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MFBR lawyers and associates care!

In light of the constantly changing social and economic landscape in the world due to COVID-19, everyone at Mallari Fiel Brillante Ronquillo has taken steps to make good our steadfast commitment to serve our clients and our communities.

To this end, we designed a new business model incorporating the traditional “brick and mortar” and “virtual” law offices. This new model is to achieve the continuity of rendering our legal and business consultancy services to clients and friends, and the immediate implementation of our crisis management and business transformation activities.

Thus, we’re glad to announce that for every fortnight, half of our team will be physically present at our offices from Monday thru Friday, 8:00am to 3:00pm. Clients and our friends can reach us through our office phones and online platforms (website, emails, Facebook, LinkedIn, Zoom, etc.). And to ensure the health and safety of our staff, they have the option to be housed in the Firm’s private residence or shuttled back and forth using the company’s private vehicle. Safety protocols are also observed at our offices.

Finally, our team has prepared a series of materials around the impact of COVID-19 and related considerations. Please take time to view our sample articles and research published in our website. A complete listing and discussion of these articles are available in our newsletter to be distributed to our esteemed clients.

Should you have questions, please reach out to our Office Manager, Argie Macawile, at +632 86953395, +63977 8502357; or email our Managing Partner, Atty. Rob Mallari, at mfl@mflegal.com.ph and rpmallari@mflegal.com.ph.

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BIR further extends the submission of certain documents and/or tax returns as well as payment of certain taxes under Revenue Regulation 07-2020

Photo courtesy of: tonite.abante.com

On 27 March 2020, The Bureau of Internal Revenue (BIR) issued Revenue Regulation No. 7-2020 (RR No.7-2020) to implement the extension for the filing and submission of documents and/or returns and the payment of taxes.

Under Section 4 of RR No. 7-2020, the Commissioner of Internal Revenue may further extend the statutory deadlines if the circumstances so warrant. Since the Enhanced Community Quarantine (ECQ) was extended until 30 April 2020, the BIR, correspondingly issued Revenue Memorandum Circular No. 39-2020 (RMC No. 39-2020) on 7 April 2020 and Revenue Regulation 10-2020 (RR No. 10-2020) on 10 April 2020, respectively, to further extend the due dates of submission and filing of certain documents and/or Tax returns.

RMC No. 39-2020 provided for further extension for a period of fifteen (15) calendar days except for those extension where the due date are reckoned from the lifting of ECQ, as follows:

  • Filing of Position Paper to Notice of Informal conference or other similar letters and correspondence with the similar due date (specifically referred as item 41-46 under RR No. 7-2020) where the extended due date shall be thirty (30) days from the lifting of state of emergency.
  • Suspension of Running of Limitations under section 203 and 222 pursuant to Section 223 of the Tax Code (specifically referred as item 49 under RR No. 7-2020) where the extended due date shall be sixty (60) days after the lifting of state of emergency.
DetailsFormsOriginal DeadlineExtended Deadline
Annual –
Compensation and Final Withholding Taxes with 2316
1604-CFMarch 31, 2020May 15, 2020
Annual –
Expanded Withholding Taxes with Alphalist
1604 – EMarch 31, 2020May 15, 2020
Documentary Stamp Tax (One Time Payments)2000 / 2000- OTApril 05, 2020May 20, 2020
Quarterly Value -Added Tax
(Cumulative for Three Months)
2550-Q (First Qtr. End of Feb. 29, 2020March 25, 2020May 12, 2020
Quarterly Income Tax Returns for Corporation,
Partnership and other Non-Individuals Taxpayers
(efilling/epayments)
1702-Q (First Qtr. End of Jan. 31, 2020)March 31, 2020May 15, 2020
Filling & Payments of Compensation Withholding Taxes
(non-efps Filers)
1601 – CApril 10, 2020May 26, 2020
EFPS Filers Under Group E:
Group E

 
Activities of Membership Organizations Inc.
 
Health and Social Work
 
Private Educational Services
 
Public Admin & Defense Compulsory Social Security
 
Public Educational Services
 
Research and Development
 
Agricultural, Hunting, and Forestry
 
Farming of Animals
 
Fishing
 
Other Service Activities
 
Miscellaneous Business Activities
 
Unclassified
1601 – CApril 11, 2020May 26, 2020
EFPS Filers Under Group D:
 
Air Transport
 
Electricity, Gas, Steam, & Hot Water Supply
 
Postal & Telecommunications
 
Publishing, Printing & Reproduction of Recorded Media
 
Recreational, Cultural & Sporting Activities
 
Recycling
 
Renting of Goods & Equipment
 
Supporting & Aux Transport Activities
1601 – CApril 12, 2020May 27, 2020
EFPS Filers Under Group C:
 
Retail Sale
 
Wholesale Trade and Commission Trade
 
Sale, Maintenance, Repair of Motor
Vehicle

Sale of Automotive Fuel
 
Collection, Purification and Distribution of Water
 
Computer and Related Activities
 
Real Estate Activities
1601 – CApril 13, 2020May 28, 2020
EFPS Filers Under Group A:
 
Manufacture & Repair of Furniture
 
Manufacture of Basic Metals
 
Manufacture of Chemicals and Chemical Products
 
Manufacture of Coke, Refined Petroleum & Fuel Products
 
Manufacture of Electrical Machinery & Apparatus N.E.C.
 
Manufacture of Fabricated Metal Products
 
Manufacture of Food, Products & Beverages
 
Manufacture of Machinery & Equipment NEC
 
Manufacture of Medical, Precision, Optical Instruments
 
Manufacture of Motor Vehicles, Trailers & Semi-Trailers
 
Manufacture of Office, Accounting & Computing Machinery
 
Manufacture of Other Non-Metallic Mineral Products
 
Manufacture of Other Transport Equipment
 
Manufacture of Other Wearing Apparel
 
Manufacture of Paper and Paper Products
 
Manufacture of Radio, TV & Communication
 
Equipment/Apparatus
 
Manufacture of Rubber & Plastic Products
 
Manufacture of Textiles
 
Manufacture of Tobacco Products
 
Manufacture of Wood & Wood Products

Manufacturing N.E.C.

Metallic Ore Mining Non-Metallic Mining & Quarrying  
1601 – CApril 14, 2020May 29, 2020
Required attachments for the filing of
Annual Income Tax returns (AITR)  
1702 RT 1702 EX 1701April 15, 2020May 30, 2020

RR No. 10-2020, on the other hand,  provided for the updated list of deadline for the filing and payment of certain documents and/or tax returns due to the extension of ECQ. The following are some of the commonly submitted documents and/or tax returns with their corresponding deadline extensions:

RR No. 10-2020 incorporated the provision of RMC No. 39-2020 providing for the extended submission of BIR form 2551Q up to 25 May 2020 as well as the non-imposition of penalties for the filing and payment of amended tax returns before the deadline.

(For reference on the non-imposition of penalties for the filing and payment of amended tax returns before the original and extended deadline, please click this link Article – RMC-37-2020)

We’ll keep you posted on the additional advisories and guidelines from the BIR.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;
Website: http://mfbr.com.ph;
Facebook page: http://mfbr.com.ph/


Guidelines on Cash Assistance for OFWs (DOLE-AKAP for OFWs)

by: Atty. Jonathan de Guzman

Good news to all the Oversees Filipino Workers (OFWs) who were displaced from employment or repatriated due to COVID-19. On 08 April 2020, the Department of Labor and Employment issued Department Order No. 212 Series of 2020 prescribing guidelines on the provision of financial assistance for displaced land-based and sea-based Filipino workers due to the corona virus disease (COVID-19).

WHAT IS DOLE-AKAP FOR OFWS?

DOLE-AKAP for OFWs is a program of DOLE providing a one-time financial assistance of USD 200 or PHP 10,000 or its equivalent to the local currency of the host country.

WHO ARE COVERED BY THE DOLE-AKAP FOR OFWS?

DOLE-AKAP for OFWs covers the following OFWs:

a. Regular / Documented OFWs –

  • Those who possess a valid passport and appropriate visa or permit to stay and work in the receiving country;
  • Those whose contract of employment has been processed by the Philippine Overseas Employment Administration (POEA) or the Philippine Overseas Labor Office (POLO).

b. Qualified Undocumented OFWs –

  • Those who were originally regular or documented workers but for some reason or cause have thereafter lost their regular or documented status
  • Those who were not registered with POEA or whose contracts were not processed by POEA or the POLO, but have undertaken actions to regularize their contracts or status; or
  • Those who are not registered with the POEA or whose contracts were not processed by POEA or the POLO, but are active OWWA members at the time of availment.

c. Balik-Manggagawa –

  • Those who were unable to return to host country in view of host country lockdown due to COVID-19.

WHAT ARE THE PRIORITY TERRITORIES FOR DOLE-AKAP

The DOLE shall provide financial assistance to the displaced OFWs in Middle East and Africa, Europe and Americas, Asia and the Pacific where POLO is present or those countries heavily affected by COVID-19 as follows:

Middle East and Africa Asia and the Pacific Europe and Americas
Bahrain
Israel
Jordan
Kuwait
Lebanon
Libya
Oman
Qatar
Kingdom of Saudi Arabia
United Arab Emirates
Australia
Brunei
Hong kong
Japan
Korea
Macau
Singapore
Taiwan
Malaysia
New Zealand
Canada
Cyprus
Italy
Germany
Greece
Spain
Switzerland
United Kingdom of Great Britain
United States of America

HOW CAN AN OFW APPLY FOR THE DOLE-AKAP?

For onsite OFWs:

  1. The onsite OFW shall submit the following documents to the POLO:
  • Accomplished Application Form for Special Cash Assistance;
  • Copy of Passport or Travel Documents;
  • Proof of overseas employment;
  • Proof of loss of employment on account of COVID-19;
  • Proof that the OFW is currently involved on an ongoing case (For OFWs who became undocumented without their fault).
  1. Once the documents are submitted, POLO shall evaluate the evaluation within 5 working days and must notify the OFW on the status of their application.
  1. If the application is approved, the POLO shall release the USD 200 (or its equivalent) through bank transfer or money remittance.

For Balik Manggagawa or repatriated OFWs:

  1. The Balik Manggagawa shall submit the following documents to Oversees Worker Welfare Administration – Regional Welfare Office (OWWA – RWO):
  • Accomplished Application Form for Special Cash Assistance;
  • Copy of Passport or Travel Documents;
  • Proof of overseas employment;
  • Proof of loss of employment on account of COVID-19;
  1. Once the documents are submitted, the OWWA – RWO shall evaluate the application within 5 working days and notify the OFW of the status of their application.
  1. If the application is approved, the OWWA – RWO shall release PHP 10,000 through money remittance or Peso Net.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;

Website: http://mfbr.com.ph; Facebook page: http://mfbr.com.ph/


ONLINE FILING OF CRIMINAL COMPLAINTS AND POSTING OF BAILS DURING THE ENHANCED COMMUNITY QUARANTINE

By: Atty. Jonathan R. De Guzman

In line with the Supreme Court Administrative Circular No. 33-2020 dated 31 March 2020, the Supreme Court allowed the filing of complaint or information and posting of bail online while the Philippines is under the state of national emergency due to COVID-19.

The filing of complaint and information and posting of bail must be read hand in hand with the SC Administrative Circular No. 32-2020 on the physical closure of the courts nationwide along with the implementation of alternative means on how to access the courts. For the complete directory of the designated courts and its contact information, please click this article:
DIRECTORY OF PHILIPPINE COURTS NATIONWIDE as of 22 March 2020.

How can you file your complaint or information online?

Criminal Complaints and Information, along with supporting evidence, may now be filed through email before the proper first and second level courts.

Once the Complaint is received by the court, the Clerk of Court shall refer the same to the judge on duty who shall personally evaluate the complaint or resolution of the prosecutor, and the supporting evidence.

How long was the period given to the judge to resolve the complaint or information?

The judge must personally evaluate the resolution of the prosecutor and its supporting evidence within three (3) days from the electronic filing..

In case of doubt on the existence of probable cause, the judge on duty may order the prosecutor to submit through electronic transmission, additional evidence within three (3) days from notice and the issue must be resolved by the court within ten (10) days from the filing of the complaint or information.

Can you apply for bail online?

Yes. The judge shall determine if the accused should be admitted to bail as a matter of right. If posting of bail is a matter of right and the accused has submitted all the requirements for bail online, the judge on duty shall sign the approval of the bail and the consequent release order.

Can the amount of bail be reduced?

Yes. Upon motion of the accused and upon giving the prosecutor a non-extendible twenty four (24) hour period to file a comment electronically.

What is the process for the issuance of the release order?

The judge on duty will transmit the approval of bail and the release order to the executive judge who will transmit the same to the proper law enforcement agency within the same day for the release of the accused.

Can the accused apply for bail online even if he was charged before the court prior to the implementation of ECQ?

Yes.

Is this circular applicable even after the Enhanced Community Quarantine?

No. SC Administrative Circular shall only be applicable during the declaration of public health emergency.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;
Website: http://mfbr.com.ph;
Facebook page: http://mfbr.com.ph/


NON-IMPOSITION OF PENALTIES FOR FILING OF AMENDED INCOME TAX RETURN AND OTHER TAX RETURNS BEFORE THE EXTENDED DEADLINE

By Atty. Jonathan R. De Guzman

On 06 April 2020, The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 37-2020 (RMC No. 37-2020)  implementing additional guidelines on the filing and payment of tax returns without the imposition of penalties.

The RMC No. 37-2020 addresses the concerns of the taxpayers who intend to file and pay their tax returns within the original deadline or prior to the extended deadline but have not yet finalized their financial statement or returns. They feared that should they do so, the same might result in the imposition of additional penalties or non-recovery of taxes paid.

Hence, the following guidelines:

Taxpayers who have already filed their tax returns within the original deadline or at anytime before the extended deadline can amend their tax returns at anytime before the extended deadline or due date.

  • In case the amended tax return resulted to underpayment of taxes due, the amendment will not be subject to the corresponding taxes, ie., surcharge, interest and penalties, if the same was made before the extended deadline as provided for by the existing rules.
  • In case the amended tax return resulted to overpayment of taxes due, the taxpayer either:
    • carry over the overpaid taxes as credit agains the tax due for the same tax type for the succeeding taxable return period; or
    • file for tax refund.

Further, since BIR Form 1701 is not yet available in Electronic Filing and Payment Systems (eFPS),  Individuals (including Mixed Income Earner), Estates and Trusts, Taxpayers shall use the Offline EBIRForms Package Version 7.6 to file the said tax return. Payment shall be made either manual payment (ie, bank, authorized agents) or online payment as prescribed by the existing rules and regulation.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;
Website: http://mfbr.com.ph;
Facebook page: http://mfbr.com.ph/


GUIDELINES FOR SOCIAL DISTANCING MEASURES IN SCHOOL AND NON-ADMINISTRATION OF FOURTH (4th) QUARTER EXAMINATION

By: Atty. Jonathan R. De Guzman

Photo courtesy of: DepEd

In light of the proclamation of the Enhanced Community Quarantine, President Rodrigo Duterte has ordered the suspension of all classes and school activities in all levels from 15 March 2020 until 14 April 2020. Classes shall resume on 15 April 2020. The same directives to the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority and such other regulatory agencies, Local Government Units and the Department of Interior and Local Government with respect to the class suspension in NCR are reiterated for the entire Luzon region.

On 15 March 2020, the Department of Education (DepEd) issued DepEd Memorandum No. 042 s. 2020 providing guidelines for the remainder of school year 2019-2020 in light of the Covid-19 measures.

Who are covered by the DepEd Memorandum?

The DepEd Memorandum mainly deals with schools that are directly under the Department of Education, or public schools. However, private schools are highly encouraged to observe the guidelines stated in the Memorandum.

What is the DepEd Memorandum about?

The DepEd has adopted the social distancing measures for the remainder of the school year in light of COVID-19 outbreak.

The DepEd memorandum provided guidelines for the remainder of school year 2019-2020, specifically on the administration of the 4th quarter examination for DepEd schools nationwide. In case DepEd schools in the area are affected by the community quarantine where classes will be suspended by the national or local government authorities, the 4th quarter examination will no longer be administered.

What will be the effect if the 4th quarter final examination is not administered?

Paragraph 5 of the DepEd memorandum provides for the computation of grades in case the 4th quarter examination is not administered, as follows:

1. For grades 1 to 10 and non-core subjects of Senior High School (SHS), the class standing shall be 80% of the original formula, meaning, if the student has a class standing of 80%, his final grade or class standing will be transmuted to 100%.

2. For core subjects of SHS and work immersion in the academic track, the class standing shall be 75% of the original formula, meaning, if the student has a class standing of 75%, his final grade or class standing shall be converted to 100%.

3. For other subjects in the academic track of SHS, a student with a class standing of 70% shall be transmuted to 100%

The DepEd memorandum has provided for the table of transmuted grades.

Does the DepEd Memorandum cover all types of students?

No. The DepEd memorandum covers only K-12 students.

Does this apply to colleges and other higher education institutions?

No. suspension of classes for higher education institution is under the jurisdiction of Commission on Higher Education (CHED).

Are classes suspended in Higher Education?

Yes. Pursuant to CHED COVID ADVISORY No. 5 dated 17 March 2020, an enhanced community quarantine is imposed in the entire Luzon region to implement the strict community quarantine. All classes shall be suspended until 14 April 2020 and shall resume on 15 April 2020.

However, this must be read in conjunction with CHED COVID ADVISORY No. 3 dated 11 March 2020, which provides for the implementation of distance learning, e-learning, and other alternative modes of delivery in lieu of residential learning if they have the resources to do so.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;
Website: http://mfbr.com.ph;
Facebook page: http://mfbr.com.ph/


EXTENSIONS GRANTED BY THE BIR DURING ECQ DUE TO TO COVID-19

By atty: Jonathan R. de Guzman

Photo Courtesy of: Manila Bulletin News

The Bureau of Internal Revenue (BIR), in the interest of public safety and to protect the health of the taxpayers, granted extensions for the filing and payment of tax returns and other taxes  becoming due during the enhanced community quarantine period. The relevant Revenue  Memorandum Circulars providing for the extensions are as follows:

I. BIR’s Clarification on the Extension of the Filing and Payment of the Annual Income Tax Return and other Tax Due.

On 23 March 2020, The BIR issued Revenue Memorandum Circular No. 30-2020, an amendment to RMC No. 29-2020 and clarifications on RMC No. 28-2020, to address confusion and inadvertent errors presented in the former circulars released relative to the extended deadlines for tax filings, payments, and other returns.

Below are the FAQs:

When is the last day of filing and payment of Annual Income Tax Return?

Last day of Filing and Payment is on 15 May 2020.

When is the last day of filing of other returns and the payment Taxes due thereon?

The amended and clarified list of filing any payment of various tax return can be found on the attached Annex “A” of RMC 30-2020.

Is the list in Annex “A” exclusive?

No. In case the deadline of filing of any reportorial requirements not included in Annex “A” fell within the Enhanced Community Quarantine Period, the deadline of filing and payment will be extended for 30 days from its deadline.

In what area or jurisdiction does the extension apply?

The Revenue Memorandum Circular is applicable to the entire Luzon, including National Capital Region, under the ECQ and those area or jurisdiction that has implemented the ECQ.

Can the filing and payment of the taxes due be further extended?

Yes. The filing and payment of the reportorial requirements and the taxes due can further be extended if the ECQ period is further extended. Such payment and filing will further be extended for another 30 calendar days.

Is the filing and payment of ONETT transactions also extended?

Yes. Filing and payment of Withholding Tax, Capital Gains Tax, Donors Tax, and Estate Tax (ONETT Transactions) shall be extended for 30 days from its due date if the date of payment fell within the ECQ Period. The ONETT transactions include the BIR payment form nos. 1606. 1706, 1707, 1800 and 1801.

II. Extension of Period to File Correspondences with the BIR and the Submission of Pertinent Documents

On 23 March 2020, the BIR issued Revenue Memorandum Circular No. 31-2020 for the extension of period of filing correspondences with the Bureau pursuant to the provisions of Tax Code and the existing revenue regulations.

Below are the FAQs:

What correspondence or pertinent documents does the BIR refer to?

The BIR allowed the extension of the following documents and/or correspondences, to wit:

1. Letter Answer to Notice of Informal Conference

2. Response to the Preliminary Assessment Notice

3. Protest Letter to the Final Assessment Notice or Formal Letter of Demand

4. Submission of relevant supporting documents to support the request for re-investigation of audit cases with FAN/FKD

5. Appeal/Request for Reconsideration to the Commissioner on the Final Decision on Disputed Assessment (FDA)

6. Other similar letters and correspondences with due dates falling during the Enhanced Community Quarantine (ECQ)

Does the BIR allow the extension of filing of all correspondence?

NO. The BIR will only grant the extension of 30 days from the date of the lifting of ECQ to those taxpayers whose response to the received document or correspondence fell within the period of ECQ.

Does the extension apply only to the filing of documents within Luzon?

NO. The extension shall apply to areas or jurisdiction that have adopted and implemented the ECQ.

III. Extension on Availing Tax Amnesty

On 24 March 2020, the Bureau of Internal Revenue issued Revenue Memorandum Circular No. 33-2020 extending the deadline on the availment of tax amnesty on delinquencies under RA 11213 along with Revenue Regulation 4-2019 as amended by revenue regulation 5-2020.

Under RMC No. 33-2020, the deadline to avail tax amnesty on delinquent taxes is extended from 23 April 2020 to 23 May 2020.

RA 11213 granted Tax Amnesty for all unpaid Internal Revenue taxes for previous taxable years until 2017 with respect to the payment of Estate Tax, other Internal Revenue Taxes and other Tax Delinquencies due.

For queries, updates and other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through the following:

Email: mfl@mflegal.com.ph;
Website: http://mfbr.com.ph;
Facebook page: http://mfbr.com.ph/


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