The pandemic has truly affected the operations of many businesses in the country. This does not however exempt businesses from complying with their obligations under the law such as taxes, permits, and other contributions. While several extensions have been granted in view of the limitation of movement imposed to curb the spread of the coronavirus, the government has now set deadlines within which these obligations must be paid. It is therefore important to be aware of several issuances to guide you in your operations during this period.
For Tax related matters:
Revenue Regulation 10-2020 and Revenue Regulation 11-2020 extended the deadlines for filing of tax returns and payment of taxes by reason of the declaration of the ECQ. Note however that on 14 May 2020, BIR Deputy Commissioner S.D. Gubala, stated that no further extension will be given, despite changes in quarantine regimes.
For reference, the statement made by the Deputy Commissioner is available in this link.
For a summary Revenue Regulation 10-2020 and Revenue Regulation 11-2020, please refer to the table below:
| Filings or Submissions | Extended Deadline | |
|---|---|---|
| 1 | Annual Income Tax Return (AITR) for Individuals | 14 June 2020 |
| 2 | First Calendar Quarter Income Tax Return (ITR) for Individuals | 14 June 2020 |
| 3 | AITR for Corporations for Calendar Year 2019 and for Fiscal Year Ending 31 January 2020 | 14 June 2020 |
| 4 | AITR for Corporations for Fiscal Year Ending 29 February 2020 | 15 July 2020 |
| 5 | First Calendar Quarter ITR for Corporations | 29 June 2020 |
| 6 | Submission of Certificate for Tax Treaty Relief (CTTR) for taxes due in March, April, and May of 2020 | 30 days from the date of the lifting of the quarantine |
| 7 | Documentary Stamp Tax (DST) for transactions subject to DST in March 2020 | 20 May 2020 |
| 8 | DST for transactions subject to DST in April 2020 | 04 June 2020 |
| 9 | DST for transactions subject to DST in May 2020 | 05 June 2020 |
| 10 | All other filings with and submission to the BIR (not enumerated in the regulations) falling due within the period of emergency starting from 16 March 2020 | 30 days from the date of the lifting of the quarantine |
For purposes of issuance of receipts for transactions done during the quarantine period, the BIR has issued work-around-procedures that should be followed. In this regard, Taxpayers are required to submit a “Summary of Temporary Receipt or Invoices Issued” to the BIR “within 90 days from the date of the lifting of the ECQ”.
For more information, a copy of Revenue Memorandum Circular No. 47-2020 is available in this link.
For Real Property and Local Business Taxes:
Individual Local Government Units (LGUs) extended the deadlines for settlement of real property taxes and local business taxes. For clarity, it is important to constantly check the announcements made by the relevant LGUs.
On 23 April 2020, the Department of Finance (DOF) issued DOF Department Circular No. 002-2020, which extended the deadlines for payment of all local fees, taxes, and charges imposed by an LGU as of 25 March 2020 to 25 June 2020, without penalty.
For reference, the full text of DOF Department Circular No. 002-2020 is available at this link.
For Employment contributions:
Business owners and employers should ensure that their contributions to the relevant government agencies pertaining to employment matters of their workers or employees are up to date.
Pag-IBIG Fund has granted two (2) loan relief programs to aid its members, namely:
- Three (3) month moratorium to members with a Pag-IBIG Housing Loan, Multi-Purpose Loan, and/or Calamity Loan for loan payments falling due between 16 March 2020 to 15 June 2020; and
- Mandatory grace period to all Pag-IBIG members who are working or residing in areas declared under ECQ for loans falling due within the period of the ECQ and its extension.
For reference, kindly see the link.
For Social Security System (SSS) contributions, the SSS has extended the deadlines for payment. For contributions due in February, March, and April 2020, it may be paid on or before 01 June 2020.
For reference, kindly see the link.
For PhilHealth contributions, PhilHealth has issued a moratorium on contribution payments for the applicable months of February to April 2020. The premium payments for the aforementioned period shall be payable until 31 May 2020, without interest for all direct contributors.
For reference, kindly see the link.
For Securities and Exchange Commission (SEC) related matters and concerns:
Please note that the SEC did not extend the deadlines for the filing of the General Information Sheet (GIS) or Report of Non-Holding of Annual Stockholders’ Meeting. The report should be filed within thirty (30) days from holding or non-holding, as the case may be, of the meeting. Moreover, the SEC issued circulars allowing for the submission of the reports through electronic means and acceptance of documents despite lack of notarization.
For reference, please see SEC Memorandum Circular No. 10, please click this link.
With regard to the filing of an Audited Financial Statement (AFS), please refer to the table below for the schedule of payment, depending on the last digit of the SEC registration of the corporation, set forth by the SEC:
| Last Digit of SEC Registration | Schedule of Filing |
|---|---|
| 1 and 2 | June 29, 30, July 1,2,3,6,7,8,9,10 |
| 3 and 4 | July 13, 14, 15, 16, 17 |
| 5 and 6 | July 20, 21, 22, 23, 24 |
| 7 and 8 | July 27, 28, 29, 30 |
| 9 and 0 | August 3, 4, 5, 6, 7 |
For reference, please see SEC Memorandum Circular No. 17 and SEC Memorandum Circular No. 18.
Please note that while the SEC allowed for the submission of the above-required documents via electronic means, hard copies of the submitted documents must be submitted through the SEC Express Nationwide Submission (SENS) to any courier of their choice and/or Philippine Postal Office as an additional requirement.
For reference and additional guidelines and information, a copy of SEC Notice dated 08 April 2020 is available at this link.
For matters concerning submission of original and notarized versions of submissions digitally made during the quarantine period, filings with the SEC Corporate Governance and Finance Department, original and notarized copies of reports and documents have to be submitted “within ten (10) calendar days from the date that the quarantine order has been lifted or withdrawn”
For filing of hard copies of GIS and AFS, please refer to SEC Memorandum Circular 18 available at this link.
For all other general and special forms and letters filed electronically, SEC Memorandum Circular No. 10 states that the “SEC shall set and announce a specific date for such submission”
For reference, please see the SEC Notice dated 30 March 2020 available at this link.
For Bills, rents and loans:
For utility bills and the like, some utility companies, banks, and credit card companies have given grace periods for their payment. However, it is to be noted that such grace period was only until 15 May 2020, despite the shift to MECQ or GCQ. Please check with your respective banks and utility providers to any more updates on this matter.
As regards rental payments, the Department of Trade and Industry (DTI) has granted a minimum thirty (30) day grace period on residential rents and commercial rents of Micro-Small-Medium Enterprises (MSMEs)[1] falling due within the period of the ECQ. The total rent shall then be amortized for six (6) months to be added on top of the monthly rent.
For reference, a copy of DTI Memorandum Circular 20-12 dated 04 April 2020 is available at this link.
With respect to loans, banks and other financial institutions are directed to provide a 30-day grace period for loans falling due within the ECQ period. The grace period shall automatically be extended if the ECQ is extended.
For reference, a copy of BSP Memorandum No. M-2020-028 is available at this link.
Under the IATF Guidelines, banks, among others, are directed to grant a 30-day grace period for loans falling due within the ECQ period, subject to automatic extension upon extension of the ECQ.
Similarly, the IATF Guidelines also provide a 30-day grace period from the last due date or until the lifting of the community quarantine for residential and commercial rents falling due within the duration of the ECQ, MECQ, and GCQ on residential lessees and MSMEs.
For reference, the full text of the IATF Guidelines is available at this link.
[1] MSMEs are “any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated” does not exceed P100,000,000.
