Tax Advisory 2020-59: TCC to Cash, Online Filing of Required Attachment and other tax updates

As our some areas in our country transitioned from being under Enhanced Community Quarantine (ECQ) to General Community  Quarantine (GCQ) or Modified General Community Quarantine (MGCQ),  the Bureau of Internal Revenue (BIR) issued new Revenue Regulations (RR), and Revenue Memorandum Circulars (RMCs) to give guidelines and clarifications for the taxpayers, specially RMC No. 49-2020 which introduces us to online filing of the required attachment to the Annual Income Tax Return. Below is the summary of the issuances.



(RR No. 14-2020 amending RR No. 5-2000) 

The BIR issued this regulation in light of capturing its actual tax collection. The Tax Credit Certificate (TCC), which were borne from an overpayment or erroneous payment of tax liability, does not generally recognized as actual tax collections because it does not represent the real or true yield of the taxes sought by the bureau according to the Tax Code. The regulation effectively amends portion of the previously issued RR No. 5-2000.

TCCs which remains unutilized for more than one (1) year during its validity shall be converted to cash with prior written notice by the BIR, subject to the availability of funds. Moreover, all TCCs which has already expired upon the effectivity of the regulation shall be automatically cancelled by the BIR except those before the expiration of their respective dates of validity. Finally, the list of names of expired TCCs and names of its taxpayers-owners shall be circularized/posted on the BIR’s official website within 30 days and shall be deemed sufficient notice to the concerned taxpayer.


(RR No. 13-2020) 

In implementing Section 4 of Republic Act (RA) No. 10699 also known as “National Athletes and Coaches Benefits and Incentives Act”, the bureau issued this regulation to implement the tax privileges granted to privately-owned establishments granting sales discounts and incentives to National Athletes and Coaches. According to the regulation, qualified national athletes and coaches will have a Philippine National Sports Team Identification Card (PNSTM ID) and Booklet issued by the Chairman of the Philippine Sports Commission that they may use for the purpose of claiming their benefits and privileges.

In return, the privately-owned establishment granting sales discounts and incentives shall enjoy tax deductions equivalent to the discounts extended. A 20% sales discount, on sales amount exclusive of VAT, may be enjoyed by the qualified national athletes and coaches on the following establishments related to the sale of goods and services for their actual and exclusive use or enjoyment:

  1. Transportation services
  2. Hotels, Resorts and other Similar Lodging Establishments
  3. Restaurants
  4. Recreation Centers
  5. Medicine and Dreg Purchases
  6. Sports Equipment Purchase
  7. Admission Fees Privileges

A sample computation of the discount was also provided in the regulation which is as follows:

Computation of Discount on VAT Taxpayer:

Amount of sale (Inclusive of VAT) 1,120.00
Less: 12% VAT   120.00
Total Amount 1,000.00
Less: 20% Sales Discount   200.00
Total Amount NET of Discount 800.00
Add: 12% VAT   120.00
Total Amount Due 920.00


Computation of Discount on Non-VAT Taxpayer:

Amount of sale 1,120.00
Less: 20% Sales Discount   224.00
Total Amount Due net of Discount 896.00
Percentage Tax Due (1,120 x 3%) 33.60

The establishment granting sales discount by virtue of the law may claim such discount as a deduction from gross income with some conditions enumerated in the regulation example is that it will be classified as part of the itemized deduction. Moreover, the regulation prohibited claiming the discount if the national athletes and coaches opted to claim higher discount rates granted by the establishment, and/or other existing laws. Combination of discounts is also prohibited.

Finally, any violation shall be subject to the corresponding penalties under the Tax Code of 1997, as amended, and the additional penalties under the new regulation.


(RMC No. 56-2020 clarifying RMC No. 48-2020) 

This circular clarifies the previous circular issued by the BIR regarding the payment of taxes until June 14, 2020. Accordingly, the following taxpayers may do the following:

  1. File the tax return and pay the internal revenue tax at the nearest Authorized Agent Banks (AABs), notwithstanding Revenue District Office (RDO) jurisdiction;
  1. File the tax return and pay the corresponding tax due thereon to the concerned Revenue Collection Officers (RCOs) of the nearest RDO, even in areas where there are AABs. However, the cash payment should not exceed ₱20,000.00, while those in checks will have no limitation if the same is made with RCO in the district office until June 14,2020.
  1. File through the eBIRForms Facility, and use the following payment options:
    1. Over-the-counter (OTC) payment through AAB;
    2. RCOs of the nearest RDO even in areas where there are AABs;
    3. Electronic/Online Payment:
      • LandBank of the Philippines (LBP) Portal (for taxpayers who have ATM account with LBP and/or holders of BancNet ATM/Debit/Prepaid Card and taxpayer utilizing PesoNet facility (depositor of RCBC and Robinson Bank)
      • Development Bank of the Philippines (DBP) Pay Tax Online (for holders of Visa/Mastercard Credit Card and/or BancNet ATM/Debit Card)
      • Union Bank Online Web and Mobile Payment Facility (for taxpayer who has an account with Union Bank of the Philippines)
      • Mobile Payment (GCash/PayMaya)

For taxpayers who are enrolled in the eFPS facility, they shall continue to file through the system and settle their tax liabilities with the AABs where they are enrolled. While for those that are not mandated to file use the eFPS, they have the option to use the eBIRForms facility or to fille their tax returns manually.

For no payment returns, it shall be made through the eBIRForms facility. In case of unavailability of the internet connection, the returns shall be filed manually to the nearest RDO.

In case of the unavailability of the Bureau’s electronic filing facilities, taxpayers shall manually file the returns and pay the corresponding taxes due thereon through the above-mentioned payment venues.



(RMC No. 54-2020) 

To further ensure the safety of the taxpayers, the BIR utilize the digital payment through PayMaya which is now accepting electronic/online taxpayment through its mobile application. PayMaya is partner with the Development Bank of the Philippines (DBP), an AAB of the BIR, for the remittance to the Bureau of Treasury. In order to pay using the PayMaya application, taxpayers need to download the app from the Google Play Store, Apple App Store, or Huawei AppGallery, and follow the steps indicated below:

  1. Log in to your PayMaya account and click on the “Pay Bills” option.
  2. Select “Bureau of Internal Revenue”
  3. Enter all the pertinent details for your tax payment:
    1. Taxpayer Identification Number (TIN),
    2. Branch Code,
    3. Amount to be paid,
    4. RDO Code,
    5. Form Series,
    6. Form Type,
    7. Tax Type,
    8. Return Period, and
    9. Email address where you want to receive the receipt of your tax payment.
  4. Review the details of the transaction before clicking “Pay” button.
  5. Receive payment confirmation via SMS and email.

For more information on how to avail of this tax payment facility and to access the frequently asked questions, visit the PayMaya website at For other inquiries/concerns you may email or you may call PayMaya hotline +632-8845-77-88.



(RMC No. 53-2020) 

This circular was issued to circularize the Joint Memorandum Circular (JMC) No. 002-2020 which amends JMC No. 001-2020 also known as “Guidelines for the Availment of the Small Business Wage Subsidy Measure”. Basically, the amended portion of the guidelines are the General Guidelines under item IV, and Roles and Responsibilities under item IX. One of the major amendment in the JMC was the extension to complete the application of the Small Business Employers to the program until May 19, 2020.



(RMC No. 52-2020)

 As the implementation of the community quarantine persists because of the COVID-19 pandemic throughout the world, the BIR issued this circular to provide relief to the taxpayers when it comes to filing their withdrawal of the protest on Final Assessment Notice (FAN)/Formal Letter of Demand (FLD) or appeal to Final Decision on Disputed Assessment (FDDA). It allows the filing through Electronic mail (e-mail) for purposes of tax amnesty as discussed under Q22 and Q23 of RMC No. 57-2019 as amended by RMC No. 11-2020.

For taxpayers that will be filing through email should observed the following guidelines:

  1. The soft copy of the letter of withdrawal of the protest or appeal must be in PDF format, individually attached to the e-mail and signed by the taxpayer or his/her duly authorized representative. In addition, the soft copy of the letter of withdrawal shall contain the scanned copy of the first page of the protest or appeal sought to be withdrawn, bearing the stamp “RECEIVED” of the appropriate BIR Office, and marked as Annex A of the said letter.
  2. The said e-mail shall use the following format and addressed to the appropriate BIR Office:

    To: [e-mail address of the appropriate BIR Office]
    From: [filer’s e-mail address]
    Subject: Withdrawal of the Protest of FAN/FLD or Appeal on FDDA of (Name of Taxpayer) filed before the (Name of BIR Office e.g. RR No. 1 – Calasiao)
    Body of the E-mail:
    Name of the Taxpayer:
    Name of the Filing Party:
    Position of the Filer:
    Date the Protest/Appeal was Filed:
    Taxable Year: _____________
    Summary of FAN/FLD/FDDA

    Assessment No./ Reference No. Tax Type Basic Tax Penalties Total
    - - - - -
  1. The document shall be deemed to have been filed on the date and time of the receipt of the e-mail. In such case, the e-mail and the letter withdrawal of the protest or appeal shall be printed and attached to the docket accordingly by the BIR personnel/processor.
  2. The e-mail containing the withdrawal of the protest or appeal must be addressed to the appropriate BIR Offices, to wit:
    For withdrawal of Protests against FAN/FLD:
    Regional Office E-mail Addresses
    Revenue Region No. 1 CALASIAO
    Revenue Region No. 3 TUGUEGARAO CITY
    Revenue Region No. 5 CALOOCAN CITY
    Revenue Region No. 6 CITY OF MANILA
    Revenue Region No. 7A QUEZON CITY
    Revenue Region No. 7B EAST NCR
    Revenue Region No. 8A MAKATI CITY
    Revenue Region No. 8B South NCR
    Revenue Region No. 9A- CaBaMiRo (Cavite-Batangas-Mindoro-Romblon)
    Revenue Region No. 9B- LaQueMar (Laguna-Quezon-Marinduque)
    Revenue Region No. 10 LEGAZPI CITY
    Revenue Region No. 11 ILOILO CITY
    Revenue Region No. 12 BACOLOD
    Revenue Region No. 13 CEBU CITY
    Revenue Region No. 14 EASTERN VISAYAS
    Revenue Region No. 15 ZAMBOANGA CITY
    Revenue Region No. 16 CAGAYAN DE ORO CITY
    Revenue Region No. 17 BUTUAN CITY
    Revenue Region No. 18 KORONADAL CITY
    Revenue Region No. 19 DAVAO CITY
    Large Taxpayer Service

For withdrawal of Appeals against the FDDA:

Office E-mail Address
Appellate Division

Regular filing of papers or pleadings in connection with the protest or appeal pursuant to existing rules and revenue issuance shall resume as soon as the ECQ or the GCQ is lifted, and the option for online filing of the withdrawal of any protest or appeal before the concerned BIR Offices shall no longer be allowed. Finally, the circular is applicable throughout the entire country.



(RMC No. 51-2020) 

The BIR circularize the following Presidential Issuances:

  1. Administrative Order No. 23 dated February 21, 2020 entitled “ELIMINATING OVERREGULATION TO PROMOTE EFFICIENCY OF GOVERNMENT PROCESSES”.



(RMC No. 50-2020) 

To reassure the tax incentives granted under RA No. 7686, a.k.a. “An Act to Strengthen Manpower Education and Training in the Philippines by Institutionalizing the Dual Training System as an Instructional Delivery System of Technical and Vocational Education and Training, Providing the Mechanism, Appropriating Funds Therefore and for Other Purposes to  the Dual Training System”, the BIR clarifies that Section 29 (h) and 94 (a)(3) of the National Internal Revenue Code (NIRC) of 1997, as amended, respectively mentioned in subparagraphs (2) and (3) of Section 3 of RR No. 10-96 are now Section 34 (H) and 101 (A)(2) of the NIRC of 1997, as amended. Which sections pertains to the charitable contributions under allowable deductions and donations, respectively.



(RMC No. 49-2020)

As the deadline of filing the 2019 Annual Income Tax Return (AITR) and its submission of the required attachments is fast approaching as it were not further extended and the compliance with social distancing due to COVID-19 pandemic, the BIR introduces the eAFS. Under the circular, taxpayers may submit the required attachments to AITRs to the following:

  1. To the nearest RCO notwithstanding the RDO jurisdiction;
      1. For income tax returns with payments made thru the online payment facility of the AAB, the RCO/Cos shall:
        1. Stamp “RECEIVED” the returns;
        2. Batch and forward these returns and their respective attachments to the concerned Document Processing Division of the Revenue Region.
      2. For income tax returns filed electronically, the RCOs/Cos shall accept and stamp “RECEIVED” only the copies of the Filing Reference Number (FRN) generated from the eFPS, or email confirmation from the eBIRForms System and the Financial Statements following the abovementioned procedures.

    For accepted out-of-district returns and required attachments, the RCOs shall forward the documents to concerned Revenue District Offices.

  2. Online submission via eAFS for any taxpayers
    The required attachments will be grouped into three (3) document files. Taxpayers must scan the documents and save them into PDF, name accordingly before uploading them into eAFS:

Terms used:
AFS – Audited Financial Statements
AIF/FS – Account Information Form/Financial Statements
SMR for AITR – Statement of Management’s Responsibility for Annual Income Tax Return
TDM – Tax Debit Memo


An annex was attached on the circular which instructs on how to register and use the eAFS system of the BIR.

Successful submission via eAFPS will provide the taxpayer by a system generated Transaction Reference Number and by sending an email to the system user which shall serve as proof of submission in lieu of manual “RECEIVED” stamping. Taxpayers are advised to keep the original copies of the digitally submitted documents in accordance with Sec. 203 of the Tax Code, as amended, for the period described under RR No. 17-2013.

Please be guided accordingly.




TAX ADVISORY 2020-58: No More Extension of Deadlines, Manner of Acceptance and Payment of Tax Returns amid COVID-19
TAX ADVISORY 2020-57: Amended Extension of Deadlines and other relevant issuances amid COVID-19 pandemic.
TAX ADVISORY 2020-56: Further Extension of Deadlines and Other relevant issuance amid COVID-19 pandemic.
TAX ADVISORY 2020-55: Extension of Certain Deadlines amid COVID-19 pandemic.