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The Bureau of Internal Revenue (BIR) said it has further extended the online business registration deadline until the end of this month.
According to Revenue Memorandum Circular (RMC) 92-2020 published on Tuesday, BIR said the extension of the deadline was justified considering the “increase in people registered with various revenue district offices trying to exceed the deadline.”
“Given this and the Office’s resource limitations at this time of quarantine protocols due to the Covid 19 pandemic, the deadline is further extended to September 30, 2020,” said the RMC signed by BIR Commissioner Caesar R. Dulay.
In a separate interview with BusinessMirror, BIR Deputy Commissioner Arnel Guballa said that so far 5,650 have registered their businesses online.
In the same RMC, BIR said that all those who already carry out digital or online transactions are advised to register their business activity on or before the indicated date and that no late registration penalty will be imposed.
Those who have prior transactions subject to relevant taxes are also encouraged to declare them and pay the taxes owed on them, without penalty for late filing and payment as long as the same is done on or before the extended due date.
BIR warned that the applicable sanctions will be imposed on those who subsequently find themselves doing business without complying with the registration / update requirements and those who did not declare past due / unpaid taxes.
This is not the first time that the BIR has extended the deadline for online business registration.
To recall, the BIR previously approved the extension of the term for the same purpose until the end of August.
In June, the BIR issued RMC 60-2020 to notify all people who do business and earn income in any way or form, specifically those who are involved in digital transactions through the use of electronic media and platforms, and other digital means. , to ensure your companies are registered and tax compliant.
In the same RMC, the BIR said that these will include not only partner vendors / merchants, but also other stakeholders involved, such as payment gateways, delivery channels, Internet service providers and other enablers.
This came at a time when the business of selling goods and services through online networks grew substantially with the government’s imposition of community quarantine restrictions to stop the spread of Covid-19.
After the tax agency received criticism from lawmakers who said targeting workers displaced by the pandemic trying to earn a living was inappropriate, the BIR clarified that the people forced to register their business are people who “habitually” engage in Selling online and not Online Temporary Sellers.
The BIR also previously said that online sellers making an annual net income of less than 250,000 will also not be subject to tax.
