Article by Jennifer Karpchuk on “Philadelphia’s Tax Responses to the COVID-19 Pandemic”
In an article published on June 4, 2020 in The Legal Intelligencer, Jennifer Karpchuk discusses how the city of Philadelphia’s Department of Revenue has continually addressed the pandemic effects on the city’s taxes, key responses and guidance that the department has issued so far.
In this article, Karpchuk outlines that the filing and payment deadlines for the Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT) have been extended through July 15. She also notes that the deadline for School Income Tax (SIT) did not change because of COVID-19.
“The department announced that businesses that were ordered to close by order of the mayor beginning March 17, are not considered to “occupy” the space for purposes of the Use and Occupancy Tax (U&O Tax),” explains Karpchuk. “However, businesses deemed essential, whether they choose to operate or not, are still subject to the U&O tax.”
She further explains, “Philadelphia’s guidance on its wage tax in light of COVID-19 is not “relief,” but instead an explanation of its standard policy applied to the present pandemic.”
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