Adjusted deadlines for taxes due on weekends and holidays

Everyone inevitably deals with tax deadlines, even more so if you are the head of an enterprise or an owner of a business. Being knowledgeable about your tax due dates and the payment methods available to you are key if you want to avoid incurring hefty tax penalties. The Bureau of Internal Revenue (BIR) has implemented various rules and updates regarding payment deadlines; among the significant ones involve BIR Revenue Memorandum Circular (RMC) 65-2016, released on June 23, 2016.

This RMC’s goal involves certain clarifications regarding the rules on the correct filing of return for due dates, and the action needed if the payment of taxes date falls on a weekend or a holiday, along with the electronic and manual filers and payers of taxes available to you. Among the most important topics tackled by the RMC regarding the Imposition of penalties for Late Filing and/or Late Payment.

Tax due date for online and offline payments

Taxpayers have the option to pay their expenses online or offline manually; however, there are certain differences regarding their due date filing.

1.  For taxpayers using Electronic Filing and Payment System (EFPS) Taxpayers following the EFPS rules and taxpayers registered and enrolled under it have their filling of return due dates and the payment of taxes be the exact dates stated in the law or regulations for filing or payment.But if the deadline falls on a weekday (Saturday or Sunday) or holiday, the appropriate deadline for electronic filing and electronic payment and the act of filing and payment will go into the next business day. All returns filed and/or paid beyond the due dates stated in the law or regulations are subject to the appropriate penalty for non-filing/payment, or late filling/payment, whichever one is applicable.In terms of the deadline schedule, the RMC states that:
   “Transmission of electronic returns and electronic payment must be completed/made on and actually received by the BIR on or before 12 midnight of the defined statutory or regulatory due date for the filing and payment of the relevant return. Otherwise, the same shall be considered to have been filed late or paid late, and, thus, shall be subject to the appropriate penalty for late filling/late payment.”Additionally, the RMC explained that:
   “If a dispute occurs, taxpayers need to present the written advice of the BIR that its electronic system for filing and payment taxes is down or unavailable, which will be issued by the BIR every time its electronic system for filing and payment of taxes is down or unavailable.”
2. For taxpayers using the online eBIR Form System 
   Taxpayers who use the eFiling of Return under the online eBIR Forms System have their due dates set on the exact dates stated and agreed upon in the law or regulations, they are obligated to submit their payments at this time. But if the deadline falls upon a weekend (Saturday or Sunday) or on a holiday the agreed upon due date will be moved to the next business day or on the same deadline for the filing of the returns under the Online eBIRForms System.The conditions explain further that the transmission of electronic returns need to be finished and correctly received by the BIR on or before 12 midnight of the regulatory due date for the filing of the regular tax return. If taxpayers fail to meet this deadline, their submission will be considered to have been filed late and be given the appropriate penalty for the late filing.Disputes will require the affected taxpayers to present the written advice of the BIR that its online eBIR Forms System is down or unavailable, which shall be issued by the BIR every time its Online eBlR Forms System is down or unavailable. The advice must also include an instruction regarding the appropriate deadline for manual filling and provide an introduction for the due date of electronic filing of tax returns filed manually.If the returns are not filed on or before the deadline in the written advice, an imposition of penalties will be warranted for failing to file the returns or for the late filing.
3. For taxpayers who are Manual Filers or are using the Offline eBIR Forms Package The BIR clarifies that:“Taxpayers who aren’t mandatorily covered or enrolled under either the EFPS or the Online eBlR Form System or are users of the Offline eBlR Form Package are classified as Manual Filers.”Any taxpayer considered as Manual Filers need to file and pay on or before the due date stated in the law or regulation for filing of returns and payment of taxes. But if the date falls on either a weekend (Saturday or Sunday) or a holiday, the filing process will be moved to the next business day. Furthermore, any filed returns and tax paid submitted after the date stated here will be subjected to appropriate penalty for none filing/payment, or late filing/payment, whichever one is more applicable.