Tax relief amid torrential rains

As the country enters the second half of the year, we brace ourselves for the familiar rhythms of the rainy season. This period brings not only cooler temperatures but also relentless rains, unpredictable weather, and, worse, flooding that disrupts daily life. Beyond the inconvenience lies a deeper struggle: homes inundated by floodwaters, families displaced, and livelihoods interrupted.

Recently, the northern Philippines, including Metro Manila, was hit by a series of storms. The continuous rainfall, exacerbated by the southwest monsoon (habagat), caused damage exceeding P6 billion to public infrastructure and agriculture. During that period, the government repeatedly suspended classes and government work in affected areas to ensure public safety. For the private sector, some scaled back operations or operated remotely. Taxpayers with reporting or filing deadlines were affected, as government-declared work suspensions disrupted schedules and potentially delayed filings.

Recognizing the operational and personal toll of these disruptions, the Bureau of Internal Revenue (BIR) issued three key circulars — Revenue Memorandum Circular (RMC) Nos. 75, 76 and 77-2025 — providing much-needed relief to taxpayers by extending deadlines for filing critical documents and remitting taxes.

TAX FILING AND PAYMENT DEADLINE EXTENSIONS
The series of government work suspensions announced by the Office of the President through Memorandum Circular Nos. 88 to 91, the BIR (thru RMC Nos. 75 and 77) extended the deadline for filing tax returns, paying taxes, and submitting specific documents to July 31. This extension applied to affected Revenue District Offices and Authorized Agent Banks in Metro Manila and several provinces across Regions I to VI and the Cordillera Administrative Region.

Specifically, the following filing deadlines were extended:

1. BIR Form 2550Q (Quarterly VAT Return) for eFPS & Non-eFPS Filers – For the Quarter ending June 30

2. Quarterly Summary List of Sales/Purchases/Imports by a Value-added Tax (VAT) Registered Taxpayer for Non-eFPS Filers – For the Quarter ending June 30

3. BIR Form 2551Q (Quarterly Percentage Tax Return) – For the Quarter ending June 30

4. BIR Form 2550DS (VAT Return for Non-resident Digital Service Provider) – For the Quarter ending June 30

5. Sworn Statement of Manufacturer’s or Importer’s Volume of Sales of each particular Brand of Alcohol Products, Tobacco Products and Sweetened Beverage Products – For the Quarter ending June 30

6. Quarterly Information on Overseas Contract Workers or Overseas Filipino Workers Remittances Exempt from Documentary Stamp Tax – For the Quarter ending June 30

7. Quarterly Report of Printer – For the Quarter ending June 30

8. BIR Form 1600 WP (Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators) for eFPS & Non-eFPS Filers – For the Month of June

A WIDER NET OF SUPPORT
The BIR also extended (through RMC 76) the deadline for submission of position papers, replies, protest letters and other correspondences and documents related to ongoing BIR audit investigations; tax refunds; assessment notices and warrants of distraint and levy; and other similar letters/correspondences.

This extension applies to submissions originally due from July 21 to 25, with a new deadline set 10 calendar days from the last day of government work suspension as declared by the Office of the President, i.e., July 25. RMC 76 also clarified that if the extended due date falls on a holiday or non-working day in the affected areas, the deadline is to be moved to the next working day.

A particularly notable point in RMC 76 is that it took into consideration future government work suspensions in areas affected by inclement weather. Thus, any similar submission falling due during future suspension periods will likewise be extended by 10 calendar days from the last day of suspension.

This proactive provision is a significant step forward in making tax administration more responsive to real-world challenges. It acknowledges that weather-related disruptions are not isolated events but recurring realities that require flexible compliance mechanisms.

As many affected businesses and tax practitioners face logistical challenges (e.g., power outages to office closures and navigating floodwaters), the clamor for leniency and consideration has been strong.

Fortunately, these concerns did not fall on deaf ears. As BIR Commissioner Jun Lumagui shared on his social media account, “Nadinig namin kayo.” The issuance of RMC Nos. 75, 76 and 77-2025 is a timely and considerate measure, demonstrating the BIR’s understanding of the difficulties taxpayers face and its commitment to making compliance more manageable.

The circulars also reflect a broader shift in tax administration — one that values empathy, flexibility, and responsiveness. In times of crisis, such measures not only ease the burden on taxpayers but also reinforce trust in public institutions.

As the monsoon season continues, more weather-related suspensions may follow. As part of good housekeeping, taxpayers are advised to monitor official BIR announcements and coordinate with their advisors to ensure compliance within the adjusted timelines.

For now, these clear guidelines, particularly provisions under RMC 76 for audit and refund-related correspondences, offer much needed clarity and relief. They serve as a reminder that tax policy can and should adapt to the realities faced by the people it serves.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Dorothy Jane Puguon is a senior manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.

+63 (2) 8845-2728

dorothy.jane.puguon@pwc.com