BSP allows longer bank hours as tax payment deadline nears

MANILA, Philippines - Banks have been given permission to extend working hours and operate on Saturdays as the April 15 deadline for filing tax returns and payments looms.

In a memorandum the Bangko Sentral ng PIlipinas said all Bureau of Internal Revenue authorized agent banks have been given authority to open and extend banking hours.

This authority covers conducting banking services from 9 a.m. to 5 p.m. on two Saturdays (March 28 and April 11), and to extend operations up to 5 p.m. from April 1 to 15.

The central bank stressed banks should still comply with rules covering operations beyond the minimum hours and extending services during holidays.

The BSP has annually allowed banks to extend hours to accommodate taxpayers and even allowed banking services during Saturdays before the April 15 deadline.

Individual and business taxpayers are required to file their income tax returns every April 15. BIR officials earlier said the deadline would not be extended and have encouraged the public to pay earlier given the inconveniences they may face on the last day of filing.

Taxpayers who fail to submit their tax returns are penalized with 20 percent interest per annum, and a 25-percent surcharge and compromise fee based on the tax due.

Income tax is derived from a person’s or entity’s earnings arising from property, practice of profession, conduct of trade or business minus deductions and other exemptions.

Individuals and corporates are given the option to manually file their income tax returns or do so online.

The BIR earlier this month said taxpayers required to file their returns electronically would be penalized if they fail to do so.

Those required to use the eBIR forms include accredited and prospective importers and brokers, national government agencies, licensed local contractors, recipients of fiscal incentives, top 5,000 individual taxpayers, firms with a paid up capital of P10 million and above, procuring government agencies, government bidders, large taxpayers, and the top 20,000 private corporations.

Also included in the list are accredited tax practitioners and their clients, accredited printers of receipts, one-time transaction taxpayers, state-owned firms, local government units, and cooperatives registered with the National Electrification Administration and Local Water Utilities Administration.