The Department of Finance (DoF) has extended the deadline for the payment of taxes, fees and charges to local government units (LGUs) as relief for Filipinos affected by lockdown measures around the country.
Department Circular No. 002-2020 dated April 23 extended the deadline to June 25 for payment of all local taxes, fees and charges as of March 25, with no interest, surcharges and penalties. This is in line with Republic Act No. 11469 or the Bayanihan to Heal as One Act.
In a letter to Department of Interior and Local Government Secretary Eduardo M. Año, Finance Secretary Carlos G. Dominguez III said it was the department’s view that RA 11469’s Section 4 (z) is to be “liberally construed to include all LGUs.”
Mr. Dominguez said the DoF issued the circular to provide a “uniform adoption and implementation” by all LGUs of the extension, after only 146 local governments adopted such measures.
The DoF said the counting of the period to pay local taxes, fees, and charges will also be suspended.
“In the event that an LGU had already extended the deadlines prior to the effectivity of RA 11469, such deadlines shall be deemed modified with the period set forth herein. Any further extension thereof shall be authorized in accordance with the provisions of RA 7160 (Local Government Code),” the circular read.
The DoF also said that “no interest, surcharge or any form of penalty shall be applied on any local tax, fee or charge accruing on or due and demandable” during the extension.
However, all previous delinquencies will be due and the accrual of interest, penalties and surcharges will begin after the extension.
DoF also ordered local treasurers and assessors to postpone plans to issue written authorities on examination of books of accounts and business records; activities on appraisal and assessment of real properties; posting of notices of delinquencies, warrants of levy and advertisements of auctions; as well as “pursuing administrative or judicial action for the enforcement and/or collection of local taxes, fees, or charges.” — Beatrice M. Laforga
