Revenue Regulations 2020 in re: Bayanihan to Heal as One Act

i. BSP exempt from all NIR taxes on income derived from its governmental functions.
Income in pursuits of its primary objective to maintain price stability, promotion and
maintenance of monetary and financial stability. All other incomes shall be considered
as proprietary income and shall be subject to NIR taxes.
ii. Tax Amnesty on Delinquencies - until April 23, 2020 but may be extended if
circumstances warrant an extension, such as in case of country-wide economic or health
reasons.
iii. Tax Exemption on Provisions of Bayanihan Act - tax incentives for manufacture or
importation of critical needed supplies, which include healthcare equipment and
supplies provided that the importation shall be exempt from import duties, taxes and
other fees.
Critical or needed healthcare equipment or supplies intended to combat Covid 19
public health emergency including: PPE, laboratory equipment and its reagents, medical
equipment and devices, support and maintenance for laboratory, surgical, testing kits
and other supplies as determined by DOH and other government agencies shall be
exempt from VAT, Excise Tax and other fees. Importation of materials needed to make
health equipment and supplies deemed critical or needed to address the current public
health emergency shall also be exempt provided that importing manufacturer is
included in the Master List of DTI and other incentive granting bodies.
iv. Donations of imported articles to or for the use of National Government or any entity
created by any of its agencies which is not conducted for profit are exempt from donor's
tax subject to ordinary rules of deductibility under existing rules and issuances.
v. Extension of deadlines shall not prejudice any submission and filings made before the
enactment of regulations and those submission to be made effective pursuant to the
original deadline under the Tax Code. Extension of deadlines set it in the regulations
may be further extended by CIR, if circumstances warrant for such extension as directed
by the Sec of Finance.
vi. April 2, 2020 - All banks, quasi-banks, financing and lending companies including GSIS,
SSS, and Pag-ibig to implement a minimum of 30 days grace period for payment of all
loan falling due within the ECQ period. No interest, penalties or charges incurred.
vii. Benefits on donations during ECQ - donations or gifts made for the sole and exclusive
purpose of combating Covid-19 during the period of national emergency shall be
considered fully deductible against gross income of donor corporation or individual.
Donations on critical healthcare equipment shall not be treated as transaction deemed
sale subject to VAT. Any input VAT attributable to such purchase of goods shall be
creditable against any other output tax.
viii. Tax Payment - extends the timeline of filing tax returns. The extension of deadlines to
submit, file and/or pay the necessary documents and/or taxes and existing revenue
regulations are required. If the taxpayers filed their tax returns within the original
deadline or prior to the extended deadline, they can amend their tax returns at any time
before the extended due date.
ix. Tax Privileges to Establishment granting discounts to national athletes -
x. Cash Conversion of Unutilized Tax Credit Certificate -
 xi. VAT refund claims shall be suspended in areas where ECQ or MECQ is still enforced.
xii. FMV of shares of stock not listed and traded in the local stock exchanges will be based
on the appraised or FMV and not the book value. Latest AFS shall be sufficient in
determining the FMV of the shares of stock subject of the sale.
xiii. Voluntary Assessment and Payment Program - in view of the pandemic, taxpayer is
granted an opportunity to avail this. Privileges: No audit. A taxpayer with a duly issued
Certificate of Availment shall not be audited for 2018 for the types of tax covered by the
availment. Until June 31, 2021.
xiv. Amendments pertinent regulations on due process requirement on tax assessment -
Revenue officers are required to inform taxpayers in writing through a Notice of
Discrepancy in the payment of his taxes. Discussion of discrepancy shall be within 30
days from receipt of notice.
xv. No longer be tax imposed on shares of stock sold, bartered, exchanged or other
disposition through IPO of shares of stock of in closely held corporations.
xvi. Exemption from DST of Loans extended or credits restructured - covers all extensions of
payment periods including salary, housing, motor vehicle and credit card payment loans
falling due on or before Dec 31, 2020.
xvii. NOLCO is allowed as a deduction from its gross income for the next 5 consecutive
taxable years immediately following the loss. (EXPN to the GR of 3 years only!)
xviii. Donations for use in public school - exempt from donor's tax, deductible from gross
income, VAT and ATRIG requirement.
xix. In cases where the processing office is required temporary closure to prevent further
spread of Covid cases, the 90 day processing of VAT refund claim shall be suspended
until the last day of quarantine period for the affected office.
xx. Incentives on manufacture and importation - Inputs, raw materials and equipment
necessary for manufacture of essential goods of medical grade related to mitigation of
Covid 19 as determined by FDA are exempted from VAT.
xxi. Tax exemption on certain income payments - Excluded from gross income and shall not
be subject to income tax: retirement benefits received by officials and employees of
private firms, provided that the amount received is in accordance with the retirement
plan duly registered with BIR (from june 5 to dec 31 2020).
Covid 19 special risk allowance given to public and private health workers.
Actual hazard duty pay given to HR for health.
Compensation paid to private or public HW who have contracted Covid 19 in line of duty
or dies while fighting the disease, amounting to 1M in case of death, P100K in case of
severe sickness or 15K for mild or moderate sickness. Such amount is to be given from
Feb 01, 2020 and during the state of national emergency due to Covid 19. Compensation
shall be given to beneficiaries shall be given to beneficiaries not later than 3 months
after date of confinement or death.
xxii. Taxes on gaming and non-gaming operations - Franchise tax at a rate of 5%. Income tax,
VAT and other applicable taxes imposed from operations earned by offshore gaming
licensees.
xxiii. Extension of availment period of tax amnesty on delinquencies until June 30, 2021.