BIR extends deadlines for related party transactions

THE Bureau of Internal Revenue (BIR) said it extended the deadlines for filing the new related party transactions (RPT) form, acknowledging possible difficulties in compiling the needed information due to the coronavirus disease 2019 (COVID-19) pandemic.

BIR Commissioner Ceasar R. Dulay issued Revenue Memorandum Circular No. 98-2020 dated Sept. 15, setting new deadlines for the submission of the RPT form, which is an attachment to the annual income tax returns for companies with fiscal years ending in various months of 2020. The initial deadline was Sept. 30.

“Due, however, to the continuing adverse impacts of COVID-I9 pandemic, and in order to assist the taxpayers, individuals or non-individuals, giving them sufficient time to comply with the mandates of RR (Revenue Regulations) No. 19-2020, submission of BIR Form No. 1709 and its required documents shall be further extended as follows,” according to the circular, posted Wednesday.

For RPT forms covering fiscal years ending in March and April 30, the BIR moved the deadline to Dec. 29, while other deadlines for other periods covered were set next year.

Taxpayers whose fiscal years end in May and June have been set a deadline of Jan. 31, 2021. The deadline was set at March 1, 2021 for those with fiscal years ending in July and August;  March 31, 2021 for those with fiscal years ending in September and October; and April 30, 2021 for those with fiscal years ending in November and December.

Related party transactions are transfers of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. — Beatrice M. Laforga