Tax Notes

Extension on the deadline for registering businesses engaged in digital transactions

THE Bureau of Internal Revenue recently issued Revenue Memorandum Circular (RMC) 75-2020, extending the deadline for registering business activity and/or updates with no penalty from July 31, 2020 to Aug. 31, 2020. Furthermore, the declaration of past transactions subject to pertinent taxes due when declared and paid on or before the date shall not be subject to the corresponding penalty for late filing and payment.

Applicable penalties under the law and existing revenue rules and regulations shall be imposed on failure to comply with the registration/update requirements and those who fail to declare past-due taxes/unpaid taxes thereof.

RMC 75-2020 is in reference to RMC 60-2020, which requires all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media and other digital means, to have their business registered pursuant to the provisions of Section 236 of the Tax Code.

Please be guided accordingly.


Source: P&A Grant Thornton

Certified Public Accountants

 

As published in SunStar Cebu, dated 05 August 2020