BIR: NO MORE TAX DEADLINE EXTENSION AS GOVERNMENT IN DIRE NEED OF FUNDS + TWITTER SAYS MANY EMPLOYEES MAY WORK REMOTELY FOREVER + TAX AVOIDANCE ALLEGATIONS VS. ABS-CBN UNFAIR FOR REGULATORS: TAX EXPERT
Other Relevant Tax Updates:
- BIR clarifies invoicing compliance requirements during ECQ
- Tax and business-related news [May 9-15]
I. BIR CLARIFIES INVOICING COMPLIANCE REQUIREMENTS DURING ECQ
Revenue Memorandum Circular (RMC) No. 47-2020, dated May 11, 2020, circularizes the guidelines on temporary measures on invoicing compliance to be adopted by taxpayers during ECQ.
Highlights are as follow:
- Circular addresses difficulty of taxpayers complying with invoicing compliance due to inaccessibility or unavailability of approved receipts/invoices during ECQ, because of reasons such as expired Authority to Print (ATP), closure of business establishments, unavailability of postal services, and other business limitations;
- Taxpayers may opt to use any of the following:
- BIR Printed Receipts/Invoices (BPR/BPI);
- Scanned Copy of Receipt/Invoice with ATP electronically transmitted to the customer;
- Computer-aided Receipt/Invoice in excel format not covered by an ATP and electronically transmitted to the customer;
- Supplementary Receipts/Invoices in lieu of Principle Receipts/Invoices (i.e., Delivery Receipts, Acknowledgment Receipts)
- Receipt/Invoice using the existing Computerized Accounting System (CAS) or its components with approved PTU or Acknowledgement Certificate sent electronically or via e-mail to the customer; and
- Receipt/Invoice generated from a newly developed receipting/invoicing software or CAS or its Components without duly approved PTU or Acknowledgment Certificate, which was used to temporarily generate/issue the receipts/invoices and sent electronically to the customer.
- Any taxpayer who adopted the above work-around procedures shall comply with the following requirements:
- Send a formal letter informing the BIR of the work-around procedure being implemented. The letter shall be sent via electronic email to designated e-mail addresses as provided in the circular, within three (3) days from the effectivity of the circular.
- Once ECQ is lifted, taxpayer should issue the duly authorized receipts/invoices to the customers to cover all transactions for which temporary receipts/invoices were issued. The duly authorized receipts/invoices shall bear the actual date of the transaction.
- Taxpayer to submit the “Summary of Temporary Receipts/Invoices Issued” pursuant to Annex A of the circular to the respective BIR offices within 90 days from the date of lifting of ECQ.
- . Taxpayers who have access to the receipts/invoices shall not be covered under this circular;
- II. TAX AND BUSINESS-RELATED NEWS [MAY 9-15]
- Corporate income tax cut to 25% by July pushed
- SM, Megaworld to reopen malls on May 16 with health protocols
- Philippines eyes corporate tax cut, stimulus vs COVID-19
- Economic team dangles 25 percent corporate tax in COVID-19 recovery package
- BIR: No more tax deadline extension as gov’t in dire need of funds
- DOF to finance training of badly needed contact tracers
- Airlines seek gov’t help in getting bank loans
- LIST: Businesses allowed, barred under ‘modified’ quarantines
- Cebu Pacific, AirAsia, PAL extend flight cancelations to May 31
- Twitter says many employees may work remotely ‘forever’
- Tax avoidance allegations vs ABS-CBN unfair for regulators: Tax expert
- Saudi triples VAT, halts govt handouts in austerity drive
- How many POGOs have unpaid taxes? ‘Marami, halos lahat,’ says BIR chief
Corporate income tax cut to 25% by July pushed [Philippine Daily Inquirer, May 15, 2020]
The Philippines’ corporate income tax rate—Asean’s (Association of Southeast Asian Nations) highest at 30 percent—can slide to 25 percent during a one-time, big-time reduction planned in July if Congress will listen to the economic team’s pitch contained in its proposed COVID-19 recovery program.
SM, Megaworld to reopen malls on May 16 with health protocols [ABS-CBN News, May 15, 2020]
SM and Megaworld said Friday safety measures against COVID-19 would be in place when their malls start gradually resuming operations on May 16.
Philippines eyes corporate tax cut, stimulus vs COVID-19 [ABS-CBN News, May 15, 2020]
The Philippines is considering an across the board cut in corporate income tax and a stimulus of up to P160 billion to save the economy from the COVID-19 pandemic, officials said.
Economic team dangles 25 percent corporate tax in COVID-19 recovery package [Philippine Daily Inquirer, May 14, 2020]
The Philippines’ corporate income tax rate—Asean’s highest, currently at 30 percent—can slide to 25 percent during a one-time, big-time reduction planned in July if Congress will heed the economic team’s pitch in its proposed COVID-19 recovery program.
BIR: No more tax deadline extension as gov’t in dire need of funds [Philippine Daily Inquirer, May 14, 2020]
Although enhanced community quarantine (ECQ) has been extended but modified for another 15 days in COVID-19 hot spots, the Bureau of Internal Revenue (BIR) will no longer push back tax deadlines beyond the latest extensions as the government direly needed money to respond to the pandemic.
DOF to finance training of badly needed contact tracers [Philippine Daily Inquirer, May 14, 2020]
Department of Finance (DOF) Secretary Carlos G. Dominguez III on Wednesday said the government was planning to fund the training of contact tracers to be hired from among those who lost their jobs as a result of the new coronavirus disease (COVID-19) pandemic and the consequent lockdowns that forced major economic hubs to limit operations.
Airlines seek gov’t help in getting bank loans [Philippine Daily Inquirer, May 14, 2020]
The country’s biggest airlines are urging lawmakers to include loan guarantees for their industry in a proposed stimulus bill to support sectors devastated by the coronavirus pandemic.
LIST: Businesses allowed, barred under ‘modified’ quarantines [ABS-CBN News, May 13, 2020]
Select businesses will be allowed to operate in Metro Manila starting May 16, when the COVID-19 lockdown starts to ease for the first time in 2 months, Presidential Spokesperson Harry Roque said Wednesday.
Cebu Pacific, AirAsia, PAL extend flight cancelations to May 31 [ABS-CBN News, May 13, 2020]
All Cebu Pacific and Cebgo domestic and international flights remain canceled from May 16 to 31, 2020. This is in line with the implementation of Modified Enhanced Community Quarantine over Metro Manila,” the airline said.
Twitter says many employees may work remotely ‘forever’ [ABS-CBN News, May 13, 2020]
Twitter said Tuesday it is unlikely to open its offices before September, and that many of its employees will be permitted to work from home permanently even after the end of the coronavirus lockdowns.
Tax avoidance allegations vs ABS-CBN unfair for regulators: Tax expert [ABS-CBN News, May 11, 2020]
That’s how tax expert Mon Abrea, founding chairman of the Asian Consulting Group, described the tax avoidance allegations circulating online against the Philippines’ top broadcaster, ABS-CBN Corporation, which has been ordered to stop broadcast operations after the government allowed its franchise to expire.
Saudi triples VAT, halts govt handouts in austerity drive [ABS-CBN News, May 11, 2020]
Saudi Arabia’s finance minister on Monday said the kingdom would triple its Value Added Tax (VAT) and halt monthly handout payments to citizens in new austerity measures spawned by the coronavirus.
How many POGOs have unpaid taxes? ‘Marami, halos lahat,’ says BIR chief [Philippine Daily Inquirer, May 9, 2020]
While the government has already required Philippine offshore gaming operators (POGOs) to first pay all of their tax dues before resuming operations during quarantine, compliance to the taxman was still negligible.
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