The Department of Finance (DoF) has issued Department Circular No. 002-2020 (DC 002-2020) wherein it imposed a mandatory extension of deadlines for payment of all local taxes, fees, and charges imposed and collected by Local Government Units (LGUs) in consideration of the severe disruption of economic activities due to the national outbreak of COVID-19 and following the enactment of Republic Act No. 11469 otherwise known as “Bayanihan to Heal as One Act” (RA 11469).
MANDATORY EXTENSION PERIOD AND OTHER PERTINENT MATTERS
In the DC 002-2020, the deadlines for payment of all local taxes, fees, and charges imposed by within their territorial jurisdiction as of 25 March 2020 has been extended until 25 June 2020 (period of extension). Also, during the same period, the DoF directed the suspension of the counting of period within which to pay local taxes, fees, and charges.
If a specific LGU had already extended their deadlines before the effectivity of RA 11469, the deadline shall be considered modified by the DC 002-2020. However, LGUs may effect further extension in accordance with the Local Government Code.
NO INTEREST, SURCHARGE, AND OTHER PENALTY
LGUs are precluded from imposing and/or applying any interest, surcharge or any form of penalty on any local tax, fee, or charge accruing on or due and demandable during the period of extension.
TREATMENT OF DELINQUENCIES PRIOR TO RA 11469
Local tax delinquencies incurred prior to the effectivity of RA 11469 will remain as such, and shall be due and demandable after 25 June 2020. However, applicable interests, penalties, and surcharges shall resume and be due and demandable only after the lapse of the effectivity of RA 11469 or on 25 June 2020, unless extended by the Congress.
ACTIONS BY LOCAL TREASURERS AND ASSESSORS
DC 002-2020 directs all local treasurers and assessors to defer from the following acts until the resumption of normal office operations:
Issuing written authority to conduct examination of books of accounts and pertinent records of businesses;
Activities related to appraisal and assessment of real properties;
Posting or publishing of notices of delinquencies, warrants of levy and advertisements for sale or auction; and
- Pursuing administrative or judicial action for the enforcements and/or collection of local taxes, fees, or charges.
By: Emem Flores