The new circular also covers taxpayers unable to comply because of technical problems with the eBIRForms Offline Package.
BIR commissioner Charlito Martin Mendoza said the extension accounts for the difficulties faced by taxpayers hit by the rains as well as those affected by the eBIRForms issue, giving them additional time to meet their obligations without penalty.
The extension applies to filing, payment, remittance, and submission requirements originally due between 10 and 16 August, including withholding tax and income tax returns, and transactions covered under the “one-time transaction” category, among other obligations listed in the circular.
Penalties waived
The BIR has also issued a bank bulletin instructing Authorized Agent Banks to accept covered tax returns and payments without penalty until 18 August from taxpayers under both the habagat-related extension and the eBIRForms-related extension.
The bureau clarified that taxpayers required to use the Electronic Filing and Payment System who are not covered by RMC 89-2026 are excluded from the extension and must continue filing and paying through eFPS.
Mendoza reminded affected taxpayers to complete their filing and payment requirements by 18 August, adding that the BIR would continue to respond to circumstances beyond taxpayers’ control.
Early withdrawal rules
The Bureau of Internal Revenue has clarified the tax treatment of early withdrawals from Personal Equity and Retirement Accounts, narrowing the base on which the early withdrawal penalty is computed.
Under RMC 91-2026, issued on 11 August, the 20 percent Early Withdrawal Penalty will apply only to the gross income earned that is attributable to the specific PERA assets actually withdrawn.
Income, unrealized gains, and other assets that remain invested in the account are excluded from the penalty computation.
