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THE SEC EXTENDS THE DEADLINE TO SUBMIT MANDATORY DECLARATIONS UNDER BENEFICIAL OWNERSHIP GUIDELINES TO JULY 31, 2021 (SEC Notice, May 28, 2021)

SECURITIES AND EXCHANGE COMMISSION

 

THE SEC EXTENDS THE DEADLINE TO SUBMIT MANDATORY DECLARATIONS UNDER BENEFICIAL OWNERSHIP GUIDELINES TO JULY 31, 2021 (SEC Notice, May 28, 2021)

 

BUREAU OF INTERNAL REVENUE

 

QUARTERLY RETURNS TO BE USED TO REFLECT NEW RATES UNDER CREATE LAW

 

  • The BIR prescribes the guidelines in the filing of Quarterly Percentage Tax Return (BIR Form No. 2551Q) starting on the quarter ending July 31, 2020

 

 

BIR Form No. 1702Q January 2018
  • Available in EFPS
  • Reduced rate per CREATE Act is included.
  • EFPS files may also use 1702Q using Offline e-BIR Forms Package v.7.9.1, but shall proceed to payment using the eFPS facility. (RMC No. 68-2021, May 26, 2021)
 

BIR Form No. 1702Qv2008C
  • 2008 version shall be used for eBIR Forms
  • 2018 version is not yet available
  • Version is available in eBIR Forms Package v.9.1
  • Payment may be made either manually or online

 

  •  Revenue Memorandum Circular  66-2021, May 24, 2021 and Revenue Memorandum Circular  68-2021, May 26, 2021

 

CLARIFICATIONS ON REDUCTION OF PERCENTAGE TAX FROM 3% TO 1%

 

  • The BIR clarifies the issues relative to the temporary reduction of Percentage Tax rate imposed under Section 116 of the NIRC of 1997, as amended by Section 13 of RA No. 11534 (CREATE Act)

 

Points for clarification Treatment
Decrease of percentage tax rate from 3% to 1%

(July 1, 2020 to June 30, 2023)

 Applies to:

  • Corporate taxpayers and Self-employed individuals and professionals; and
  • Whose gross sales or receipts do not exceed P3 Million

Exception: Cooperatives and self-employed individuals and professionals availing 8% income tax rate
Non-VAT registered taxpayers who used 3% for Q3 and Q4 of 2020 to effectivity of IRR (RR 40-2021 April 8, 2021) implementing percentage tax
  • They need to amend their percentage tax using the 1% rate to reflect the overpaid tax.
  • Overpaid tax to be carried over the succeeding period will not be subject to penalty

 

 In case 2551Q Form only provides refund:

  • In case of manual filing – Don’t mark “to be refunded” or “to be issued TCC” but write “To be Carried Over”

In case of eFPS and eBIR Forms:

  • Option “to be Issued Tax Credit Certificate” shall be marked as a workaround procedure
  • Presumption: taxpayer will carry over
  • If refund is applicable, file BIR From 1914 (Application for tax credit/refund)

 
Refund for overpaid tax
  • Refund is not allowed because the intention is to carry-over the overpaid percentage tax.
  • Exception:
    • Taxpayer shifted from Non-VAT to VAT-registered status; or
    • Taxpayer has opted to avail of 8% income tax rate at the beginning of 2021
Taxpayer inadvertently marked refund or issuance of TCC but intends carry over
  • Presumption: Overpaid amount will be carried over.
  • Once carried-forward, the option is automatically superseded.
Carry-over without amendment of return to any quarter/s starting 2020 Carry-over will still be allowed.
Individual taxpayer under a job order or service agreement with the government under substituted filing
  • The government agency will avail of the refund.
  • Individuals shall issue an authorization and surrender the BIR Form 2306 to the government agency.
  • Government agencies shall amend the previously filed returns including the Alphalists but the reduction or resulting overpayment shall only be to the extent of the amount to be refunded.
Taxpayer claimed as deduction under taxes and licenses in 2020 ITR the overpaid percentage tax Carry-over or refund shall no longer be allowed.
Adjustment in the audited financial statements AFS need not be amended, but overpayment shall be reflected as a reconciling item in the amended ITR.

 

(Revenue Memorandum Circular  67-2021, May 24, 2021)