REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City April 4, 2016 OPERATIONS MEMORANDUM NO. 201 01 SUBJECT: Clarification on Common Issues/Frequently Asked Questions (FAQs) TO Relative to the Implementation of Filing Returns Electronically with the Bureau of Internal Revenue All Internal Revenue Officials, Employees, and Others Concerned This Memorandum is issued to provide answers/resolutions to common Issues/FAQs regarding the implementation of Electronic Platform of the Bureau of 1 Internal Revenue (BIR): Are all taxpayers required to Electronically File (efile) returns? Not all taxpayers are required to efile. Only taxpayers enumerated in items no. 2 and 3 of this Memorandum are mandated to file electronically. Those not mandated may voluntarily use either Electronic Filing and Payment System (eFPS)/ Electronic Bureau of Internal Revenue Forms (eBIRForms). Thus, existing procedures on MANUAL FILING shall still apply. Who are mandated to use eF PS? * Taxpayer Account Management Program [TAMP) Taxpayers [Revenue Regulations (RR) No. 10-2014] * Accredited Importer and Prospective Importer required to secure the BIR-ICC & BIR-BCC. (RR No. 10-2014) National Government Agencies [NGAs) [RR No. 1-2013) All Licensed Local Contractors (RR No. 10-2012) Enterprises Enjoying Fiscal Incentives [PEZA, BOI, Various Zone Authorities, Etc.) (RR No. 1-2010) © Top 5,000 Individual Taxpayers [RR No. 6-2009) * Corporations with Paid-Up Capital Stock of P10 Million and above (RR No. 10-2007) * Corporations with Complete Computerized Accounting System (CAS) {RR No. 10-2007) * Procuring Government Agencies with respect to Withholding of VAT and Percentage Taxes [RR No. 3-205) * Government Bidders [RR No. 3-2005) Page t|7* Insurance companies and Stock brokers [Revenue Memorandum Circular (RMC) No. 71-2004] Large Taxpayers [RR No. 2-2002, as amended) Top 20,000 Private Corporation [RR No. 2-98, as amended) 3. Who are mandated to use eBIRForms? RR No. 6-2014 mandates the use of eBIRForms as follows: * ACCREDITED TAX AGENTS/ PRACTITIONERS & alll its client-taxpayers who authorized them to file in their behalf * ACCREDITED PRINTERS of Principal and =~ Supplementary Receipts/Invoices One-Time Transaction (ONETT) taxpayers Those engaged in business, or those with mix income [both compensation and business income) who shall file a "NO PAYMENT” Return (exception under RMC No. 12-2015) Government-Owned or Controlled Corporations (GOCCs) Local Government Units (LGUs), except barangays Cooperatives, registered with National Electrification Administration (NEA) and Local Water Uttlities Administrations (LWUA) Illustration No. 1. Mr. Ais a Single Proprietor who owns a Barbershop and started his business operations last January 01, 2015. He is not required to electronically file using eBIRForms. On March 2015, his business has no operations thus he is going to file a No Payment Retum on April 2015. This time, Mr. Ais mandated to file electronically his No Payment Retum using eBIRForms since all No Payment returns are mandated to file electronically using eBIRForms under RR No. & 2014, as amended by RR No. 5-2015. On the succeeding month, If Mr. A tax return is with payment, can he sfill fle manually? No. Mr. A Is henceforth required to file his return electronically. Illustration No. 2. Mr. B is a Single Proprietor who is an Accredited Printer of the BIR. He is mandated to file electronically using eBIRForms whether it isa No Payment or with Payment tax return. 4, Where can the taxpayers download the eBIRForms Package? The taxpayer can download the eBIRForms Package from the following websites: a) www.bir.gov.ph; b) www.knowyourtaxes.ph; c) www.dof.gov.ph; d) Dropbox using this link: http://goo.gl/UCr8xS; or e) Direct link using: hitp://ftp.preginet/bir/ebirforms package v (latest version) zip; Page 2|7or copy through taxpayer's USB flash drive from the Revenue District Office (RDO) e-Lounge and install it in his/her computer. . What are the system requirements for eBIRForms? * Supported Operating System: Windows 7 and higher; * Hard disk drive space needed: al least 100 MB free space; * RAMmemory needed: Runs best on 2GB or higher, * Activex components via Intemet Explorer version 9; + Java Run-time Environment version 1.7; and + eBIRForms Package is best viewed in 1152 x 864 screen resolution Browser requirements * Intemet Explorer v9 or higher * Mozilla Firefox v16 or higher * Google Chrome v23 or higher Who are exempted in efiling “No Payment Returns” and may file manually? Under RMC No. 12-2015, the following can file manually “No Payment Returns”: * Senior Citizens (SC) or Persons with Disabilities (PWDs) filing for their own retum; * Employees deriving purely compensation income and the income tax of which has been withheld correctly showing tax due is equal to tax withheld whether single or multiple employers; or «Employees qualified for substituted fling under RR No. 2-98 Sec. 2.83.4, as amended, but opted to file for an Income Tax Retum (TR) and are filing for purposes of promotion (PNP/AFP), loans, scholarship, foreign travel requirements, etc. . What are the steps in enrolling to eFPS?: Step 1. Access BIR website at www.bir.gov.ph Step 2. Click on the eFPS icon to go to the eFPS home page Step 3. From the eFPS Login page, click en ‘Enroll fo eFPS” link Step 4. The eFPS enrollment form appears. Complete the required fields ‘on the Enrollment page. Then, click on the ‘Submit’ button. Step 5. eFPS wil inform thru a pop-up message thal enrollment has been successfully received. Then wait for an email message from BIR informing the status of enrolment whether approved or disapproved. Once account has been activated, taxpayer Is ready to efile and ePay, and perform all functions within eFPS. Reminders for eFPS users: Make sure your registration information is up-to-date or file BIR Form No. 1905 Enroll with an eFPS Authorized Agent Bank (AAB) fo ePay. Page 3|78. What should a taxpayer use if he/she Is both mandated fo use eFPS and eBIRForms? Taxpayer should use eFPS. However, taxpayer should use eBIRForms for tax retums which are not in eFPS such as estate tax, donor's tax, or capital gains tax. 9. How does a taxpayer know If a return is successfully efiled to eBIRForms? A system-generated confirmation email shall be received by the taxpayer for every successful eFiling transaction. 10, What does a taxpayer do if his/her form type is not included in eFPS? Submit BIR Form No. 190519 the Client Support Section of the RDO where the taxpayer is registered to update registration information, 11, Are manually printed tax returns allowed to be used? Taxpayers are allowed to use manually printed tax return (photocopied, electronic/computer-generated tax retums). All RDOs/AABs are mandated to accept manually printed forms in lieu of the officially pre- printed forms. Reminders: * Taxpayer or his duly authorized representative must sign each of the accomplished/filed-up copy of the tax return. © Tax returns must be printed in the format prescribed in RMO 24- 2013 dated September 11, 2013, printed in FOLIO size bond paper {8.5" x 13") for ALLTAX FORMS; Except for the annual ITRs (BIR Form Nos. 1700, 1701 and 1702RT, 1702EX, 1702MX) which must be printed using the A4 size bond paper (8.27" x 11.69"); portrait orientation/layout. Page setup margins [Internet Explorer): Left margin: 0.146, Right margin: 0.148, Top margin:0.14 Bottom margin: 0.14, with no header, no footer. 12.What are the penalties for failure to efile returns? All taxpayers mandated to efile returns, who fail to do so, shall be imposed a penalty of P1,000 per return pursuant fo Section 250 of the NIRC of 1997, as amended. 41713.What is “Wrong Venue" when efiling returns? Taxpayers mandated to efile but manually filed their tax returns instead are considered taxpayers filing in wrong venue These taxpayers shall be liable to civil penalties equivalent to 25% of the tax due, for filing areturn not in accordance with existing issuance; thus, tantamount to WRONG VENUE pursuant fo Section 248 (A)(3) of the NIRC of 1997, asamended. 14. Are taxpayers allowed to file anywhere? Yes - taxpayers that efile can file anywhere. Taxpayers that manually file are only allowed to file their tax returns at the RDO where they are duly registered, 15.Are taxpayers required to submit the efiled tax return (Including attachments) to the RDO or AB? Taxpayer who electronically file and electronically pay using eBIRForms or eFPS without any attachments required need not submit anything to the RDO/Large Taxpayers Division (LTD)/Large Taxpayers (LT) Office. However, if there are required atachments, taxpayer shall submit to the RDO/LIDALT Office within fifteen (15) days from the date of efiling. For eFPS: © Printed copy of Tax Returns with Filing Reference Number (FRN) page: and Required attachments For eBIRForms: (efile and manually pay) * Printed copy of the retum with the eMail Notification received; and * Required attachments Reminder: For other attachments to be submitted (Summary Alphalists of Withholding Tax (SAWT), Monthly Alphalists of Payees (MAP), RELIEF, ete.), these are to be prepared using the Data Entry Module of the BIR submited via email: esubmission@bir.gov.ph 18. How many copies of ITR and AFS shall be stamped "RECEIVED" by the RDO and AAB? All concemed district offices including AABs shall receive the IR by stamping the official receiving seal on the space provided for in the three [3) copies of the return. Page S|?In the case of corporations and other juridical persons covered by BIR Form No. 1702, the RDO concern shall stamp “RECEIVED” at least two (2) extra copies of the AFS (for SEC purposes). Stamping of "RECEIVED" on the attachment shall only be on the page of Audit Certificate, the Balance Sheet and the Income Statement, pursuant to Revenue Memorandum Order (RMO) No. 13-2010 and the Memorandum of Agreement (MOA) between the SEC and the BIR on February 17, 2010. 17. How does a taxpayer submit attachments for the voluminous creditable withholding taxes under BIR Form Nos, 2307/2316? Submit a scanned copy (PDF format) of the original BIR Form No. 2307 per RR No, 2-2015; Reminder: Submission of scanned copy is mandatory for all Large Taxpayers. 18.What action does a taxpayer take if he/she does not receive an email notification for eBIRForms submitted? Taxpayer shall double check the following: * eMail address used in the retumn is VALID and ACTIVE. * Mallbox has enough space/not "quota exceeded”. * BIR emallis not in the SPAM folder. * BIR domain “bir.gov.ph” is NOT BLOCKED by the corporate security system. If there is still no email notification received, contact BIR contact center (02)981-8888, or emai: contact_us@cctr.bir.gov.ph 19.What will a taxpayer do when he/she has difficulty accessing the efiling system such as page does not display, intermittent connection, slow response time, and gateway timeout? Toxpayer may call or email BIR Contact Center: (02)981-8888 or Email Address: efiling@bir.gov.ph q7To report via email, ensure to provide the following information: Particulars Taxpayer Details System Name (e.g., eFPS, eBIRForms) TIN and Branch Code (e.g, 999-999-999-000) Registered Name RDO Code/Number Email Address used Tax Type Form Type/Name. Retum Period Date of Fling Contact Person/Contact Number Description of issue with allached screen shot/s of error/s: with date and time captured 20.15 BIR extending the time to file returns during deadline due date/s? No. BIR is accepting manvally-filed returns only up to 5:00 p.m.; while electronically filed returns must be successfully submitted on or before 11:59 p.rn. If taxpayers encounter connectivity issues in the filing of returns during deadline, they should be supported by a trouble ticket or an Auto Response (Annex A) “time stamped" on or before 5:00 p.m. 21.Whom do you get In touch with for Taxpayer Identification Number (TIN) queries? BIR Contact Center (02)981-8888 ernoil contact us@cetr.bir.gov.ph Concemed Client Support Section - RDO see BIR Directory Public Information Education Division ernail: Hedtinver@bir.gov.ph All concemed are hereby enjoined to be guided accordingly and to give this Memorandum as wide a publicity as possible. {Original Signed) NELSON M. ASPE Deputy Commissioner Operations Group Officer-in-Charge He2