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Tax Notes

Guidelines for filing, payment of annual income tax returns by non-individual taxpayers

On April 5, 2021, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 50-2021 which outlines the procedures for filing annual income tax returns considering the enactment of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (Create) Law. The RMC also announced the availability of the BIR’s Offline eBIRForms Package v7.9 which shall be utilized by users of the Electronic Filing and Payment System (EFPS) and non-EFPS filers.

The new eBIRForms package now includes an updated return of 1702RT, 1702MX and 1702EX where applicable rates can now be edited according to the taxpayer’s appropriate transitory tax rates. The RMC also presented the applicable transitory rates for taxpayers which vary depending on their taxable year end.

The applicable rates for taxpayers whose tax calendars end on Dec. 31, 2020 are 27.5 percent for regular corporation income tax, 25 percent for taxpayers with assets not exceeding P100 million and net taxable income not exceeding P5 million, 1.5 percent minimum corporate income tax and 5.5 percent for proprietary non-profit educational institutions and hospitals.

Payment for non-EFPS or manual filers shall be made in any authorized agent bank (AAB) as provided under RMC 41-2021. In areas where there are no available AABs, returns shall be filed and paid to the revenue collection officer under the jurisdiction of any revenue district office.

Other available payment channels include GCash/Paymaya, Landbank of the Philippines (LBP) for holders of LBP and Bancnet ATM accounts, Development Bank of the Philippines tax online (for holders of VISA Master credit cards or Bancnet ATM debit cards), Union Bank Online web and mobile payment facility and PesoNet through LBP.

The mode of payment for EFPS filers will be through the EFPS facility. After submitting their returns using the eBIRForms, taxpayers must fill out BIR Form 0605 in the EFPS facility then proceed to e-payment to settle their income taxes. Taxpayers shall use the tax type code Income Tax and the alphanumeric tax code MC 200 miscellaneous tax for their transactions.

Please be guided accordingly.


P&A Grant Thornton


As published in SunStar Cebu, dated 21 April 2021