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UPDATES/TAX ADVISORY FOR INCOME TAX RETURN FILING FOR CALENDAR YEAR 2020
- The Deadline for filing of Annual Income Tax Returns (AITR) for Calendar Year (CY) 2020 Is still on April 15, 2021.
- AITR filed on or before the set deadline MAY BE AMENDED not later than May 15, 2021
- When the amended return resulted in additional payment, no penalties shall be imposed.
- When the amended return resulted in an overpayment of taxes, the taxpayer may opt to carry over such overpayment as a credit against the tax due to the same tax type in the succeeding period or opt for refund.
- Submission of required attachments to the electronically filed AITR for CY 2020 must be within fifteen (15) days from the deadline of filing or date of electronic filing of the return, whichever comes later.
- The attachments to the electronically filed amended returns made on or before May 15, 2021 shall likewise be submitted within fifteen (15) days from the date of filing of amended returns or not later than fifteen (15 ) days from May 15, 2021.
- For Manual filing of AITR, the required attachments shall be submitted together with the AITR. The same shall apply for the submission of attachments for the manually filed amended AITR
- The BIR has recently issued Revenue Memorandum Circular No. 41-2021 dated March 22, 2021 to provide relief to taxpayers in relation to the current surge in COVID-19 cases affecting the entire country resulting to establishments having to operate at half of their manpower capacity.
- Filing of returns as well as payment of taxes due thereon falling WITHIN THE PERIOD FROM MARCH 22, 2021 TO APRIL 30,2021 MAY BE MADE ANYWHERE, even outside the jurisdiction of the Revenue District Office where they are registered. (Note: Before this Circular, as 25% surcharge for wrong venue is imposed on taxes filed outside the jurisdiction of the revenue district office where they are registered.)
- Taxpayers who are not mandated to use the eFPS and eBlRForms System are encouraged to electonically file their returns through the eBIR Forms Facility and pay the corresponding taxes due thereon through any ePayment channels.
- Are you self-employed or a mixed income earner? Watch the Bureau of Internal Revenue’s Webinar on how to file your Annual Income Tax Return for Self-Employed Taxpayers and Mixed Income Earners.
- FILING AND PAYMENT OF INTERNAL REVENUE TAXES
- Electronic Filing of Tax Returns
- B. Electronic Filing and Payment System (eFPS)
- For taxpayers required to use or voluntarily opt to enroll in the eFPS, file the return electronically and pay the corresponding taxes due thereon through the eFPS-AABs where they are enrolled. Taxpayers enrolled in the eFPS may enroll and maintain their account with any of the following EFPS-AABs:
- The following taxpayers are mandated to use EFPS:
- 2. Manual Filing of Tax Returns and Payment
- The following checks should be accepted in payment of internal revenue taxes:
- SUBMISSION OF ATTACHMENTS
- FILING OF “NO PAYMENT RETURNS”
- UNAVAILABILITY OF ELECTRONIC FILING / PAYMENT FACILITY
- STEPS IN PAYING TAXES ONLINE
Are you self-employed or a mixed income earner? Watch the Bureau of Internal Revenue’s Webinar on how to file your Annual Income Tax Return for Self-Employed Taxpayers and Mixed Income Earners.
FILING AND PAYMENT OF INTERNAL REVENUE TAXES
Electronic Filing of Tax Returns
For taxpayers required to use or voluntarily opt to use the eBIRForms, file the tax returns electronically and pay the corresponding taxes due thereon through any of the following:
- Authorized Agent Banks (AABs) under the jurisdiction of the concerned Revenue District Office (RDO) where the taxpayer is registered.
- Revenue Collection Officers (RCOs) under the RDO where the taxpayer is registered through the Mobile Revenue Collection Officer System (MRCOS) in areas where there are no Authorized Agent Banks (AABs).
- Electronic Payment:
- Development Bank of the Philippines’ (DBP) Pay Tax Online (for holders of Visa/Mastercard Credit Card and/or BancNet ATM/Debit Card
- Land Bank of the Philippines’ (LBP) Link.Biz Portal (for taxpayers who have ATM account with LBP and/or holders of BankNet ATM/Debit/Prepaid Card or taxpayer utilizing PESONet facility for depositors of RCBS, Robinsons Bank and Union Bank)
- Union Bank Online Web and Mobile Payment Facility (for taxpayer who has an account with Union Bank of the Philippines)
- Mobile Payment (GCash/PayMaya)
Taxpayers who shall avail of the electronic payment (ePay) may access the above-mentioned ePAY facilities by accessing the BIR website. Upon clicking the “ePay” icon, user shall be directed to the ePayment icons.
Taxpayers may also directly access the following AAB links:
- Taxpayers who will avail of Mobile Payment (GCash or PayMaya) shall download and install the GCash or PayMaya mobile application from the Google Play Store or Apple App Store or Huawei AppGallery.
- Taxpayers/holders of BancNet ATM Card should register their account with BancNet in order to avail the bank’s online payment facility.
- Taxpayer who has an account with the following BancNet participating banks can use their ATM Card in paying taxes online with LBP’s Link.Biz Portal and DBP’s Pay Tax Online:
- Asia United Bank
- BPI Direct BanKo
- CTBC Bank
- Citystate Savings Bank
- Development Bank of the Philippines
- Enterprise Bank
- Entrepreneur Bank
- Equicom Savings Bank
- MASS SPECC
- Philippine Band of Communications
- Phil. Postal Savings Bank
- Philippine Veterans Bank
- Philtrust Bank
- Sterling Bank of Asia
- Sun Savings Bank
- Tiaong Bank
Taxpayers shall bear any convenience fee that may be charged by banks and/or mobile companies for using their online payment facilities.
The following taxpayers are required to use eBIR Forms:
List of Taxpayers
Top Withholding Agents
Revenue Regulations (RR) No. 31-2020
Accredited Tax Agents/Practitioners and all its client-taxpayers
RR No. 6-2014
Accredited Printers of Principal and Supplemental Receipts/Invoices
RR No. 6-2014
One-Time Transaction (ONETT) taxpayers who are classified as real estate dealers/developers; those who are considered as habitually engaged in the sale of real property who are using/filing BIR Form No. 1606 together with the BIR Form No. 2000OT and regular taxpayers already covered by eBIRForms
RR No. 9-2016
Those who shall file a “No Payment Return”
RR No. 9-2016
Government-Owned-or-Controlled Corporations (GOCCs)
RR No. 9-2014
Local Government Units (LGus), except barangays
RR No. 9-2014
Cooperatives registered with National Electrification Administration (NEA) and Local Water Utilities Administration (LWUA)
RR No. 9-2014
B. Electronic Filing and Payment System (eFPS)
- Bank of Commerce
- Bank of the Philippine Islands
- China Banking Corporation
- Citibank, N.A
- CTBC Bank (Formerly Chinatrust Bank)
- Deutsche Bank
- Development Bank of the Philippines (DBP)
- Eastwest Banking Corporation
- Hongkong and Shanghai Banking Corporation (HSBC)
- Land Bank of the Philippines (LBP)
- Metropolitan Bank and Trust Company (Metrobank)
- MUFG Bank (Formerly Bank of Tokyo-Mitsubishi UFJ. Ltd.)
- Philippine Bank of Communications (PBCom)
- Philippine National Bank (PNB)
- Philippine Veterans Bank
- Philippine Trust Company (Philtrust Bank)
- Rizal Commercial Banking Corporation (RCBC)
- Security Bank Corporation
- Standard Chartered Bank
- Union Bank of the Philippines
- United Coconut Planters Bank (UCPB)
The following taxpayers are mandated to use EFPS:
Taxpayer under Taxpayer Account Management Program (TAMP)
RR No. 10-2014
Accredited Importer and Prospective Importer
RR No. 10-2014
National Government Agencies (NGAs)
RR No. 1-2013
All Licensed Local Contractors
RR No. 10-2012
Enterprise enjoying Fiscal Incentives (PEZA, BOI, Various Zone Authorities, Etc.)
RR No. 1-2010
Top 5,000 Individual Taxpayers
RR No. 6-2009
Corporations with Paid-up Capital Stock of P10 Million and above
RR No. 10-2007
Corporations with Complete Computerized Accounting System (CAS)
RR No. 10-2007
Government Offices, in so far as remittance of withheld VAT and business tax is concerned
RR No. 1-2013
RR No. 3-2005
Insurance Companies and Stockbrokers
RR No. 7-2004
RR No. 2-2002, as amended
Top 20,000 Private Corporations
RR No. 2-98, as amended
- The above-mentioned taxpayers who are not yet enrolled in eFPS and have not yet enrolled in any eFPS-AAB shall use the eBIR Forms for e-filing and pay the corresponding taxes through any payment facilities available.
- In case of newly created tax returns that are not yet available in the eFPS Facility but already available in the eBIRForms, taxpayers shall file the said returns using the eBIR forms and pay through any payment channel enumerated in Section I (A) of this RMC.
2. Manual Filing of Tax Returns and Payment
Taxpayers who are otherwise not required to file electronically (either through the eBIR Forms or the eFPS), nor voluntarily opt to do so, shall use the electronic or computer-generated returns or photocopied returns in its original format and in Folio/Legal size bond paper. Taxpayers should completely fill out the applicable fields and sign the returns, otherwise they shall be subjected to penalties under Sec. 250 of the Tax Code, as amended. the corresponding taxes due thereon shall be paid through any of the following:
- Authorized Agent Banks (AABs) under the jurisdiction of the concerned Revenue District Officer (RDO) where the taxpayer is registered
- Revenue Collection Officers (RCOs) under the RDO where the taxpayer is registered through the Mobile Revenue Collection Officer System (MRCOS) in areas where there are no AABs.
Taxpayers are hereby notified on the provisions of RMO no. 8-2009, as amended, quoted as follows:
“4. The issuance of RORs shall be limited to tax payments, in cash not exceeding the amount of twenty thousand pesos (P20,000.00) per return. However, there shall be no limit on the amount if payment is made thru checks.
The following checks should be accepted in payment of internal revenue taxes:
- Manager’s or Cashier’s Checks;
- Checks drawn against a joint or multiple account for the purpose of tax payment of the personal tax liability of any of the members thereof provided that the name and TIN of the paying member/s shall be indicated on the back/face of the check;
- Checks drawn against the personal account of the owner of a single proprietorship in payment of the tax liability of his/her business;
- Checks drawn against the account of a single proprietorship in payment of the tax liability of the owner provided that the name and TIN of the owner are indicated at the face/back of the check;
- Checks issued by either of the spouses to pay their income tax liabilities.”
In the issuance and accomplishment of checks for the payment of internal revenue taxes, the taxpayer shall indicate in the space provided for “PAY TO THE ORDER OF” the following data:
- presenting/collecting bank or the bank where the payment is to be coursed and
- FAO (For the Account of) Bureau of Internal Revenue as payee.
For Manager’s or Cashier’s Checks, the issuing bank shall indicate on the space for ‘PAY TO THE ORDER OF” the following data : (1) presenting/collecting bank or the bank where the payment is to be coursed and (2) FAO (For the Account Of) Bureau of Internal Revenue as payee and under the *Account Name* the Taxpayer’s Name and Taxpayer Identification Number (TIN).
Taxpayers who are not mandated to use the eFPFS and eBIR Forms Facility are encouraged to electronically file their returns through the eBIR Forms Facility and pay the corresponding taxes due thereon through any payment channels mentioned under Item I(A) of this Circular.
SUBMISSION OF ATTACHMENTS
Electronically filed and/or paid returns using eBIRForms or EFPS without any attachment required, need not submit printed copy of e-filed tax returns to the office under the Large Taxpayers Service/Revenue District Offices.
Taxpayers with required attachments to their duly filed and paid tax returns, such as Summary Alphalist of Withholding Agents of Income Payments Subject to Withholding Tax (SAWT) required under BIR Form Nos. 1701, 1701A, 1701Q, 1702Q, 1702RT and 1702MX or Quarterly Alphalist of Payees (QAP) required under BIR Form No. 1601EQ and 1601FQ (which shall be prepared using the Data Entry Module) or Monthly Alphalist of Payees (MAP) required under BIR Form No. 1600 or the Summary List of Sales (SLS)/Summary List of Purchases (SLP)/Summary List of Importation (SLP) for all VAT Taxpayers required under BIR Form No. 2550! (which shall be prepared using the RELIEF) shall be submitted through firstname.lastname@example.org.
However, for attachments to Annual/Quarterly ITRs duly filed electronically, an additional option is given to taxpayers otherwise not required to submit via SAWT their claimed tax credits per existing regulations. They may submit via Electronic Audited Financial Statement (eAFS) system the claimed tax credit certificates in lieu of attaching the physical copy of their claimed tax credits in the quarterly ITRs. The email confirmation received from eAFS shall serve as proof of submission of said attachments. Other submissions made through SAWT shall continue to observe procedures per existing regulations.
Submission and storage of original copies of attachments shall observe the provisions of relevant issuances.
FILING OF “NO PAYMENT RETURNS”
Filing of “No Payment Returns” by non-eFPS users shall be made electronically through the eBIRForms facility. Taxpayers who filed “No Payment Returns” electronically shall likewise be required to file their subsequent tax filings electronically, regardless of payments.
However, the following can file manually their “No Payment Returns” with the RDO where they are registered using the electronic or computer-generated returns or photocopied returns in its original format and in A4 size bond paper.
- Senior Citizen (SC) or Persons with Disablities (PWD) filing for their own returns;
- Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year, or from a single employer, although the income of which has been correctly subjected to withholding tax, but whose spouse in not entitled to substituted fling; and,
- Employees qualified for substituted filing under Revenue Regulations No. 2-98 Sec. 2.83.4, as amended, but opted to file for an ITR and are filing for purposes of promotion, loans, scholarships, foreign travel requirements, etc.
UNAVAILABILITY OF ELECTRONIC FILING / PAYMENT FACILITY
In general, taxpayers who are required to file electronically but filed and paid manually shall be liable for violation tantamount to Wrong Venue filing pursuant to Section 248(A)(2) of the NIRC of 1997. I
STEPS IN PAYING TAXES ONLINE
- Development Bank of the Philippines’ Tax Online:
Step 1: Visit www.dbppaytax.com and fill out vital details such as:
- Form No.
- Tax Type
- RDO No.
- Period Covered and Amount
Step 2: Check if all information are correct
Step 3: Choose your mode of payment
Step 4: Input your personal details and contact number. A one-time password (OTP) will be sent to your mobile device.
Step 5: Submit the OTP within 5 minutes
Step 6: Click “Pay” to finish the transaction
After payment confirmation, there will be a transaction summary which can be downloaded as a PDF. An email will also be sent to you for transaction details
2. Land Bank of the Philippines’ Link.Biz Portal
Step 1: On the Landbank website, click on the E-banking tab, select “Other e-Banking Services”, and click “Link.BizPortal”
Step 2: Click on the logo of the Link.Biz Portal and this will direct you to the Link.Bizportal website
Step 3: Click “Pay Now’ and enter or select “Bureau of Internal Revenue” as merchant, then click “CONTINUE”.
Step 4: Select “Tax Payment” as transaction type and press “CONTINUE”
Step 5: Fill out the details in the form.
Step 6: Continue to the next page and make a final review before authorizing your payment by doing either of the following:
- Entering your Landbank or Bancnet account details
- Entering your log-in credentials with other banks
Step 7: Proceed with the payment and click “SUBMIT”
Step 8: Once you click submit, a payment confirmation will be displayed in the Landbank Link.Biz for your successful tax payment and will also be sent to the e-mail you have provided
3. Union Bank Online (Mobile and Web Payment Facility):
Step 1: Log in to UnionBank Online or the UnionBank mobile app
Step 2: Click on “Pay Bills” and select “Bureau of Internal Revenue”
Step 3: Fill in the required biller information.
Step 4: Review payment details
Step 5: Confirm payment
Step 6: An email confirmation will also be received by the taxpayer in the email address he/she provided
Step 1: Download and install the GCash App
Step 2: Log in the GCash App using your PIN
Step 3: Make sure you have sufficient funds in your GCash wallet
Step 4: Click “Pay Bills” at the bottom of your screen. Under “Biller”, select “BIR”
Step 5: Accomplish the “Pay BIR” form
Step 6: Confirm the details of your payment. Please note that a GCash service fee will be charged to your GCash wallet.
Step 7: You will receive a text message and an in-app confirmation upon successful transaction.
Step 1: Download the PayMaya app in the Google Play Store/Apple App Store/Huawei App Gallery
Step 2: Create or log in to your PayMaya account
Step 3: From the Home Screen, tap Pay Bills
Step 4: Look for the BIR logo or type BIR in the search box
Step 5: Enter the required information
Step 6: Confirm the details of your payment. Review the details of the transaction before tapping the “Pay” button. After tapping the “Pay” Button on the confirmation page, you will be directed to the processing page.
Step 7: A confirmation receipt will be displayed. You will also receive an SMS and an e-mail