FILING AND PAYMENT OF TAXES FALLING DUE FROM AUGUST 6 TO 20, 2021 IS EXTENDED FOR 15 CALENDAR DAYS. (Revenue Memorandum Circular No. 91-2021, August 3,2021)

FILING AND PAYMENT OF TAXES FALLING DUE FROM AUGUST 6 TO 20, 2021 IS EXTENDED FOR 15 CALENDAR DAYS. (Revenue Memorandum Circular No. 91-2021, August 3,2021)

• Deadline of filing of returns and payment of the corresponding taxes due thereon, and submission of reports and attachments, falling within the period from August 6, 2021 to August 20, 2021 for taxpayers under ECQ and MECQ is extended.
• The deadline is extended for a period of fifteen (15) days from August 20, 2021.
• If the ECQ and/or MECQ will be extended, then filing of returns and payment of the corresponding taxes due thereon and submission of reports and attachments shall be extended by 15 days from the lifting of the ECQ and/or MECQ.
• Taxpayer during the period may:
  •  Pay the taxes in the nearest Authorized Agent Banks (AABs), notwithstanding RDO jurisdiction; and
  • File and pay the corresponding tax due to the concerned Revenue Collection Officers of the nearest RDO even in areas where there are AABs.

DEADLINE FOR FILING OF PAPERS, LETTERS, AND DOCUMENTS IN ECQ AND MECQ COVERED AREAS IS EXTENDED. (Revenue Memorandum Circular No. 92-2021, August 9, 2021)

• Face to face meetings of BIR officials and employees with taxpayers/authorized representatives are declared deferred and rescheduled until the lifting of the ECQ and MECQ.
  • Deadline for filing of papers, letter and documents falling on August 6, 2021, during the ECQ and MECQ period and for RDOs and BIR Offices located in ECQ and MECQ covered areas is hereby extended as follows:

• Future declarations of ECQ and/or MCQ will extend the deadline of the submission of the above documents for the same period and will reschedule the face to face meetings of BIR officials and employees.

THE RUNNING OF THE STATUTE OF LIMITATIONS ON ASSESSMENT AND COLLECTIONS OF TAXES IN NATIONAL CAPITAL REGION AND OTHER AREAS IN THE COUNTRY COVERED BY ENHANCED COMMUNITY QUARANTINE (ECQ) AND MODIFIED ECQ (MECQ) IS SUSPENDED. (Revenue Memorandum Circular 93-2021, August 9, 2021)

• The running of the statute of limitations for assessment and collection of deficiency taxes is suspended in the affected jurisdictions while ECQ and/or MECQ is in effect, including any extension/s thereof, and for sixty (60) days thereafter.
• The suspension of the running of the Statute of Limitations shall apply with respect to the issuance and service of assessment notices, warrants and enforcement, and/or collection of deficiency taxes.
•  Future declarations of ECQ and/or MCQ will also suspend the running of the statute of limitations for assessment and collection of deficiency taxes and for 60 days thereafter.

CLARIFICATIONS IN COMPUTATIONS OF DONOR’S TAX IN CASE OF PARTIAL RENUNCIATION OF INHERITANCE (Revenue Memorandum Circular 94-2021, August 10, 2021)

•  General renunciation of an heir on his share from the inheritance is not subject to Donor’s Tax.
• Partial renunciation of inheritance is when an heir renounces his share to a specified property but not to the entire properties of the decedent.
• Donor’s tax shall be imposed on the value forgone as a result of such waiver/renunciation.
• Where the value of the property received as a result of the partial renunciation is lower than the total value of the supposed share, the difference is subject to donor’s tax.

ALPHANUMERIC TAX CODE (ATC) FOR EXCISE TAXES ON EXPORTS OF SWEETENED BEVERAGES PRODUCTS PAID THROUGH PAYMENT FORM – BIR FORM NO. 0605 (Revenue Memorandum Order No. 24-202, August 13, 2021)

BIR RULINGS

• Retirement benefits received by officials and employees of private firms with a “reasonable benefit plan” shall be exempt from income and withholding tax. Provided, that the employee had been in the service of the same private firm for at least 10 years and he is at least 50 years old at the time of retirement. In the absence of the retirement plan or agreement regarding the retirement benefits of the employees in the company, an employee who has reached the age of sixty (60) years or more, but not beyond sixty-five (65) years (Compulsory Retirement Age), and rendered the least five (5) years of service in the company may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service and will be likewise exempt from income and withholding tax. Provided, further, that in both case, the benefits granted shall be availed by an official or employee only once. Prohibition against double availment does not apply to separation by reason of retrenchment. (BIR Ruling No. OT-038-21, February 26,2021)
• Importation of a cargo vessel destined for domestic transport operations shall be exempt from VAT. Provided, that the VAT exemptions shall be subject to the requirements on restriction vessel importation and mandatory vessel retirement program of MARINA. (BIR Ruling No. VAT-041-21)
• Sale of land by a corporation to homeowner’s association under Community Mortgage Program (CMP) is exempted from capital gains tax under the Urban Development and Housing Act of 1992. However, the transaction is subject to documentary stamp tax. (Certificate of Tax Exemption No. CMP-043-21, February 26, 2021; CMP-044-21, February 26, 2021; CMP-048-21, March 1, 2021; CMP-049-21, March 1, 2021; CMP-050-21, March 1, 2021)