Notably, Section 29 of the Tax Code and the second

paragraph of Section 43 of the Corporation Code cover the

same specific subject matter, i.e., accumulation of profits

beyond the reasonable needs of business. They also have

the same purpose, which is to discourage tax avoidance

CTA Decisions

through corporate earnings accumulation.

Although the definition of paid-up capital is not found in

RR 2-2001, the same is defined in at least two regulations

of the BIR: RR 14-2001 and RR 10-2007.

In RR 14-2001, which implements the application of NOLCO

under Section 34(D)(3) of the Tax Code, “paid-up capital of

a corporation” is defined in Section 3.5 as the “total

amount paid by stockholders for their subscriptions in

shares of stock of the corporation, including any amount

paid over and above the par value or stated value of the

share of stock (e.g., premium on capital).” Whereas in RR

10-2007, which provides for guidelines on tax payments

through eFPS, “paid-up capital stock” is defined in Section

2.13 as “the portion of authorized capital stock which has

been both subscribed and paid. It also includes amount

paid for the subscription of stock in a corporation,

including amount paid in excess of par value, net of

treasury stock.”

The interpretation in RMC 35-2001 is inconsistent with the

above BIR issuances on what constitutes paid-up capital. In

case of conflicting provisions found in BIR regulations, the

provisions of revenue regulations, which are issued by the

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Secretary of Finance upon the recommendation of the

Commissioner of Internal Revenue (CIR), prevail over that

of revenue memorandum circulars, which are issued by the

CIR.

Having established that the APIC is part of paid-up capital

and that the taxpayer was able to fully substantiate that it

declared and paid cash dividends to its stockholders

during 2011, the CTA En Banc found no error reversing the

Court in Division’s decision to cancel and withdraw the IAET

assessment of the BIR.

[Commissioner of Internal Revenue vs. Cargill Philippines, Inc.,

CTA EB No. 1986 (CTA Case Nos. 6714 & 7262) and CTA EB No.

2001 (CTA Case Nos. 6714 & 7262), 30 June 2020]

Void assessment due to absence of authority on the

part of the examiner

Section 6(A) of the Tax Code mandates that only the CIR or

his duly authorized representative can authorize the

examination of taxpayers for purposes of assessment of

any deficiency taxes. Relatively, Section 13 of the Tax Code

provides that the authority to examine or assess any

deficiency taxes by a Revenue Officer (RO) must be

exercised through an LOA.

In the instant case, the BIR issued an LOA dated 11

October 2011 to a non-resident foreign corporation duly

CTA Decisions

licensed to operate a branch office in the Philippines,

covering taxable year ended 31 March 2011. The taxpayer

received the PAN on 22 July 2014 and the FLD on 27 August

2014. Subsequently, the FDDA was issued by the BIR on 14

March 2016. After the taxpayer filed a request for

reconsideration with the BIR, an amended FDDA was

issued on 12 July 2016, upholding the VAT deficiency

assessment.

The taxpayer filed a Petition for Review with the CTA on 10

August 2016, seeking the cancellation of the assessment

covering taxable year ended 31 March 2011 on the basis

that the assessment was made without authority.

On the other hand, the BIR maintained its position that the

taxpayer is liable for the deficiency VAT as it failed to

defend its stand and disprove the correctness of the

assessment.

In its ruling, the CTA established that the Chief of Regular

LT Audit Division 1 of the BIR issued a Memorandum of

Assignment (MOA) assigning a new RO and group

supervisor to continue the audit, replacing the previously

assigned ROs. The investigation of the new ROs eventually

led to the issuance of assessment notices. Thereafter,

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another MOA was issued by the Chief of Regular LT Audit

Division 1 assigning a new RO to continue the audit due to

the transfer of the previous RO, which led to the issuance

of an Amended FDDA.

The CTA resolved that unless authorized by the CIR or his

duly authorized representative through an LOA,

examination of the taxpayer cannot ordinarily be

undertaken. The CTA cited RMO 29-07, which provides that

the Assistant Commissioner/Head Revenue Executive

Assistant is the equivalent of a Regional Director in the

Large Taxpayer Service (LTS) that is authorized to issue an

LOA.

Considering that the new ROs who conducted the

assessment did not have valid authority to do so, the CTA

ruled that the tax assessment issued is void, hence, cannot

be enforced against the taxpayer.

(Sumitomo Corporation - Philippine Branch vs. Commissioner

of Internal Revenue, CTA Case No. 9422, 30 June 2020)

Non-observance of the 15-day period to protest the

PAN violates the taxpayer’s right to due process and

renders assessment void

Section 228 of the Tax Code provides that a taxpayer is

required to respond to the notice of deficiency taxes

issued by the CIR or his duly authorized representative

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within the prescribed period. Pursuant to Section 3.1.2 of

RR 12-99, a taxpayer has 15 days within which to respond

to the PAN.

In the instant case, a domestic corporation received the

PAN on 17 January 2017, assessing various deficiency taxes

for the taxable year 2013. Subsequently, on 27 January

2017, the taxpayer received the FAN, to which the taxpayer

filed a protest letter dated 23 February 2017, contesting

that the assessment is devoid of any legal and factual

bases.

Following the BIR’s inaction, the taxpayer then filed a

Petition for Review with the CTA on 21 November 2017,

seeking the cancellation of the assessment covering

taxable year 2013. The taxpayer argued that the non-

observance of the 15-day period to protest the PAN

violated its right to due process, rendering the assessment

void.

On the other hand, the BIR maintained that the

assessment issued is prima facie presumed correct and

made in good faith.

The CTA upheld that the CIR is mandated to strictly comply

with the requirements laid down by law and its own rules.

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Examination of records showed that the taxpayer received

the PAN on 17 January 2017 and should have had until 1

February 2017 to file its protest thereto. However, the FAN

was received by the taxpayer on 27 January 2017. The CTA

ruled that the subject assessment is void and bears no

fruit as it is clear that the taxpayer was deprived of the

opportunity to file its protest to the PAN, thus, violating its

right to due process.

(Global Fresh Products, Inc. vs. Commissioner of Internal

Revenue, CTA Case No. 9718, 30 June 2020)

Association dues, membership fees, and other

assessments/charges imposed by condominium

corporations are exempt from tax

RMC 65-2012 provides that gross receipts of condominium

corporations, including association dues, membership

fees, and other assessments/charges, are subject to VAT

and income tax, while income payments made to it are

subject to applicable withholding taxes.

In the instant case, the taxpayer filed a petition for

declaratory relief seeking to declare as invalid RMC 65-

2012, which was raffled to the Regional Trial Court (RTC) of

Makati City. According to the taxpayer, RMC 65-2012

burdened the owners of the condominium units with

income tax and VAT on their own money, which they

exclusively used for the maintenance and preservation of

CTA Decisions

the building and its premises. The BIR contended that it is

only a clarificatory issuance on pertinent laws, specifically

the Tax Code, and was merely a restatement of the BIR’s

prevailing position on the issue of taxation.

The RTC ruled that the taxpayer properly resorted to a

petition for declaratory relief for the purpose of

invalidating RCM 65-2012 for it purportedly expanded the

law, created an additional tax burden on condominium

corporations, and was issued without the requisite notice

and hearing. The BIR argued that the petition was

premature, RMC 65-2012 was valid, and the petition for

declaratory relief should be dismissed for violating the

principle of primary jurisdiction.

Aggrieved, both parties appealed to the Court of Appeals

(CA). However, the appeal was dismissed on the ground of

lack of jurisdiction as the case should be with the CTA

because it is a tax matter.

Eventually, the case was elevated to the Supreme Court

(SC). Answering the parties’ concerns, the SC ruled that the

petition for declaratory relief was not the proper remedy.

Instead, a petition for certiorari or prohibition should have

been filed since the case has far-reaching implications and

raises questions that need to be resolved for the public

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good. Considering that the issue has been pending for six years, the SC waived the technical requirements under Rule 65 of the Rules of Court (Certiorari, Prohibition and Mandamus) when the legal questions to be resolved are of great importance to the public, hence, this decision.

The SC likewise deemed proper the parties’ resort to the CA due to the prevailing jurisprudence at the time of filing.

As to the validity of RMC 65-2012, the SC ruled to the negative as follows:

1. A condominium corporation is not engaged in trade or business.

As exemplified in Yamane vs. BA Lepanto Condominium Corp. (G.R. No. 215801), corporation condominium is not designed to engage in activities that generate income or profit, which can be gleaned from RA 4726 (The Condominium Act). As held in Yamane, "the profit motive in such cases is hardly the driving factor behind such improvements, if it were contemplated at all. Any profit that would be derived under such circumstances would merely be incidental, if not accidental." Moreover, a condominium corporation is especially formed for the purpose of holding title to the common area and exists only for the benefit of the condominium owners and nothing more.

CTA Decisions

RMC 65-2012 sharply departs from Yamane and the law on condominium corporations. It invalidly declares that the amounts paid as dues or fees by members and tenants of a condominium corporation form part of the gross income of the latter, thus, subject to income tax, VAT, and withholding tax.

2. Association dues, membership fees, and other assessments/charges are not subject to income tax, VAT, and withholding tax.

• Association dues, membership fees, and other assessments/charges do not constitute profit or gain as they are collected purely for the benefit of the condominium owners and are the incidental consequence of a condominium corporation's responsibility to effectively oversee, maintain, or even improve the common areas of the condominium as well as its governance. Section 32 of the Tax Code does not include these fees as sources of gross income subject to income tax.

• Association dues, membership fees, and other assessments/charges do not arise from transactions involving the sale, barter, or exchange of goods or property and/or services that would entail 12% VAT.

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• In ANPC vs. BIR (G.R. No. 228539, 26 June 2019), the Court pronounced that membership fees, assessment dues, and other fees collected by recreational clubs are not subject to income tax and VAT. This equally applies to condominium corporations, which are similarly situated with recreational clubs insofar as membership fees, assessment dues, and other fees of similar nature collected from condominium owners are devoted to the operations and maintenance of the facilities of the condominium.

• Only income, be it active or passive, earned by a payor-corporation can be subject to withholding tax.

• The BIR Commissioner is empowered to interpret our tax laws but not expand or alter them. In the case of RMC 65-2012, however, the BIR Commissioner went beyond, if not gravely abused, such authority.

In sum, RMC 65-2012 is invalid for ordaining that "gross receipts of condominium corporations including association dues, membership fees, and other assessments/charges are subject to VAT, income tax and income payments made to it are subject to applicable withholding taxes." A law will not be construed as imposing a tax unless it does so clearly and expressly. In case of doubt, tax laws must be construed

CTA Decisions

strictly against the government and in favor of the taxpayer. Taxes, as burdens that must be endured by the taxpayer, should not be presumed to go beyond what the law expressly and clearly declares.

(Bureau of Internal Revenue vs. First E-Bank Tower Condominium Corp., G.R. Nos. 215801 and 218924, 15 January 2020)

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Tax filing deadlines extended anew

The Bureau of Internal Revenue (BIR) once again moved the deadlines for filing/submission of the following tax

returns and/or documents, as well as the payment of taxes, in light of the government’s decision to extend the

enhanced community quarantine (ECQ) until 15 May:

Annex

Type of Transaction/Document

BIR Form Name of Form PeriodOriginal

Due DateExtended Due Date

A. Income Tax Returns

Submission of Required Hard Copies of Financial Statements and Scanned Copies of BIR Form 2307 to e-filed 1702RT, MX, EX

AFS

2307

Audited Financial Statements

Certificate of Creditable Tax Withheld at Source

For fiscal year ended 30 November 2019

30 March 2020 29 May 2020

Type of

Transaction/DocumentBIR Form Name of Form Period

Original Due

Date

Extended Due

Date

A. Income Tax Returns

Submission of Required Hard Copies of Financial Statements and Scanned Copies of BIR Form 2307 to e-filed 1702RT, MX, EX

AFS

2307

1702RT

1702MX

Audited Financial Statements


Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate

Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE

For fiscal year ended 30

November 2019

30 March 2020 29 May 2020

For calendar year 2019

30 April 2020 30 June 2020


January 2020

30 May 2020 15 July 2020

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Type of


Original Due

Date

Extended Due

Date

1702EX Annual Income Tax Returns

for Corporation, Partnership

and Other Non-Individual

Taxpayers EXEMPT Under the

Tax Code, as Amended, [Sec.

30 and those exempted in Sec.

27(C)] and Other Special Laws,

with NO Other Taxable Income

For fiscal year

ended 29

February 2020

30 June 2020 30 July 2020

Quarterly eFiling/Filing and

ePayment/Payment

(eFPS and non-eFPS filers)

1702Q

SAWT

Quarterly Income Tax Return

for Corporation, Partnerships

and other Non-Individual

Taxpayers

Summary Alphalist of

Withholding Taxes

For fiscal quarter ended 31 January

2020

31 March 2020 30 May 2020

For fiscal quarter

ended 29

February 2020

29 April 2020 13 June 2020

For the first

quarter ended 31

March 2020

30 May 2020 29 June 2020

Annual eFiling/Filing and

ePayment/Payment

1700 Annual Income Tax Return for

Individuals Earning Purely

Compensation Income

(Including Non-Business/Non-

Profession Related Income)

For calendar year

ended 31

December 2019

15 April 2020 14 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

1701

1701A(with required attachments)

Annual Income Tax Return for Individual (including MIXED Income Earners), Estates and Trusts

Annual Income Tax Return for Individuals Earning Income PURELY from Business/Profession (Those under the graduated income tax rates with OSD as mode of deduction OR those who opted to avail of the 8% flat income tax rate)

Annual eFiling/Filing and ePayment/Payment

1702RT

1702MX

Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate

Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayer with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE

For calendar year ended 31

December 2019

15 May 2020 14 June 2020


January 2020

15 May 2020 14 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

1702EX Annual Income Tax Returns for Corporation, Partnership and Other Non-Individual Taxpayers EXEMPT Under the Tax Code, as Amended, [Sec. 30 and those exempted in Sec. 27(C)] and Other Special Laws, with NO Other Taxable Income


February 2020

15 June 2020 15 July 2020

Required Submission of Attachments to e-Filed Annual Income Tax Return (Annual ITR)

17001701

1701A

N/A For calendar year ended 31

December 2019

Manually filed together with the filing of

Annual ITR or within 15 days from electronic

filing of the Annual ITR

30 June 2020

Submission of Soft Copies of BIR 2307 contained in a DVD-R and Sworn Declaration as Attachments to eFiled1702Q

DVD-R (Soft Copies of BIR Form No.

2307)


For fiscal quarter ended 31

January 2020

15 April 2020 14 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

Sworn

DeclarationSworn Declaration stating soft

copies are complete and exact

copies of original

For fiscal quarter

ended 29

February 2020

15 May 2020 14 June 2020

Quarterly Filing for the

First Quarter

(for Individuals)

1701Q Quarterly Income Tax Return

for Self-Employed Individuals,

Estates and Trusts

For quarter

ended 31 March

2020

15 May 2020 14 June 2020

B. Withholding Tax Returns

Monthly eFiling/Filing and

ePayment/Remittance

1600 Withholding Tax Remittance

Return for National

Government Agencies (NGAs)

For the month of

March 2020

10 April 2020 9 June 2020

For the month of

April 2020

10 May 2020 9 June 2020


ePayment/Payment

(eFPS and non-eFPS)

1600 with

MAP

Monthly Remittance Return of

Value-Added Tax and Other

Percentage Taxes Withheld

(Under RAs 1051, 7649, 8241,

8424 and 9337) and Monthly

Alphalist of Payees

For the month of

March 2020

10 April 2020 9 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

1606 Withholding Tax Remittance Return for Onerous Transfer of Real Property Other than Capital Asset (including taxable and exempt)

For the month of April 2020

10 May 2020 9 June 2020

Monthly Filing and Payment(non-eFPS)

1601C Monthly Remittance Return for Income Taxes Withheld on Compensation

For the month of March 2020

10 April 2020 9 June 2020


10 May 2020 9 June 2020

Monthly eFiling

(for eFPS users under

Group E)

1601C Monthly Remittance Return of Income Taxes Withheld on Compensation


11 April 2020 10 June 2020

Monthly eFiling


Group D)

12 April 2020 11 June 2020

Monthly eFiling


Group C)

13 April 2020 12 June 2020

Monthly eFiling


Group B)

14 April 2020 13 June 2020

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Annex

Type of Transaction/Document BIR Form Name of Form Period Original Due

Date

Extended Due

Date

Monthly eFiling

(for eFPS users under Group A)

15 April 2020 14 June 2020

Monthly ePayment

(for Groups E, D, C, B, and A)

15 April 2020 14 June 2020

Monthly eFiling

(for eFPS users under Group E)


11 May 2020 10 June 2020

Monthly eFiling

(for eFPS users under Group D)

12 May 2020 11 June 2020

Monthly eFiling

(for eFPS users under Group C)

13 May 2020 12 June 2020

Monthly eFiling

(for eFPS users under Group B)

14 May 2020 13 June 2020

Monthly eFiling


15 May 2020 14 June 2020

Monthly ePayment


15 May 2020 14 June 2020

Monthly Filing and Payment

(non-EFPS)

0619-E Monthly Remittance Return of Income Taxes Withheld (Expanded)


10 April 2020 9 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

0619-F Monthly Remittance Return of Final Income Taxes Withheld


10 May 2020 9 June 2020

Monthly eFiling(for eFPS users under Group E)

0619-E Monthly Remittance Return of Income Taxes Withheld (Expanded)


11 April 2020 10 June 2020

Monthly eFiling(for eFPS users under Group D)

0619-F Monthly Remittance Return of Final Income Taxes Withheld

12 April 2020 11 June 2020

Monthly eFiling(for eFPS users under Group C)

13 April 2020 12 June 2020

Monthly eFiling(for eFPS users under Group B)

14 April 2020 13 June 2020

Monthly eFiling(for eFPS users under Group A)

15 April 2020 14 June 2020

Monthly ePayment(for Groups E, D, C, B, and A)

15 April 2020 14 June 2020

Monthly eFiling(for eFPS users under Group E)


11 May 2020 10 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

Monthly eFiling

(for eFPS users under Group D)

12 May 2020 11 June 2020

Monthly eFiling

(for eFPS users under Group C)

13 May 2020 12 June 2020

Monthly eFiling

(for eFPS users under Group B)

14 May 2020 13 June 2020

Monthly eFiling


15 May 2020 14 June 2020

Monthly ePayment


15 May 2020 14 June 2020

Quarterly eFiling/Filing and

ePayment/Payment

(eFPS and non-eFPS)

1601EQ

1601FQ

Quarterly Remittance

Return of Creditable

Income Taxes

Withheld (Expanded)

Quarterly Remittance

Return of Final

Income Taxes

Withheld

For calendar

quarter ended

31 March 2020

30 April 2020 14 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

1602Q

1603Q

Quarterly Remittance Return of Final Taxes Withheld on Interest Paid on Deposits and Deposit Substitutes/Trusts/etc.

Quarterly Remittance Return of Final Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File

Submission of Quarterly

Alphabetical list of Payees

(QAP) as attachments to

1601EQ and 1601FQ

QAP Quarterly Alphabetical List of Payees

For calendar quarter ended 31 March 2020

30 April 2020 14 June 2020

Annual Filing/Submission 1604CF Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes

N/A 31 March 2020 30 May 2020

Annual Filing/Submission 1604E and related

alphalist

Annual Information Return of Creditable Income Taxes Withheld and Alphalist

N/A 31 March 2020 30 May 2020

Submission Deadline 2316 Certification of Compensation Payment

N/A 31 March 2020 30 May 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

C. Value-Added Tax Returns

VAT Refund 1914 Application for VAT Credit/Refund Claims

Covering calendar quarter ended 31 March

2018

31 March 2020 30 May 2020 or 30 days from the lifting of quarantine,

whichever comes later

Covering fiscal quarter ended 30 April 2018

30 April 2020 14 June 2020 or 30 days from the lifting of quarantine,


Covering fiscal quarter ended 31 May 2018

31 May 2020 30 June 2020 or 30 days from the lifting of quarantine,


Monthly Filing and Payment(non-EFPS)

2550M Monthly VAT Declaration For the month of February 2020

20 March 2020 19 May 2020


20 April 2020 4 June 2020


20 May 2020 19 June 2020

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Type of


Original Due

Date

Extended Due

Date

Monthly Filing and Payment

(non-EFPS)

2550M Monthly VAT

Declaration

For the month of

February 2020

20 March 2020 19 May 2020

For the month of

March 2020

20 April 2020 4 June 2020

For the month of

April 2020

20 May 2020 19 June 2020

Monthly eFiling

(for eFPS filers under Group E)

2550M Monthly VAT Declaration

For the month of February 2020

21 March 2020 20 May 2020

Monthly eFiling

(for eFPS filers under Group D)

22 March 2020 21 May 2020

Monthly eFiling

(for eFPS filers under Group C)

23 March 2020 22 May 2020

Monthly eFiling

(for eFPS filers under Group B)

24 March 2020 23 May 2020

Monthly eFiling

(for eFPS filers under Group A)

25 March 2020 24 May 2020

Monthly ePayment


25 March 2020 24 May 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

Monthly eFiling(for eFPS filers under Group E)


21 April 2020 5 June 2020

Monthly eFiling(for eFPS filers under Group D)

22 April 2020 6 June 2020

Monthly eFiling(for eFPS filers under Group C)

23 April 2020 7 June 2020

Monthly eFiling(for eFPS filers under Group B)

24 April 2020 8 June 2020

Monthly eFiling(for eFPS filers under Group A)

25 April 2020 9 June 2020


25 April 2020 9 June 2020

Monthly eFiling(for eFPS filers under Group E)


21 May 2020 20 June 2020

Monthly eFiling(for eFPS filers under Group D)

22 May 2020 21 June 2020

Monthly eFiling(for eFPS filers under Group C)

23 May 2020 22 June 2020

Monthly eFiling(for eFPS filers under Group B)

24 May 2020 23 June 2020

Monthly eFiling(for eFPS filers under Group A)

25 May 2020 24 June 2020


25 May 2020 25 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS filers)

2550Q Quarterly VAT Return For fiscal quarterended 29

February 2020

25 March 2020 24 May 2020

For calendar quarter ended 31

March 2020

25 April 2020 9 June 2020

For fiscal quarter ended 30 April

2020

25 May 2020 24 June 2020

Quarterly SLSPI Submission(non-eFPS)

N/A Summary Lists of Sales/Purchases/Importations


February 2020

25 March 2020 24 May 2020


March 2020

25 April 2020 9 June 2020


2020

25 May 2020 24 June 2020

Quarterly SLSPI eSubmission(eFPS)

N/A Summary List of Sales/Purchases/Importations


February 2020

30 March 2020 29 May 2020


March 2020

30 April 2020 14 June 2020


2020

30 May 2020 29 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

D. Other Tax Returns

ONETT 1606 Withholding Tax Remittance

Return for Onerous Transfer of

Real Property Other than

Capital Asset (including taxable

and exempt)

N/A Date of

payment falls

within the

period of

national

emergency

starting from 16

March 2020

30 days from

the lifting of

quarantine

1706 Capital Gains Tax Return for

Onerous Transfer of Real

Property Classified as Capital

Asset (both taxable and

exempt)

1707 Capital Gains Tax Return for

Onerous Transfer of Shares of

Stocks Not Traded Through the

Local Stock Exchange

1800 Donor’s Tax Return

1801 Estate Tax Return

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Annex

Type of


Original Due

Date

Extended Due

Date


ePayment/Payment

(eFPS)

1600WP Monthly Remittance of

Percentage Tax on Winnings

and Prizes Withheld by Race

Track Operators

For the month of

February 2020

20 March 2020 19 May 2020

For the month of

March 2020

20 April 2020 4 June 2020

For the month of

April 2020

20 May 2020 19 June 2020

eFiling/Filing and

ePayment/Payment

2000 Documentary Stamp Tax

Declaration

For the month of

March 2020

5 April 2020 4 June 2020

2000-OT Documentary Stamp Tax

Declaration (One-Time

Transaction)

For the month of

April 2020

5 May 2020 4 June 2020

Monthly Filing and

Payment/Remittance for

the amount of excise taxes

collected from payment

made to Sellers of Metallic

Minerals

2200M Excise Tax Return for Mineral

Products

For the month of

March 2020

10 April 2020 9 June 2020

For the month of

April 2020

10 May 2020 9 June 2020

Tax Amnesty on

Delinquencies

2118DA Tax Amnesty Return on

Delinquencies

N/A 23 April 2020 22 June 2020

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Annex

Type of


Original Due

Date

Extended Due

Date

Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)

2551Q Quarterly Percentage Tax Return – In General


25 April 2020 9 June 2020


2020

25 May 2020 24 June 2020

Quarterly Percentage Tax for Overseas Communications Tax (OCT) – Section 120 of the Tax Code


20 April 2020 4 June 2020


April 2020

20 May 2020 19 June 2020

Quarterly Percentage Tax for Amusement Taxes – Section 125 of the Tax Code


20 April 2020 4 June 2020


April 2020

20 May 2020 19 June 2020

eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)

2552 Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial and/or Secondary Public Offering

Within 5 banking days

from collection date

30 days from the lifting of quarantine

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Annex

Type of


Original Due

Date

Extended Due

Date


2553 Return of Percentage Tax Payable under Special Laws

On designated due date under

special law

30 days from lifting of

quarantine

Monthly eFiling/Filing and ePayment/Payment(eFPS and non-EFPS)

0620 Monthly Remittance Form of Tax Withheld on the Amount Withdrawn from the Descendant’s Deposit Account


10 April 2020 9 June 2020


10 May 2020 9 June 2020

Filing and Payment 1707-A Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock not Traded through the Local Stock Exchange)

For calendar year ended 31

December 2019

15 April 2020 14 June 2020


January 2020

15 May 2020 14 June 2020


1704 Improperly Accumulated Earnings Tax Return

For fiscal year ended 31 March

2019

15 April 2020 14 June 2020

For fiscal year ended 30 April

2019

15 May 2020 14 June 2020

Quarterly eFiling/Filing and ePayment/Payment(eFPS and non-eFPS)

1621 Quarterly Remittance Return of Tax Withheld on the Amount Withdrawn from Decedent’s Deposit Account

For the quarter ended 31 March

2020

30 April 2020 14 June 2020

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

eFiling/Filing and

ePayment/Payment

(eFPS and non-eFPS)

2200-A

2200-AN

2200-P

2200-T

2200-S

Excise Tax Return for Alcohol

Products

Excise Tax Return for

Automobiles and Non-Essential

Goods


Petroleum Products

Excise Tax Return for Tobacco

Products


Sweetened Beverages

Every removal Before removal

of the excisable

products from

the place of

production

Before removal

of the excisable

products from

the place of

production

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

E. Other Documents

Sworn Statement of Manufacturer or Importer’s Volume of Sales of each particular brand of Alcohol, Tobacco Product, and Sweetened Beverage Product

N/A Sworn Statement For fiscal quarter ended 29

February 2020

25 March 2020 24 May 2020


March 2020

25 April 2020 9 June 2020


2020

25 May 2020 24 June 2020

Registration of Computerized Books of Accounts and Other Accounting Records in Electronic Format

N/A N/A For fiscal year ended 29

February 2020

30 March 2020 29 May 2020


2020

30 April 2020 14 June 2020


2020

30 May 2020 29 June 2020

Submission of 2019 Inventory List

N/A Inventory List For fiscal year ended 29

February 2020

30 March 2020 29 May 2020


2020

30 April 2020 14 June 2020


2020

30 May 2020 29 June 2020

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

Monthly eSubmission of

eSales Report of All

Taxpayers using CRM/POS

with TIN ending in an even

number

N/A Monthly eSales Report For the month of

March 2020

8 April 2020 7 June 2020

For the month of

April 2020

8 May 2020 7 June 2020

Monthly eSubmission of

eSales Report of All

Taxpayers using CRM/POS

with TIN ending in an odd

number

N/A Monthly eSales Report For the month of

March 2020

10 April 2020 9 June 2020

For the month of

April 2020

10 May 2020 9 June 2020

Quarterly eSubmission of

Summary List of Machines

CRM/POS sold by all

Machine

Distributors/Dealers/

Vendors/Suppliers

N/A Summary List of Machines For taxable

quarter ended

31 March 2020

15 April 2020 14 June 2020

For fiscal quarter

ended 30 April

2020

15 May 2020 14 June 2020

Registration of Bound

Loose-Leaf Books of

Accounts/Invoices/

Receipts and Other

Accounting Records

N/A N/A For fiscal year

ended 31

March 2020

15 April 2020 14 June 2020

For fiscal year

ended 30

April 2020

15 May 2020 14 June 2020

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

Submission of List of Medical Practitioners

N/A List of Medical Practitioners For calendar quarter ended 31

March 2020

15 April 2020 14 June 2020

Filing of Position Paper to Notice of Informal Conference (NIC)

N/A N/A N/A Filing date falls due during the

national emergency

period starting on 16 March

2020 and those where the due

dates fall within 30 days from lifting of ECQ

30 days from the lifting of

quarantine

Note: The running of the period

within which to file the Position Paper, Protest

Letter, Transmittal Letter, Appeal and correspondencesreferred under the first column shall

be suspended.

Filing of Position Paper to Preliminary Assessment Notice (PAN)

Protest Letter to Final Assessment Notice (FAN)/Formal Letter of Demand (FLD)

60-day Transmittal Letter of Additional Relevant Supporting Documents

Appeal/Request for Reconsideration to the Commissioner of Internal Revenue (CIR) on the Final Decision on Disputed Assessment (FDDA)

Other similar letters and correspondences with due dates

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

Certificate of Residence for Tax Treaty Relief (CORTT) Form

N/A Certificate of Residence for Tax Treaty Relief Parts I and II

FWT on dividend,

interest, and royalty for the

month of February 2020

paid and remitted in March 2020

Within 30 days after payment of withholding

tax

30 days from the lifting of quarantine

FWT on dividend,

interest, and royalty for the

month of March 2020 paid and

remitted in April 2020

FWT on dividend,

interest, and royalty for the month of April 2020 paid and

remitted in May 2020

Suspension of Running of Limitation under Sections 203 and 222 pursuant to Section 223 of the Tax Code

N/A Assessment Notices, Warrant of Distraints and/or Levy, Warrants of Garnishments

Period of emergency

starting from 16 March 2020

Before the expiration of

Statute of Limitations

60 days after the lifting of quarantine

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex






Annex

Type of


Original Due

Date

Extended Due

Date

Application for credit or

refund of taxes

erroneously or illegally

received or penalties

imposed without authority

under Section 204(C) of

the Tax Code

1914 Application for Tax Credits/Refunds

For erroneous

payments made

from 17 March

2018 to 30 April

2018

2 years after

the payment of

the tax or

penalty

14 June 2020

For erroneous

payments made

from 1 May

2018 to 31 May

2018

30 June 2020

All Other

Filings/Submissions

N/A Other Reportorial Requirements Omitted

N/A Date of

submission falls

within the

period of

national

emergency

starting from

16 March 2020

30 days from

the lifting of

quarantine

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex


Notes:

• The extended due dates are applicable nationwide.

• If the new extended due dates fall on a holiday or a non-working day, the submission and/or filing

shall be made on the next working day.

• The term “quarantine” shall refer to any announcement by the National Government that will limit

operations and mobility (e.g., community quarantine, enhanced community quarantine, modified

community quarantine, and general community quarantine).

• Further extension by 15 calendar days shall be made in case of another quarantine extension.

• Taxpayers who will file their tax returns and pay their corresponding taxes earlier than the

extended deadline can amend their tax returns at any time on or before the extended due date. An

amendment resulting in additional tax due shall not be subjected to any tax penalties (surcharge,

interest, and compromise penalties) as long as the taxpayer files and pays not later than the

extended deadline.

In the case of amended tax returns that result in an overpayment of taxes, the taxpayer has the option to

carry over the overpayment as tax credit in the succeeding periods, aside from the option to file for a claim

for refund.

Please see attached Revenue Regulations No. 11-2020 for your reference and guidance.

Annex

BIR Issuances

PEZA Issuances

SEC Issuances

CTA Decisions

Annex

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Tax News - TMAP-Home · 2021. 1. 29. · BIR Issuances • No more extension of deadlines • Cash...

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