DOF extends deadlines on tax payments

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    The Department of Finance (DOF) has extended the deadline of tax payments and other charges imposed by local government units (LGUs), in compliance with the provisions of Republic Act (RA) No. 11494 or the Bayanihan to Recover As One Act (Bayanihan 2).

    The DOF said in a statement yesterday it has issued a circular extending to Dec. 19, 2020, the payment of all local taxes, fees and charges imposed by LGUs with deadlines falling on or after September 14 this year.

    Under Department Circular (DC) No. 003-2020 issued by DOF Secretary Carlos Dominguez, the counting of the period within which to pay local taxes, fees and charges are also suspended until Dec. 19, 2020, including the period for the redemption of real properties sold or forfeited at public auction.

    “In the event an LGU had extended the deadlines prior to the effectivity of RA 11494, such deadlines, if earlier than 19 December 2020, shall be deemed modified with the period set forth herein. Any further extension of deadlines beyond 19 December 2020 shall be authorized in accordance with the provision of RA No. 7160 (Local Government Code),” the DC states.

    As a result of the mandatory extension of these payment limits, no interest, surcharge or any form of penalty shall be applied on any local tax, fee or charge accruing on or due and demandable during the period covering such deadlines, it added.

    As for local tax delinquencies prior to the effectivity of Bayanihan 2 on September 15, all payments shall be due and demandable upon the expiration of the December 19 deadline, the DOF said.

    All applicable interests, penalties and surcharges will begin to run again, if due and demandable, after the lapse of the effectivity of Bayanihan 2 on December 19, the DC said.

    Section 4 of the Bayanihan 2 Law provides for stretching the statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees and other charges required by law, and the grant of any benefit to ease the burden on individuals and enterprises affected by the severe disruption of economic activities resulting from the stringent community quarantines that the national and local governments have imposed to curb the spread of COVID-19. – A. Celis