Quezon City waives business tax penalties until March 2021, extends tax payment deadline

Published December 10, 2020, 2:53 PM

by Joseph Pedrajas

All tax penalties in Quezon City are waived until March 2021 after the local government passed an ordinance relinquishing the surcharges, penalties, and interests incurred for late or non-payment of business taxes starting the second quarter of 2020.

Aside from that, business owners who have already paid surcharges and interest for their delayed payment during the second and third quarter of 2020 will also be given tax credit, according to Under Ordinance No. SP-2982. It will be then applied as their payment for 2021 tax obligations. 

In signing the ordinance introduced by Majority Floor Leader Councilor Franz Pumaren and Councilor Victor Ferrer Jr., Mayor Joy Belmonte said the city government recognizes the financial difficulties that the coronavirus disease pandemic brought to all sectors, especially to businesses. 

“We will continue to look for ways to ease the impact of the pandemic on our local economy and to ensure uninterrupted business continuity,” she said.

Meanwhile, Ordinance No. SP-2981 has also been passed to extend the deadline for payment of business taxes, fees, and charges from January 20 to April 20, 2021 without penalty, surcharge or interest.

Apart from the submission of sworn statements of gross receipts or sale, the ordinance also requires small, medium, and large businesses to submit their audited financial statement required by the Bureau of Internal Revenue “to ensure that [the city] determines the actual tax dues correctly and efficiently.”

“We recognize the financial difficulties that most of us are experiencing now, especially our entrepreneurs who were forced to close shop or temporarily suspend their operations. This way, we hope to ease their burden and to help them recover,” Belmonte said.

Micro businesses or those whose total assets have a value of not more than P3,000,000 such as sari-sari stores are required to submit sworn statements of gross sales/ receipts, monthly VAT returns and/or percentage tax receipts, in lieu of audited financial statements.