The Department of Finance (DOF) has extended the payment of all local taxes, fees and charges imposed by local government units (LGUs) until mid-December to ease the burden on individuals and businesses affected by the community quarantines.
In a statement, Finance Secretary Carlos G. Dominguez III said the public has until December 19, 2020 to pay their local taxes, fees and charges being collected by LGUs that have fell on or after September 14 this year.
The extension is in compliance with the provisions of Republic Act (RA) No. 11494 or the Bayanihan to Recover As One Act (Bayanihan 2), Dominguez noted.
Under the DOF department circular No. 003-2020, the counting of the period within which to pay local taxes, fees and charges are also suspended until December 19, 2020, including the period for the redemption of real properties sold or forfeited at public auction.
“In the event that an LGU had already extended the deadlines prior to the effectivity of RA 11494, such deadlines, if earlier than 19 December 2020, shall be deemed modified with the period set forth herein,” the circular issued by Dominguez stated.
“Any further extension of deadlines beyond 19 December 2020 shall be authorized in accordance with
the provision of RA No. 7160,” it added.
RA 7160 is the Local Government Code.
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 period covering such deadlines, the DOF circular also stated.
As for local tax delinquencies prior to the effectivity of Bayanihan 2 on September 15, all payments shall be due and demandable upon the expiration of the December 19 deadline.
All applicable interests, penalties and surcharges will begin to run again, if due and demandable, after the lapse of the effectivity of Bayanihan 2 on December 19, the circular said.
Dominguez issued the circular to provide guidelines on the uniform implementation by LGUs of the Bayanihan 2 Law.
“This provision under Bayanihan 2 aims to ease the burden on individuals and enterprises affected by the severe disruption of economic activities resulting from the stringent community quarantines that the national and local governments have imposed,” DOF said.