Enumerate three instances where the imposition of MCIT will be suspended.

The Secretary of Finance is authorized to suspend the imposition of the minimum corporate income tax
on any corporation which suffers losses on account of:

1. Substantial losses from a prolonged labor dispute which means losses arising from a strike staged by
the employee which lasted for more than six months within a taxable period and which has caused the
temporary shutdown of business operation.

2. Force majeure which means a cause due to an irresistible force as by act of God like lightning,
earthquake, storm, flood and the like. This term shall also include armed conflicts such as war or
insurgency.

3. Legitimate business reverses shall include substantial losses due to fire, robbery, theft or
embezzlement or for other economic reason as determined by the Secretary of Finance.

Enumerate the corporations which are exempted from the application of MCIT.

The minimum corporate income tax shall apply only to corporations subject to normal corporate income
tax. Accordingly, it shall not be imposed on the following:

1. The following domestic corporations engaged in business or operating as:

a. Proprietary educational institutions subject to tax at 10% of their taxable income

b. Hospitals which are nonprofit subject to tax at 10% of their taxable income

c. Depository banks under the expanded foreign current deposit system

2. The following resident foreign corporations engaged in business as:

a. Offshore banking units subject to final tax at 10%

b. International carriers subject to tax at 2.5% of Gross Philippine Billings

c. Regional operating headquarters subject to tax at 10% of their taxable income

d. Firms that are under a special tax regime such as those in accordance with the PEZA law and the Bases
Conversion Development Authority Act

When shall the manual filing of quarterly income tax return be made?

1st quarter: on or before May 15

2nd quarter: on or before August 15

3rd quarter: on or before November 15

4th quarter: not later than the 15th day of the fourth month following the close of the calendar year or
April 15
What is electronic filing and payment system?

This refers to the system developed and maintained by the Bureau of Internal Revenue for electronically
filing tax returns, including attachments, if any, and paying taxes due thereon, specifically through the
internet. It is an alternative mode of filing returns and payment of taxes which deviates from the
conventional manual process of encoding paperbound tax returns filed which is highly susceptible to
human errors and interventions.

What is filing reference number? Why is it important?

A filing reference number is generated by the computer after a successful filing of the tax return. It is
important because by using this, the taxpayer can print the return as well as serves as evidence of filing
the return.

What is the purpose why the electronic BIR forms were developed?

The Electronic Bureau of Internal Revenue Forms (eBIRForms) was developed primarily to provide
taxpayers with an alternative mode of preparing and filing tax returns that is easier and more
convenient..