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On April 8, the Bureau of Internal Revenue (BIR) released Revenue Regulations (RR) No. 5-2021 which implements certain provisions of the Corporate Recovery and Tax Incentives for Enterprise (CREATE) Act. It particularly implements the new Corporate Income Tax (CIT) rates, new income tax rates on certain passive incomes, and additional deductions from gross income of corporations and sole proprietors.

Filipinos have grown accustomed to celebrating festivities. However, things changed when the pandemic set in. Towards the close of the first half, it seems many celebrations have been called off due to safety concerns and travel restrictions. Without the pandemic, many would have been busy preparing for the Flores de Mayo and the Santacruzan.

“To be or not to be” is one of Shakespeare’s most famous lines — the opening of a Hamlet soliloquy in Act 3, Scene 1. Prince Hamlet is speaking it aloud, but none of the characters seem to hear him. Is it possible that the characters have chosen not to listen because the topic is death?

Being in the public practice for almost seven years now, I can say that this years’ tax filing season has been one of the busiest and most dreadful. Due to the pandemic, government-imposed community quarantines, and the signing of the CREATE Law, it has indeed been a rollercoaster ride.

This year has been one of the most challenging filing seasons ever, particularly for accountants. On top of implementing recovery measures to mitigate the impact of the COVID-19 pandemic and addressing employee health concerns, companies also have to deal with demanding tax deadlines. This year, no extension was granted for the filing of Annual lncome Tax Returns (AITR). Also, a new required attachment to the AITR has been introduced. While the BIR allowed taxpayers to file provisional AITRs and amend these on or before May 15 without interest, surcharges, and penalties, beating the April 15 deadline was still a challenge.

It’s been more than a year since the onset of the COVID-19 pandemic. This global health crisis, which has claimed millions of lives and continues to change the ways businesses operate, has spanned two tax seasons in the Philippines.

Physical exhaustion, sleepless nights, and anxiety are among the words that some might use to describe the experience of taxpayers and their accountants in this tax season just concluded, an ordeal heightened by the effects of the pandemic and lockdowns.

On March 31, 2021, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) 14-2021 which outlines the new procedures for availing of relief from double taxation under relevant tax treaties on all items of income derived by nonresident taxpayers from Philippine sources.