ECQ and GCQ Guidelines; Further Extension of Deadlines for Tax Payments
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This is a briefing on the following issuances as of May 3, 2020 in relation to the COVID-19 pandemic:
1. IATF Omnibus Guidelines on the Implementation of the Community Quarantine in the Philippines
a. The President has issued Executive Order No. 112 (Imposing an Enhanced Community Quarantine in High-Risk Geographic Areas of the Philippines and a General Community Quarantine in the Rest of the Country from 01 to 15 May 2020, Adopting the Omnibus Guidelines on the Implementation Thereof, and for Other Purposes) dated April 30, 2020 (EO 112).Link to the full text.
b. EO 112 provides that the enhanced community quarantine (ECQ) is extended until to May 15, 2020 over high-risk areas, namely: National Capital Region (NCR), Region III (Central Luzon) except Aurora Province, Region IV-A (CALABARZON), Benguet Province, Pangasinan Province, Iloilo Province, Cebu Province, Bacolod City, and Davao City.
c. A general community quarantine (GCQ) is imposed from May 1 to May 15, 2020 in all other areas of the Philippines, “provided that, as a precondition, minimum health standards are achieved and continuously observed in these areas.” The GCQ may be lifted by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) after May 15 if “no deterioration in their risk level occurs.”
d. A mandatory grace period of 30 days for “residential and commercial rents falling due within the duration of the ECQ and GCQ upon residential lessees and micro-, small, and medium enterprises (MSMEs) not permitted to operate during said period” from “the last due date, or until such time that the community quarantine is lifted …, whichever is longer, without incurring interests, penalties, fees, or other charges” is also imposed by EO 112.
e. EO 112 also adopts the IATF’s Resolution No. 30 on the Omnibus Guidelines on the Implementation of the Community Quarantine in the Philippines (IATF Omnibus Guidelines).The IATF Omnibus Guidelines enumerate the industries allowed to operate in areas placed under ECQ and GCQ (as grouped in categories). A summary of the IATF Omnibus Guidelines is set out in the table below.The IATF Omnibus Guidelines defines “skeletal workforce” as “the operational capacity which utilizes the smallest number of people needed for a business or organization to maintain its basic function.
f. The declaration of ECQ and GCQ under EO 112 supersedes any form of community quarantine imposed by local government units (LGUs). Starting May 16, 2020, the authority to “impose, lift, or extend a community quarantine” in LGUs will rest on the following:
(i) IATF for provinces, highly-urbanized cities, and independent component cities;(ii) provincial governors, “upon the concurrence of the relevant regional counterpart body of the IATF,” for component cities and municipalities; and (iii) mayors of cities and municipalities, “upon the concurrence of the relevant regional counterpart body of the IATD,” for barangays. EO 112 provides that the foregoing is without prejudice to “the authority of the IATF to directly impose, lift or extend ECQ in these areas should circumstances call for it.”
2. Workplace Guidelines for Areas under ECQ and GCQ
a. The Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) have issued Interim Guidelines (Interim Guidelines on Workplace Prevention and Control of COVID-19) dated April 30, 2020 prescribing the “minimum health protocols and standards in light of the COVID-19 pandemic” to be implemented in workplaces allowed to operate during the ECQ and GCQ. These guidelines will apply to “all workplaces, employers, and workers in the private sector.”
b. The Philippine Economic Zone Authority (PEZA) has also issued Memorandum Circular No. 2020-0024 (Guidelines for Preparing the PEZA Workplace for COVID-19 Response after Lifting of the Enhanced Community Quarantine (ECQ)) dated April 22, 2020prescribing the guidelines to be followed within the PEZA workplace once the ECQ has been lifted.
3. Transportation Guidelines for Areas under GCQ
a. Even under GCQ, public transportation is limited. The DOTr has released the Guidelines for Public Transport Operations for Areas under GCQ on its Facebook page.The Guidelines cover road, aviation, maritime, and railway transportation sectors.
b. The guidelines for the operation of road-based public transport for areas under GCQ provide that passengers must follow strict social distancing and minimum public health standards (e.g., wearing of face masks for passengers and gloves for drivers). Passenger load per mode of transportation must also not exceed 50% of the regular load.For detailed illustrations on the implementation of social distancing in road-based public transportation, please refer to the infographics and summary of guidelines posted in the DOTr’s Facebook page.
b. Private cars “will be allowed to operate for the purpose of essential travels as defined by the IATF. [C]ars will only be allowed one passenger to occupy the front passenger seat, while front-facing seats shall not exceed two passengers per row. Motorcycles are prohibited from having backride passengers.”
c. On May 3, 2020, the National Task Force (NTF) Against COVID-19 announced the temporary restriction of “flight operations at the Ninoy Aquino International Airport (NAIA) in Manila and all other international airports in the country”from 8:00 AM of May 3, 2020 until May 9, 2020.The restriction covers both international and domestic flights.
d. The following are excluded from the temporary restriction:
(i) emergencies while en route,
(ii) cargo flights,
(iii) air ambulance and medical supplies flights,
(iv) weather mitigation flights,
(v) maintenance flights, and
(vi) “sweeper flights for foreign nationals repatriating back to their respective countries.”
e. International flights intending to seek exemption are required to make a “request exemption with the [Civil Aviation Authority of the Philippines Operations Center] (CAAP OPCEN) at least 36 hours before the scheduled departure from their place of origin.”
1. National Taxes
a. Revenue Regulations (RR) No. 11-2020 (Amends Section 2 of Revenue Regulations No. 10-2020 relative to the extension of statutory deadlines and timelines for the filing and submission of any document and the payment of taxes pursuant to Section 4(z) of Republic Act No. 11469, otherwise known as “Bayanihan to Heal As One Act”) dated April 29, 2020 has been issued by the Secretary of Finance to amend RR No. 10-2020in view of the extension of the ECQ period until May 15, 2020 over high risk areas including the NCR. The full text ofRR No. 11-2020 is at.The term “quarantine” inRR No. 11-2020 refers to “any announcement by the National Government resulting to limited operations and mobility, including, but not limited to, community quarantine, enhanced community quarantine, modified community quarantine, and general community quarantine.”The RR applies to the entire Philippines even if some areas are already under GCQ.
b. RR No. 11-2020 further extends the due dates for the filing and submission of documents and payment of taxes falling within the extended period in RR 10-2020. A summary of the extended deadlines is set out in the table below.
c. RR No. 11-2020 also extends the deadlines for the filing and payment various withholding, percentage and excise taxes as provided in Section 2 (items 41 to 50) ofRR No. 11-2020.
d. RR No. 11-2020 expressly provides that “if the new extended due dates fall on a holiday or non-working day, then, the submission and/or filing contemplated herein shall be made on the next working day.” However, in news releases, the Commissioner of Internal Revenue has stated that “since the newest June 14 deadline fell on a Sunday while the Friday before that, June 12, is a holiday (Independence Day), the actual cut-off date will be on June 11, a Thursday.”“In case of another quarantine extension,” the extended due dates in RR No. 11-2020 “shall be further extended for 15 calendar days ” from the extended due dates in RR No. 11-2020.
e. RR No. 11-2020 reiterates the guidelines in RR No. 10-2020 for tax returns filed on or before the extended deadlines.
2. Local Taxes
a. The DOF has issued Department Circular No. 002-2020 dated April 23, 2020and it allows taxpayers until June 25, 2020 to pay “taxes, fees, and charges of local government units (LGUs)” which are due as of March 25, 2020.
This circular is issued pursuant to Section 4(z) of R.A. No. 11469 or the Bayanihan to Heal As One Act (Bayanihan Act). It is effective “immediately upon publication in a newspaper of general circulation” and will remain effective “until the state of public health emergency is lifted, subject to changes issued or instructed by the Office of the President.”
b. The circular provides the following:
(i) The deadlines for the payment “of all local taxes, fees and charges duly authorized and imposed by LGUs within their respective territorial jurisdictions as of March 25, 2020” is extended to June 25, 2020. In addition, “the counting of the period within which to pay local taxes, fees, and charges shall likewise be suspended during the said period.”
(ii) If a LGU has previously extended the deadlines prior to the effectivity of the Bayanihan Act on March 26, 2020, such deadlines “shall be deemed modified with the period set [in the circular].” Any further extensions “shall be authorized in accordance with the provisions of the Local Government Code.”
(iii) As a result of the extension, “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 extension period.”The DOF has clarified that “all previous delinquencies shall be due and the accrual of interest, penalties and surcharges shall begin after the extension.”
(iv) Local treasurers and assessors are instructed to defer the following:
a. The IPOPHL has issued IPOPHL Memorandum Circular No. 2020-011(Updated Advisory on IPOPHL Services in Light of the Extension of the Enhanced Community Quarantine to 15 May 2020) dated April 27, 2020.
b. The advisory provides the following extensions for filing of papers, pleadings, documents, and payments falling due from March 16, 2020 to May 15, 2020 for:
(i)For deadlines falling from March 16, 2020 to March 31, 2020, submissions may be fileduntil May 31, 2020.
(ii) For deadlines falling from April 1, 2020 to May 15, 2020, filing is extended for a period ofsixty (60) calendar days from the due date.
c. The extension set out in (b) above does not cover the following:
(i) “Filings and proceedings in relation to the voluntary surrender of patents, utility models, and industrial designs… To facilitate the processing, formal requirement on verification shall be complied with upon resumption of normal operations.”
(ii) “For invention, utility model, industrial design and trademark applications claiming priority date, online filing must be used to comply with the prescribed period for claiming of priority date.”
d. There is a 60-day period extension of the “[p]ayment of filing fees including claim for convention priority fees of new applications for patents, utility models, industrial designs, and trademarks, with or without the claim of priority date, which are filed through the IPOPHL electronic filing systems,” and the extended period will be counted from the due date. “If the 60th day falls on a weekend or holiday, payment shall be on the next working day. The date when the application was filed online shall be deemed the filing date. However, applicants may still pay using the online payment system upon filing.”
e.The Advisory also provides that “[a]ll scheduled hearings before the IPOPHL, including mediation, shall remain suspended until [May 15, 2020].”
f. The IPOPHL reminds the public that “[n]ew applications for patents, utility models, industrial designs, and trademarks from [March 16, 2020] to [May 15, 2020] may be filed online through the IPOPHL electronic filing system but processing shall commence upon resumption of work. No manual filing shall be accepted during the said period.”
g. IPOPHL personnel will continue to work-from-home arrangement until [May 15, 2020].The IPOPHL also advises that “[t]he operations of the documentary receiving sections of IPOPHL are suspended. Letters, queries, or any other written communications may be filed on the next working day after the effectivity of the enhanced community quarantine.”For more information about IPOPHL issuances, please contact your account partner or the author of this client bulletin: Vida M. Panganiban-AlindoganPartner; Head of the Intellectual Property Department [email protected]
Executive Order No. 112 dated April 30, 2020;https://www.officialgazette.gov.ph/downloads/2020/04apr/2020030-EO-112-RRD.pdf;last visited at 4:24 PM on May 2, 2020.
DTI and DOLE Interim Guidelines on Workplace Prevention and Control of COVID-19 dated April 30, 2020;https://dtiwebfiles.s3-ap-southeast-1.amazonaws.com/COVID19Resources/Issuances+from+other+agencies/010520_DTI_DOLE_Guidelines_Workplace_Prevention_Control_COVID19.pdf;last visited at 3:16 PM on May 2, 2020.
Omnibus Public Transport Protocols/Guidelines;https://www.facebook.com/DOTrPH/posts/1687550571384072;last visited at 5:26 PM on May 3, 2020.
DOTr issues guidelines for road transport sector in areas under GCQ, DOTr Press Release dated April 30, 2020;http://dotr.gov.ph/55-dotrnews/1315-dotr-issues-guidelines-for-road-transport-sector-in-areas-under-gcq.html;last visited at 3:48 PM on May 1, 2020.
DOTr Infographics for Social Distancing in road-based public transportation dated May 2, 2020;https://www.facebook.com/DOTrPH/posts/1685869848218811;last visited at 3:31 PM on May 2, 2020.Summary of DOTr’s road-based transportation guidelines on areas under the GCQ;https://web.facebook.com/DOTrPH/posts/1685559388249857;last visited at 4:04 PM on May 1, 2020.
NTF Press Release dated May 3, 2020;http://dotr.gov.ph/55-dotrnews/1341-from-the-office-of-the-national-task-force-chief-implementer-secretary-carlito-galvez-jr.html;last visited at 4:55 PM on May 3, 2020.
DOTr Press Statement dated May 3, 2020;http://dotr.gov.ph/55-dotrnews/1342-on-the-decision-of-the-national-task-force-against-covid-19-for-the-temporary-suspension-of-usage-of-all-ph-international-airports-for-inbound-international-passenger-flights.html;last visited at 4:58 PM on May 3, 2020.
For more information aboutRR No. 10-2020,see our bulletin dated April 19, 2020 athttps://mailchi.mp/1f4bc482708d/further-extension-to-pay-taxes-other-covid-19-related-issuances?e=18de4b15d2.
BIR RR No. 11-2020 dated April 29, 2020;https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202020/Revenue%20Regulations%20No%2011-2020.pdf;last visited at 1:30 pm on May 2, 2020.
This is the Certificate of Residency for Tax Treaty Relief purposes that is provided underRevenue Memorandum Order No. 8-2017 (Procedure for Claiming Tax Treaty Benefits for Dividend, Interest and Royalty Income of Nonresident Income Earners).
BIR further extends 2019 ITR-filing, payment deadline to June 14, Philippine Daily Inquirer;https://business.inquirer.net/296303/bir-further-extends-2019-itr-filing-payment-deadline-to-june-14;last visited at 5:22 pm on May 3, 2020.
DOF Department Circular No. 002-2020 dated April 23, 2020;https://drive.google.com/file/d/1oyxeKEGqetoTQdRDzYiuECUFeywGYhdb/view?fbclid=IwAR3M6QbjvGVq_9iNLEwl3MOiCAEBQGKwy9dxYi_rYxJHmmBGNrdH11SNjpM;last visited at 5:34 pm on May 3, 2020.DOF extends deadlines for payment of local taxes, fees to June 25, waives penalties, surcharges during extended quarantine;https://www.dof.gov.ph/dof-extends-deadlines-for-payment-of-local-taxes-fees-to-june-25-waives-penalties-surcharges-during-extended-quarantine/;last visited at 2:30 pm on May 2, 2020.
IPOPHL Memorandum Circular No. 2020-011 dated April 27, 2020;https://drive.google.com/file/d/1zE4qJtFVK8DwNibMHW-ceT4LK5m2TXtt/view;last visited at 2:15 PM on May 1, 2020.
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