Philippines – BIR: No more income tax payments extension after June 14

• May 23, 2020

MANILA, Philippines — The deadline on paying income taxes, and other levies, will no longer be extended even if the government ultimately decides later to further lengthen lockdowns meant to control the spread of coronavirus disease-2019, the Bureau of Internal Revenue (BIR) said.

Under Revenue Regulations (RR) 12-2020, the tax agency voided a provision on its earlier issuance which stipulated that so long as the community quarantines are extended, tax payment cut-offs would be deferred.

“The defined extended due dates under Section 2 of RR No. 11-2020 shall remain in effect regardless of any extension or modification of quarantine,” the new order dated May 14 stated.
 
With the latest rule, the due date for filing of income tax returns for last year remains on June 15, Monday, the first weekday following the stipulated deadline of June 14 that falls on a weekend. Other payment deadlines such as for value-added tax (VAT) and excise levies are now also final.

BIR, which accounts for nearly 80% of tax revenues, has been grappling to raise revenues since the lockdowns were enforced and closed down businesses, keeping consumers at home, and thereby limiting economic activity where taxes are generated.

In April, BIR collections dropped nearly 70% year-on-year to P71.78 billion, a direct effect of the government’s decision to extend the filing deadline for income taxes that typically falls April 15.

In 2018, the latest year on which data is available, income taxes accounted for 52.8% of the annual BIR revenue take, making it the single largest income source for the government.

From January to April, BIR raised P527.41 billion, down 25.4% year-on-year, latest finance department data showed. For the entire year, economic managers have tasked BIR to collect P2.26 trillion, lower than the original goal of P2.58 trillion.

As it is, the original deadline for income tax payments was pushed back thrice already, first to May 15 then to May 29 and finally to June 14. This, even as the government has repeatedly underscored the need to generate more funds to finance public programs meant to cushion the impact of the pandemic.

Other taxes

Apart from income taxes falling due June 15 for both individual and corporate taxpayers, percentage taxes reported quarterly must be submitted June 9, while VAT declarations for March and April must be in by June 4 and 9, respectively.

Tax relief applications are now also final. The application for VAT credit refund covering fiscal quarter ending May 31 should be submitted on the last day of May. Seeking amnesty for tax delinquents will end June 22.

Early payers are given some incentives. “Taxpayers are likewise reminded that if they file their tax returns…prior to the extended deadline, they can amend their tax returns any time on or before the extended due date,” BIR said.

“An amendment that will result in additional tax to be paid can still be paid without the imposition of corresponding penalties (surcharge, interest, compromise penalties) if the same will be done within the extended deadline,” it added.

Source: https://www.philstar.com/business/2020/05/22/2015787/bir-no-more-income-tax-payments-extension-after-june-14