Late Filing and Out-of-District Filing of Tax Returns and Reports in Philippines

The Bureau of Internal Revenue (BIR) in the Philippines issued Revenue Regulation (RR) No. 6-2023, dated April 11, 2023, on June 13, 2023, entitled “Amending Certain Provisions of Revenue Regulations No. 13-2010 Regarding Late/Out-of-District Filing of Tax Returns”.

The BIR established and implemented more stringent policies and guidelines in the acceptance of late/out-of-district tax returns with the following:

• · Authorized Agent Banks (AABs);
• Revenue Collection Officers (RCOs);
• Revenue District Offices (RDOs);
• Large Taxpayers District Offices (LTDOs); or;
• Large Taxpayers Divisions (LT Divisions).

Let us look at how the BIR deals with the Late/Out-of-District filing and payment of tax returns.

I. Non-Acceptance of Out-of-District and Late Filing Returns

As a general rule, no AABs, RCOs, RDOs, LTDOs and LT Division in the Philippines shall accept Out-of-District Returns. As well as no acceptance of late filing of tax returns without imposition of applicable penalties such as Surcharge of 25% or 50% of basic tax due and Annual Interest of 12% under Sections 248 and 249 of National Internal Revenue Code (NIRC), and Compromise Penalty under Revenue Memorandum Order (RMO) No. 7-2015, respectively.

II. Exceptions

The following shall be considered as exceptions to the general rule on the non-acceptance of Out-of-District Returns:

a. Unintentional or erroneously accepted by AAB in a regular course of action. The AAB will transmit the accepted out-of-district tax returns within five (5) days to the proper offices (RDO/LTDO/LT Division) and shall impose 25% penalty of the tax due for wrong venue filing, unless authorized by the Commissioner of the Internal Revenue;

b. One-Time Transactions, such as Estate, Donor’s, Capital Gains and Documentary Stamp Taxes as provided under the relevant revenue issuances, shall continue to be observed; and,

c. There is a revenue issuance/bank bulletin that the taxpayer can file and pay tax due anywhere.

III. Late Filing of Tax Returns

Prior to the filing of Late Return, the AAB or RCO may accept a Late Return provided that it has been stamped “LATE FILING” or “LATE FILING, INCREMENTS NOT PAID” and shall include computation of the corresponding penalties.

With the above, these are my personal suggestions and reminders that taxpayers might want to consider for filing and payment of tax returns.

1. Mode of Filing and Payment

Under Revenue Memorandum Circular (RMC) No. 4-2021, the following prescribed guidelines must be observed:

a. eBIRForms Filers – file electronically the returns and pay the corresponding tax dues through AABs or RCOs under the jurisdiction of the concerned RDO where the taxpayer is registered and electronic payments through Gcash, Paymaya, and others.

b. eFPS Filers – file electronically the returns and pay the tax dues through eFPS-AAB where they are enrolled.

c. Manual Filers – file and pay tax returns through AABs or RCOs under the jurisdiction of the concerned RDO where the taxpayer is registered.

2. Deadlines

Below are some deadlines in filing and payment of the tax returns:

• BIR Form Nos. Deadlines Manual and eBIR Filers eFPS Filers
• 2000 (DST) Not later than the fifth (5th) day of the following month when the taxable document is made, signed, issued, accepted or transferred.
• 0605 (Annual Registration Fee) On or before January 31 of each year
• 0619E (Monthly EWT)/1601C
• (Monthly WTW)/0619F (MonthlyFWT) Every tenth (10th) day after the end of each month staggered filing based on the taxpayer’s industry
• 1601EQ (Quarterly EWT)/1601FQ
• (Quarterly FWT)/ 1603Q (FBT) Every last day of the month after the end of each taxable quarter
• 1604E (Annual EWT)/1604F (Annual FWT) On or before January 31 of each year
• 1604C (Annual WTW) On or before February 28 of each year
• 2551Q (Percentage Tax)/ 2550Q (VAT) Every 25th day after the taxable quarter
• 1701Q (Quarterly ITR for Individual Taxpayer) 45 days after the end of each taxable quarter
• 1702Q (Quarterly ITR for Non-Individual Taxpayer) 60 days after the end of each taxable quarter
• 1701/1701A/1702RT/1702EX/1702MX (Annual ITR) on or before the 15th day of the 4th month after the closing of the taxable year.

3. Statutory Penalties

In case of late filing and/or payment of returns, BIR may impose a penalty as follows:

a. Surcharge of 25% or 50% of the basic tax due under Section 248 of the Tax Code.

b. Interest of 12% on the unpaid amount of tax from the time it should have been paid until it is fully paid.

c. Compromise Penalty under RMO No. 7-2015 and amended.

Conclusion:

The responsibility when it comes to meeting deadlines, filing, and payment of tax returns in the proper BIR offices and e-payment channels falls on the shoulder of the taxpayer. Hence, it is important to properly note all the tax return deadlines and the respective RDO where the taxpayer is registered. So that taxpayers will not be wasting their hard-earned money paying such penalties.