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Must Read: COVID19 Tax Exemptions Update

To combat the spread of this COVID-19, the government issued Republic Act No. 11469 known as “Bayanihan to Heal as One Act”


We’re all concerned about ECQ, if how long will it last? On the other hand, the government issued that would benefit the taxpayers. Here are the COVID19 tax exemptions Philippines 2020.

During this COVID-19 Enhanced Community Quarantine (ECQ), the government issued a memorandum for the taxpayers who will be the filing of returns paying their taxes will be allowed to pay at the nearest Authorized Agent Banks. They can directly file or pay to the concerned Revenue Collection Officers (RCOs) of the nearest Revenue District Office (RDO) even the availability of AABs.

In case of payment on cash, it should not exceed twenty-thousand pesos unless checks issued for payment. The check issued must be payable to the Bureau of Internal Revenue not to the AAB branch. (RMC 43-2020)

"Bayanihan to Heal as One Act"

To combat the spread of this COVID-19, the government issued Republic Act No. 11469 known as “Bayanihan to Heal as One Act”. This RA No. 11469 includes the full deductibility of donations against the gross income of the donor that is also exempted from the donor’s tax law.

These donations include cash, healthcare equipment or supplies, relief goods and water, use of a property (real or personal). Any donations solely or exclusively to fight COVID-19 can be claimed as deductions. Donations of any kind will not be subject to VAT, however, any input VAT to such donated item can be deducted from the output tax.

This RA exempts Documentary Stamp Tax (DST) those who are extending credits including those micro-lending and those who obtained from pawnshops (RR 8-2020).

Requisites for Deductions

1. To claim the deductions to the gross income, the donor must donate to these following organizations or agencies as a recipient.

  • National Government or any entity created by any of its agencies which is not profit, or to any political subdivision including a fully-owned government corporation must be one of those recipients.
  • Accredited non-stock, non-profit educational and or charitable, religious cultural or social welfare corporation, institution, foundation, non-government organization, trust, or philanthropic organization.

2. Secure needed documents during. To the recipient must have the deed of donations or certificate of donations using the BIR form 2322. A donor must have these documents.

  • First, Sworn Certification. President or authorized person who executed this document.  The details must include the name of the done, date of donation, the amount, or value. In addition, it should also include that this donation is to fight COVID-19.
  • Second, Acknowledgment Receipt from the BIR.
  • Lastly, Proof of purchase if the receipt is local private corporations or internal organizations that partner to serve as a conduit with accredited NGOs.  

Exemptions of Imported Items (RR 6-2020)

a. Importation of critical or needed healthcare equipment or supplies intended to combat the COVID-19 public health emergency.

b. Importation of needed materials to make health equipment and supplies shall be exempted also from Value-added Tax (VAT), excise tax, and other fees. These items imported must be on the master list of the Department of Trade and Industry to be exempted.



Final Thoughts

All of us play a vital role in fighting this COVID-19. Above all, those who want to donate either cash or non-cash to the government make sure to secure those supporting documents to benefits from what you have done.

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LATEST TAX ISSUANCES!

Revenue Memorandum Circular No. 72-2020 amends RMC No. 36-2020 relative to the removal of requirement for submission of photocopies of documents evidencing credit extensions and credit restructurings granted by covered institutions during ECQ. RMC 72-2020

Revenue Memorandum Circular No. 73-2020 publishes the full text of CSC Memorandum Circular No. 14, s. 2020 re: Interim Guidelines on Appointments and Other Human Resource Actions for the Period of State of Calamity Due to COVID-19 Pandemic. RMC 73-2020/Annex

Revenue Memorandum Circular No. 71-2020 circularizes the advisory for the adoption of fast-track measures during the COVID-19 state of calamity issued by the Anti-Red Tape Authority through its Advisory No. 01 Series of 2020. RMC 71-2020/Annex A

Revenue Memorandum Circular No. 70-2020 circularizes the List of Expired Tax Credit Certificates. RMC 70-2020/Annex A

Revenue Memorandum Order No. 23-2020 clarifies the issuance of Authority to Release Imported Goods for VAT Exemption on the sale and importation of prescription drugs and medicines pursuant to Section 1 of RA No. 11467, further amending Section 109 (AA) of the NIRC of 1997, as amended, and as implemented in Revenue Regulations No. 18-2020. ​RMO 23-2020

Revenue Regulations No. 19-2020 prescribes the use of the new BIR Form No. 1709, replacing Form No. 1702H, Series of 1992.​ RR 19-2020/Annex A

Revenue Regulations No. 18-2020 implements Section 1 of Republic Act (RA) No. 11467, further amending Section 109 (AA) of the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law), providing for VAT Exemption on the sales and importation of drugs and medicines prescribed for diabetes, high cholesterol, hypertension, cancer, mental illness, tubercolosis and kidney diseases. RR 18-2020

TAX DEADLINE TODAY!

2550M (Monthly VAT Declaration) – eFPS Filers under Group D

23 Thursday
e-FILING
2550M (Monthly VAT Declaration) – eFPS Filers under Group C
The month of June 2020

24 Friday
e-FILING
2550M (Monthly VAT Declaration) – eFPS Filers under Group B
Month of June 2020

25 Saturday
SUBMISSION
Quarterly Summary List of Sales/ Purchases/Importations by a VAT Taxpayers – Non-eFPS Filers
TQ ending June 30, 2020
Sworn Statements of Manufacturer’s or Importers’ Volume of Sales of each particular Brand of Alcohol Products, Tobacco Products & Sweetened Beverage Products
TQ ending June 30, 2020
e-FILING/FILING & e-PAYMENT/PAYMENT
2550Q (Quarterly VAT Return) & 2551Q (Quarterly Percentage Tax Return) – eFPS & Non-eFPS Filers
CQ ending June 30, 2020
e-FILING & e-PAYMENT
2550M (Monthly VAT Declaration) – eFPS Filers under Group A
Month of June 2020
e-PAYMENT
2550M (Monthly VAT Declaration) – Group E, D, C & B
Month of June 2020

30 Thursday
REGISTRATION
Computerized Books of Accounts & Other Accounting Records in Electronic Format
FY ending June 30, 2020
SUBMISSION
Inventory List
FY ending June 30, 2020
Required Hard Copies of Financial Statement & Scanned Copies of Form 2307 to e-Filed 1702 RT, MX & EX

(Original Due Date: June 30, 2020)

FY ending February 29, 2020
Required Hard Copies of Financial Statement & Scanned Copies of Form 2307 to e-Filed 1702 RT, MX & EX FY ending March 31, 2020
e-SUBMISSION

Quarterly Summary List of Sales/Purchases/Importations by a VAT Taxpayers – eFPS Filers
TQ ending June 30, 2020
e-FILING/FILING & e-PAYMENT/PAYMENT

1702Q & Summary Alphalist of Withholding Taxes (SAWT)
FQ ending March 31, 2020

31 Friday
SUBMISSION
Sworn Statement by every Lessee/Concessionaire/Owner or Operator of Mines & Quarry/Processor of Minerals/Producer or Manufacturer of Mineral Products
1st Semester of 2020
Contract of Lease and Information on Lessee/Lessors/Sub-Lessors of Commercial Establishments, Building or Space for Tenants
January 1 to June 30, 2020
e-FILING/FILING & e-PAYMENT/PAYMENT

1601-EQ & 1601-FQ and Quarterly Alphalist of Payees (QAP)
CQ ending June 30, 2020
1602Q & 1603Q
CQ ending June 30, 2020

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