Dear Valued Clients,

Please be informed that the Department of Finance (“DOF”) has issued Department Circular No. 002-2020 (“DOF Circular”) pursuant to Section 4(z) of Republic Act No. 11469 (the “Bayanihan to Heal as One Act”), in order to ease the tax burden on individuals under community quarantine.

Under Section 4 of the DOF Circular, the deadlines and timelines for the payment of taxes, fees, and other charges imposed and collected by local government units (“LGU”) as of 25 March 2020 shall be extended until 25 June 2020. If the LGU had already extended the deadline prior to the effectivity of the Bayanihan to Heal as One Act, such deadline shall be adjusted in accordance with the period set forth under the DOF Circular. Further, the counting of the period within which to pay local taxes, fees and charges shall likewise be suspended during the said period.

The DOF Circular also clarified that no interest, surcharge or any form of penalty shall be applied on account of the extension of the payment deadlines and the suspension of the counting of the period of payment. Nonetheless, all local tax delinquencies prior to the effectivity of the Bayanihan to Heal as One Act shall remain and shall be due and demandable following the expiration of the deadline 25 June 2020 (unless further extension is authorized in accordance with Republic Act No. 7160 or the Local Government Code). Further, the applicable interests, penalties and surcharges on the delinquency shall begin to run again and shall be due and demandable after the lapse of the effectivity of the Bayanihan to Heal as One Act.

For reference, attached is a copy of the DOF Circular.

We continue to pray for the health and safety of you, your families, and your workforce.