The Department of Finance has issued a circular extending to Dec. 19, 2020, the payment of all local taxes, fees and charges imposed by local government units, with the deadlines falling on or after Sept. 14 this year, in compliance with the provisions of Republic Act 11494 or the Bayanihan to Recover As One Act or Bayanihan 2.
Under a circular issued by Finance Secretary Carlos Dominguez III, the counting of the period within which to pay local taxes, fees and charges are also suspended until Dec. 19, 2020, including the period for the redemption of real properties sold or forfeited at public auctions.
“In the event that an LGU had already extended the deadlines prior to the effectivity of RA 11494, such deadlines, if earlier than 19 December 2020, shall be deemed modified with the period set forth herein. Any further extension of deadlines beyond 19 December 2020 shall be authorized in accordance with the provision of RA No. 7160,” the circular said.
As a result of the mandatory extension of these payment limits, no interest, surcharge or any form of penalty will be applied on any local tax, fee or charge accruing on or due and demandable during the period covering such deadlines.
As for the local tax delinquencies prior to the effectivity of Bayanihan 2 on Sept. 15, all payments will be due and demandable upon the expiration of the Dec. 19 deadline.
All applicable interests, penalties and surcharges will begin to run again, if due and demandable, after the lapse of the effectivity of Bayanihan 2 on Dec. 19, the circular says.
The circular was issued by Dominguez to provide guidelines on the uniform implementation by LGUs of Section 4 of theBayanihan 2 Law, which provides for stretching the statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees and other charges required by law, and the grant of any benefit.
This provision under Bayanihan 2 aims to ease the burden on individuals and enterprises affected by the severe disruption of economic activities resulting from the stringent community quarantines that the national and local governments had imposed to curb the spread of COVID-19.
Local treasurers were instructed to coordinate with LGU officials to inform taxpayers of these mandatory extensions and to reconfigure the electronic information systems used by local governments for the assessment and computation of such local taxes, fees and charges covered by the circular.
Local treasurers were also directed to defer the activities related to administrative or judicial action for the enforcement and/or collection of local taxes, fees or charges until the lapse of the effectivity of the Bayanihan 2 Law.
They were likewise directed to enable the use of electronic or non-face-to-face payment facilities so that taxpayers who will still opt to pay early may be continuously accommodated by the LGU to ensure physical distancing.