RMC 2018 PDF

November 15, 2018
REVENUE MEMORANDUM CIRCULAR NO. 107-18
SUBJECT : Amending Revenue Memorandum Circular (RMC) No.

43-2018 Regarding the Creation of Fast Lane for all
One-Time Transactions (ONETT) Involving Simple
Transaction
TO : All Internal Revenue Officers, Employees and Others

Concerned
This Circular is hereby issued to amend second paragraph of Revenue

Memorandum Circular (RMC) No. 43-2018 which shall now read as follows:
TAacHE
The ONETT under the fast lane shall be processed by the Group
Supervisor of the Assessment Section assigned as Officer of the Day and
approved by the Assistant Revenue District Officer/Revenue District Officer
depending on the threshold set forth under Revenue Memorandum Order
No. 55-2016.
In order to avail of the fast lane, payments amounting to

twenty-thousand pesos (P20,000.00) and below shall be paid in cash
while payments above twenty-thousand pesos (P20,000.00) shall be
made through Manager's Check or Cashier's Check to the Revenue
Collection Officer (RCO). The RCO shall then deposit all collections to
the Authorized Government Depository Bank (AGDB) daily or not later
than the next banking day. Thereafter, the concerned RCO shall
provide the Chief, Collection Section with the photocopies of the
electronic Revenue Official Receipt (ROR) and deposit slip, duly
stamped "received" by the AGDB with the corresponding details of
payment, to be used as basis for the verification of payment.
All internal revenue officials, employees and others concerned are hereby
enjoined to give this circular as wide a publicity as possible. DHIcET
Copyright 2019 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia First Release 2019 1
(SGD.) CAESAR R. DULAY
Commissioner of Internal Revenue
(1)
December 7, 2018
SUBJECT : Publishing the Full Text of Memorandum Circular No. 53

dated November 12, 2018 entitled "Directing All
Government Offices, Agencies and Instrumentalities,
Including Government-Owned or -Controlled Corporations
and State Universities and Colleges, to Take an Active Role
in the Anti-Illegal Drugs Campaign"
TO : All Internal Revenue Officials, Employees and Others

Concerned
For the information and guidance of all internal revenue officials and others
concerned, attached is the letter dated November 16, 2018 from Atty. Concepcion
Zeny E. Ferrolino-Enad, Director IV of Malacañang Records Office and a certified
copy of Memorandum Circular No. 53 which was approved on November 12,
2018, entitled "DIRECTING ALL GOVERNMENT OFFICES, AGENCIES
AND INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR
-CONTROLLED CORPORATIONS AND STATE UNIVERSITIES AND
COLLEGES, TO TAKE AN ACTIVE ROLE IN THE ANTI-ILLEGAL
DRUGS CAMPAIGN." DaIAcC
All concerned are hereby enjoined to be guided accordingly and give this
Circular a wide publicity as possible.
ATTACHMENTS
Office of the President

of the Philippines
Malacañang
Malacañang Records Office
Manila, November 16, 2018
SECRETARY CARLOS G. DOMINGUEZ III

Department of Finance
Manila
Sir:
I have the honor to transmit for your information and guidance, a certified copy of
Memorandum Circular No. 53 dated November 12, 2018 entitled "DIRECTING ALL
GOVERNMENT OFFICES, AGENCIES AND INSTRUMENTALITIES,
INCLUDING GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS
AND STATE UNIVERSITIES AND COLLEGES, TO TAKE AN ACTIVE ROLE
IN THE ANTI-ILLEGAL DRUGS CAMPAIGN." SICDAa
Thank you.
Very truly yours,
(SGD.) ATTY. CONCEPCION ZENY E.

FERROLINO-ENAD
Director IV
November 12, 2018
MEMORANDUM CIRCULAR NO. 53
DIRECTING ALL GOVERNMENT OFFICES, AGENCIES AND
INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR
-CONTROLLED CORPORATIONS AND STATE UNIVERSITIES AND
COLLEGES, TO TAKE AN ACTIVE ROLE IN THE ANTI-ILLEGAL DRUGS
CAMPAIGN
WHEREAS, it is the policy of the State to pursue an effective campaign against

trafficking and use of dangerous drugs through an integrated system of planning,
implementation and enforcement of anti-illegal drug abuse policies, programs, and
projects;
WHEREAS, the Dangerous Drugs Board (DDB) was established under Republic
Act (RA) No. 9165, otherwise known as "The Comprehensive Dangerous Drugs Act of
2002," as the policy-making and strategy-formulating body in the planning and
formulation of policies and programs on drug prevention and control;
WHEREAS, the Philippine Drug Enforcement Agency (PDEA) was created

pursuant to RA No. 9165, to be responsible for the efficient and effective law
enforcement of all the relevant provisions on dangerous drugs and/or controlled
precursors and essential chemicals, including the implementation of the national drug
control strategy formulated by the DDB;
WHEREAS, Executive Order (EO) No. 15 (s. 2017) created the Inter-Agency
Committee on Anti-Illegal Drugs (ICAD) and the National Anti-Illegal Drug Task Force
to suppress the drug problem in the country;
WHEREAS, Section 4 of EO No. 15 provides that the National Anti-Illegal Drug

Task Force composed of members of law enforcement agencies, including members of
the institutions called upon for assistance, shall undertake sustained anti-illegal drug
operations;
WHEREAS, Executive Order No. 66 (s. 2018) institutionalized the Philippine

Anti-Illegal Drugs Strategy (PADS) by directing all government offices, including
government-owned or -controlled corporations (GOCCs) and state universities and
colleges (SUCs) to implement the PADS in accordance with their respective mandates;
WHEREAS, the drug problem continues to degrade the moral fiber of society,
undermining the rule of law, and has evolved as a national security problem;
NOW, THEREFORE, it is hereby DIRECTED that all government offices,

agencies and instrumentalities, including GOCCs and SUCs, to immediately mobilize
their assets and take an active role in the government's anti-illegal drugs campaign, in
accordance with their respective mandates.
DONE in the City of Manila, this 12th day of November, in the year of Our Lord,
Two Thousand and Eighteen.
December 17, 2018
SUBJECT : Clarifying the Payment of Excise Tax on Domestic Coal

Pursuant to the Provisions of Revenue Regulations No.
1-2018, Amending for the Purpose Revenue Regulations
No. 13-94
TO : All Internal Revenue Officers and Others Concerned
SECTION 1. Scope. — This circular is issued to clarify the payment

of excise tax on domestic coal under Revenue Regulations (RR) No. 1-2018,
which provides for the revised tax rates on mineral products pursuant to the
provisions of Republic Act (RA) No. 10963, otherwise known as the "Tax
Reform for Acceleration and Inclusion (TRAIN) Law," amending for the purpose
RR No. 13-94.
SECTION 2. Background. —
Section 151 of the National Internal Revenue Code (NIRC) of 1997, as

amended, was further amended by RA No. 10963, which became effective on
January 1, 2018, to wit:
"SEC. 48. Section 151 of the NIRC, as amended, is hereby further

amended to read as follows:
(A) Rates of Tax. — There shall be levied, assessed and collected

on minerals, mineral products and quarry resources, excise
tax as follows:
(1) On domestic or imported coal and coke,

notwithstanding any incentives granted in any law or
special law:
Effective January 1, 2018, Fifty pesos (P50.00) per

metric ton;
Effective January 1, 2019, One hundred pesos

(P100.00) per metric ton; and
Effective January 1, 2020, One hundred fifty pesos

(P150.00) per metric ton;
xxx xxx xxx" (Emphasis supplied)
Pursuant to the said amendment, RR No. 1-2018 was issued amending RR

No. 13-94. Section 3 of RR No. 1-2018, provides that: CAIHTE
"SEC.3. Amending Section 5 of RR No. 13-94
xxx xxx xxx
Coal produced under Coal Operating Contracts entered into by the

government pursuant to Presidential Decree No. 972 as well as those
exempted from excise tax on mineral products under other laws shall now be
subject to the applicable rates above beginning January 1, 2018.
xxx xxx xxx"
SECTION 3. Clarifications. —
Excise tax on coal is a tax levied on the product, rather than on the
performance, carrying on or the exercise of an activity, such as mining of coal.
The general rule is that the producer of a product is the one liable for the excise tax
thereon. However, since the excise tax is attached to the product itself, if the tax is
unpaid and possession is transferred to the buyer, the buyer/possessor of the
product can be made liable for the excise tax.
Relative thereto, the second paragraph of Section 130 (A) (1) of the NIRC
of 1997, as amended, states that "Should domestic products be removed from the
place of production without the payment of the tax, the owner or person having
possession thereof shall be liable for the tax due thereon." Accordingly, in
situations contemplated under the second paragraph of Section 130 (A) (1) of the
NIRC of 1997, as amended, and for ease of collection and for purposes of control,
the producer shall act as collecting agent of the tax due from the first
buyer/possessor and remit the same using BIR Form 2200 M — Excise Tax
Return for Mineral Products to the Bureau of Internal Revenue (BIR), reflecting
therein the buyer's name and the TIN.
In view of the foregoing, the following shall be enforced:
1. In the event that the excise tax on locally produced coal is not
paid by the producer of the product, the excise tax due thereon
shall be collected from the first buyer/possessor.
2. The excise tax collected from the buyer/possessor shall be

reflected separately in the invoice issued by the producer
covering the coal sold. This amount collected from the first
buyer/possessor shall be payable to the BIR and shall not form
part of the selling price of the coal. The excise tax due to the
BIR shall be extinguished upon remittance of the same by the
producer to the BIR. DETACa
Illustration:
To record sales:
Receivable — Trade 100,000
Receivable — Non-trade (excise tax) 1,000
Revenue 100,000
Due to BIR (for the excise tax collected from buyer) 1,000
Upon payment and remittance to BIR

Due to BIR 1,000
Cash 1,000
Upon collection from first buyer

Cash 101,000
Receivable — Trade 100,000
Receivable — Non-trade 1,000
3. As a collecting agent of the excise tax due from the first

buyer/possessor, the producer shall file via EFPS and remit the
excise tax to the BIR using BIR Form 2200 M — Excise Tax
Return for Mineral Products, as prescribed under RR No.
1-2002, within ten (10) days from the date of such sale,
transfer or disposition, together with the submission of relevant
documents proving the transfer or disposition.
4. Finally, in the case of a producer subject to excise tax, such

producer shall be subject to all the administrative and
reportorial requirements as prescribed under applicable existing
rules and regulations.
SECTION 4. Transitory Provisions. —
The following transitory provisions shall be strictly observed by all

concerned:
a. The excise tax due on domestic coal removed for domestic

consumption shall be collected by the producer of the domestic
coal from the first buyer/possessor effective January 1, 2018
(effectivity of the TRAIN Law);
b. The producer shall remit on or before December 31, 2018 to

the BIR the amount of excise tax on domestic coal collected
from the first buyer/possessor covering the period January 1,
2018 to November 30, 2018 using BIR Form 2200 M, without
increments (surcharge and interest) if settled within the herein
prescribed period. Henceforth, excise tax collected by the
producer on domestic coal removed and sold for domestic
consumption shall be filed/remitted within 10 days from the
date of sale, transfer or disposition. aDSIHc
c. The producer of the domestic coal shall provide to the BIR the
data on production, volume of removal and sale covering the
period January 1, 2018 to November 30, 2018 for the
determination of the amount of excise tax to be remitted to the
BIR.
d. A separate revenue issuance shall be issued covering excise tax

treatment on domestic coal removed for export.
All concerned revenue officials and employees are hereby enjoined to give
this circular as wide a publicity as possible.

December 5, 2018
SUBJECT : Loss of Several Accountable Forms

Concerned
Notice is hereby given of the loss of the accountable forms hereunder listed
together with other pertinent information, to wit:
Accountable Form Serial Number Missing Copy/Set
BIR Form No. 0535 TIS201400150251 4 duplicate to triplicate

(Taxpayer Information Sheet) TIS201400150252 copies
TIS201400150253 (used/issued)
TIS201400150254
BIR Form No. 0423 APS200100002934 1 set

(Apprehension Slip) (unused/unissued)
The abovementioned forms were reported as lost by Mr. Haron R. Laingan,

Chief Revenue Officer II, Regional Investigation Division, Revenue Region No.
16, Cagayan de Oro City. Consequently, the four (4) duplicate to triplicate copies
of the used/issued Taxpayer Information Sheet should be verified if found. On the
other hand, the unused/unissued one (1) set of Apprehension Slip is hereby
cancelled and all official transactions involving the use thereof are considered as
INVALID.
Internal Revenue officials, employees and others concerned are requested to

promptly notify this Office in the event that the aforesaid forms are found and to
take the necessary measures to prevent the improper or fraudulent disposition or
use of the same. aScITE
(SGD.) CELIA C. KING

Deputy Commissioner
Resource Management Group
December 3, 2018
SUBJECT : Lost Triplicate Copy of the Eleven (11) Sets of Used and
Issued BIR Form No. 2313-R — Electronic Certificate
Authorizing Registration for Transaction Involving
Transfer of Real Properties

Concerned
Notice is hereby given of the loss of triplicate copy of the eleven (11) sets
of used and issued BIR Form No. 2313-R — Electronic Certificate Authorizing
Registration for Transaction Involving Transfer of Real Properties, bearing the
following serial numbers:
eCR201600231862
eCR201600232023
eCR201600232113
eCR201600321912
eCR201600322865
eCR201600323205
eCR201600322859
eCR201600322857
eCR201600590968
eCR201600643553
eCR201600716419
The abovementioned forms were reported as lost by Ms. Maricar Eunis V.

Bautista, Revenue Officer I-(C), Revenue District Office No. 17A, Revenue
Region No. 4, San Fernando, Pampanga. Consequently, the triplicate copy of the
eleven (11) sets used/issued eCR should be verified if found. CAIHTE

use of the same.

Deputy Commissioner
December 5, 2018
SUBJECT : Amending Further Revenue Memorandum Circular (RMC)

No. 17-2018, Specifically the Deadline for the Processing
of Pending VAT Refund/Credit Claims Filed Prior to the
Effectivity of RMC No. 54-2014
TO : All Internal Revenue Officials and Employees Concerned
This Circular is issued to further amend the deadline prescribed in Item No.
VI.A.1 of RMC No. 17-2018, as amended by RMC No. 53-2018. The
December 14, 2018 deadline is hereby further moved to March 29, 2019. AcICHD
enjoined to be guided accordingly and give this Circular as wide a publicity as
possible.

November 29, 2018
SUBJECT : Lost Eight (8) Sets of Unused BIR Form No. 0535 —
Taxpayer Information Sheet

Concerned
Notice is hereby given of the loss of eight (8) sets of unused BIR Form No.
0535 — Taxpayer Information Sheet, bearing the following serial numbers: AScHCD
TIS201400239393-TIS201400239400
The abovementioned forms were reported as lost by Mr. Gerardo B. Dizon,

Revenue Officer I-Assessment, Revenue District Office No. 26, Revenue Region
No. 5, Caloocan City and have consequently been cancelled. All official
transactions involving the use of said forms are therefore considered as INVALID.

use of the same. HESIcT
Deputy Commissioner
(2)
November 23, 2018
SUBJECT : Consolidated Price of Sugar at Millsite for the Month of

October 2018
This Circular is hereby issued in order to consolidate the weekly issuance of

Operations Memoranda (OM), more particularly OM Nos. 2018-10-08,
2018-10-09, 2018-11-01, and 2018-11-02, for the month of October circularizing
the weekly Price of Sugar at Millsite issued by the Sugar Regulatory
Administration (SRA) pursuant to Revenue Regulations (RR) No. 13-2015.
HTcADC
While the SRA-issued weekly Price of Sugar at Millsite reflects the

comparative prices of sugar between the previous and current years, the
consolidated schedule (Annex "A") on the said weekly OMs contains only that of
the current year for purposes of imposing the one percent (1%) expanded
withholding tax on sugar prescribed under the provisions of RR No. 2-98, as
amended by RR No. 11-2014.
All revenue officials, employees, and others concerned are hereby enjoined
to give this Circular as wide a publicity as possible. CAIHTE
ANNEX A
Sugar Price at Millsite by Sugar Class
December 7, 2018
SUBJECT : Clarifying Certain Issues Relative to the Provisions of

Revenue Regulations (RR) No. 17-2011, as Amended,
Implementing Republic Act (RA) No. 9505, Otherwise
Known as the "Personal Equity and Retirement Account
(PERA) Act of 2008"
SECTION 1. Scope. — This circular is issued to clarify certain

provisions of RR No. 17-2011, as amended, in relation to Revenue
Memorandum Order (RMO) No. 42-2016 dated July 21, 2016 which
establishes the guidelines and procedures in the implementation of RA No. 9505,
otherwise known as the "Personal Equity and Retirement Account (PERA) Act of
2008." HTcADC
SECTION 2. Clarificatory Questions and Answers. —
Q1. Is the Qualified Employer's Contribution to the employee's PERA subject

to fringe benefit tax? To what extent shall it be exempt from tax?
A1. No. The Qualified Employer's Contribution is not subject to fringe benefit
tax since said Contribution does not form part of the employer's gross
taxable income. (Section 7 (B) (1), RR No. 17-2011). The same holds true
even if said Contribution is granted by way of a benefit or other form and
regardless of whether said benefit is granted to all or only some of the
employees.
Q2. Is the employer who contributes to the employee's PERA entitled to five
percent (5%) tax credit?
A2. No. Section 7 (B) of RR No. 17-2011, as amended, provides that the
employer shall not be entitled to any five percent (5%) credit from its
contribution to an employee's PERA. However, the employer can claim
the actual amount of his/its Qualified Employer's Contribution as a
deduction from his/its gross income to the extent of the employer's
contribution that would complete the maximum allowable PERA
contribution of an employee. CAIHTE
The example given in the same RR is as follows:
Employee AAA already made PERA contribution for the year amounting to
P60,000. Employer XYZ Corp. decided to contribute as well to its
employee's PERA account and the employer's contribution for the same
period amounted to also to P60,000. In this case the employer can only
claim as deduction the amount of P40,000, that is only up to the extent
needed to complete the maximum allowable PERA contribution.
Q3. What is the effect of early withdrawal by an employee of his PERA

contribution on the Qualified Employer's Contribution?
A3. There will be no effect on the part of the employer. It will not be required to
add back or increase its gross income by the PERA contributions it made
in favor of its employee who made an early withdrawal of his PERA
contributions. aScITE
Q4. Can a PERA contributor change PERA Administrator for reasons other
than the administrator's revocation of accreditation?
A4. Yes. The transfer of PERA assets to another Qualified/Eligible PERA

Investment Product and/or another Administrator is not limited to transfers
due to the revocation of accreditation of the previous Administrator by the
Bureau of Internal Revenue (BIR) or the concerned Regulatory Agency
(i.e., Securities and Exchange Commission or Insurance Commission), and
such transfer shall not be subject to Early Withdrawal Penalty as long as it
is made within fifteen (15) calendar days from the withdrawal thereof. (RR
No. 23-2018)
Q5. Are PERA Contributors still entitled to substituted filing of their income
tax return?
A5. Yes. PERA Contributors are not disqualified from substituted filing of their
income tax returns by reason of PERA contributions that they or their
respective employees made, provided that they meet the conditions set
forth in Revenue Memorandum Circular (RMC) No. 1-2003 on
Substituted Filing of Income Tax Returns of Qualified Pure Compensation
Income Earners.
Q6. For purposes of opening a PERA account, does the BIR require
submission of a tax identification number (TIN) and a Revenue District
Office (RDO) Code of the Contributor's employer?
A6. No, the BIR does not require submission of the TIN and RDO Code of the
Contributor's employer for purposes of account opening. The Contributor,
however, is required to have a TIN. (Section 2 (c), RR No. 7-2011) DETACa
Q7. How are the different PERA accounts of a PERA contributor treated? Are
these accounts considered separate and distinct accounts or one
aggregate account?
A7. The different accounts of a PERA contributor are considered as one PERA
accounts of the PERA contributor.
Q8. Are Overseas Filipinos (OFs) entitled to Tax Credit Certificates (TCCs)?
A8. Yes. OFs are entitled to TCCs which they may use against any national
internal revenue tax liabilities (excluding the Contributor's withholding tax
liabilities as withholding agent).
Q9. What documents, other than the Overseas Employment Certificate (OEC)
issued by the Philippine Overseas Employment Administration (POEA),
may be submitted to show proof of continuing status as an OF?
A9. For OF's, any official document showing that he will earn or has earned
income in a foreign country in the year of PERA contribution may be
submitted, such as the following: HEITAD
- Current employment certificate from existing employer;
- Original copy/certified true copy of existing employment contract;
- Valid employment identification card issued by employer abroad;
- Copy of work permit/visa or re-entry permit; or
- Sworn Certification made before a Philippine Consul.
Q10. Will OFs who do not avail or use their TCCs be subject to early
withdrawal penalty in case of pre-termination of their PERA?
A10. OFs who do not avail of their tax credit will not be penalized with the five
percent (5%) early withdrawal penalty. However, the early withdrawal
penalty of twenty percent (20%) will still apply.
Q11. How will an OF who ceases to be an OF in a given year, be classified and

treated for PERA purposes?
A11. A contributor whose OF status ceases in a given year shall be considered an

OF up to the end of the calendar year.
Q12. Are PERA transactions subject to stock transaction tax?
A12. Yes. The tax incentives of PERA transactions does not include exemption
from stock transaction tax which is a percentage tax under Title V of the
National Internal Revenue Code of 1997, as amended.
All concerned revenue officials and employees are hereby enjoined to give
this circular as wide a publicity as possible. aDSIHc

November 28, 2018
SUBJECT : Reiteration of the Mandate to Use the eBIRForms by

Identified Taxpayers and Availability of Additional Filing
and Payment Option through the Services of Tax Software
Providers
TO : All Revenue Officers and Others Concerned
In 2012, the BIR authorized the use of the eBIRForms in the preparation
and filing of tax returns. With the availability of said facility, Revenue Regulations
(RR) No. 6-2014 was issued to mandate identified non-users of the Electronic
Filing and Payment System (eFPS) to use the same. Despite said requirements,
many of those mandated to use the eBIRForms continued to file tax returns
manually. Hence, this Circular reiterates the mandate for identified taxpayers on
the use of eBIRForms to file tax returns. HTcADC
To encourage more taxpayers to maximize the use of eBIRForms, the BIR

is introducing another electronic filing and payment option which they can use.
This, however, shall be done through the use of tax filing and/or payment solutions
developed by Tax Software Providers (TSPs). Therefore, to ensure that the
software being used by these TSPs are compliant with BIR data structure
requirements, BIR now mandates that tax filing and/or payment solutions are
tested and certified.
In order to facilitate the certification of these TSP solutions, "Electronic

Tax Software Provider Certification (eTSPCert) System" can now be accessed by
TSPs in the BIR website (www.bir.gov.ph). The scope, coverage, guidelines and
procedures relative to such is covered by a separate revenue issuance.
Taxpayers, therefore, availing of the services of the TSP who have

complied with the required certifications are considered compliant with the
mandate to use the eBIRForms. CAIHTE
All revenue officials, employees and others concerned are enjoined to give
this Circular as wide a publicity as possible.

November 7, 2018
SUBJECT : Publishing the Daily Minimum Wage Rates in National

Capital Region Pursuant to Wage Order No. NCR-22

Concerned
For the information and guidelines of all internal revenue officers,

employees and others concerned, we are publishing Wage Order No. NCR No. 22
which was issued on October 30, 2018 and published at Philippine Star on
November 5, 2018: aScITE
"Republic of the Philippines

Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
NCR
WAGE ORDER NO. NCR-22
PROVIDING FOR A MINIMUM WAGE INCREASE IN

THE NATIONAL CAPITAL REGION (NCR)
WHEREAS, the Regional Tripartite Wages and Productivity

Board-National Capital Region (RTWPB-NCR) is mandated under R.A. No.
6727 (The Wage Rationalization Act), to periodically assess wage rates
and conduct continuing studies in the determination of the minimum wage
applicable in the region or industry;
WHEREAS, Wage Order No. NCR-21 took effect on October 5,

2017 and under Section 3, Rule IV of the Amended Rules of Procedure on
Minimum Wage Fixing issued by the National Wages and Productivity
Commission (NWPC), the Wage Order may not be disturbed for a period of
twelve (12) months from its effectivity unless there is a supervening
condition, such as extraordinary increase in prices of petroleum products and
basic goods/services, as determined by RTWPB-NCR and confirmed by the
NWPC; DETACa
WHEREAS, the Board as early as February 2018 decided to review
the socio-economic conditions in NCR, inviting resource persons from BIR,
BSP, NEDA, DTI, PSA, DOF, DA, NFA, LTFRB, CHED, DepEd, DSWD,
FNRI and AER (NGO);
WHEREAS, in its Board Meeting last August 14, 2018, the Board
issued Board Resolution No. 02 Series of 2018 whereby it decided to review
existing wage rates, initiate action or inquiry to determine whether a Wage
Order should be issued based on the standards and criteria prescribed under
RA 6727;
WHEREAS, after due notice to all concerned sectors, the

RTWPB-NCR conducted separate consultations with labor and
management, and thereafter a Public Hearing to determine the propriety of
issuing a new wage order;
WHEREAS, in setting the Minimum Wage, the Board has to

consider the various criteria under RA 6727 and the Guidelines of the
National Wages and Productivity Commission (NWPC) particularly on First
(1st) Tier that the Minimum Wage should be higher than the Poverty
Threshold but lower than the prevailing Average Wage; HEITAD
WHEREAS, based upon the inputs from the stakeholders derived

from the consultations and public hearing, the RTWPB-NCR has determined
the need to increase the prevailing minimum wage rates without impairing
the viability of business and industry; CAIHTE
WHEREAS, the increase is consistent with the government's policy

of achieving higher levels of productivity to promote economic growth,
generate employment and to augment the income of workers.
THEREFORE, by virtue of the power and authority vested under

Republic Act No. 6727, the RTWPB-NCR hereby issues this Wage Order.
Section 1. NEW MINIMUM WAGE RATES. — Upon

effectivity of this Wage Order, the new daily minimum wage rates of
covered workers in the private sector in the National Capital Region shall be
as follows:
Basic Wage/ Basic Wage New Minimum

Sector/Industry
Integration of COLA Increase Wage Rates
Non-Agriculture P512.00 P25.00 P537.00
Agriculture (Plantation and P475.00 P25.00 P500.00
Non-Plantation)
Retail/Service Establishments
employing 15 workers or less
Manufacturing Establishments
regularly employing less than
10 workers
Section 2. COVERAGE. — The wage rates per day prescribed in

this Order shall apply to all minimum wage earners in the private sector in
the region, regardless of their position, designation or status of employment
and irrespective of the method by which they are paid. aDSIHc
This Wage Order shall not cover kasambahay/domestic workers;

persons in the personal service of another and workers of duly registered
Barangay Micro Business Enterprises (BMBEs) with Certificates of
Authority pursuant to Republic Act No. 10644.
Section 3. BASIS OF MINIMUM WAGE RATES. — The

minimum wage rates prescribed under this Order shall be for the normal
working hours which shall not exceed eight (8) hours of work a day.
Section 4. APPLICATION TO CONTRACTORS. — In the

case of contracting out of projects and for security, janitorial and similar
services, the wage rates prescribed in this Order shall be borne by the
principals or clients of the service contractors and the contract shall be
deemed amended accordingly. ATICcS
In the event, however, that the principals or clients fail to pay the
prescribed wage rates, the service contractor shall be jointly and severally
liable with his respective principal or client.
Section 5. APPLICATION TO PRIVATE EDUCATIONAL

INSTITUTIONS. — In the case of private educational institutions, the
share of covered workers and employees in the increase in tuition fees for
School Year 2018-2019 shall be considered as compliance with the wage
rates prescribed herein. However, payment of any shortfall in the wage
increase set forth herein shall be covered starting School Year 2019-2020.
Private educational institutions which have not increased their tuition

fees for School Year 2018-2019 may defer compliance with the wage rates
prescribed herein until the beginning of School Year 2019-2020.
In any case, all private educational institutions shall implement the

wage rates prescribed herein starting School Year 2019-2020.
Section 6. WORKERS PAID BY RESULT. — All workers paid

by result, including those who are paid on piecework, "takay," "pakyaw" or
task basis, shall be entitled to receive the prescribed wage rates per eight (8)
hours work a day, or a proportion thereof for working less than eight (8)
hours.
Section 7. WAGES OF SPECIAL GROUPS OF WORKERS.

— Wages of apprentices and learners shall in no case be less than
seventy-five percent (75%) of the applicable minimum wage rates prescribed
in this Order.
All recognized learnership and apprenticeship agreements entered

into before the effectivity of this Order shall be considered automatically
modified insofar as their wage clauses are concerned to reflect the new
minimum wage rates. ETHIDa
All qualified handicapped workers shall receive the full amount of

the minimum wage rate prescribed herein pursuant to Republic Act No.
7277, otherwise known as the Magna Carta for Disabled Persons.
Section 8. EXEMPTIONS. — Upon application with and as

determined by the Board, based on documentation and other requirements in
accordance with applicable rules and regulations issued by NWPC, the
following may be exempted from the applicability of this Order:
1. Distressed Establishments;
2. Retail/Service Establishments Regularly Employing

Not More Than Ten (10) workers; and
3. Establishments Adversely Affected by Calamities

such as Natural and Human-induced disasters.
Section 9. APPEAL TO THE COMMISSION. — Any party

aggrieved by this Wage Order may file an appeal to NWPC, through the
Board, in three (3) printed copies, not later than ten (10) days from the
publication of this Wage Order. TIADCc
Section 10. CREDITABLE WAGE INCREASE. — Any increase

granted by an employer in an establishment within three (3) months prior to
the effectivity of this Order shall be credited as compliance with the
prescribed increase set forth herein.
In case the increases given are less than the prescribed wage rates,
the employer shall pay the difference. Such increases shall not include
anniversary increases, merit wage increases and those resulting from the
regularization or promotion of employees.
Section 11. EFFECTS ON EXISTING WAGE STRUCTURE.

— Where the application of the wage rates prescribed in this Order results in
distortions in the wage structure within the establishment, it shall be
corrected in accordance with the procedure provided for under Article 124 of
Presidential Decree No. 442, as amended, otherwise known as the Labor
Code of the Philippines.
Section 12. COMPLAINTS FOR NON-COMPLIANCE. —

Complaints for non-compliance with this Order shall be filed with the
Regional Office of the Department of Labor and Employment having
jurisdiction over the workplace and shall be subject to the mandatory thirty
(30)-day conciliation and mediation process under Single Entry Approach
(SEnA). However, if settlement fails, the case becomes subject of
enforcement proceedings under Articles 128 and 129 of the Labor Code, as
amended. cSEDTC
Section 13. PRODUCTIVITY AND OTHER PERFORMANCE

INCENTIVE PROGRAMS. — In order to sustain rising levels of wages
and enhance competitiveness, labor and management as partners are
encouraged to adopt productivity improvement schemes that will improve
the quality of life of workers and in turn enable them to produce more and
earn more, such as time and motion studies, good housekeeping, quality
circles, labor and management cooperation as well as implement
gain-sharing and other performance incentive programs.
Section 14. NON-DIMINUTION OF BENEFITS. — Nothing in

this Order shall be construed to reduce any existing wage rates, allowances
and benefits of any form under existing laws, decrees, issuances, executive
orders and/or under any contract or agreement between the workers and
employers.
Section 15. PROHIBITION AGAINST INJUNCTION. — No

preliminary or permanent injunction or temporary restraining order may be
issued by any court, tribunal or other entity against any proceedings before
the Board. AIDSTE
Section 16. FREEDOM TO BARGAIN. — This Order shall not

be construed to prevent workers in particular firms or enterprises or
industries from bargaining for higher wages with their respective employers.
Section 17. REPORTING REQUIREMENT. — Any person,

company, corporation, partnership or any entity engaged in business shall
submit a verified report on their wage structure to the Board not later than
January 31st of each year and every year thereafter in accordance with the
form prescribed by the National Wages and Productivity Commission.
Section 18. PENAL PROVISION. — Any employer who refuses

or fails to comply with this Order shall be subject to the penalties specified
under R.A. No. 6727, as amended under R.A. No. 8188.
Section 19. REPEALING CLAUSE. — All orders, issuances,
rules and regulations or parts thereof inconsistent with the provisions of this
Wage Order are hereby repealed, amended or modified accordingly.
Section 20. SEPARABILITY CLAUSE. — If any provision or

part of this Wage Order is declared unconstitutional, or in conflict with
existing laws, the other provisions or parts thereof shall remain valid.
Section 21. IMPLEMENTING RULES. — The RTWPB-NCR

shall submit to the Commission the necessary Rules and Regulations to
implement this Order subject to approval of the Secretary of Labor and
Employment not later than ten (10) days from the publication of the Wage
Order.
Section 22. ADVISORY ON PRODUCTIVITY BASED PAY. —

Pursuant to the Two-Tiered Wage System, Wage Advisories have been
issued to guide private establishments in the formulation, adoption and
implementation of productivity programs and performance and
productivity-based incentive schemes that an enterprise may provide based
on agreement between workers and management. SDAaTC
Section 23. EFFECTIVITY. — This Wage Order shall take effect

fifteen (15) days after its publication in a newspaper of general circulation.
APPROVED.
Manila, Philippines, October 30, 2018.
Dissenting
(SGD.) ANGELITA D. SENORIN
Labor Representative
(SGD.) VICENTE LEOGARDO, JR.

Employer Representative
With Reservation
(SGD.) GERMAN N. PASCUA, JR.
(SGD.) ALBERTO R. QUIMPO

Employer Representative
(SGD.) REYNALDO R. CANCIO

Vice-Chairperson
(SGD.) ANACLETO C. BLANCO, JR.

Vice-Chairperson
(SGD.) ANA C. DIONE

Board Chairperson"
All concerned are hereby enjoined to be guided accordingly and to give this
Circular as wide a publicity as possible. AaCTcI

November 26, 2018
SUBJECT : Clarifies the Provisions to be Included in Revenue

Memorandum Circular (RMC) No. 50-2018 for the
Implementation of Republic Act (R.A.) No. 10963 or the
TRAIN Law
In the implementation of the subject law, RMC No. 50-2018 was

issued to address the frequently asked questions during the various briefings held
relative to the said law. There were, however, further queries which were often
raised but which were not part of the TRAIN law. Thus, there is a need to go over
those questions/answers from the same RMC since it was issued specifically to
clarify the provisions of the TRAIN Law and its subsequent implementing revenue
regulations.
In view of the foregoing, the implementation of the pertinent provisions

under RMC No. 50-2018 relative to the group health insurance premiums (Q7/A7)
and director's fees (Q34/A34), which were not affected by the provisions of the
TRAIN Law, are hereby deleted from RMC 50-2018. cTDaEH
All internal revenue officials and employees are enjoined to give this
Circular as wide a publicity as possible.

October 19, 2018
SUBJECT : Loss of One (1) Original Copy of Tax Credit Certificate

(TCC) Issued to Philippine National Bank
TO : All Regional Directors, Revenue District Officers,

Employees and Others Concerned
Notice is hereby given of the loss of one (1) original copy of Tax Credit
Certificate (TCC) to wit: aDSIHc
Serial Number Date of Issue Amount
200800000633 December 18, 2017 Php1,740,737.40
The abovementioned TCC was reported as lost by Mr. Jose Marie Erwin H.
Duran, Asset Management Operations Division Head of PHILIPPINE
NATIONAL BANK. Consequently, the entire set bearing the said TCC No. is
hereby cancelled. All official transactions involving the use of the said form
effective September 14, 2018 is therefore considered as INVALID.

promptly notify this Office in the event that the aforesaid TCC is found and to
undertake the necessary measures or actions in order to prevent the improper or
fraudulent disposition or use of the same. ATICcS

(3)
October 16, 2018

September 2018

2018-10-02, 2018-10-03, 2018-10-04, and 2018-10-06, for the month of
September circularizing the weekly Price of Sugar at Millsite issued by the Sugar
Regulatory Administration (SRA) pursuant to Revenue Regulations (RR) No.
13-2015. CDHaET

to give this Circular as wide a publicity as possible. ISCDEA

ANNEX A
October 31, 2018
SUBJECT : Availability of Offline Electronic Bureau of Internal

Revenue Forms (eBIRForms) Package Version 7.2

Concerned
The Offline eBIRForms Package Version 7.2 is now available and

downloadable from the following sites: cCHITA
1. www.bir.gov.ph; and
2. www.knowyourtaxes.ph
The new Offline eBIRForms package includes the revised BIR Forms, to
wit:
BIR Form No. Form Name

1601C Monthly Remittance Return of Income Taxes
Withheld on Compensation
1602Q Quarterly Remittance Return of Final Taxes
Withheld on Interest Paid on Deposits and
Deposits Substitutes/Trusts/Etc.
1603Q Quarterly Remittance Return of Final Income
Taxes Withheld on Fringe Benefits Paid to
Employees Other Than Rank and File
2551 Q Quarterly Percentage Tax Return
To use the eBIRForms package, taxpayers shall follow these steps:
1. DOWNLOAD, INSTALL and RUN eBIRForms Package

Version 7.2;
2. Create a Profile by providing a valid Taxpayer Identification

Number (TIN), RDO Code, line of business, registered name,
registered address, ZIP Code, telephone number and an active
email address; DETACa
3. Choose from the List of BIR Forms then click FILL UP.
Re-enter TIN and email address to confirm that the provided
information are correct;
4. Accomplish the selected tax return then click VALIDATE

button. If there are changes to make, click EDIT button. Make
sure to click VALIDATE button after every change made;
5. Click SUBMIT/FINAL COPY button then taxpayer shall be

required to fully and unconditionally agree to the Terms of
Service Agreement (TOSA) by clicking AGREE. Taxpayers
will then receive a system-generated confirmation email to the
email address provided.
Remittance of the taxes due, if any, shall be made thru:
a. Manual Payment/Remittance —
• Over-the-counter of the AAB located within the

territorial jurisdiction of the RDO where the taxpayer is
registered.
• In places where there are no AABs, the return shall be

filed and the tax due shall be paid/remitted with the
concerned RCO, thru the MRCOS facility, under the
jurisdiction of the RDO.
b. Online Payment/Remittance —
• Thru GCash Mobile Payment
• LBP Linkbiz Portal, for taxpayers who have ATM

account with LBP and/or holders of Bancnet ATM/Debit
Card
• DBP Tax Online, for holders of VISA/Master Credit

Card and/or Bancnet ATM/Debit Card cDEHIC
All concerned are hereby enjoined to give this Circular as wide a publicity
as possible.

October 31, 2018
SUBJECT : Clarification on the Filing of Tax Returns of Accredited

Microfinance Non-Government Organizations
TO : All Accredited Microfinance Non-Government
Organizations, Internal Revenue Officials, Employees and
Others Concerned
This Circular is being issued to clarify the forms to be used by the duly
registered and accredited Microfinance Non-Government Organizations
(MF-NGOs) in filing and payment of the two percent (2%) tax, based on its gross
receipts from microfinance operations in lieu of all national taxes. cDCEIA
A. Accredited MF-NGOs, whose operation is purely microfinance that

refers only to the lending activities and insurance commission which are bundled
and forming an integral part of the qualified lending activities of the MF-NGOs,
shall declare the 2% tax on its gross receipts from microfinance operations using
the following:
Source of Income Type of Tax Tax Rate Forms Frequency

Purely microfinance operations Income Tax 2% 1702Q Quarterly
1702MX Annually
Business Tax Not applicable. The 2% tax on its
gross receipts from microfinance
operations is in lieu of all national
taxes.
B. Accredited MF-NGOs with income from non-microfinance activities

shall file the following: ISHaCD
Source of Income Type of Tax Tax Rate Taxable Base Forms Frequency
Purely microfinance Income Tax 2% Gross Receipts 1702Q Quarterly
operations 1702MX Annually
All non-microfinance Income Tax 30% Taxable income 1702Q Quarterly
activities or all other or 1702MX Annually
income not generated
2% MCIT Gross Income
from microfinance
whichever
operations
is higher
Business Tax
• Non-VAT
registered
- Percentage 3% Gross sales or 2551Q Quarterly
Tax receipts
• VAT-registered
- VAT 12% Gross sales or 2550M/ Monthly/
receipts 2550Q Quarterly
Accredited MF-NGOs with income from purely microfinance

operations shall use the Alphanumeric Tax Code (ATC)-IC210 in manual
filing of income tax returns. In case the accredited MF-NGOs is enrolled in
Electronic Filing and Payment System (eFPS) or using eBIRForms facility
in filing the required income tax returns, the ATC-IC011 shall be used
pending enhancement of the income tax return forms in the
eBIRForms/eFPS. DHESca
Moreover, accredited MF-NGOs shall register/update the applicable

tax/form types above, or cancel, if applicable, the previously registered
percentage tax type using BIR Form No. 1905 to the Revenue District Office
where they are registered.
Previously Filed Tax Return
Accredited MF-NGOs who filed and paid the 2% preferential tax rate
using BIR Form Nos. 2551M/2551Q for the first (1st) to third (3rd) quarters
of 2018, shall file its quarterly income tax return (BIR Form No. 1702Q) for
the 3rd quarter of 2018 by declaring the cumulative gross receipts for the 1st
to 3rd quarters of 2018. Such gross receipts shall be reflected under the
"Special Rate" column and compute the total 2% tax due thereon. The
amount paid using BIR Form Nos. 2551M/2551Q for the 1st to 3rd quarters
of 2018 shall be reflected under tax credits/payments in item no. 31G
(Others, please specify) field of BIR Form No. 1702Q.
Accordingly, accredited MF-NGOs with income from

non-microfinance activities shall declare the cumulative gross receipts from
such activities for the 1st to 3rd quarters of 2018 in the "Regular Rate"
column of BIR Form No. 1702Q and compute the applicable tax due
thereon. cDTACE
This Circular clarifies Section IV of RMO No. 2-2018 relative to

Revenue Regulations No. 3-2017 pertaining to the form/s to be used in filing
of the 2% preferential tax rate.
All internal revenue officers and employees are hereby enjoined to give this
Circular a wide publicity as possible. TEHIaD

(4)
October 25, 2018
SUBJECT : TIN Issuance to Clients of Microfinance Non-Government

Organizations (MF-NGOs) Pursuant to RMO No. 2-2018
TO : Microfinance NGO-Regulatory Council, Accredited

Microfinance Non-Government Organizations, Internal
Revenue Officials, Employees and Others Concerned
This Circular is being issued to address the issues being encountered by the
Microfinance Non-Government Organizations (MF-NGOs) accredited by the
Microfinance NGO-Regulatory Council (MNRC) in facilitating the TIN
applications of their clients pursuant to Section III (7) of Revenue Memorandum
Order (RMO) No. 2-2018. TAIaHE
In order to expedite the TIN issuance for the clients of the MF-NGOs,
MF-NGOs may facilitate the TIN issuance on behalf of their clients by using the
BIR eRegistration (eREG) System as Third Party Users pursuant to RMO No.
26-2009. The following policies, guidelines and procedures with regard to the
use of the eREG System shall be observed by the MF-NGOs.
A. Policies and Guidelines
1. Only MF-NGOs accredited by MNRC shall be granted eREG System

access. The MNRC shall provide the BIR with the complete list of accredited and
revoked accreditation of MF-NGOs, whenever there is a newly accredited
MF-NGO and/or revoked accreditation of MF-NGOs. Such list shall be submitted
to the Office of the Commissioner, Bureau of Internal Revenue, on the 5th day of
the month following the date of accreditation/revocation of such accreditation.
2. Interested MF-NGOs are required to submit their application for
system access by submitting the following requirements to the Client Support
Service, Attention: Chief, Taxpayer Service Programs and Monitoring Division for
proper evaluation and processing: ICHDca
a) Accomplished BIR Form No. 0044 (Annex "A");
b) Notarized Sworn Declaration (Annex "B") Letter of Intent

(LOI) duly signed by the President/Head of Office;
c) Photocopy of Certificate of Accreditation issued by MNRC;
d) Non-Disclosure Agreement (Annex "C").
3. Only one user per MF-NGOs shall be authorized in accessing the

eREG System. MF-NGO user that is duly approved and authorized to access the
eRegistration System shall be given its valid username and password via email
notification. cDHAES
4. In case the authorized user has been separated from employment or

has changed work assignments, MF-NGOs shall request for
cancellation/revocation of his/her account within ten (10) calendar days from the
date of separation from service of such authorized user and enroll a new user.
5. The eREG System access of the MF-NGOs shall be automatically

revoked by the BIR upon revocation or expiration of its accreditation issued by the
MNRC, whichever comes earlier. In case of expired eREG System access,
MF-NGOs may apply for the renewal of its eREG System access, provided that its
accreditation is still valid or has been renewed.
6. MF-NGOs shall ensure that their clients do not have existing TIN
before they apply for TIN.
7. To be issued a TIN, MF-NGOs shall require their clients to provide

the following basic information:
a. Taxpayer's Name;
b. Birth date;
c. Sex;
d. Civil Status;
e. Complete Residence Address;
f. Contact Person;
g. Contact Number;
h. If Married, Spouse's Name and Spouse's TIN (if applicable

only);
i. For married female, Maiden Name.
8. MF-NGOs shall require presentation of any valid government issued

ID or birth certificate or Community Tax Certificate from their clients indicating
the correct date of birth. All declarations of the applicant in their application shall
be confirmed by the MF-NGOs and duly supported, particularly their complete
names and birth dates. TCAScE
9. Clients with similar record in the BIR database and/or without Middle
Name cannot be issued a TIN thru the eREG System. However, they may be
issued a TIN manually by proceeding to the concerned Revenue District Office
(RDO) under Section B (4) of this Circular.
10. MF-NGOs shall require their clients who are engaged in business and
were granted a loan amounting to Fifty Thousand Pesos (P50,0000) and above to
proceed to the concerned RDO having jurisdiction over the client's place of
business address for business registration.
11. MF-NGOs shall be responsible for the correctness of all the

information being provided in the eREG System. Any act or omission violating
any provisions of this Order or the NIRC, as amended, shall be subject to penalty
imposed pursuant to related existing revenue issuances. ASEcHI
B. Procedures
1. MF-NGOs shall apply for eREG system access by submitting the

complete documentary requirements enumerated in Section A (2) hereof to the
Client Support Service, Attention: The Chief, Taxpayer Service Programs and
Monitoring Division (TSPMD).
TSPMD shall endorse the approved request to The Chief, Security

Management Division (SMD). SMD shall give MF-NGOs Third Party User
Access with permission of "TIN Issuance for E.O. 98" and password management.
SMD shall notify authorized MF-NGOs via email of the status of system access
request, copy furnished the TSPMD.
2. MF-NGOs that are duly approved and are authorized to access the
eREG system shall be given its valid username and password via email
notification.
3. Upon receipt of username and password, authorized MF-NGOs user
shall access the BIR official website (http://www.bir.gov.ph), click on eREG icon,
and click on Authorized User Login found on the left portion of eRegistration
Homepage.
4. After a successful login, the authorized MF-NGOs user shall

accomplish the online registration. User shall enter the Basic Taxpayer
Information of the applicant. The eREG system shall then validate the supplied
information in the BIR database to ensure that client has no existing TIN.
5. Once the appropriate BIR Form is accomplished, the system shall

generate and display the TIN including the RDO Code based on the registered
address indicated in the on-line application. MF-NGOs user shall take note of the
generated TIN of its clients or may download the BIR Form containing
information of its clients. cTDaEH
6. In case the applicant has an existing TIN or may have similar record in
the BIR database or does not have middle name, the system shall automatically
prompt the user stating that the taxpayer may have already registered with the BIR.
The client-applicant or the MF-NGOs, given the proper authorization, shall
proceed to the concerned RDO to secure TIN by submitting the following:
a. Notarized Sworn Declaration (revised matrix — Annex "D")

of group list per RDO having jurisdiction over the residence
address of the clients, in lieu of BIR Form No. 1904; and
b. Complete documentary requirements of its clients pursuant to

Annex A5.1 of Revenue Memorandum Circular (RMC) No.
137-2016: ITAaHc
b.1 Any identification issued by an authorized government

body (e.g., Birth Certificate, passport, driver's license,
Community Tax Certificate) that shows the name,
address and birthdate of the applicant;
6.1 The MF-NGOs shall submit, upon request of the RDO, the soft
copy of "List of Clients for Issuance of TIN" per Revenue
District Office having jurisdiction over the residence address of
the client. This will be used by the RDO to reflect the generated
TIN by filling-out the TIN column.
6.2 The concerned RDO shall receive and process the manual TIN
issuance of the clients of duly registered and accredited
MF-NGOs having jurisdiction over the residence address of the
client.
This RMC supplements Section IV of RMO No. 2-2018 with respect to the
matrix to be used by MF-NGOs in securing TINs through the RDOs in behalf of
their clients, in case of the above scenario.
Circular a wide publicity as possible. cSaATC

ANNEX A
BIR Form No. 0044

Request for System Access and Revocation of Access
ANNEX B
Sworn Statement
(Application for Bureau of Internal Revenue's eREG System Access)
ANNEX C
Non-Disclosure Agreement
This confidentiality agreement is entered into on ___________, by and

between the Bureau of Internal Revenue and _______________________ with
principal office at ____________________ herein represented by
____________________ which together with its subsidiaries and affiliates, shall
individually and collectively be referred to hereinafter as the "Recipient."
The Bureau of Internal Revenue and _____________ hereby agree as follows:
1. Recipient acknowledges that all related documentations, including

but not limited to descriptions of and other information regarding the
____________ or any of its components, technical and non-technical
materials, all or any or which may be derived from any of the
foregoing (all of which, individually and collectively, shall be
referred to as "Proprietary Information") are confidential and
proprietary to the Bureau of Internal Revenue. Matters, however,
covered by Section 270 of the National Internal Revenue Code
(NIRC), as amended, as well as sensitive personal information under
Republic Act (RA) No. 10173, or the Data Privacy Act of 2012,
shall not be processed unless the processing thereof falls under the
excepting provisions of said laws.
2. The Bureau of Internal Revenue and Recipient wish to discuss

mutually beneficial business arrangements and relationships which in
some way concern or are related to the _____________. Recipient
agrees not to use Proprietary Information for its own use or for any
other purpose except to evaluate whether it desires to enter into a
business relationship with the Bureau of Internal Revenue or as
necessary to carry on such a relationship.
3. Recipient agrees to hold the Proprietary Information in strict

confidence. Recipient agrees not to reproduce, transcribe, or disclose
the Proprietary Information to persons or entities outside of
(Company Name), its subsidiaries and affiliates without prior
written approval of the Bureau of Internal Revenue. Recipient also
agrees not to make, have made, use, distribute or sell for its own
purpose or for any purpose other than on behalf of the Bureau of
Internal Revenue, any product incorporating Proprietary Information.
4. The obligations imposed by this Agreement shall not apply to any

information that: (i) is rightfully received from a third party without
any accompanying use of disclosure restrictions, and can be
documented as such, (ii) is independently developed without access
to Proprietary Information, (iii) is or becomes publicly available
through no wrongful act of the Recipient, or (iv) is already known to
Recipient as evidenced by the third-party documentation bearing a
date prior to the date of Proprietary Information disclosure.
5. All Proprietary Information in whatever form shall be and remain the

property of BIR. All such Proprietary Information shall be returned
by the Recipient to the BIR or its affiliates promptly upon written
request, even during the course of discussion regarding the
_______________ between the parties, and shall not be retained in
any form by the Recipient. Provided that, the Recipient upon prior
written approval of the Bureau of Internal Revenue, shall be entitled
to keep such written and electronic copies of the Proprietary
Information for legal, regulatory or compliance purposes or in
accordance with Recipient's internal policies.
6. The Recipient shall return the Proprietary Information that is in

tangible form immediately upon the request of the BIR or its
affiliates. Portions of the Proprietary Information, which consists of
but not limited to analyses, compilations, studies or other documents
or records prepared by the Recipient, its affiliates or their
representatives shall be destroyed immediately by the Recipient upon
request by BIR.
7. This Agreement shall be governed by, construed and enforced in

accordance with the laws of the Republic of the Philippines.
8. The parties agree that, in the event of a breach or threatened breach

of the terms of this Non-Disclosure Agreement, the BIR shall have
valid cause to immediately terminate the Agreement and shall be
entitled to an injunction to restrain the Recipient from further breach
of the Agreement, in addition to any other legal or equitable relief
including the award of monetary damages properly determined by
the proper court of law. The parties acknowledge that Proprietary
Information may be valuable and unique and that disclosure may
result in grave and irreparable injury to BIR.
9. This Agreement and the disclosure and receipt of Proprietary

Information do not create or imply (i) any agreement with respect to
the sale, purchase or pricing of any product or service; or (ii) any
right conferred, by license or otherwise, in any Proprietary
Information or in any patent, trademark, service mark, copyright or
other intellectual property.
10. This Agreement shall survive the termination or expiration of the

aforementioned project/engagement.
___________________________________ ___________________________________
SIGNATURE OVER PRINTED NAME SIGNATURE OVER PRINTED NAME
ANNEX D
Sworn Declaration on List of Clients for Issuance of TIN per RDO
October 19, 2018
SUBJECT : Lost One (1) Pad of Unused BIR Form No. 19.14 —
Apprehension Receipt

Concerned
Notice is hereby given of the loss of one (1) pad of unused BIR Form No.
19.14 — Apprehension Receipt, bearing the following serial numbers: AcICHD
066001-066050
The abovementioned forms were reported as lost by Mr. Rodney S.

Cabrera, formerly assigned as Collection Agent, Revenue District Office No. 114,
Revenue Region No. 19, Davao City and have consequently been cancelled. All
official transactions involving the use of said forms are therefore considered as
INVALID.

use of the same. caITAC

Deputy Commissioner
October 16, 2018
SUBJECT : Lost Four (4) Sets of Unused BIR Form No. 0535 —

Concerned
Notice is hereby given of the loss of four (4) sets of unused BIR Form No.
0535 — Taxpayer Information Sheet, bearing the following serial numbers: cAaDHT
TIS200900087601
TIS200900087605
TIS200900087606
TIS200900087624
The abovementioned forms were reported as lost by Mr. Jaime F.

Fernandez, Revenue Officer IV — Assessment, Revenue District Office No. 24,
Revenue Region No. 5, Caloocan City and have consequently been cancelled. All
official transactions involving the use of said forms are therefore considered as
INVALID.

use of the same. IDSEAH

Deputy Commissioner
(5)
October 16, 2018
SUBJECT : Circularizing the Availability of the Revised BIR Form No.
2000 (Monthly Documentary Stamp Tax
Declaration/Return) January 2018 (ENCS)
TO : All Internal Revenue Officers, Employees, and Others

Concerned
This Circular is issued to prescribe the revised BIR Form No. 2000
(Monthly Documentary Stamp Tax Declaration/Return) January 2018 (ENCS),
hereto attached as Annex "A" which was revised due to the implementation of the
Tax Reform for Acceleration and Inclusion (TRAIN) Law. HTcADC
The revised manual return is already available under the BIR

Forms-Documentary Stamp Tax Return section of the BIR website
(www.bir.gov.ph). However, it is not yet available in the Electronic Filing and
Payment System (eFPS) and Electronic Bureau of Internal Revenue Forms
(eBIRForms); thus, eFPS/eBIRForms filers shall continue to use the existing BIR
Form No. 2000 in eFPS and in Offline eBIRForms Package v7.1 in filing the
Monthly Documentary Stamp Tax Declaration/Return. Once the form is available
in eFPS or already included in the new Offline eBIRForms Package, a revenue
issuance shall be released to announce the availability of the revised return.
Manual filers shall download the PDF version of the form, print the form
and fill out the applicable fields. Payment of the tax due thereon for manual and
eBIRForms filers, if any, shall be made thru:
a.) Manual Payment —
• Authorized Agent Bank (AAB) located within the

territorial jurisdiction of the Revenue District Office
(RDO) where the taxpayer is registered.
• In places where there are no AABs, the return shall be

filed and the tax due shall be paid with the concerned
Revenue Collection Officer (RCO), thru MRCOS
facility, under the jurisdiction of the RDO.
b.) Online Payment —
• Thru GCash Mobile Payment.
• Landbank of the Philippines (LBP) Linkbiz Portal, for

taxpayers who have ATM account with LBP and/or
holders of Bancnet ATM/Debit Card.
• DBP Tax Online, for holders of VISA/Master Credit
Card and/or Bancnet ATM/Debit Card. CAIHTE
as possible.

ANNEX A
BIR Form No. 2000

Monthly Documentary Stamp Tax Declaration/Return
(6)
July 11, 2018
SUBJECT : Publishing the Full Text of Republic Act No. 10925 *(7)
which was Approved on April 21, 2017, Entitled "An Act
Renewing for Another Twenty-Five (25) Years the
Franchise Granted to Republic Broadcasting System, Inc.,
Presently Known as GMA Network, Inc., Amending for the
Purpose Republic Act No. 7252, Entitled "An Act Granting
the Republic Broadcasting System, Inc. a Franchise to
Construct, Install, Operate and Maintain Radio and
Television Broadcasting Stations in the Philippines"

Concerned
For the information and guidance of all internal revenue officials,
employees and others concerned, attached as Annex "A" hereof is the certified
copy of Republic Act No. 10925 *(8) which was approved on April 21, 2017,
entitled "AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS
THE FRANCHISE GRANTED TO REPUBLIC BROADCASTING SYSTEM,
INC., PRESENTLY KNOWN AS GMA NETWORK, INC., AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7252, ENTITLED "AN ACT GRANTING
THE REPUBLIC BROADCASTING SYSTEM, INC. A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES." aScITE
All internal revenue officials and employees are hereby enjoined to give
this Circular a wide publicity as possible.

ANNEX A
Republic Act No. 10925 dated April 21, 2017
September 26, 2018
SUBJECT : Circularizing the Lists of Withholding Agents Required to

Deduct and Remit the 1% or 2% Creditable Withholding
Tax for the Purchase of Goods and Services under Revenue
Regulations No. 11-2018
TO : All Revenue Officials, Employees and Others Concerned
Pursuant to the provisions of Revenue Regulations (RR) No. 11-2018,

as implemented by Revenue Memorandum Order (RMO) No. 26-2018 this
Circular is hereby issued to circularize the withholding agents under the
jurisdictions of the Large Taxpayers Service and Revenue Regions who are
required to deduct either the one percent (1%) or two percent (2%) creditable
withholding tax from their suppliers of goods and services. Pursuant to the said
revenue issuances, the list of withholding agents is further classified into (1) List
of existing withholding agents (2) List of additional withholding agents (3) List of
withholding agents for deletion from existing list. Please visit the BIR's website at
www.bir.gov.ph where the lists are posted and provided with search facility for the
convenience of all concerned. HDICSa
Accordingly, the obligation to deduct and remit to this Bureau the one
percent (1%) and two percent (2%) creditable withholding tax from the suppliers
of goods and services shall continue, commence or cease, as the case may be,
effective November 1, 2018. All lists of withholding agents issued pursuant to RR
No. 11-2018 that may have been previously published in any newspaper or any
other form of publication are hereby repealed and superseded. Moreover, should
any taxpayer be not found in any of the published lists, this taxpayer is deemed
excluded and therefore not required to deduct and remit the 1% or 2% creditable
withholding tax under RR No. 11-2018.
All revenue officers and employees are hereby enjoined to give this
Circular as wide a publicity as possible. HcDSaT

September 5, 2018
SUBJECT : Clarification on Certain Issues Relative to the Issuance of

Electronic Certificate Authorizing Registration (eCAR) for
Transferring Real Properties with the Land Registration
Authority

Concerned
This Circular is hereby issued to address the problems being encountered

by taxpayers who have multiple transactions involving only one (1) Title in
transferring their real properties with the Land Registration Authority. aDSIHc
Q-1: How many eCARs will be issued if taxpayer submitted an Extra-Judicial

Settlement with Sale, or Extra-Judicial Settlement with Waiver of Rights?
A-1: There are two (2) transactions involved, one (1) for settlement of the estate
and another one (1) for transfer thru sale or donation, thus two (2) eCARs
will be issued.
The Revenue Officer assigned in the One-Time Transaction (ONETT) Team

must advise the taxpayer to present the two (2) eCARs simultaneously to
the Registry of Deeds (RD), since presentation of only one (1) eCAR to
RD will invalidate the second eCAR transaction in the system resulting to
the issuance of Notice of Invalid eCAR by the RD.
Q-2: How many eCARs will be issued if the documents submitted by the taxpayer
are two (2) separate documents, such as Extra-Judicial Settlement and
Deed of Absolute Sale or Deed of Donation?
A-2: Two (2) eCARs must be issued. The Revenue Officer assigned in the
ONETT Team shall first issue an eCAR for the estate settlement to be
presented by the taxpayer to the RD for the issuance of a new Title.
The new Title number that will be issued for the first transaction on the
settlement of estate shall be the basis for the issuance of the eCAR for the
2nd transaction, be it sale or donation.
The taxpayer may opt to pay for the applicable taxes for both transactions at
the same time to avoid incurring penalties and interest.
enjoined to give this circular as wide publicity as possible. ATICcS
(9)
September 10, 2018

July 2018

2018-08-05, 2018-08-06, 2018-08-07, and 2018-08-08, for the month of July
circularizing the weekly Price of Sugar at Millsite issued by the Sugar Regulatory
HEITAD

to give this Circular as wide a publicity as possible.

ANNEX A
(10)
October 1, 2018
SUBJECT : Circularizing the Letter Issued by the Microfinance NGOs

Regulatory Council in Relation to the Implementation of
Revenue Regulations (RR) No. 3-2017 Implementing the
tax Provisions of Republic Act (RA) No. 10693, otherwise
known as the "Microfinance NGOs Act"
TO : All Internal Revenue Officers, Employees, and Others

Concerned

employees and others concerned, we are publishing herein the attached Letter
from the Microfinance NGO Regulatory Council Secretariat dated August 13,
2018 issued by Atty. Miracle Anne D. Rodriguez, Acting Secretary of the
MICROFINANCE NGO Regulatory Council including the Updated List of
MICROFINANCE NGOs accredited by the Microfinance NGO Regulatory
Council as of July 11, 2018. aScITE
as possible.

ATTACHMENT
Microfinance NGOs Regulatory Council Secretariat
September 12, 2018
COMMISSIONER CAESAR R. DULAY

BUREAU OF INTERNAL REVENUE
Room 511, BIR National Office Building
BIR Road, Diliman, Quezon City
1101 Metro Manila
RE: UPDATED LIST OF ACCREDITED MICROFINANCE NGOs
Dear Commissioner Dulay :
We write in relation to our letter dated 13 August 2018 on the list of Microfinance
NGOs accredited by the Council, in relation to Republic Act No. 10693, otherwise known
as the "Microfinance NGOs Act." Upon re-checking, we note that No. 17 therein, i.e.,
Lead with Integrity and Good Governance in helping Communities for Holistic
Transformation (LIGHT) Microfinance, Inc., has not yet been issued a Certificate of
Accreditation by the Council, hence should not have been included in the list. DETACa
In line with the abovementioned, attached herewith as Annex A is an updated list

of Accredited Microfinance NGOs, for your information/reference.
Thank you.
Sincerely,
(SGD.) ATTY. MIRACLE ANNE D.

RODRIGUEZ
Acting Secretary
ANNEX A
Accredited MF-NGOs
Company Name Date of Certificate
of Accreditation
1 AHON SA HIRAP, INC. (A MICROFINANCE NGO) 11 July 2018
2 ALALAY SA KAUNLARAN MICROFINANCE SOCIAL 28 March 2018
DEVELOPMENT, INC.
3 ARDCI MICROFINANCE, INCORPORATED 28 March 2018
4 ASA PHILIPPINES FOUNDATION, INC. (A MICROFINANCE NGO) 28 March 2018
5 BAYAN ENTERPRISE DEVELOPERS, GROWERS AND 28 March 2018
EVOLVERS-MICROFINANCE AND BUSINESS SERVICES, INC.
6 CENTER FOR AGRICULTURE AND RURAL DEVELOPMENT 28 March 2018
(CARD), INC. (A MICROFINANCE NGO)
7 COMMUNITY ECONOMIC VENTURES, (A MICROFINANCE NGO) 28 March 2018
INC. [Formerly: COMMUNITY ECONOMIC VENTURES, INC.]
8 CORDILLERA COMMUNITY MICROFINANCE, INC. 11 July 2018
9 ECLOF PHILIPPINES MICROFINANCE, INC. 28 March 2018
10 JMH MICROFINANCE, INC. 3 May 2018
11 KABALIKAT PARA SA MAUNLAD NA BUHAY, INC. (A 28 March 2018
MICROFINANCE NGO) [Formerly: KABALIKAT PARA SA
MAUNLAD NA BUHAY, INC. (KMBI)]
12 KASANYANGAN CENTER FOR COMMUNITY DEVELOPMENT 28 March 2018
AND MICROFINANCE FOUNDATION, INC.
13 KATUWANG RESOURCE CENTER, INC. 11 July 2018
14 KAZAMA GRAMEEN MICROFINANCE, INC. 28 March 2018
15 KPS-SMALL ENTERPRISE AND ECONOMIC DEVELOPMENT, 28 March 2018
MICROFINANCE, INC.
16 LIFEBANK MICROFINANCE FOUNDATION, INC. DOING 28 March 2018
BUSINESS UNDER THE NAME/S AND STYLE/S OF LIFEBANK
FOUNDATION [Formerly: LIFEBANK FOUNDATION, INC.]
17 NEGROS WOMEN FOR TOMORROW FOUNDATION, INC. (a 28 March 2018
Microfinance NGO)
18 PAGASA NG MASANG PINOY MICROFINANCE, INC. 28 March 2018
19 PEOPLE'S ALTERNATIVE LIVELIHOOD MICROFINANCE 28 March 2018
FOUNDATION OF SORSOGON (PALMFS), INC.
20 RAFI MICRO-FINANCE, INC. 28 March 2018
21 RANGTAY SA PAGRANG-AY MICROFINANCE, INC. 28 March 2018
22 SAKLAW FOUNDATION, INC. (A MICROFINANCE NGO) 28 March 2018
23 SEDP-SIMBAG SA PAG-ASENSO, INC. (A MICROFINANCE NGO) 28 March 2018
DOING BUSINESS UNDER THE NAME AND STYLE OF
SEDP-SIMBAG
24 SERVIAMUS FOUNDATION, INCORPORATED DOING BUSINESS 28 March 2018
UNDER THE NAME AND STYLE OF SERVIAMUS MICROFINANCE
25 SPES PAUPERUM FOUNDATION (SPFI) MICROFINANCE NGO, 28 March 2018
INC.
26 ST. ELIZABETH COMMUNITY DEVELOPMENT PROGRAM 28 March 2018
(SECDEP) INC. (A MICROFINANCE NGO)
27 SURIGAO ECONOMIC DEVELOPMENT AND MICROFINANCE, 28 March 2018
INC.
28 TALETE KING PANYULUNG KAPAMPANGAN (A MICROFINANCE 28 March 2018
NGO), INC. [Formerly: TALETE KING PANYULUNG
KAPAMPANGAN FOUNDATION (TPKI FOUNDATION), INC.
29 TANGLAW NG BUHAY MICROFINANCE FOUNDATION, INC. 5 April 2018
30 TAYTAY SA KAUSAWAGAN (A MICROFINANCE NGO), INC. 28 March 2018
31 TULAY SA PAG-UNLAD, INC. (A MICROFINANCE NGO) [Formerly: 28 March 2018
TULAY SA PAG-UNLAD, INC.]
32 URBAN PROGRAM FOR LIVELIHOOD FINANCE & TRAINING 28 March 2018
(UPLIFT) PHILIPPINES MICROFINANCE, INC.
(11)
September 27, 2018
SUBJECT : Supplemental to the People's Freedom of Information

(FOI) Manual
This Circular is being issued to supplement the People's FOI Manual of the
Bureau to ensure its full compliance with Executive Order (EO) No. 2, s. 2016
(Operationalizing in the Executive Branch the People's Constitutional Right to
Information and the State Policies of Full Public Disclosure and Transparency in
the Public Service and Providing Guidelines Therefor). HTcADC
In compliance with the observations and recommendations of the

Presidential Communications Operations Office (PCOO), we are publishing
herewith, for the information of the public, the Bureau's Freedom of Information
(FOI) Receiving Offices and their respective FOI Receiving Officers (Annex "A").
Likewise attached hereto are the Bureau's FOI request process flowchart
(Annex "B") and the FOI List of Exceptions (Annex "C").
This Circular shall take effect immediately.

ANNEX A
FOI Receiving Officers of AGENCY and local offices

Location of FOI Assigned FOI
Name of office Contact Details
Receiving Office Receiving Officer
NATIONAL OFFICE
Public Information Rm. 101, G/F, BIR
926-3866/9243345 Maria Lourdes D.
& Education National Office Building,
ma.lourdes.narvaez@bir.gov.ph Narvaez
Division BIR Road, Diliman,
pilar.vicerra@bir.gov.ph Pilar M. Vicerra
Quezon City
Accounts Rm. 909, 9/F, BIR
Receivables National Office Building,
981-72-97 Ma. Vilma T. Laurel
Monitoring Division BIR Road, Diliman,
Quezon City
Collection Programs Rm. 810, 8th Floor, BIR
Division National Office Building, 981-7000 local 7284 Cynthia A. Yabut
Diliman, Quezon City
Miscellaneous Rm. 801, 8/F, BIR
Operations National Office Building, 926-9347
Ma. Niña C. Babida
Monitoring Division BIR Road, Diliman, ma.nina.babida@bir.gov.ph
Quezon City
Law & Legislative Rm. 709, 7/F, BIR
Division National Office Building,
981-7327 Louie Marz A. Tangki
BIR Road, Diliman,
Quezon City
International Tax Rm. 811, 8/F, BIR
Affairs Division National Office Building,
927-0022/926-3420 Patria Rochell B. Says
BIR Road, Diliman,
Quezon City
Appellate Division Rm. 807, BIR National
Office Building, BIR
(02) 981-7331/(02) 981-7333 Markneil S. Collado
Road, Diliman, Quezon
City
National Rm. 211-B, 2/F, BIR
Investigation National Office Building,
926-54-49/981-7165 Robert D. Panopio
Division BIR Road, Diliman,
Quezon City
Audit Information, Rm. 910, 9th Floor, BIR
Tax Exemption & National Office Building,
928-8117/981-7268 Alfredo N. Valer
Incentives Division BIR Road, Diliman,
Quezon City
VAT Credit Audit Room 803, BIR National
Division Office Building, BIR 925-1795
Elenita V. Balonzo
Road, Diliman, Quezon elenita.balonzo@bir.gov.ph
City
Records 2nd Floor, DPC Support 928-30-94/981-74-27
Ma. Perpetua M.
Management Bldg., BIR Compound, ma.perpetua.aglibut@bir.gov.ph
Aglibut/
Division Diliman, Quezon City 981-74-74
Rodolfo V. Peralta
rodolfo.peralta@bir.gov.ph
Excise LT Audit Room 209, 2nd Floor,
Division I BIR National Office 926-3603/981-7000 Monica
Building, Diliman, 981-7215 Rona M. Marcellano
Quezon City
Excise LT Audit Room 211, 2nd Floor,
Division II BIR National Office 926-5686
Dominic B. Morales
Building, Diliman, dominic.morales@bir.gov.ph
Quezon City
Excise LT Field Room 207, 2nd Floor,
Operations Division BIR National Office 928-8484 Conchita E. Mabanta
Building, Diliman, 922-4770 Margarita V. Detabla
Quezon City
Excise LT Room 102, Ground
Regulatory Division Floor, BIR National 981-7180/981-7182 Elena C. Luna/
Office Building, 981-7179 Erninfo V.
Diliman, Quezon City
LT Assistance Rm. 114, BIR National
Division Office Building, BIR
(02) 981-7208 Abegail A. Alaestant
City
LT Collection Rm. 208, BIR National
Enforcement Office Building, BIR
(02) 981-7185/(02) 981-7186 Gilda B. Iglesias
Division Road, Diliman, Quezon
City
LT Division-Davao JP Cabaguio Avenue,
(082) 244-0256 Mary Ann C. Lee
Davao City
LT Division-Cebu 8th Floor, Pag-IBIG WT
Corporate Tower,
(032) 233-9829 Fidela C. Bardelas
Mindanao Avenue, Cebu
Business Park, Cebu City
LT Performance BIR National Office 981-7473
Divinagracia B. Sorian
Monitoring & Building, BIR Road, divina.gracia.soriano@bir.gov.ph
Antonietta L. Tanalig
Programs Division Diliman, Quezon City antonietta.tanaliga@bir.gov.ph
LT VAT Audit Unit Large Tax Payers Marisol R. Girang/
marisol.girang@bir.gov.ph
Service, Room 307, BIR Lydia A. Vito/
lydia.vito@bir.gov.ph
National Office Building, Junely Ivanhoe S.
junely.ivanhoe.fernandez@bir.gov.ph
BIR Road, Diliman, Fernandez/
fatima.sarrosa@bir.gov.ph
Quezon City Fatima P. Sarrosa/
prescila.pagayonan@bir.gov.ph
Prescila H. Pagayona
Regular LT Audit Rm. 6, BIR National
Division I Office Building, BIR
(02) 981-7192/(02) 981-7508 Yolanda C. Zafra
City
Division II Office Building, BIR
(02) 924-2920 Ronaldo B. Torreda J
City
Division III Office Building, BIR
(02) 981-7160 Marivic P. Bautista
City
Revenue Region No. 1-Calasiao, Pangasinan
Office of the Revenue Region No.
075-522-3866 Joseph B. Manuel
Regional Director 1-Calasiao, Pangasinan
Legal Division BIR-RR 1, Calasiao, (075) 522-9415 Atty. Genevieve S.
Pangasinan genevieve.mendiguarin@bir.gov.ph Mendiguarin
Assessment Assessment Division (075) 522-6955
Gina May C. Guiang
Division gina.may.guiang@bir.gov.ph
Regional BIR-RR 1, Regional
075-540-7487/ Atty. Primer S.
Investigation Investigation Division
primer_sendaydiego@yahoo.com Sendaydiego
Division
RDO No. 1-Laoag Assessment Section (077) 677-2099
Gina B. Tejada
City, Ilocos Norte gina.tejada@bir.gov.ph
RDO No. 2-Vigan Quirino Blvd., Zone 5,
(077) 711-1655/722-1656/604-0212 Jocelyn R. Ramilo
City, Ilocos Sur Bantay, Ilocos Sur
RDO No. RDO No. 6, Urdaneta
0917-5749153
6-Urdaneta City, City Lolita A. Salayog
lolita.salayog@bir.gov.ph
East Pangasinan
Revenue Region No. 2-Cordillera Administrative Region
Office of the 3rd floor, BIR Bldg., 69
Regional Director Leonard Wood Road, (074) 442-6960/(074) 442-8419 Irene A. G
Baguio City
Legal Division RR No. 02-CAR Atty. Art Miguel B.
074-244-4829
Sanlao
Collection Division Regional Collection (074) 304-2923
Barnabas B. Akilit
Division-RR 2-CAR barnabas.akilit@bir.gov.ph
Lily May W. Parroch
Division lily.may.parrocha@bir.gov.ph
Regional Regional Investigation
Investigation Division-RR-2 CAR, 665-3102 Roderick E. Ramolete
Division Baguio City
Finance Division 69 Leonard Wd Road, 09175572115 Anne
Baguio City anne.frank.evangelista@bir.gov.ph Evangelista
RDO No. G/F, Balbin Bldg., Taft
09360329600
7-Bangued, Abra St., Zone 4, Bangued, Felicidad C. Britton
felicidad.britton@bir.gov.ph
Abra
RDO No. 8-Baguio RDO 008, Baguio City (074) 304-1499
Remedios Bilog
City, Benguet remedios.bilog@bir.gov.ph
RDO No. 1st Floor Government
09273448442 Jose Proceso M.
10-Bontoc, Center, Poblacion,
jose.proceso.gorospe@bir.gov.ph Gorospe
Mountain Province Bontoc, Mt. Province
RDO No. RDO 12-Ifugao 0917-689-1970
Atty. Arlan L. Davis
12-Lagawe, Ifugao arlan.davis@bir.gov.ph
Revenue Region No. 3-Tuguegarao City
Office of the Client Support Unit (078) 304-3788
Ma. Teresa P. Avila
Regional Director ma.teresa.avila@bir.gov.ph
Legal Division Litigation & Prosecution
(078) 377-2114 Atty. Jeralph G. Peruch
Section/3rd floor, Dalan
jeralph.perucho@bir.gov.ph Atty. Cornelio Chito M
na Pagayaya, Carig Sur,
cornelio.chito.delapena@bir.gov.ph Dela Peña
Tuguegarao City
Collection Division Collection Program &
(078) 304-0085 Ma. Pamela P.
Performance Audit
ma.pamela.pauig@bir.gov.ph Manalang
Section
Assessment Tax Billing Section (078) 304-0085 Annabelle Primitiva L
Division nelia.isurina@bir.gov.ph Navarro
Regional Tax Fraud Section
(078) 304-9990
Investigation Soledad A. Anzia
soledad.anzia@bir.gov.ph
Division
Finance Division Finance Division (078) 304-3742
Felicitas T. Macarilay
felicitas.macarilay@bir.gov.ph
RDO No. Office of the Asst. RDO
(078) 304-0238
13-Tuguegarao City, Stimson P. Cureg
stimson.cureg@bir.gov.ph
Cagayan
RDO No. Client Support Section
(078) 392-1789
14-Bayombong, Gladys B. Garcia
gladys.garcia@bir.gov.ph
Nueva Vizcaya
None
15-Naguilian, Aida P. Maramag
aida.maramag@bir.gov.ph
Isabela
09778053046
16-Cabarroguis, Franklin E. Laudenci
franklin.laudencia@bir.gov.ph
Quirino
Revenue Region No. 4-City of San Fernando, Pampanga
Office of the Sindalan, City of San (045) 598-2801/(045) 598-2802
Douglas A. Rufino
Regional Director Fernando, Pampanga douglas.rufino@bir.gov.ph
Legal Division Sindalan, City of San (045) 598-2825
Atty. Jerry L. Manalan
Fernando, Pampanga jerry.manalang@bir.gov.ph
Collection Division Sindalan, City of San (045) 598-2807
Renato P. Del Rosario
Fernando, Pampanga renato.delrosario@bir.gov.ph
Assessment Sindalan, City of San (045) 598-2823
Jenet C. Jocson
Division Fernando, Pampanga jenet.jocson@bir.gov.ph
Regional Sindalan, City of San
(045) 598-2827
Investigation Fernando, Pampanga Atty. Bayani S. Ebdan
bayani.ebdane@bir.gov.ph
Division
Finance Division Sindalan, City of San (045) 598-2816
Angelina P. Tolentino
Fernando, Pampanga angelina.tolentino@bir.gov.ph
RDO No. Tarlac City, Tarlac
(045) 982-1349
17A-Tarlac City, Juanita T. Manansala
juanita.manansala@bir.gov.ph
Tarlac
RDO No. Paniqui, Tarlac (045) 925-7298
Lani M. Villarico
17B-Paniqui, Tarlac lani.villarico@bir.gov.ph
RDO No. Olongapo City, Zambales
(047) 223-8178 Atty. Mercedes S.
18-Olongapo City,
mercedes.estallila@bir.gov.ph Estallila
Zambales
RDO No. 19-Subic Subic Bay Freeport Zone (047) 252-3727
Atty. Gerlo C. Cacatia
Bay Freeport Zone gerlo.cacatian@bir.gov.ph
RDO No. Balanga City, Bataan
(047) 237-2697
20-Balanga City, Atty. Madonna F. Hali
madonna.halili@bir.gov.ph
Bataan
RDO No. Sindalan, City of San
(045) 598-2835
21A-Angeles City, Fernando, Pampanga Lope N. Tubera
lope.tubera@bir.gov.ph
North Pampanga
RDO No. 21B-City Sindalan, City of San
(045) 598-2854
of San Fernando, Fernando, Pampanga Mary Ann C. Canare
mary.ann.canare@bir.gov.ph
South Pampanga
RDO No. 22-Baler, Baler, Aurora (045) 724-0174
Abdullah D. Bandaran
Aurora abdullah.bandarang@bir.gov.ph
RDO No. Talavera, North Nueva
(0998) 541-7313
23A-Talavera, Ecija Rosalie M. Panuda
rosalie.panuda@bir.gov.ph
North Nueva Ecija
RDO No. Cabanatuan City, Nueva
23B-Cabanatuan Ecija (044) 958-8003/(044) 464-7896
Merlita O. Villar
City, South Nueva merlita.villar@bir.gov.ph
Ecija
Revenue Region No. 5-Caloocan City
Assessment Assessment Division — 02-366-1527/
Angelita M. Saloritos
Division RR 5-Caloocan angelita.saloritos@bir.gov.ph
Regional Revenue Region No.
367-0651
Investigation 5-Caloocan City — Ronaldo B. Cruz/
ronaldo.cruz@bir.gov.ph/
Division Regional Investigation John Rainier T. Camb
john.rainier.camba@bir.gov.ph
Division
RDO No. Client Support Section 044-6701833
Maria Leilani E.
25A-Plaridel, Assessment Section ma.leilani.enriquez@bir.gov.ph
Enriquez
Bulacan 044-6701612
Marilyn B. Alonzo
marilyn.alonzo@bir.gov.ph
RDO No. 3rd Floor, Assessment
363-5496/365-3164
27-Caloocan City Section, RDO No. 27, Ofelia N. Fe
ofelia.felipe@bir.gov.ph
Caloocan City
Revenue Region No. 6-City of Manila
Office of the Bldg. 1-8th Floor,
Regional Director Bureau of Internal
Revenue — REGION (02) 518-0651
Adoracion C. Albano
6-Manila Solana Corner adoracion.albano@bir.gov.ph
Beaterio St., Intramuros,
Manila
Legal Division 5th Floor, Legal
Division, Solana cor. 567-4291
Atty. Ramon B. Loren
Beaterio St., Intramuros, ramon.lorenzo@bir.gov.ph
Manila
Collection Division Bldg. 1-4th Floor,
Bureau of Internal
Revenue — REGION (02) 567-4255
Rosa Bella B. Javerin
6-Manila Solana Corner rosa.bella.javerina@bir.gov.ph
Manila
Assessment RR No. 6, Manila BIR 518-07-50/518-06-05
Division Bldg. 2, G/F Solana cor. renato.ignacio@bir.gov.ph
Renato SD. Ignacio
Beaterio St., Intramuros, 518-06-05/518-06-62
Carolyn B. Labao
Manila carolyn.labao@bir.gov.ph
518-06-05/518-06-62
Regional BIR 5th floor BIR Bldg.
567-4294/567-4293/518-08-21
Investigation RR No. 6-Manila — RID Erddie S. Esber
erddie.esber@bir.gov.ph
Division
Finance Division Bldg. 1-7th Floor,
Bureau of Internal
Revenue — REGION (02) 567-4229/(02) 567-3296
Alicia S. Valois
6-Manila Solana Corner alicia.valois@bir.gov.ph
Manila
RDO No. Assessment Section
29-Tondo-San (02) 567-4127 Marie Claire M. Felia
Nicolas
RDO No. Administrative Section,
30-Binondo 3rd Floor BIR Bldg. II 567-42-67
Aida M. Dimaranan
Solana St., Intramuros, aida.dimaranan@bir.gov.ph
Manila
RDO No. 31-Sta. 5th floor, Benlife Bldg.
Cruz (BIR Bldg. II) Solana (02) 518-0658
Charlito S. Samson
cor. Beaterio St., charlito.samson@bir.gov.ph
Intramuros, Manila
RDO No. 7th floor, Benlife Bldg.
32-Quiapo-Sampalo (BIR Bldg. II) Solana (02) 518-0814
Andres B. Bisares
c-San Miguel-Sta. cor. Beaterio St., andres.bisares@bir.gov.ph
Mesa Intramuros, Manila
RDO No. Collection Section, RDO
33-Intramuros-Ermit 33, Intramuros, Ermita, (02) 567-42-62 Carmelita C. Glorioso
a-Malate Malate, Port Area
RDO No. 6th floor, Benlife Bldg.
34-Paco-Pandacan-S (BIR Bldg. II) Solana Atty. Ariel B. Dela
(02) 518-0910/0920-9658120
ta. Ana-San Andres cor. Beaterio St., Torre
Intramuros, Manila
RDO No. 36-Puerto 3rd floor, BLC Green
Princesa City, Bldg. Rizal Ave. cor. (048) 433-2064/434-3637
Gregoria M. Lopez
Palawan Fernandez St., Puerto gregoria.lopez@bir.gov.ph
Princesa City
Revenue Region No. 7-Quezon City
Legal Division Rm. 505, 5th floor (Roof
Deck) Fishermall, BIR
863-4047/863-4049
RR No. 7, Quezon Atty. Philip A. Mayo
philip.mayo@bir.gov.ph
Avenue corner Roosevelt
Ave., QC
Collection Division Collection Division —
(02) 863-4036
Room 513 Roofdeck Meraldine J. Montano
meraldine.montano@bir.gov.ph
Fisher Mall, Quezon City
Assessment Billing Section 863-4012
Nelia A. Delos Reyes
Division nelia.delosreyes@bir.gov.ph
Investigation Division 863-4000 loc. 4069/4125 Marites T. Terrado
Division
Finance Division Finance Division ruben.ramos@bir.gov.ph/8634109 Ruben B. Ramos
RDO No. West Venue Bldg., West 929-4062
Minerva A. Dimaano
28-Novaliches Ave., Quezon City minerva.dimaano@bir.gov.ph
RDO No. 38-North 112 West Venue Bldg. Atty. Ethelda Conchit
928-23-67
Quezon City West Ave., Quezon City H. Rivera
RDO No. 39-South Assessment Section
Quezon City Client Support Section
Juvy S. Dela Pena
6th Floor Coher Center 922-1899/372-7586
Clarita S. Escueta
Bldg., 1424 Quezon
Ave., QC
RDO No. 40-Cubao Room 500, 5/F (02) 863-4077
Nora U. Flores
Fishermall, Quezon nora.flores@bir.gov.ph
Rosemarie D. Agot
Avenue corner Roosevelt rosemarie.agot@bir.gov.ph
Judith B. Arcinue
Avenue, Brgy. Sta. Cruz, judith.arcinue@bir.gov.ph
Aurea S. Guevarra
Quezon City aurea.guevarra@bir.gov.ph
Rodorico D. Peralta
rodorico.peralta@bir.gov.ph
Cristy E. Rejuso
cristy.rejuso@bir.gov.ph
Liberty G. Sagad
liberty.sagad@bir.gov.ph
Virgilio D. Tablizo
virgilio.tablizo@bir.gov.ph
RDO No. Assessment Section, 2nd
531-0663/531-5199
41-Mandaluyong Floor Marinelia N. German
marinelia.german@bir.gov.ph
City
RDO No. 42-San Compliance Section — 635-41-13
Hipolito P. Ison
Juan City RDO 42-San Juan hipolito.ison@bir.gov.ph
RDO No. 43-Pasig 3rd Floor Rudgen Bldg.
571-83-48
City Shaw Boulevard, Brgy. Ma. Corazon De Jesu
ma.corazon.dejesus@bir.gov.ph
San Antonio, Pasig City
RDO No. 2nd Floor Manila East
46-Cainta-Taytay Arcade 2 Bldg. Manila 284-4750-51
Alejandro S. San Juan
East Road, Brgy. San alejandro.sanjuan@bir.gov.ph
Juan, Taytay, Rizal
Revenue Region No. 8-Makati City
Legal Division BIR — RR-8 Makati 856-6788
Albert C. Arpon
albert.arpon@bir.gov.ph
Collection Division Receivable Accounts
8566814
Division and Collection Glades L. Almerido
glades.almerido@bir.gov.ph
Enforcement Section
Assessment Assessment Division 8566806/8566805/8566802
Ronald C. Marco
Division ronald.marco@bir.gov.ph
Regional G/F 313 BIR Bldg. Sen.
Investigation G. Puyat Avenue, Makati 856-6809/856-6810 Jim V. Young
Division City
Finance Division Disbursement 8566800/8566801
Iris O. Galicia/
Accounting Section iris.galicia@bir.gov.ph
Blandino B. Himor Jr
blandino.himor@bir.gov.ph
RDO No. 44-Taguig Compliance Section 856-6751/856-3673/
Lorena P. Vinoya
City-Pateros lorena.vinoya@bir.gov.ph
RDO No. 47-East Client Support 856-6816/856-6822/856-6818/ Isabelita R. San Juan
Makati City Section/Administrative 856-6817/856-6819/ Ma. Michelle B.
Section isabelita.sanjuan@bir.gov.ph Basaysay
RDO No. 48-West Assessment Section 856-6552/856-6289/856-6824/
Lucy DC. Abrasia
Makati City lucy.abrasia@bir.gov.ph
RDO No. 49-North Client Support 856-6792/856-6795/856-6796
Stella DC. Castañares
Makati City Section/Assessment stella.castañares@bir.gov.ph/
Charmaine A. Zafra
Section charmaine.zafra@bir.gov.ph
RDO No. 50-South Assessment (02)-817-2773/(02) 811-4492/
Nerma R. Valeria
Makati City Section/Administrative nerma.valeria@bir.gov.ph/
Roderick P. Cantillan
Section roderick.cantillana@bir.gov.ph
RDO No. 51-Pasay Assessment 556-8149/556-8150/ Arlaine Gina Lapuz/
City Section/Collection arlaine.gina.lapuz@bir.gov.ph/ Repertina Rosemarie E
Section repertina.rosemarie.mercado@bir.gov.ph Mercado
RDO No. RDO 52-Parañaque BIR,
52-Parañaque City Dr. A. Santos Ave. cor. (02) 829-8844/8294411
Celestino M. Mejia/
Schilling Lane, Brgy. celestino.mejia@bir.gov.ph
Sohailey A. Pandapata
San Dionisio, Parañaque sohailey.pandapatan@bir.gov.ph
City/Assessment Section
RDO No. 53 A-Las Assessment Section 802-3097
Joseph S. Casquejo
Piñas City joseph.casquejo@bir.gov.ph
RDO No. 53 Assessment 5560176/8560354/8564096
Virgilia R. Oro/
B-Muntinlupa City Section/Client Support virgilia.oro@bir.gov.ph
Liza C. Dimaya
Section liza.dimaya@bir.gov.ph
Revenue Region No. 9A-CaBaMiRo
(CAVITE-BATANGAS-ORIENTAL MINDORO-OCCIDENTAL MINDORO-ROMBLON)
Office of the Client Support Unit 043-774-7770 local 804
Anne M. Reyes
Regional Director 0926-59-44200
Legal Division 3rd floor Liana's Junction
(043) 774-7770 loc. 303
Plaza, Poblacion IV, Sto. Catherine P. Cantos
catherine.cantos@bir.gov.ph
Tomas, Batangas
Collection Division Withholding Agent
(043) 774-7772 /(043) 774-7873
Monitoring Section Amihan L. Valdez
amihan.valdez@yahoo.com
(WAMS)
Assessment 3rd Floor, Liana's
Division Junction Plaza, (043) 774-7772 loc. 103
Angelita G. Paceño
Poblacion IV, Sto. rr9a_assessment_relief@bir.gov.ph
Tomas City
Regional 9A-CaBaMiRo
Investigation (043) 774-7770 loc. 601-604 Jason C. Torres
Division
Finance Division Finance Division 043-774-7770 loc. 401 Michelle E. Onte
RDO No. 2nd floor, Fernandez
35-Odiongan, Bldg. J.P. Rizal Cor.
Romblon Roxas Sts. Brgy. Tabing emily.singson@bir.gov.ph Emily D. Singson
Dagat, Odiongan,
Romblon
RDO No. 37-San Collection Section, RDO
Jose, Occidental 37 San Jose, Occidental eufemia.madriaga@bir.gov.ph Eufemia V. Madriaga
Mindoro Mindoro
RDO No. 54 Collection Section (046) 4169810/
A-Trece Martirez e-mail address: Wilfredo K. Macula
City, East Cavite wilfredo.macula@bir.gov.ph
RDO No. 54 BIR RDO 54 B Office
(046) 458-4237
B-Bacoor City, Collection Section Lodimi
lodiminda.rom@bir.gov.ph
West Cavite
RDO No. Hilltop Road, Kumintang
58-Batangas City, Ibaba, Batangas City emelita.abo@bir.gov.ph/043-7232874 Emelita R. Abo
West Batangas
RDO No. 59-Lipa Marawoy, Lipa City, (043) 757-2657 Ma. Generosa L.
City, East Batangas Batangas ma.generosa.castillo@bir.gov.ph Castillo
RDO No. Brgy. Tawiran, Calapan
(043) 288-2014
63-Calapan City, City Merian Z. Romero
merian.romero@bir.gov.ph
Oriental Mindoro
Revenue Region No. 9B-LaQueMar
(LAGUNA-QUEZON-MARINDUQUE)
Legal Division Regional Office, RR
(049) 562-2632 Atty. Sheryll P.
9B-LaQueMar, San
sheryll.cacayuran@bir.gov.ph Cacayuran
Pablo City
Collection Division Maharlika Highway, San 049-5627-487 Geraldine A.
Pablo City geraldine.consignado@bir.gov.ph Consignado
Assessment Regional Office, RR
(049) 562-3398
Division 9B-LaQueMar, San Ma. Liza V. Alcala
ma.liza.alcala@bir.gov.ph
Pablo City
Regional Regional Office, RR
(049) 562-0633 Atty. Rolando Martin A
Investigation 9B-LaQueMar, San
rolando.martin.contreras@bir.gov.ph Contreras
Division Pablo City
Finance Division Finance Division (049) 562-0041 Reiniel John G. Aquin
RDO No. 2nd floor Puregold Jr.,
(049) 545-1424
56-Calamba City, Brgy. Parian, Calamba, George A. Recio
george.recio@bir.gov.ph
Central Laguna Laguna
Revenue Region No. 10-Legazpi City
Office of the RDO Office (052) 480-4769
Rita M. Palmiano
Regional Director rita.palmiano@bir.gov.ph
Legal Division Legal Division (052) 742-0974 Angelica P. Jolo
Collection Division Collection Division (052) 742-0587
Jocelyn A. Aringo
jocelyn.aringo@bir.gov.ph
Marjorie B. Ebuenga
Division marjorie.ebuenga@bir.gov.ph
Investigation Division (052) 480-2212 Amadeo M. Bernal
Division
Finance Division Finance Division (052) 480-3426
Elizabeth M. Jacob
elizabeth.jacob@bir.gov.ph
RDO No. Talisay, Camarines Norte
(054) 472-3339
64-Talisay, Mercy S. Elep
mercy.elep@bir.gov.ph
Camarines Norte
RDO No. 65-Naga Naga City (054) 472-3339
Lani M. Borja
City, Camarines Sur lani.borja@bir.gov.ph
RDO No. 66-Iriga San Nicolas, Iriga City (054) 456-0046
Randy N. Cariño
City, Camarines Sur randy.carino@bir.gov.ph
RDO No. Legazpi City
(052) 3326
67-Legazpi City, Nympha A. Vallejos
nympha.vallejos@bir.gov.ph
Albay
RDO No. Sorsogon City
0920-248-8626
68-Sorsogon City, Haidar Cyril B. Menes
haidar.cyril.meneses@bir.gov.ph
Sorsogon
RDO No. 69-Virac, San Isidro Village, Virac, 052-736-0340/052-736-0360
Princini B. Parco
Catanduanes Catanduanes rdo69@bir.gov.ph
RDO No. Masbate City
(056) 333-7078
70-Masbate City, Modesto R. Avila, Jr
modesto.avila@bir.gov.ph
Masbate
Revenue Region No. 11-Iloilo City
Office of the Client Support Unit, BIR (033) 335-80-50
Ma. Luchi R. Contrera
Regional Director RR 11, Iloilo City ma.luchi.contreras@bir.gov.ph
Legal Division OIC-Asst. Chief, Legal
(033) 335849 Atty. Mary Anne G.
Division, BIR RR 11
mary.anne.suganob@bir.gov.ph Suganob
Iloilo City
Collection Division BIR Bldg. M.H. Del Pilar (033) 3377355
Leah Lebrilla
St. Molo, Iloilo City leah.lebrilla@bir.gov.ph
Assessment OIC-Asst. Chief,
(033) 337-5967
Division Assessment Division, Marilyn M. Tardaguel
marilyn.tardaguela@bir.gov.ph
BIR RR 11 Iloilo City
Regional BIR Bldg. M.H. Del Pilar
(033) 335-8048
Investigation St. Molo, Iloilo City Sol T. Gaurana
sol.guarana@bir.gov.ph
Division
Finance Division BIR Bldg. M.H. Del Pilar (033) 3371851
Ma. Cristina M. Biña
St. Molo, Iloilo City ma.cristina.binas@bir.gov.ph
RDO No. Section Chief, CSS, (036) 262-5213
Gisella Rose Ro
71-Kalibo, Aklan RDO 71, Kalibo, Aklan hope.maja.tabuena@bir.gov.ph
RDO No. 72-Roxas Roxas City
(036) 522-1194 Sally Anne P. Anisco
City, Capiz
RDO No. 73-San Chief Assessment (036) 262-5213
Arlene Cocjin
Jose, Antique Section, RDO 73 arlene.cocjin@bir.gov.ph
RDO No. 74-Iloilo Assessment Section Marichu Gloria S.
Assessment Section
City, Iloilo Espinosa
RDO No. Chief Assessment
(033) 333-1007
75-Zarraga, Iloilo Section, RDO 75 Roselyn N. Satajo
roselyn.satajo@bir.gov.ph
Zarraga, Iloilo
Revenue Region No. 12-Bacolod City
Legal Division BIR Bldg., Jocson-P.
Hernaez St. Extension (034) 446-3923
Atty. Nelsie P. Arcola
Bry. Taculing, Bacolod nelsie.arcolas@bir.gov.ph
City
Collection Division BIR Bldg., Jocson-P.
Hernaez St. Extension (034) 446-3920 Ms. Ma. Jasmin V.
Bry. Taculing, Bacolod jasmin.asuero@bir.gov.ph Asue
City
Assessment BIR Bldg., Jocson-P.
Division Hernaez St. Extension (034) 446-3303
Ms. Jean F. Bedonia
Bry. Taculing, Bacolod jean.bedonia@bir.gov.ph
City
Regional BIR Bldg., Jocson-P.
Investigation Hernaez St. Extension (034) 446-3921 Mr. Edgar Allan D. D
Division Bry. Taculing, Bacolod edgar.allan.delrosario@bir.gov.ph Rosario, Sr.
City
Finance Division Redkey Bldg., Jocson-P.
Hernaez St. Extension
(034) 446-3924 Ms. Helen D. Dino
Bry. Taculing, Bacolod
City
RDO No. BIR Bldg., Osmeña
(034) 399-3314/3364
76-Victorias City, Avenue, Victorias City Mr. Richard R. Oquen
richard.oquendo@bir.gov.ph
Negros Occ.
RDO No. BIR Bldg., Jocson-P.
77-Bacolod City, Hernaez St. Extension (034) 446-3360
Irene D. Poblacion
Negros Occ. Bry. Taculing, Bacolod irene.poblacion@bir.gov.ph
City
RDO No. Brgy. Pedro, Binalbagan
(034) 388-8733
78-Binalbagan, Ms. Noemi A. Lucend
noemi.a.lucendo@bir.gov.ph
Negros Occ.
RDO No. Agapito Valencia Dr.,
(035) 226-3597 Ms. Ma. Jocelyn T.
79-Dumaguete City, Taclobo, Dumaguete
ma.jocelyn.sumugat@bir.gov.ph Sumugat
Negros Oriental City
Revenue Region No. 13-Cebu City
Legal Division Legal Division 032-2325-546
Atty. Isaac S. Darcera
isaac.darcera@bir.gov.ph
Collection Division RR-13, Cebu City (032) 232-8578
Rosa Maria R. Jingco
rosa.maria.jingco@bir.gov.ph
Aurea M. Sigue
aurea.sigue@bir.gov.ph
Assessment BIR — RR 13, Cebu City (032) 233-3691
Josyl Ann Z. Aranas
Division josyl.ann.aranas@bir.gov.ph
Regional 3rd floor BIR Building,
0917-777-3878
Investigation Archbishop Reyes, Cebu Atty. Ivan G. Cang
ivan.cang@bir.gov.ph
Division City
RDO No. Mandaue City
032-414-1008 Atty. Estrella T.
80-Mandaue City,
estrella.bernaldez@bir.gov.ph Bernaldez
Cebu
RDO No. 81-Cebu G/F, BIR Regional
City North Office Bldg., Arch. 0918-310-3068
Ramon M. Cabarron
Reyes Ave. Brgy. Luz, ramon.cabarron@bir.gov.ph
Cebu City
RDO No. Collection Section Client (032) 272-7769
83-Talisay, Cebu Support Section ma.delia.ortega@bir.gov.ph Ma. Delia G. Ortega
City (032) 272-2495 Samuel D. Capada
samuel.capada@bir.gov.ph
RDO No. G/F Judge Oppus Bldg.
84-Tagbiliran City, M. Torralba St., (038) 501-8455/(038) 411-2217 Emma S. Alabat
Bohol Tagbilaran City
Revenue Region No. 14-Tacloban City
Office of the Office of the Regional
Regional Director Director, 2nd floor BIR 053-323-8151
Jesusa B. Cabello
Regional Office, jesusa.cabello@bir.gov.ph
Candahug, Palo, Leyte
Legal Division 2nd Floor, BIR RR No.
14, Regional Office 053-323-3158
Rafaelita L. Plaza
Bldg., Government rafaelita.plaza@bir.gov.ph
Center, Palo, Leyte
Collection Division Government Center, 09456147726
Lorna L. Ang
Palo, Leyte lorna.ang@bir.gov.ph
Assessment Government Center, (053) 323-8151
Irene Duero-Pabello
Division Palo, Leyte irene.pabello@bir.gov.ph
Regional Office of the Assistant
Investigation Chief, RID 2nd floor BIR Atty. Ma. Rowena
053-323-3158
Division Regional Office, Goc-ong
Candahug, Palo, Leyte
Finance Division Government Center, 053-3234693/
Imelda M. Ligason
Palo, Leyte imelda.ligason@bir.gov.ph
RDO No. Office of the Assistant
85-Catarman, Revenue District Officer,
09159391514
Northern Samar G/F Purok 1, Brgy. Susana D. Golo
susana.golo@bir.gov.ph
Dalakit, Catarman,
Northern Samar
RDO No. Borongan City, Eastern
09993124012
86-Borongan City, Samar Roswell B. Go
roswell.go@bir.gov.ph
Eastern Samar
RDO No. Calbayog City
(055) 301-1335
87-Catbalogan City, Marina T. Vicentuan
marina.vicentuan@bir.gov.ph
Samar
RDO No. 89-Ormoc Administrative Section (053) 561-0069
Maria Fe C. Rojas
City, Leyte maria.fe.rojas@bir.gov.ph
RDO No. RDO-90 Maasin City,
09062802388
90-Maasin City, Southern Leyte Leonila Y. Dela Torr
leonila.delatorre@bir.gov.ph
Leyte
Revenue Region No. 15-Zamboanga City
Office of the Office of the Regional (062) 991-0915
Regional Director Director hermie.gabasa@bir.gov.ph Ms. Hermie C. Gaba
rr_15@bir.gov.ph
Legal Division Legal Division (062) 993-1894 Ms. Reena Marie A.
reena.marie.patangan@bir.gov.ph Patangan-Francisco
teresita.chiong@bir.gov.ph Ms. Teresita C. Chion
teresitachiong0427@yahoo.com
Mr. Ritchel L. Francis
Division ritchel.francisco@bir.gov.ph
(062) 991-0915
Investigation Division Ms. Liza T. Ocena
liza.ocena@bir.gov.ph
Division
Finance Division Finance Division (062) 991-0606 Ms. Doris June G.
gem_gonzales@bir.gov.ph Ortega
RDO No. Dipolog City/Assessment
91-Dipolog City, Section (065) 212-2311
Michelle B. Muncada
Zamboanga del michelle.muncada@bir.gov.ph
Norte
RDO No. Pagadian City
(062) 215-2208/(062) 215-2208
92-Pagadian City, Ms. Zenaida M. Obao
zenaida.obaob@bir.gov.ph
Zamboanga del Sur
RDO No. Pettit Barracks,
93A-Zamboanga Zamboanga City (062) 991-0608
Ms. Ma. Cindy Magba
City, Zamboanga ma.cindy.magbaril@bir.gov.ph
del Sur
RDO No. 93B-Ipil, Revenue District-93B (062) 955-6240/0916-263-6543 Ms. Myrna R.
Zamboanga Sibugay Ipil, Zamboanga Sibugay myrna.maslamama@bir.gov.ph Maslamama
RDO No. 94-Isabela Isabela, Basilan 09209059052
Mr. Gary M. Catalan
City, Basilan gary.catalan@bir.gov.ph
RDO No. 95-Jolo, Jolo, Sulu 0917-722-6084
Sulu vivencio.sera@bir.gov.ph Mr. Vivencio A. Sera
vivenciosera@yahoo.com
RDO No. Bongao, Tawi-Tawi
(068) 268-1342
96-Bungao, Mr. Rogelio C. Dizon
rogelio.dizon@bir.gov.ph
Tawi-Tawi
Revenue Region No. 16-Cagayan de Oro City
Office of the Office of the Regional (088) 850-7079 Atty. Dondanon A.
Regional Director Director dondanon.galera@bir.gov.ph Galera
Legal Division Legal Division (088) 881-4300 Atty. Johaira
johaira.said.badron@bir.gov.ph Said-Badron
Ignace Marie B. Ytin
ignace.marie.yting@bir.gov.ph
Emelita M. Braña
Division rr16_assessment@bir.gov.ph
(088) 850-7657
Investigation Division Helen T. Abellanosa
helen.abellanosa@bir.gov.ph
Division
Finance Division Finance Division (088) 850-7080 Anamie L. Catalonia
RDO No. Gingoog City (088) 861-4337/861-1086
97-Gingoog City, rdo_97@bir.gov.ph Dioscora A. Omp
Misamis Oriental dioscora.ompoc@bir.gov.ph
RDO No. Cagayan de Oro City
(088) 864-2144/864-2139
98-Cagayan de Oro
rdo_98@bir.gov.ph Lawrence A. Cabelte
City, Misamis
lawrence.cabeltes@bir.gov.ph
Oriental
RDO No. Malaybalay City
99-Malaybalay City, (088) 813-2506 Mariceline C. Daba
Bukidnon
(088) 521-0981
100-Ozamiz City, — G/F, BIR Bldg. Martin P. Abinales
martin.abinales@bir.gov.ph
Misamis Occidental
RDO No. 101-Iligan Client Support Section
(063) 221-2955
City, Lanao del Mary L. Subang
mary.subang@bir.gov.ph
Norte
RDO No. 2nd Floor, Lanao Builder
102-Marawi City, Bldg., Sarimanok St., 09177775971
Monib Y. Dimalompin
Lanao del Sur Basak Malutlut, Marawi monib.dimalomping@bir.gov.ph
City
Revenue Region No. 17-Butuan City
Office of the J. Rosales Ave., Butuan 342-8008/341-7192/
Edelwesa L. Patubo
Regional Director City edelwesa.patubo@bir.gov.ph
Legal Division J. Rosales Ave., Butuan 09178569362
Atty. Nestor T. Escalo
City nestor.escalona@bir0420
Collection Division BIR, RR No. 17, J.
Rosales Ave., Butuan 815-60-59 & 815-1582 Maxima D. Rulida
City
Assessment Assessment Division
(085) 341-3003 Rowena V. Mandin
Division
Regional J. Rosales Ave., Butuan
Investigation City 0917-5115905/(085) 342-5750 Romeo C. Buniel
Division
Finance Division BIR J. Rosales Ave., (085) 342-6580
Christine V. Mercado
Butuan City (085) 225-7859
RDO No. J. Rosales Avenue,
(085) 341-2028
103-Butuan City, Butuan City Corazon B. Cassion
corazon.cassion@bir.gov.ph
Agusan del Norte
RDO No. Assessment Section
09177078521
105-Surigao City, Mr. Paul F. Villamor
paul.villamor@bir.gov.ph
Surigao del Norte
RDO No. 2nd Floor Eduhome
09088741059
106-Tandag City, Bldg., Osmeña St., Francisco T. Trillo
francisco.trillo@bir.gov.ph
Surigao del Sur Tandag City
Revenue Region No. 18-Koronadal City
Office of the Koronadal City (083) 228-1010
Christine Juliet R. Chu
Regional Director christine.juliet.chua@bir.gov.ph
Legal Division Koronadal City (083) 228-1014
Shirley S. Panes-Ruiz
shirley.panes@bir.gov.ph
Collection Division Koronadal City (083) 228-1013
Maribeth P. Binsuan
maribeth.palapar@bir.gov.ph
Assessment Koronadal City (083) 228-1007
Carmelita B. Coloso
Division carmelita.coloso@bir.gov.ph
Regional Koronadal City
(083) 228-1008
Investigation Edna O. Abuan
edna.abuan@bir.gov.ph
Division
Finance Division Koronadal City (083) 228-1012
Benia D. Estigoy
benia.estigoy@bir.gov.ph
RDO No. Cotabato City
(064) 421-5606
107-Cotabato City, Nora R. Macarambon
nora.macarambon@bir.gov.ph
Maguindanao
RDO No. Kidapawan City
108-Kidapawan (064) 577-1291
Genevieve D. Aquino
City, North genevieve.aquino@bir.gov.ph
Cotabato
RDO No. Tacurong City
(064) 200-4049
109-Tacurong City, Zainodin A. Guinta
zainodin.guinta@bir.gov.ph
Sultan Kudarat
RDO No. General Santos City
110-General Santos (083) 552-2421
Evelyn T. Mallillin
City, South evelyn.mallillin@bir.gov.ph
Cotabato
RDO No. Koronadal City
(083) 228-1017
111-Koronadal City, Nenita R. Cubelo
nenita.cubelo@bir.gov.ph
South Cotabato
Revenue Region No. 19-Davao City
Office of the 2nd floor, BIR RR 19
(082) 222-3093
Regional Director Regional Office Bldg. Eddie A. Castillo
eddie.castillo@bir.gov.ph
Bolton Ext., Davao City
Legal Division RR-19 Davao City — (082) 227-8051 Atty. Alexis Ben O.
Legal Division alexis.ben.barrera@bir.gov.ph Barerra
Collection Division 2nd floor, BIR RR 19 082-227-7752
Regional Office Bldg. 082-222-3094 Severina R. Lumibao
Bolton Ext., Davao City severina.lumibao@bir.gov.ph
Assessment 2nd floor, BIR Regional
(082) 225-0568
Division Office Bldg. Bolton Marilou E. Cu
marilou.cubero@bir.gov.ph
Extension, Davao City
0998-971-6903
Investigation Division Rex Vincent O. Perid
rex.vincent.perido@bir.gov.ph
Division
Finance Division G/F BIR RR 19 Regional
(08) 222-3093
Office Bldg. Bolton Ext., Joel S
joel.diansay@bir.gov.ph
Davao City
RDO No. RDO 112, Tagum City
(082) 655-9423/09195284088
112-Tagum City, Ma. Corazon S. Perla
ma.corazon.perlas@bir.gov.ph
Davao del Norte
RDO No. 4th floor, BIR Regional
Atty. Pedro A. Bonga
113A-West Davao Office Bldg. Bolton pbongas@yahoo.com
City Extension, Davao City
RDO No. 113B-East 6th floor, BIR Regional
(082) 285-7988
Davao City Office Bldg. Bolton Lorenzo G. Tulibas
lorenzo.tulibas@bir.gov.ph
Extension, Davao City
RDO No. 114-Mati BIR Bldg. Gomez St.
(087) 811-2076
City, Davao Mati, Davao Oriental Edgar R. Cavanes
edgar.cavanes@bir.gov.ph
Oriental
RDO No. 115-Digos RDO No. 115, Digos Edrolin C. Gomez, RO
(082) 237-1065/09773448249
City, Davao del Sur City
ANNEX B
FOI Request Flow Chart
ANNEX C
List of Exceptions
1. Information covered by Executive Privilege
2. Privileged information relating to National Security, Defense or International

Relations CAIHTE
3. Information concerning Law Enforcement and Protection of Public and Personal

Safety
4. Information deemed confidential for the Protection of the Privacy of Persons and
certain individuals such as minors, victims of crimes, or the accused
5. Information, documents or records known by reason of official capacity and are

deemed as confidential, including those submitted or disclosed by entities to
government agencies, tribunals, boards, or officers, in relation to the performance
of their functions, or to inquiries or investigation conducted by them in the
exercise of their administrative, regulatory of quasi-judicial powers
6. Prejudicial Premature Disclosure
7. Records of proceedings or information from proceedings which, pursuant to law

or relevant rules and regulations, are treated as confidential or privileged
8. Matters considered confidential
9. Other exceptions to the right to information under laws, jurisprudence, rules and
regulations
10. The Bureau of Internal Revenue does not have the information requested
11. The information requested contains sensitive personal information protected by

the Data Privacy Act of 2012
12. The information requested is already available in the BIR website and accessible
online
13. The request is unreasonable, subsequent identical or substantially similar from the
same requesting party whose request has already been previously granted or
denied by the Bureau aScITE
14. Any records, documents, papers, reports, letters, contracts, whether in hard or soft
copies, containing information regarding the business, income or estate of any
taxpayer, secrets, operation, style or work or apparatus of any manufacturer or
producer or return or any paper or document requested is covered by Section 270
of the National Internal Revenue Code, as amended
September 4, 2018
SUBJECT : Missing Quadruplicate Copy from One (1) Unused Set of

BIR Form No. 2313-R — Electronic Certificate
Authorizing Registration for Transaction Involving
Transfer of Real Properties

Concerned
Notice is hereby given of the missing quadruplicate copy from one (1)
unused set of BIR Form No. 2313-R — Electronic Certificate Authorizing
Registration (eCAR) for transaction involving transfer of real properties with the
hereunder stated serial number, to wit: SDHTEC
eCR201700389250
The abovementioned copy was reported missing by Ms. Elna B. Gayon,

Revenue Officer I, Revenue District Office No. 36, Revenue Region No. 6,
Manila. Consequently, the entire eCAR set bearing the said serial number is
hereby cancelled. All official transactions involving the use thereof is therefore
considered as INVALID.

promptly notify this Office in the event that the aforesaid form is found and to take
the necessary measures to prevent the improper or fraudulent disposition or use of
the same.

Deputy Commissioner
(12)
August 31, 2018
SUBJECT : Publishing the Full Text of the Government Quality

Management Committee (GQMC) Memorandum Circular
No. 2018-1 dated August 17, 2018 by the Secretary of
Department of Budget and Management (DBM), Entitled
"Guidelines on the Validation of the ISO 9001:2015
Quality Management System (QMS) Certification as a
Requirement for the Grant of the Performance-Based
Bonus (PBB) for Fiscal Year 2018" under Administrative
Order (AO) No. 25 Inter-Agency Task Force (IATF)
Memorandum Circular No. 2018-1

Concerned
concerned, attached is a copy of the Government Quality Management Committee
(GQMC) Memorandum Circular No. 2018-1 dated August 17, 2018 by the
Secretary of Department of Budget and Management (DBM), entitled "Guidelines
on the Validation of the ISO 9001:2015 Quality Management System (QMS)
Certification as a Requirement for the Grant of the FY 2018 Performance-Based
Bonus (PBB)." cSEDTC
ATTACHMENT
GOVERNMENT QUALITY MANAGEMENT COMMITTEE (GQMC)
MEMORANDUM CIRCULAR NO. 2018-1
August 17, 2018
TO : All Heads of Departments, Bureaus, Offices and Other

Agencies of the National Government, Constitutional
Commissions, Congress, the Judiciary, Office of the
Ombudsman (OMB), State Universities and Colleges (SUCs),
Government-Owned or -Controlled Corporations (GOCCs),
and Local Water Districts (LWDs)
SUBJECT : Guidelines on the Validation of the ISO 9001:2015 Quality

Management System (QMS) Certification as a Requirement
for the Grant of the FY 2018 Performance-Based Bonus
(PBB)
1.0 BACKGROUND
1.1 Administrative Order (AO) No. 25 Inter-Agency Task Force (IATF)

Memorandum Circular (MC) No. 2018-1 dated May 28, 2018 1(13) provides the
criteria and conditions for the grant of the FY 2018 PBB cycle with the pertinent
provisions as follows: AIDSTE
a) "5.0 FY 2018 GOOD GOVERNANCE CONDITIONS

(GGCs)
5.1.a Maintain/Update the agency Transparency Seal (TS)

pursuant to Section 99 of the General Provisions of the FY
2018 General Appropriations Act (GAA). The TS page
should be accessible by clicking the TS logo on the home
page. See Annex 2: Guideline on Transparency Seal for full
details of requirements, which shall include the following: x x
x
6) Quality Management System (QMS) Certification to ISO

9001:2015 issued by any of the certification bodies (CBs)
accredited by the International Accreditation Forum (IAF)
members or similar standards relating to Total Quality
Management (TQM), e.g., Philippine Quality Award,
ISO/IEC 17025, ISO 17020, and Omentum [recte: Qmentum]
Accreditation Canada, of at least one (1) core process or
frontline service. See also Section 6.3."
b) "6.0 FY 2018 PERFORMANCE TARGETS x x x
6.3 STO Target. Initial certification/Recertification of the

QMS for at least one (1) core process or frontline service as
mandated under its existing pertinent laws.
For the ISO 9001:2015 QMS certification, it must be issued

by any of the certification bodies (CBs) accredited by the
International Accreditation Forum (IAF) members.
Preferably, the CB is accredited by the Philippine
Accreditation Bureau under the Department of Trade and
Industry, which is the Philippine Accreditation Body of the
IAF. ISO 9001:2015 QMS equivalent
certifications/attestations granted by similar internationally
recognized bodies promoting Total Quality Management
(TQM) shall be considered, e.g., Philippine Quality Award,
ISO/IEC 17025, ISO 17020 and Qmentum Accreditation
Canada.
The certification must be valid until December 31, 2018 or a

later date, and must be posted in the agency TS page not later
than December 31, 2018. A certified-true copy of the
Agency's QMS Certificate/s shall be submitted to the
Government Quality Management Committee (GQMC),
through the DBM Secretariat — Systems and Productivity
Improvement Bureau, immediately after obtaining a QMS
Certificate or Recertification not later than December 31,
2018, for verification purposes. SDAaTC
For frontline agencies, it is expected that the core process

pertains to an agency process most demanded by citizens and
business and targeted for improvement under Sections 6.1
and 6.2 above."
c) "7.15 Officials and employees responsible for the

implementation of the prior years' audit recommendations,
QMS certification, or posting and dissemination of the
department/agency system of ranking performance of delivery
units, shall not be entitled to the FY 2018 PBB if the
Department/Agency fails to comply with any of these
requirements."
d) 10.6 The AO 25 IATF sets the following implementation
timeline for the FY 2018 PBB: x x x
REQUIREMENTS VALIDATING DEADLINE OF START OF

AGENCY SUBMISSION VALIDATION
Physical Targets
Support to Operations (STO)
1. QMS Certification GQMC December 31, 2018 From January 1
to 31, 2019
• Post QMS Certification
in TS page
• Submit certified true
copy of QMS certificate
to GQMC through
DBM-SPIB
(Underscoring supplied)
2.0 PURPOSE
This Memorandum Circular is issued to prescribe the guidelines on the validation

by the GQMC of the ISO 9001:2015 QMS Certification requirement for the FY 2018
PBB cycle.
3.0 COVERAGE
This Circular covers all government entities abovementioned consistent with Item
3.1 of the AO 25 IATF MC 2018-1, but subject to the provision of the separate targets
and guidelines for SUCs, GOCCs, LWDs and LGUs as stated in Items 4.2.a, 4.2.b, 4.2.c
and 4.2.d, respectively, of said MC.
4.0 GUIDELINES ON DETERMINING COMPLIANCE WITH THE ISO

9001:2015 QMS CERTIFICATION REQUIREMENT
4.1 As declared in the joint ISO/IAF Communiqué dated September 15, 2017
that all ISO 9001:2008 QMS certificates will expire and no longer valid by September 15,
2018, the Agency QMS thereafter shall be under the ISO 9001:2015 version. To level up
the establishment of QMS aligned to ISO 9001 Standard in government as required in the
past four (4) PBB cycles, only a valid ISO 9001:2015 QMS certificate is required for
the PBB 2018 grant. AaCTcI
In addition, certifications/registrations/awards 2(14) to similar standards relating

to Total Quality Management (TQM), e.g., Philippine Quality Award, ISO/IEC 17025,
ISO 17020, and Qmentum Accreditation Canada could be considered in the entitlement to
the FY 2018 PBB.
The validity of the ISO 9001:2015 QMS and TQM
Certifications/Recertifications, as indicated in the Certificate, must be until December
31, 2018 or a later date, i.e., 2019 and beyond.
4.2 The scope of the QMS indicated in the agency's ISO 9001 Certificate shall
cover at least one (1) core process or frontline service as mandated under its existing
pertinent laws.
For frontline agencies, the core process pertains to an agency process most
demanded by citizens and business and targeted for improvement under Sections 6.1 and
6.2 of the AO 25 IATF MC 2018-1.
4.3 The ISO 9001:2015 QMS certifications must be issued by any of the CBs
accredited by the IAF member.
Agencies are encouraged to have their ISO QMS certified by CBs which are duly
accredited by the DTI-PAB. The CBs contracted shall have been accredited to audit and
certify QMS for specified scope, particularly under ISO 9001 QMS for IAF 36-Public
Administration, IAF 37-Education, IAF 38-Health and Social Work, among other areas or
scope.
Pursuant to ISO/IEC 17021, 3(15) and ISO 9001 Certificate is a form of

attestation of conformity of an organization's QMS to a specific management system
standard, wherein the CB has the legal responsibility for all its certification activities.
Thus, letters of attestation issued by CBs indicating that certification/recertification audits
have been completed but subject to approval of their Certificate Decision Maker 4(16)
will not be considered as fulfilling the ISO requirements based on the AO 25 IATF MC
2018-1.
4.4 All Agency ISO 9001 QMS Certification(s)/Recertification(s) must be

posted in its TS webpage not later than December 31, 2018.
While the ISO 9001:2015 Certificate/Recertification is among the TS documents

to be posted by the Agency TS as one of the GGC requirements, whose deadline of
updating by the agencies is on October 1, 2018, the deadline of uploading the ISO
Certificate/Recertification to the Agency TS as a requirement for STO Target shall be
not later than December 31, 2018.
4.5 A certified-true copy of the Agency's ISO QMS Certificate(s) shall be

submitted to the GQMC, through the DBM Secretariat — Systems and Productivity
Improvement Bureau (SPIB), immediately after obtaining an ISO QMS Certificate or
Recertification not later than December 31, 2018, for verification purposes. acEHCD
5.0 GQMC VALIDATION RESULT
The GQMC-DBM Secretariat (SPIB) shall submit to the AO 25 IATF its findings
on the compliance of agencies with the ISO QMS-related requirement to serve as basis
for determining their eligibility to the FY 2018 PBB not later than January 31, 2019.
6.0 EFFECTS OF NON-COMPLIANCE
Officials and employees responsible for the implementation of the QMS

certification shall not be entitled to the FY 2018 PBB if the Department/Agency fails to
comply with ISO 9001:2015 Certificate requirements.
7.0 EFFECTIVITY
DEPARTMENT OF BUDGET AND MANAGEMENT
By:
(SGD.) SECRETARY BENJAMIN E. DIOKNO

Chairman
DEPARTMENT OF TRADE AND INDUSTRY
By:
(SGD.) SECRETARY RAMON M. LOPEZ

Co-Chairman
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
By:
(SGD.) OFFICER-IN-CHARGE EDUARDO M. AÑO

Member
INTERNAL AUDIT OFFICE, OFFICE OF THE PRESIDENT
By:
(SGD.) DEPUTY EXECUTIVE SECRETARY ALBERTO A. BERNARDO

Member
DEVELOPMENT ACADEMY OF THE PHILIPPINES
By:
(SGD.) PRESIDENT ENGELBERT C. CARONAN, JR.

Member
Footnotes
1. Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2018
under Executive Order (EO) No. 80, s. 2012 and EO 201, s. 2016 dated May 28,
2018.
2. Under ISO/IEC 17000 (Conformity assessment — Vocabulary and general
principles), the definitions which are essential for a proper understanding of
management system certification and accreditation are as follows:
Certification is a third-party attestation related to products, processes, systems or
persons.
Assessment is the process undertaken by an accreditation body to assess the
competence of a Conformity Assessment Body based on particular standard(s)
and/or other normative documents and for a defined scope of accreditation.
Accreditation is a third-party attestation related to a conformity assessment body
conveying formal demonstration of its competence to carry out specific
conformity assessment tasks.
Attestation is an issue of a statement, based on a decision following review, that
fulfilment of specified requirements has been demonstrated. The resulting
statement, referred to as a "statement of conformity," conveys the assurance that
the specified requirements have been fulfilled. Such an assurance does not, of
itself, afford contractual of other legal guarantees.
Registration is the other term for certification of QMS. [This is because the
process of conforming to the ISO-9001 standard concludes with a "Certificate of
Registration"
(www.pddnet.com/blog/2014/06/iso-9001-certification-vs-registration)].
3. Conformity assessment — Requirements for bodies providing audit and
certification of management systems.
4. As provided under Clause 9.5 Certification Decision of ISO/IEC 17021-1:2015
(Conformity assessment — Requirements for bodies providing audit and
certification of management systems), the CB shall ensure that the persons or
committees that make the decisions for granting or refusing certification,
expanding or reducing the scope of certification, suspending or restoring
certification, withdrawing certification or renewing certification are different
from those who carried out the audits. Moreover, the Certificate Decision Maker
may seek additional information or clarification from the audit team or other
sources during its technical review with respect to, among others, the certification
requirements, scope of certification, and the client's corrections and corrective
actions for non-conformities, if any.
(17)
August 29, 2018
SUBJECT : Publishing the Full Text of Republic Act No. 11055

Entitled "An Act Establishing the Philippine Identification
System"

Concerned
concerned, attached is the letter dated August 8, 2018 from Atty. Concepcion Zeny
E. Ferrolino-Enad, Director IV of Malacañang Records Office and a certified copy
of Republic Act No. 11055 which was approved on August 6, 2018, entitled
"AN ACT ESTABLISHING THE PHILIPPINE IDENTIFICATION
SYSTEM." aScITE
ATTACHMENTS

of the Philippines
Malacañang
Malacañang Records Office
Manila, August 8, 2018

Manila
To: All USECs/ASECs & Heads of Attached Agencies
Sir:
Republic Act No. 11055 which was approved on August 6, 2018 entitled — "AN ACT
ESTABLISHING THE PHILIPPINE IDENTIFICATION SYSTEM."
Thank you.
Very truly yours,

FERROLINO-ENAD
Director IV
Republic Act No. 11055 dated August 6, 2018
September 6, 2018
SUBJECT : Registration Requirements of Philippine Offshore Gaming

Operators and its Accredited Service Providers

Concerned
Revenue Memorandum Circular (RMC) No. 102-2017 dated December

27, 2017 was issued to clarify the taxability of Philippine Offshore Gaming
Operations (POGO) Licensee and its registration requirement with the Bureau.
However, due to different attributes of a foreign corporation, there shall be a
special implementation and administration with regard to the registration of POGO
Licensee who is a foreign corporation. DETACa
The term "Resident Foreign Corporation" applies to a foreign corporation

engaged in trade or business in the Philippines while the term "Nonresident
Foreign Corporation" applies to a foreign corporation not engaged in trade or
business in the Philippines [Sec. 22 (H) (I) of NIRC, as amended].
RMC No. 102-2017 reiterates the recognition that online activity is

sufficient to constitute doing business in the Philippines, thus, foreign corporation
engaged in POGO is considered as Resident Foreign Corporation engaged in
business in the Philippines and not a Nonresident Foreign Corporation.
This Circular is being issued to provide guidelines in the registration of

business entities and persons who will engage in the business of offshore gaming
operations, including their agents and service providers licensed and authorized by
Philippine Amusement and Gaming Corporation (PAGCOR), relative to Section II
of Revenue Memorandum Circular No. 102-2017 dated December 27, 2017.
A. Definition of Terms
For purposes of this Circular, the following terms are adapted from the
Offshore Gaming Regulatory Manual of PAGCOR dated July 03, 2018:
1. "Offshore Gaming License" is an authority granted by

PAGCOR to Philippine Offshore Gaming Operators for the
establishment, maintenance and the conduct of offshore gaming
operations in a specific site within the jurisdiction of PAGCOR.
2. "Philippine-based Operator" refers to duly constituted business

corporation organized in the Philippines who will either
conduct offshore gaming operations themselves or engage the
services of PAGCOR-accredited service providers.
3. "Foreign-based Operator" refers to duly constituted business

corporation organized in any foreign country that will engage
the services of PAGCOR-accredited local gaming agent and
service providers for its offshore gaming operations. HEITAD
4. "Philippine Offshore Gaming Operations (POGO) Licensee"

means the entity that was issued by PAGCOR an Offshore
Gaming License.
5. "POGO Hub" is a complex which houses the operations, as well

as other logistical, administrative and support services for
offshore gaming operations of PAGCOR POGO Licensees and
accredited Service Providers.
6. "Local Gaming Agent" refers to duly constituted business

enterprise organized in the Philippines or a person of good
repute and financial standing who will represent the
foreign-based operator in the Philippines.
7. "Service Provider" refers to duly constituted business

corporation organized in the Philippines who provide
components of offshore gaming operations to POGOs such as
the following:
a. Customer Relations Service Provider — refers to entities

which provide customer service to the players and cater
to their various needs through direct contact and
interaction by means of remote communication devices.
b. Strategic Support Provider — refers to entities that

develop or improve the business processes of the POGO
Licensee. These entities usually operate as the
back-office support of the POGO Licensees and do not
have direct contact with players.
c. IT Support Provider — refers to entities that provide
technical support to POGO Licensees such as but not
limited to diagnosing and solving software faults, IT
maintenance, installing and configuring computer
systems, and the placement and management of player
accounts.
d. Gaming Software Platform Provider — refers to entities

that provide propriety products either as gaining systems
such as sportsbook for Sportsbetting or games itself such
as RNG based games for E-casino.
e. Live Studio and Streaming Provider — refers to entities

that provide real time streaming of authorized gaming
activities coming from live studios and/or licensed
gaming venues via the internet to the websites of the
POGO Licensees.
f. Special Class of BPO — refers to entities that are

servicing legitimately licensed gaming operators abroad
and do not in any way handle betting but purely product
marketing and customer relations and are not servicing
any of PAGCOR POGO licensees and have at least
ninety (90%) percent Filipino workforce. aDSIHc
B. Registration Requirements of POGO Licensee
All Foreign-based and Philippine-based Operators, including those who

*(18) have already been issued an Offshore Gaming License by PAGCOR are
required to register with the Bureau of Internal Revenue on or before the
commencement of business; or before payment of any tax due; or before or upon
filing of any applicable tax return, statement or declaration as required by the Tax
Code, as amended, whichever comes earlier.
"Commencement of business" shall be reckoned from the day when the first
sale transaction occurred or within thirty (30) calendar days from the issuance of
Mayor's Permit/Professional Tax Receipt (PTR) by LGU, or Certificate of
Registration issued by the Securities and Exchange Commission (SEC), whichever
comes earlier.
B.1 Philippine-Based Operator, Foreign-Based Operator and

Service Provider
a. Place of Registration — RDO having jurisdiction over

the place where the Head Office and/or branch or POGO
Hub is located.
b. Documentary Requirements —
For Non-Individual
(1) BIR Form No. 1903;
(2) Photocopy of SEC Certificate of Incorporation; or
Photocopy of Certificate of Recording (in case of

partnership); or
Photocopy of License to Do Business in the

Philippines (in case of foreign corporation); or
In case of Foreign-based Operator who is not

required to be registered with the SEC, in lieu of
SEC License to Do Business registration:
- Photocopy of consularized Certificate of

Incorporation issued by the proper
authority in any foreign country and/or
consularized Articles of Incorporation
(AOI) (or equivalent Fact if
Establishment/Creation/Organization),
showing the address and that gaming is
one of the purpose of business; and
- Photocopy of a certification from the

Philippine Securities and Exchange
Commission that the Foreign Corporation
is or not registered to engage in business in
the Philippines; ATICcS
(3) Articles of Incorporation; or Articles of

Partnerships;
(4) Photocopy of Mayor's Business Permit; or
Duly received Application for Mayor's Business

Permit, if the former is still in process with the
LGU;
(5) Proof of Payment of Registration Fee (RF);
(7) Final & clear sample of Principal

Receipts/Invoices.
Additional documentary requirement/s, if applicable:
(1) Copy of Appointment letter of the Local Gaming

Agent;
(2) Special Power of Attorney and ID:
- If applicant/filer is the withholding agent

or local representative in the Philippines or
Local Gaming Agent:
i. Original copy of Special Power of

Attorney (SPA) or written
authorization duly executed by the
Resident Foreign Corporation
authorizing its withholding agent or
local representative in the
Philippines or Local Gaming Agent
to process the application for
registration with the BIR.
- If applicant is the local representative of

the withholding agent or Local Gaming
Agent of the Resident Foreign
Corporation:
i. Original copy of a Special Power of

Attorney (SPA) or consularized
written authorization duly executed
by the Resident Foreign
Corporation authorizing its
withholding agent or local
representative in the Philippines or
Local Gaming Agent to process the
application for registration with the
BIR. ETHIDa
ii. Original copy of Letter of
Authorization from the withholding
agent or Local Gaming Agent
authorizing the local representative
to process the application for
registration with the BIR.
The registration of Books of Accounts should be done

within thirty (30) days from the date of registration.
B.2 Local Gaming Agent
a. Place of Registration — RDO having jurisdiction over

the place where the Head Office and/or branch is
located. *(19)
b. Documentary Requirements —
For Individual —
(2) Any identification issued by an authorized

government body (e.g., Birth Certificate,
Passport, Driver's License, Community Tax
Certificate) that shows the name, address and
birthdate of the applicant;

LGU and/or
Professional Tax Receipt/Occupational Tax

Receipt issued by the LGU; or
DTI Certificate;
(4) Proof of Payment of Registration Fee (RF) (if

with existing TIN or applicable after TIN
issuance);
Receipts/Invoices. TIADCc
(1) Special Power of Attorney (SPA) and ID of

authorized person, in case of authorized
representative who will transact with the Bureau;
For Non-Individual
(2) Photocopy of SEC Certificate of Incorporation; or
Photocopy of Certificate of Recording (in case of

partnership); or
Photocopy of License to Do Business in the

Philippines (in case of foreign corporation); or
(3) Articles of Incorporation; or Articles of

Partnerships;

LGU;

Receipts/Invoices.
(1) Board Resolution indicating the name of the

authorized representative and Secretary's
Certificate or Special Power of Attorney (SPA)
and ID of authorized person, in case of authorized
representative who will transact with the Bureau;
The registration of Books of Accounts should be done

within thirty (30) days from the date of registration.
C. Transfer of Registration
In case a POGO Licensee transfers his registered address to a new location,

it shall be the duty of POGO Licensee or its Local Gaming Agent to inform the
BIR district office where the POGO Licensee is registered of such fact by filing
the prescribed BIR Form specifying therein the complete address where the POGO
Licensee intends to transfer.
D. Transitory Provisions
For purposes of this Circular, all existing POGO Licensees prior to the
issuance of this Circular shall be registered with the RDO having jurisdiction over
the place where the Head Office and/or branch or POGO Hub is located with the
following documentary requirements: cSEDTC
(2) Copy Articles of Incorporation/Partnerships or Certificate of

Incorporation issued by the proper authority in any foreign
country;
(5) Final & clear sample of Principal Receipts/Invoices.
(1) Special Power of Attorney (SPA) and ID of authorized person,

in case of authorized representative who will transact with the
Bureau;
The registration of Books of Accounts should be done within

thirty (30) days from the date of registration.

(20)
August 28, 2018

Concerned
SUBJECT : Celebration of the 29th National Statistics Month
In observance of Presidential Proclamation No. 647 (issued September

20, 1990), which declared the month of October of every year as the National
Statistics Month (NSM), the BIR will celebrate the 29th National Statistics
Month from October 1-31, 2018, which shall be focused on the theme "Exploring
Philippine Wonders in Numbers: Statistics Towards Sustainable Tourism
Development."
The celebration will pursue the following objectives: CHTAIc
a) To promote, enhance, and instill nationwide awareness and

appreciation of the importance and value of statistics to the
different sectors of society; and,
b) To elicit the cooperation and support of the general public in

upgrading the quality and standards of statistics in the country.
As the celebration of NSM is a nationwide event, all Revenue Regional and

District Offices are requested to provide their own NSM streamers that will be
displayed at the facade of their respective buildings throughout the month of
October. Revenue personnel may coordinate with the participating agencies in
their respective areas for the specific activity(ies) that they may wish to be
involved in.
Attached to this Circular are Philippine Statistical Authority Memorandum

Circular No. 2018-01 (Annex "A"), as well as the NSM streamer format (Annex
"B"), for the information and guidance of all concerned.
All Bureau offices are encouraged to actively participate in the celebration

of NSM.

ANNEX A
PHILIPPINE STATISTICS AUTHORITY
Reference No. 18SS01-119
PSA MEMORANDUM CIRCULAR NO. 2018-01
TO : The Heads of Departments, Bureaus, Offices, and

Instrumentalities of the National Government,
Government-Owned and Controlled Corporations, State
Universities and Colleges, Local Government Units, and the
Private Sector
SUBJECT : Celebration of the 29th National Statistics Month in October

2018
DATE : 10 July 2018
1. Purpose
This Memorandum Circular is issued to enjoin all agencies of the government,

local government units, academic institutions, state universities and colleges, and the
private sector at the national and subnational levels to actively participate in and support
the celebration of the 29th National Statistics Month (NSM) in October 2018. HTcADC
The annual observance of the NSM is pursuant to Presidential Proclamation No.

647, "Declaring the Month of October of Every Year as the National Statistics Month,"
issued on September 20, 1990 by then President Corazon C. Aquino.
2. Objectives
The NSM is aimed to: (a) promote, enhance, and instill nationwide awareness and
appreciation of the importance and value of statistics to the different sectors of society;
and (b) elicit the cooperation and support of the general public in upgrading the quality
and standards of statistics in the country.
3. Theme and Sub-Theme
The 29th NSM shall have the following theme:
"Exploring Philippine Wonders in Numbers:

Statistics Towards Sustainable Tourism Development"
This theme may be translated into other major Philippine dialects. Depending on
the focus and direction of its statistical activities, an agency or region may choose to have
its own sub-theme.
4. Suggested Activities
Activities in support of the NSM may be undertaken by an organization,

university/college or a region in accordance with the capabilities of the participating
units/regions. These may be in the form of symposia, workshops, orientation seminars,
exhibits, slide shows, and publication of statistical reports, indicators, and other relevant
information, among others, with particular emphasis on the theme and the
agency's/region's sub-theme, if any.
Participating organizations, universities/colleges and units of the government are

requested to display 29th NSM streamers/tarpaulin in their building facade throughout the
month of October following the prescribed streamer format. Likewise, organizations,
universities/colleges and units of the government are encouraged to post the 29th NSM
Calendar of Activities, posters, and other promotional materials provided by the 29th
NSM Secretariat on their respective websites, and disseminate printed copies of such to
their stakeholders and local official counterparts. cHDAIS
5. Coordination of Activities at the National Level
To oversee and coordinate the implementation of the various activities and

programs to be undertaken during the month-long celebration, the Steering Committee for
the 29th NSM has been established with composition as follows: CAIHTE
Chair: Philippine Statistics Authority (PSA)

Vice-Chair: Department of Tourism (DOT)
Members: Bangko Sentral ng Pilipinas (BSP)
Commission on Higher Education (CHED)
Department of Budget and Management (DBM)
Department of Education (DepEd)
Department of Environment and Natural Resources (DENR)
Department of Foreign Affairs (DFA)
Department of Health (DOH)
Department of Information and Communications Technology (DICT)
Department of the Interior and Local Government (DILG)
Department of National Defense (DND)
Department of Social Welfare and Development (DSWD)
Department of Transportation (DOTr)
Kapisanan ng mga Brodkaster ng Pilipinas (KBP)
National Economic and Development Authority (NEDA)
Presidential Communications Operations Office (PCOO)
Philippine National Volunteer Service Coordinating Agency (PNVSCA)
Philippine Statistical Association, Inc. (PSAI)
Philippine Statistical Research and Training Institute (PSRTI)
Senate Economic Planning Office (SEPO)
Technical Education and Skills Development Authority (TESDA)
Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
Tourism Promotions Board (TPB)
University of the Philippines Los Baños, Institute of Statistics (UPLB INSTAT)
University of the Philippines School of Statistics (UPSS)
The Committee shall be chaired by the PSA and vice-chaired by the DOT, the
29th NSM host. Various subcommittees with specific terms of reference shall also be
established. The PSA technical staff shall serve as secretariat to the Steering Committee
and subcommittees.
6. Coordination of Activities at the Local Level
For the regional NSM celebration, the Regional Statistics Committees (RSCs) are
hereby designated as the coordinating bodies for all NSM activities. The PSA Regional
Statistical Services Offices (RSSOs) shall provide technical and administrative support to
their respective RSCs. EATCcI
7. Fund Contribution
The participating agencies/organizations in the NSM celebration are requested to

earmark funds for their respective activities as well as for common NSM activities. While
funds of participating agencies for their own celebration shall come from their respective
agencies/organizations, the funds for major NSM activities such as interagency forum,
publicity and promotional materials, and other activities shall be sought from
contributions of participating agencies and other possible donors, subject to existing
accounting and auditing rules and regulations of the Commission on Audit (COA). Each
agency shall be requested to contribute at least Fifteen Thousand Pesos
(PhP15,000.00) and the PSA is hereby designated to administer the NSM funds.
Funds needed for the national 29th NSM Opening Ceremony shall be provided by
the host agency, DOT.
8. Submission of Agency Activities

All concerned are hereby urged to cooperate in ensuring the attainment of the
objectives of the NSM. National line agencies are enjoined to issue special
orders/circulars to solicit the participation of their field/local offices/bureaus/attached
agencies in the celebration of the NSM. Administrators of state universities and colleges
are encouraged to issue announcements relating to the 29th NSM celebration to the
faculty and students. Private sector organizations, on the other hand, are encouraged to
take part and cooperate in the conduct of the various interagency NSM activities and
coordinate organization-wide activities aiming at improving statistical knowledge and
awareness. Whenever necessary, the PSA Undersecretary shall issue additional guidelines
for the successful conduct of the event.
(SGD.) ERNESTO M. PERNIA, Ph.D.

Socioeconomic Planning Secretary
and Chairperson, PSA Board
Attested by:
(SGD.) LISA GRACE S. BERSALES, Ph.D.

Undersecretary
National Statistician and Civil Registrar General
and Chairperson, 29th NSM Steering Committee
ANNEX B
NSM Streamer Format
August 30, 2018
SUBJECT : Loss of Several Accountable Forms

Concerned
Notice is hereby given of the loss of the accountable forms hereunder listed
together with other pertinent information, to wit:
Accountable Form Serial Number Missing Copy/Set

BIR Form No. 1966 eLA201100011463 3 triplicate copies
(Electronic Letter of Authority) eLA201100011465 (used/issued)
eLA201100011466
BIR Form No. 0535 TIS201400261182 1 set
(Taxpayer Information Sheet) (unused/unissued)
The abovementioned forms were reported as lost by Ms. Jeanifer B. Tano,

Revenue Officer, Revenue District Office No. 101, Revenue Region No. 16,
Cagayan de Oro City. Consequently, the three (3) triplicate copies of the
used/issued Electronic Letter of Authority should be verified if found and the one
(1) set of unused/unissued Taxpayer Information Sheet is hereby cancelled. All
official transactions involving the use thereof are considered as INVALID. SDAaTC

use of the same.

Deputy Commissioner
September 5, 2018
SUBJECT : The Mandatory Statutory Requirement and Function of a

Letter of Authority
This Circular is being issued to highlight the doctrinal rule enunciated by

the Supreme Court in the case of "Medicard Philippines, Inc. vs. Commissioner of
Internal Revenue" (G.R. No. 222743, 05 April 2017) on the mandatory statutory
requirement of a Letter of Authority (LOA), for the guidance of all concerned,
particularly internal revenue officers tasked with assessment and collection
functions and review of disputed assessments. AaCTcI
The judicial ruling, invoking a specific statutory mandate, states that no

assessments can be issued or no assessment functions or proceedings can be done
without the prior approval and authorization of the Commissioner of Internal
Revenue (CIR) or his duly authorized representative, through an LOA. The
concept of an LOA is therefore clear and unequivocal. Any tax assessment issued
without an LOA is a violation of the taxpayer's right to due process and is
therefore "inescapably void."
The Court further emphatically clarified that:
1. The circumstances contemplated under Section 6 of the

National Internal Revenue Code (NIRC), as amended, "where
the taxpayer may be assessed through best evidence obtainable,
inventory-taking or surveillance, among others, have nothing to
do with the LOA. These are simply methods of examining the
taxpayer in order to arrive at the correct amount of taxes. Hence
unless undertaken by the CIR himself or his duly authorized
representatives, other tax agents may not validly conduct any of
these kinds of examinations without prior authority." acEHCD
2. A Letter Notice (LN) "is entirely different and serves a different

purpose than an LOA." It is not found in the NIRC and is not an
authority to conduct an audit or examination of the taxpayer
leading to the issuance of deficiency assessments. Due process
demands that after an LN has served its purpose, the revenue
officer should have properly secured an LOA before proceeding
with the further examination and assessment of taxpayer.
To help forestall any unnecessary controversy and to encourage due

observance of the judicial pronouncements, any examiner or revenue officer
initiating tax assessments or performing assessment functions without an LOA
shall be subject to appropriate administrative sanctions.
The provisions of any internal revenue issuance inconsistent herewith are

hereby repealed, amended or modified accordingly. EcTCAD
All internal revenue officials and employees concerned are hereby enjoined

August 30, 2018
SUBJECT : Missing Original Copy from One (1) Unused Set of BIR
Form No. 2524 — Revenue Official Receipt

Concerned
Notice is hereby given of the missing original copy from one (1) unused set
of BIR Form No. 2524 — Revenue Official Receipt (ROR) with the hereunder
stated serial number, to wit: SDHTEC
ROR201400520315
The abovementioned copy was reported missing by Ms. Mariel Ann T.

Guinoo, Revenue Officer I, Revenue District Office No. 90, Revenue Region No.
14, Government Center, Palo, Leyte. Consequently, the entire ROR set bearing the
said serial number is hereby cancelled. All official transactions involving the use
thereof is therefore considered as INVALID.

the same.

Deputy Commissioner
(21)
August 31, 2018
SUBJECT : Circularizing the Availability of the New BIR Form Nos.

0619-E [Monthly Remittance Form of Creditable Income
Taxes Withheld (Expanded)] and 0619-F (Monthly
Remittance Form of Final Income Taxes Withheld) both
January 2018 Version

Concerned
This Circular is issued to prescribe the following new BIR forms: DETACa
BIR
BIR Form Name Due Date
Form No.
0619-E Monthly Remittance Form for For Non-eFPS taxpayers: on or before
Creditable Income Taxes the 10th day of the following month in
Withheld (Expanded) (refer to which withholding was made; For eFPS
Annex "A" hereof) taxpayers: on or before the 15th day of
0619-F Monthly Remittance Form of the following month, depending on the
Final Income Taxes Withheld industry grouping as set forth in RR No.
(refer to Annex "B" hereof) 26-2002
The abovementioned BIR forms are already available and shall be used by
the withholding agent in remitting the withholding tax of the first (2) two months
of every calendar quarter. HEITAD
Below are the prescribed manners for the filing of the aforesaid forms:
A. Manual Forms
1. Download the new remittance forms (BIR Form Nos.

0619-E and 0619-F) from the BIR website
(www.bir.gov.ph) under the BIR
Forms-Payment/Remittance Forms section. Print the
forms and fill out the applicable items/fields.
2. Remittance of the withholding tax due thereon shall be

made thru:
• Over-the-counter of the Authorized Agent

Bank (AAB) located within the territorial
jurisdiction of the Revenue District Office
(RDO) where the taxpayer is registered.
• In places where there are no AABs, the

return shall be filed and the tax due shall
be remitted with the concerned Revenue
Collection Officer (RCO), thru the mobile
revenue collection officers system
(MRCOS) facility, under the jurisdiction of
the RDO.
b. Online Payment/Remittance — aDSIHc
• Landbank of the Philippines (LBP)

Linkbiz Portal, for taxpayers who have
ATM account with LBP and/or holders of
Bancnet ATM/Debit Card.
• Development Bank of the Philippines

(DBP) Tax Online, for holders of
VISA/Master Credit Card and/or Bancnet
ATM/Debit.
In case the manual filer has no withholding tax due for

the month, taxpayer is still required to file and follow the
existing procedure for "No Payment," which is to file
thru the use of eBIRForms. Use the BIR Form No.
0619-E or 0619-F loaded in the Offline eBIRForms
Package v7.1 to file with no remittance.
B. Electronic Bureau of Internal Revenue Forms (eBIRForms)
1. The new remittance forms are already available in the

Offline eBIRForms Package v7.1.
2. eBIRForms filers shall use the new remittance forms in

filing and remitting the monthly withholding tax due.
This shall also be used in filing "No Payment" in case
manual filer has no withholding tax due for the month.
ATICcS
3. Remittance of the withholding tax due, if any, shall be

made thru:
• Over-the-counter of the AAB located

within the territorial jurisdiction of the
RDO where the taxpayer is registered.

be remitted with the concerned RCO, thru
the MRCOS facility, under the jurisdiction
of the RDO.
b. Online Payment/Remittance — ETHIDa
• LBP Linkbiz Portal, for taxpayers who

have ATM account with LBP and/or
holders of Bancnet ATM/Debit Card.
• DBP Tax Online, for holders of

ATM/Debit.
C. Electronic Filing and Payment System (eFPS)
1. The new remittance forms are already available in the

eFPS.
2. The eFPS filers shall use the new remittance forms in

filing and remitting the monthly withholding tax due.
This shall also be used in filing "No Payment" in case
eFPS filers has no withholding tax due for the month.
3. After efiling, proceed to online payment/remittance by

clicking the proceed to payment button and remit the
withholding tax due, if any.
With regard to the filing and remittance of final income taxes withheld
using BIR Form No. 0619-F, taxpayers shall use the following tax type and the
corresponding alphanumeric tax code (ATC): TIADCc
Tax Type ATC Description Code

Code
WB WMF10 Remittance of Final Income Taxes Withheld
on Interest Paid on Deposits and Yield on
Deposit Substitutes/Trusts/Etc.
WF WMF20 Remittance of Final Income Taxes Withheld
on Other Final Income Taxes
In case taxpayer shall remit both type of withholding taxes, he/she shall file
two (2) BIR Form No. 0619-F to cover both remittances of withholding taxes.
as possible.

ANNEX A
BIR Form No. 0619-E (January 2018)

Monthly Remittance Form
of Creditable Income Taxes Withheld (Expanded)
ANNEX B
BIR Form No. 0619-F (January 2018)

Monthly Remittance Form
of Final Income Taxes Withheld
(22)
June 18, 2018
SUBJECT : Validation of Sales Generated from Point of Sale

(POS)/Cash Register Machines (CRM)/Special Purpose
Machines (SPM)/Other Sales Receipting System Software,
Receipting/Invoicing of Computerized Accounting System
(CAS), including Online Sales Transactions and from
Manual Invoices/Receipts/Supplemental Commercial
Documents
In line with the Bureau's continuing efforts to improve taxpayers' voluntary

compliance and increase revenue collections, there is a need to strengthen
enforcement capabilities through effective monitoring and validation of accuracy
of sales declaration generated from Point of Sale (POS)/Cash Register Machines
(CRM)/Special Purpose Machines (SPM)/Other Sales Receipting System
Software, Receipting/Invoicing of Computerized Accounting System (CAS),
including online sales transactions and from manual
invoices/receipts/supplemental commercial documents. HTcADC
Thus, pursuant to the provisions of Section 6 of the Tax Code as

amended, and in conformity with Revenue Memorandum Order (RMO) No.
15-2018 (Policies, Guidelines and Procedures on the Implementation of the
Post Evaluation of the CRM, POS and Other Sales Receipting System Software,
including the extraction of data from Electronic Sales (eSales) Journal and
Z-Reading), Revenue Memorandum Circular (RMC) No. 91-2017
(Implementation of the Nationwide Z-Reading and Post-Evaluation of Cash
Register Machine (CRM), Point-of-Sale (POS) Machine and Other Sales
Receipting System Software), RMO No. 9-2006 (Prescribing the Guidelines
and Procedures in the Conduct of Tax Compliance Verification Drive (TCVD) and
RMO No. 3-2009 (Amendment and Consolidation of the Guidelines in the
Conduct of Surveillance and Stock-Taking Activities, and the Implementation of
the Administrative Sanction of Suspension and Temporary Closure of Business),
this Circular is hereby issued to reiterate/supplement the existing policies,
guidelines and procedures relative to the validation and monitoring of sales
declaration of taxpayers, as follows:
1. Post Evaluation of POS/CRM/SPM/Other Sales Receipting

System Software, including Receipting/Invoicing of
Computerized Accounting System (CAS) may be conducted
simultaneously with other enforcement activities such as
TCVD, Surveillance, Inventory Stocktaking and
Audit/Investigation.
2. Inventory of all POS/CRM/SPM and other receipting

machines/software, whether used for issuance of invoices or for
internal control purposes shall be taken, matched and reconciled
with the list from the BIR database. For this purpose, a Post
Evaluation Guide (PEG) Form (Annex B of RMO 15-2018)
shall be accomplished for every machine. The Post Evaluation
Kit shall contain a pre-filled up PEG Form for every registered
machine, with information based on the Business Intelligence
Division (BID) data such as Tax Identification Number (TIN),
Branch Code, Machine Identification Number (MIN), Permit to
Use (PTU), and Serial Number (SN), as well as blank PEG
Forms for unregistered machines. CAIHTE
Based on the duly accomplished PEG Forms, a listing of

matched and unmatched machines shall be prepared in the
format prescribed under the following Annexes:
2.1 List of Matched POS/CRM/SPM per BIR's Database vs.

Physical Inventory (Annex "A") — machines that are
both in the BIR list (prefilled up PEG Form) and the
taxpayer's premises.
2.2 List of Unmatched POS/CRM/SPM:
2.2.1 List of POS/CRM/SPM that are Physically in the

Taxpayer's Premises but NOT in the BIR's List
(Annex "B.1");
2.2.2 List of POS/CRM/SPM that are NOT Physically

in the Taxpayer's Premises but in the BIR List
(Annex "B.2"); and
2.2.3 Summary of Findings/Observations (Annex

"B.3").
The list of matched and unmatched POS/CRM/SPM and

other receipting machines/software shall be prepared on
the first day of the Post Evaluation to be duly signed and
acknowledged by the responsible officer of the
company.
The taxpayer shall reconcile and explain in writing the

discrepancy and account for the unmatched
POS/CRM/SPM and other receipting machines/software
within five (5) days from receipt of Letter Notice
(Annex "C") accompanied by the list of unmatched
POS/CRM/SPM and duly accomplished PEG Forms.
3. The Service Provider/Supplier/Contractor/Developer of

machines/software/systems subjected to Post Evaluation shall
assist in the extraction of sales data and/or Z-reading as
required by the BIR/taxpayer. Generation of Z-Reading and
Electronic Sales Journal (e-Journal) per machine shall be
performed simultaneously with the conduct of physical
inventory of machines. aScITE
The taxpayer shall submit the extracted Z-Reading and

e-Journal not later than the second day of the Post-Evaluation.
This shall cover the beginning and ending Z-Readings/e-Journal
for the period indicated in the Mission Order.
4. Sales data shall be validated and extracted from all sources such
as, but not limited to the following:
4.1 CRM/POS/Other Sales Receipting Software and CAS

consisting of Z-Reading, e-Journal, Back-end Reports
from the stand-alone system, server, middleware or
consolidator depending on the system/software set-up.
This shall also include sales from online transactions,
unmanned bill, coin or token operated machines,
unregistered machines used to record sales transactions
and defective/damaged machines which were not
reported or with pending application for cancellation
with the concerned LTS-Office/Division/LTDO/RDO.
In case of unregistered machines, the Revenue Officer

shall issue an apprehension slip and immediately seal the
machines after the extraction of sales data. However,
upon registration thereof and payment of related
deficiency taxes including penalties, these machines can
be unsealed upon the approval of the concerned LT
Audit Division/RDO.
For machines that are subject of application for

withdrawal from its use due to retirement or sale, repair,
upgrade, modification and transfer, immediate
verification and conduct of Z-Reading thereof, shall be
done to ensure that all the sales data registered in the
machine up to the last day it was used are properly
recorded for internal revenue purposes. This shall cover
the beginning and ending Z-Readings to get the
monthly/quarterly/annual sales for the current and prior
years for which the BIR's right to assess has not yet
prescribed. Upon approval of the inspection and
evaluation report by the ACIR-LTS/LTDO/RDO, the
machine shall be reset to zero.
For machines that are in different locations/branches, the

inspection may be undertaken at a designated place duly
agreed upon by the taxpayer and the BIR. DETACa
In case the BIR representative/s is/are not available to

inspect the machine/s applied for withdrawal from use
due to repair, upgrade or modification on the date
requested by the taxpayer, the ACIR-LTS/LTDO/RDO
shall issue a Notice to the Taxpayer that in lieu of
inspection of machines, a Joint Sworn Statement shall be
executed by the taxpayer-user and the
supplier/provider/person who made the
repair/upgrade/modification which shall include the
following:
4.1.1 Salient information of the sales machine being

subjected for cancellation of its Permit to Use
(PTU), such as but not limited to:
a. PTU Number;
b. Machine Identification Number (MIN), if

applicable;
c. Type of Machine;
d. Machine Brand and/or Model, if

applicable;
e. Software Name and Version Number

including the Release Number, if any; and
f. Machine Serial Number.
4.1.2 Z-Reading/Periodic Reading in hard and soft copy

(CD-R/DVD-R properly labeled), e-Journal
and/or back-end report in text file format stored in
CD-R/DVD-R (beginning and ending to get the
monthly/quarterly/annual sales) for the current
and immediately three (3) preceding years. The
sales data reading must be duly signed by the
taxpayer-user and/or authorized representative.
This shall be attached to the Sworn Statement;
4.1.3 Statement of non-suppression of sales during

machine repair, upgrading, modification,
reconfiguration and sales data extraction either
through Z-Reading, e-Journal and/or back-end
report;
4.1.4 It is signed under the penalty of perjury;
4.1.5 The supplier/provider and taxpayer-user shall

submit a consolidated Z-Reading, e-Journal,
back-end reports and other reports, such as but
not limited to, Void/Cancelled/Return/Refund and
SC/PWD Reports, whichever is applicable, from
all machines subject to withdrawal from use due
to repair, upgrade, and modification, for
reference, record purposes and data matching
with eSales Report which shall be attached as a
separate Annex, if applicable. HEITAD
In order to authorize the simultaneous registration of the

new accredited software or upgrade of software to be
installed in the same machine with application for
cancellation of the old software, the taxpayer shall
secure approval from the concerned
LTS-Office/Division/LTDO/RDO to add a distinct
prefix/suffix to the serial number of the sales machine to
allow registration of the new software consisting of
serial number of machine followed by prefix/suffix e.g.,
123456A.
Once the application for cancellation of the old software

is approved, it is mandatory that the required sales data
extraction as provided herein shall be accomplished
before setting the machine reading to "zero" and
cancellation of PTU in the eAccReg by the concerned
office.
4.2 Sales book/accounting records and manual

invoices/receipts including unregistered/expired
receipts/invoices/records, if any. This shall cover other
commercial documents/accounting records that may
affect or adjust the sales, e.g., credit/debit
memos/cancelled sales invoices/receipts/delivery
receipts, order slips and other supplemental documents.
4.3 All SPMs used for supplementary invoicing/receipting

such as collection/acknowledgement receipt or bills
payment without corresponding principal
invoice/receipt.
5. Subpoena Duces Tecum (SDT) shall be issued to compel

submission/presentation of documents/machines not yet
available after the required compliance date;
6. Failure to comply with the SDT herein issued shall warrant the
use of "Best Evidence Obtainable Rule" for
unregistered/unaccounted/missing/lost sales machines or
manual receipts/invoices and simultaneously refer the SDT to
the Prosecution/Legal Division for filing of a criminal case on
failure to obey subpoena.
In such a case, the total sales generated from all the existing
machines of a particular head office or branch shall be divided
over the number of existing machines for a particular period to
get the average monthly sales per machine of the head office or
a particular branch where the machines are registered or any
other basis deemed appropriate may be used under the Best
Evidence Obtainable Rule. aDSIHc
Example:
Branch A has 100 machines per BIR list, however, upon Post
Evaluation there were only 80 machines found with equivalent
total sales of P80 million for the first quarter of 2018.
Computation of Average Daily Sales per Machine:
P80 M Total Sales/80 machines = P1 M per machine/90 days

Average Daily Sales per Machine = P11,111
Computation of Quarterly Sales of the missing machines:
= 20 machines X P11,111 X 90 days

= P20 M
7. Reconciliation of the taxpayer's extracted data

(Z-Reading/e-Journal) from POS/CRM/SPM/Other Sales
Receipting Systems/Software, including Receipting/Invoicing
of CAS against the list of sales data provided by the BID. Sales
derived from Z-Reading per machine shall be summarized by
the team and compared with eSales and e-Journal.
eSales is a real time reporting online of actual sales transactions

recorded by CRM/POS/SPM, or other sales machines and/or
software. If the amount extracted from the e-journal is higher
than the reported eSales, it shall render the taxpayer liable for
under declaration of sales. On the other hand, if the e-journal
amount is less than the reported eSales, the violation is
equivalent to non-issuance of sales invoice or receipt; or
issuance of an unregistered receipt, which shall be dealt with in
accordance with Sec. 264 of the NIRC of 1997, as amended.
A back-end report shall be extracted and jointly signed by the

taxpayer user/provider and the Revenue Officer to cover the
following items for sales reconciliation purposes:
a. Void/Cancelled/Return/Refund items/Receipts/Invoices;
b. Sales to Senior Citizens (SC) and Persons with

Disability (PWD); and
c. Regular/Other discounts.
8. The sales data from all sources including but not limited to
manually issued invoices/receipts, and other records that affect
sales/receipts shall be on a monthly/quarterly basis for
comparison with the taxpayer's sales declaration in the VAT
Returns/Income Tax Returns/eSales Reports/Summary List of
Sales and data analysis using Computer Assisted Audit Tools
and Techniques (CAATTs). ATICcS
PENALTY PROVISIONS:
1. Republic Act No. 10963 (TRAIN Law):
"Section 264-A. Failure to transmit Sales Data Entered on

Cash Register Machine (CRM)/Point-of-Sales System (POS) Machines to
the BIR's Electronic Sales Reporting System. — Any taxpayer required to
transmit sales data to the Bureau's electronic sales reporting system but fails
to do so, shall pay for each day of violation, penalty amounting to one-tenth
of one percent (1/10 of 1%) of the annual net income as reflected in the
taxpayer's audited financial statement for the second year preceding the
current taxable year for each day of violation or Ten Thousand Pesos
(P10,000), whichever is higher: Provided, That should the aggregate
number of days of violation exceed one hundred eighty (180) days within a
taxable year, an additional penalty of permanent closure of the taxpayer
shall be imposed: Provided further, That if the failure to transmit is due to
force majeure or any causes beyond the control of the taxpayer the penalty
shall not apply.
Section 2.64-B. Purchase, Use, Possession, Sale or Offer to

Sell, Installment, Transfer, Update, Upgrade, Keeping or Maintaining of
Sales Suppression Devices. — Any person who shall purchase, use, possess,
sell or offer to sell, install, transfer, update, upgrade, keep, or maintain any
software or device designed for, or is capable of: (a) suppressing the
creation of electronic records of sale of transactions that a taxpayer is
required to keep under existing tax laws and/or regulations; or (b)
modifying, hiding, or deleting electronic records of sales transactions and
providing a ready means of access to them, shall be punished by a fine of not
less than Five hundred thousand pesos (P500,000) but not more than Ten
million pesos (P10,000,000), and suffer imprisonment of not less than two
(2) years but not more than four (4) years: Provided, That a cumulative
suppression of electronic sales record in excess of the amount of Fifty
million pesos (P50,000,000) shall be considered as economic sabotage and
shall be punished in the maximum penalty provided under this provision."
2. National Internal Revenue Code (NIRC) of 1997:
"SEC. 250. Failure to File Certain Information Returns. — In the

case of each failure to file an information return, statement or list, or keep
any record, or supply any information required by this Code or by the
Commissioner on the date prescribed therefor, unless it is shown that such
failure is due to reasonable cause and not to willful neglect, there shall,
upon notice and demand by the Commissioner, be paid by the person failing
to file, keep or supply the same, One thousand pesos (1,000) for each
failure: Provided, however, That the aggregate amount to be imposed for all
such failures during a calendar year shall not exceed Twenty-five thousand
pesos (P25,000)."
3. RMO No. 7-2015 (The Revised Consolidated Schedule of

Compromise Penalties for Violations of the National Internal Revenue Code). ETHIDa
4. Sanctions as provided under RMO No. 12-2012, RMO 10-2005,

RMO 21-2015 and RMC No. 71-2003 for the revocation of the
Permit to Use/Certificate of Accreditation due to violations committed by the
taxpayer.
The pertinent provisions of the Sworn Statements required to be submitted

by all Authorized Users and/or Authorized Representatives of taxpayers with
POS/CRM/Sales Receipting Software/Computerized Accounting System and/or
any other similar business machines, all suppliers including pseudo-suppliers of
sales machines and/or sales receipting system, and printers when they apply for
Permit to Use/Accreditation are quoted herein as follows:
"That in the event that the foregoing be discovered to be in violation of

existing rules and regulations, I hereby undertake to face any legal
sanctions and pay corresponding penalties thereof as provided for National
Internal Revenue Code of 1997."
Such Sworn Statements shall serve as one of the justifications for the
bureau to enforce the corresponding sanctions and penalties.
These additional guidelines clarify the existing issuances in order to

establish a standard monitoring mechanism that will enhance voluntary
compliance.

ANNEX A
List of Matched POS/CRM/SPM per BIR's Database vs. Physical Inventory

(Machines that are both in the BIR's database and in the taxpayer's premises)
LTS/RDO _____________________________
NAME OF TAXPAYER : _______________________________________________________

TIN : _______________________________________________________
BRANCH CODE : _______________________________________________________
ADDRESS : _______________________________________________________
Sequence Machine Type Machine Machine Identification Number Permit to Use (PTU) Nu
No. (POS/CRM/SPM) Serial (MIN)
Number PER BIR'S PER PHYSICAL PER BIR'S
DATABASE INVENTORY DATABASE
1 POS 11224548 12345678901 12345678901 FP-234-116-56784-24500
2 CRM 11543635 34675845678 34675845678 FP-320-116-56785-15005
3 SPM 78545632 N/A N/A SPM-116-2347
_______________________________________ _________________________________
Taxpayer/Authorized Representative Team Head
(Signature over printed name) (Signature over printed name)
ANNEX B.1
List of POS/CRM/SPM that are Physically in the Taxpayer's Premises

But Not in the BIR's List (BID/NODC/RDC)
LTS/RDO _____________________________
NAME OF TAXPAYER : _______________________________________________________

TIN : _______________________________________________________
BRANCH CODE : _______________________________________________________
ADDRESS : _______________________________________________________
1. With Permit to Use (PTU)

Sequence Machine Type Machine Machine Identification Number Permit to Use (PTU) Nu
No. (POS/CRM/SPM) Serial (MIN)
Number PER PHYSICAL PER BIR'S PER PHYSICAL
INVENTORY DATABASE INVENTORY
1 POS 11224548 12345678901 FP-234-116-56784-24500
2 CRM 11543635 56987456789 FP-345-116-56765-15023
3 SPM 78545632 N/A SPM-116-5678
2. Without Permit to Use (PTU)

Sequence Machine Type Machine Serial Number Remarks
No. (POS/CRM/SPM)
1 POS 11224548
2 CRM 11543635
3 SPM 78545632
_______________________________________ _________________________________
ANNEX B.2
List of POS/CRM/SPM that are not Physically in the Taxpayer's Premises

But in the BIR's List (BID/NODC/RDC)
LTS/RDO _____________________________
NAME OF TAXPAYER : _______________________________________________________

TIN : _______________________________________________________
BRANCH CODE : _______________________________________________________
ADDRESS : _______________________________________________________
Per BIR List
Sequence Machine Type Machine Identification Number Permit to Use (PTU) Number
No. (POS/CRM/SPM) (MIN)
PER BIR'S DATABASE PER BIR'S DATABASE
1 POS 12345678901 FP-234-116-56784-24500
2 CRM 56987456789 FP-345-116-56765-15023
3 SPM N/A SPM-116-5678
_______________________________________ _________________________________
ANNEX B.3
Summary of Findings/Observations
LTS/RDO _____________________________
NAME OF TAXPAYER : _______________________________________________________

TIN : _______________________________________________________
BRANCH CODE : _______________________________________________________
ADDRESS : _______________________________________________________
A. Machines with Permit to Use (PTU) per BIR List
Sequence Machine Type Machine Serial Number Machine Identification Number Permit to Use (PTU) N
B. Machines with Permit to Use (PTU) but not Included in the BIR List
Sequence Machine Type Machine Serial Number Machine Identification Number Permit to Use (PTU) N
C. Machines without Permit to Use (PTU) and not Included in the BIR List
Sequence Machine Type Machine Serial Number Remarks

No. (POS/CRM/SPM)
D. Other Findings
1. _______________________________________________________________________________
2. _______________________________________________________________________________
3. _______________________________________________________________________________
______________________________________ ______________________________
ANNEX C
Letter Notice
Date ______________
______________________________
______________________________
______________________________
Attention: ___________________________
(Position)
Sir/Madam:
In connection with the inventory of all POS/CRM/SPM and other receipting

machines/software at your (branch no. and location) taken on (date) by the undersigned
pursuant to Mission Order No. _____________________ dated ______________, please
be informed that there are unmatched machines found (Machines that are physically in
the taxpayer's premises but not in the BIR list, machines that are not physically in the
taxpayer's premises but in the BIR list and other findings related to the activity. Please
see attached lists together with the corresponding Post Evaluation Guide Forms which
you have duly signed and acknowledged. TIADCc
In view thereof, you are hereby requested to reconcile and explain in writing the
discrepancy and account for the unmatched POS/CRM/SPM and other receipting
machines/software within five (5) days from receipt of this letter. Otherwise, we shall be
constrained to recommend the issuance of a Subpoena Duces Tecum (SDT).
For your compliance and guidance.
Very truly yours,
____________________________
Concerned Officer
(Signature over printed name)
(23)
August 20, 2018

Concerned
SUBJECT : Celebration of the 16th Anniversary of the Development

Policy Research Month
Proclamation No. 247 *(24) issued on September 2, 2002, has declared the
month of September of every year as the Development Policy Research Month
(DPRM). For 2018, the theme is "Harnessing the Fourth Industrial Revolution:
Creating Our Future Today" or "Isulong ang Fourth Industrial Revolution
Tungo sa Katuparan ng ating Kinabukasan Ngayon." The objective of this
year's celebration is to promote greater awareness and deeper understanding of the
potential impact of modern technologies on the patterns of production,
consumption, employment, and governance in the Philippines. HSAcaE
All agencies of the government and their respective regions/field offices are
enjoined to participate and support the celebration through organizing activities or
events that may have relevance on the importance of critical thinking and the
formulation of appropriate policy interventions to advance development in the
regions.
All Regional and District Offices *(25) are requested to provide their own
DPRM streamer to be displayed at their building façade throughout the month of
September. They may also coordinate with other agencies in their respective areas
for any specific activity that they may want to. *(26)
Attached is the letter of the Philippine Institute for Development Studies

(PIDS) which details *(27) the activities for the DPRM celebration as well as the
format of the DPRM streamer.
All concerned are hereby encouraged to participate in the said activity and
give this Circular a wide publicity as possible.

ATTACHMENTS
Philippine Institute for Development Studies

Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas
18th Floor, Three Cyberpod Centris-North Tower,
EDSA corner Quezon Avenue, Quezon City
Tel: 877-4000, 372-1291, 372-1292 • http://www.pids.gov.ph
July 12, 2018
MR. CAESAR R. DULAY

Commissioner
Bureau of Internal Revenue (BIR)
BIR National Office Building
BIR Road, Diliman, Quezon City
Dear Mr. Dulay:
Greetings from the Philippine Institute for Development Studies (PIDS)! AScHCD
Per Malacañang Proclamation No. 247 dated September 02, 2002, the month of
September of every year is declared as Development Policy Research Month (DPRM)
to promote and draw nationwide awareness on the importance of policy research in the
formulation of national development plans, programs, and policies.
We shall be celebrating the DPRM once more this coming September. The theme
of this year's celebration is "Harnessing the Fourth Industrial Revolution: Creating
Our Future Today." Its Filipino version is "Isulong ang Fourth Industrial Revolution
Tungo sa Katuparan ng Ating Kinabukasan Ngayon." We chose this theme to highlight
the potential impacts of automation and other modern advancements in science and
technology and how we can harness these to the Philippines' advantage, not just in terms
of improving the country's economic competitiveness but also in terms of making
progress both sustainable and inclusive.
PIDS, as the agency designated to lead and coordinate the yearly observance of
the DPRM, hereby invites your agency/institution to participate in this year's celebration
by:
1. Prominently displaying the DPRM banner/streamer within your

institution's premises. Please see the attached file for the design and
specifications. The banner template may be accessed at this link:
http://bit.ly/dprm2018. You are free to choose between the English
and the Filipino version depending on your office's/locality's
language preference. For inquiries regarding the banner, please
contact Gizelle Manuel at gmanuel@mail.pids.gov.ph.
2. Publishing announcements and articles about the DPRM and its
theme in your publications, website, social media accounts, and other
dissemination outlets. You may re-share DPRM materials produced
by PIDS, such as press releases, announcements, videos, and social
media posts, which will be made available on the DPRM website
(http://dprm.pids.gov.ph) and PIDS social media
(https://www.facebook.com/PIDS.PH/ and
https://twitter.com/PIDS_PH).
3. Organizing activities or events that may be relevant to the theme or

to policy research. If you have any of such activities/events, please
e-mail the details to Ms. Viveka Miguel at
VMiguel@mail.pids.gov.ph so that we can include them in the List
of Activities/Events for DPRM 2018 which will be posted on the
DPRM website. HESIcT
We thank you for your continued support to PIDS and the DPRM. We look
forward to hearing from you soon.
With our best regards.
Very truly yours,
(SGD.) CELIA M. REYES

President
Proclamation No. 247 dated September 2, 2002
Harnessing the Fourth Industrial Revolution:

Creating Our Future Today
(28)
July 31, 2018
SUBJECT : Revision of BIR Form No. 1306, Declaration of Forfeiture

of Real Property and the Affidavit of Consolidation of Title
of Absolutely Forfeited Property in Favor of the Republic
of the Philippines
This Circular is hereby issued for the information and guidance of all
concerned on the revised format of the BIR Form No. 1306 "Declaration of
Forfeiture of Real Property" (Annex A) for want of bidder or insufficient
consideration on the public auction sale relative to the seized real property of the
delinquent taxpayer pursuant to Section 215 of the National Internal Revenue
Code of 1997, as amended. HSAcaE
Likewise, the form "Consolidation of Title of Absolutely Forfeited Property

in Favor of the Republic of the Philippines" (Annex B) relative to the transfer of
the title to the Republic of the Philippines of the absolutely forfeited real
properties is hereby revised.

ANNEX A
BIR Form No. 1306

Declaration of Forfeiture of Real Property
ANNEX B
Consolidation of Title of Absolutely Forfeited Property

in Favor of the Republic of the Philippines
(29)
August 1, 2018
SUBJECT : Publishing the Full Text of the Inter-Agency Task Force

(IATF) Circular Letter No. 2018-8, dated July 30, 2018 —
Prescribing Guidelines on the Conduct of Early
Procurement for the Fiscal Year (FY) 2019 National
Expenditure Program (NEP)
TO : All Revenue Officials, Employees and Others Concerned
concerned, attached is a copy of the AO 25 Inter-Agency Task Force (IATF)
Circular Letter No. 2018-8, dated July 30, 2018 — Prescribing Guidelines on the
Conduct of Early Procurement for the Fiscal Year (FY) 2019 National Expenditure
Program (NEP). SDHTEC

ATTACHMENT
July 30, 2018
DBM CIRCULAR LETTER NO. 08-18
TO : All Heads of Departments/Agencies/State Universities and

Colleges (SUCs) including Commissions/Offices under the
Constitutional Fiscal Autonomy Group (CFAG), and
Government Owned or Controlled Corporations (GOCCs)
Receiving Budgetary Support; Budget Support to Local
Government Units; Heads of Finance and Planning Units; and
All Others Concerned
SUBJECT : Prescribing Guidelines on the Conduct of Early Procurement

for the Fiscal Year (FY) 2019 National Expenditure Program
(NEP)
1.0 RATIONALE
In FY 2019, the budget shall shift from the two-year obligation-based

appropriations to the annual cash-based system. The annual appropriations for
2019-onwards shall be limited to the requirements for payments for goods delivered,
services rendered, and infrastructure projects completed by the end of a fiscal year. To
ensure efficient implementation of programs, activities, and projects, agencies shall
undertake timely procurement planning and Early Procurement activities.
Early Procurement shall be undertaken for the majority of the planned

procurement of agencies as included in the NEP submitted to Congress. This ensures that
all single-year projects shall be fully implemented within the validity period of the FY
2019 national budget.
2.0 PURPOSES
2.1 To prescribe guidelines for the conduct of Early Procurement activities

starting the FY 2019 NEP.
3.0 COVERAGE
3.1 All Heads of Departments, Bureaus, Offices and Other Agencies of the
National Government, including Constitutional Commissions, Congress, The Judiciary,
Office of the Ombudsman, State Universities and Colleges,
Government-Owned-or-Controlled Corporations, Local Water Districts, and Local
Government Units.
4.0 IMPLEMENTING GUIDELINES
4.1 All government entities covered by this Circular shall undertake Early
Procurement activities, from October to December 2018, upon the submission of the FY
2019 NEP to Congress.
4.2 Early Procurement activities shall refer to pre-procurement conference until

post-qualification of bids and recommendation by the Bids and Awards Committee
(BAC) to award the contract to the winning bidder, in accordance with Section 7.6 of the
2016 Implementing Rules and Regulations (IRR) of RA 9184 and Section 19 of the
General Provisions of the FY 2019 NEP.
4.3. Early Procurement activities shall only commence upon completion of the
following, among others:
4.3.1 The harmonization of the Indicative Annual Procurement Plans

(APPs) for non-common-used supplies and equipment (non-CSE)
with the FY 2019 NEP (see Annex A);
4.3.2 The approval of the Head of Procuring Entity (HOPE) of the
Indicative APP of the Procuring Entity (PE);
4.3.3 The posting of the Indicative APP on the Transparency Seal page of
the agency's website, not later than August 31, 2018; and
4.3.4 The securing of a Multi-Year Obligational Authority (MYOA) from

the DBM for each multi-year project to start implementation in FY
2019 in accordance with DBM Circular Letter (CL) No. 2015-7 and
DBM National Budget Circular No. 570.
4.3.5 The completion of appropriate preparatory activities, such as the

accomplishment of feasibility studies, detailed engineering designs,
securing the required regulatory clearances, and right-of-way
acquisitions for civil works projects.
4.4 Planning units and procuring units shall coordinate with the end-users to
ensure that the planned Early Procurement in the Indicative APP are commenced in
accordance with the schedule and supported by the required documents. This includes,
but is not limited to, ensuring that the appropriate preparatory activities, Technical
Specification, and Terms of References are prepared and ready, providing support to the
necessary conduct of market research, and facilitating active participation in the early
procurement activities.
4.5 In accordance with AO 25 Inter-Agency Task Force on the Harmonization

of National Government Performance Monitoring, Information, and Reporting Systems
Memorandum Circular No. 2018-1 (AO 25 IATF MC 2018-1), the Guidelines on the
Grant of the Performance-Based Bonus for Fiscal Year 2018, an agency should ensure
that at least 50% of the volume or number of the planned procurement for FY 2019
should undergo Early Procurement, after strategizing those activities and projects it needs
to implement in the first semester and those procurement activities it deems difficult or
risky. This clarifies/amends the requirement of "50% value of planned procurement"
under AO 25 IATF MC 2018-1. In relation to this, each agency shall submit a
Certification of Compliance to the Government Procurement Policy Board (GPPB).
4.6 All procurement-related advertisements and postings of procurement

opportunities shall be in accordance with RA 9184 and its corresponding IRR.
4.7 Procuring entities shall update their Philippine Government Electronic

Procurement System (PhilGEPS) postings for Early Procurement by posting the
Approved Contract and the Notice to Proceed in PhilGEPS on or before January 31, 2019
in accordance AO 25 IATF MC 2018-1.
4.8 In accordance with Section 7.3.5 of the 2016 IRR of RA 9184, as soon as the
General Appropriations Act (GAA), corporate budget, or appropriation ordinance, as the
case may be, becomes final, the end-user or implementing units shall revise and adjust the
Project Procurement Management Plan (PPMP) to reflect the budgetary allocation for
their respective programs, activities, and projects. The revised PPMPs shall be submitted
to the BAC, through its Secretariat, for the final recommendation of the methods of
procurement. The indicative APP shall then be revised and approved in accordance with
Section 7.2 of the 2016 IRR of RA 9184. The APP shall be submitted to the GPPB on or
before the end of January of the budget year, and shall be posted in accordance with E.O.
662, series of 2007, as amended.
4.8 The issuance of notice of award of contract may, however, be done only
upon approval or enactment of the respective appropriations or budget authorization
document and based on the amount authorized therein.
4.9 The HOPE shall be responsible for the timely awarding of contracts to
ensure that single-year contracts are fully-implemented within the validity period of the
FY 2019 budget.
5.0 EFFECTIVITY
This Circular shall be effective immediately and shall remain to be in force unless
otherwise repealed/amended.
(SGD.) BENJAMIN E. DIOKNO

Secretary of DBM, Chair of the GPPB, and
Chair of the AO 25 IATF
ANNEX A
Annual Procurement Plan for FY 2019
ANNEX B
Insert Agency Letterhead
<insert date>
This certifies that <Insert Agency Name> has successfully undertaken Early
Procurement for at least 50% of the volume of goods and services based on the
department's/agency's budget submitted to the Congress consistent with the NEP.
The Certification is submitted in compliance with the common GASS target (g) of
the Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year 2018
under Executive Order No. 80 s. 2012 and Executive Order No. 201 s. 2016.
Very truly yours,
HoPE or AUTHORIZED
REPRESENTATIVE
SUBSCRIBED AND SWORN to before me, this ____________, by ________

who exhibited to me (his/her) Community Tax Certificate No. ___________ issued at
_________________, Philippines on _____________.
Notary Public
Doc. No. ______
Page No. ______
Book No. ______
Series of ______
(30)
July 30, 2018

June 2018

2018-07-01, 2018-07-03 and 2018-07-08, for the month of June circularizing the
weekly Price of Sugar at Millsite issued by the Sugar Regulatory Administration
(SRA) pursuant to Revenue Regulations (RR) No. 13-2015. EcTCAD


ANNEX A
August 6, 2018
SUBJECT : Lost Twelve (12) Sets of Unused BIR Form No. 0535 —

Concerned
Notice is hereby given of the loss of twelve (12) sets of unused BIR Form
No. 0535 — Taxpayer Information Sheet, bearing the following serial numbers:
AScHCD
Serial Number No. of Sets Accountable Officer

TIS201400256011 1 Set Ms. Ellen P. Galendez
TIS201400262860-TIS201400262870 11 Sets Ms. Mariceline C. Daba
The abovementioned forms were reported as lost by Ms. Ellen P. Galendez,
formerly assigned as Revenue Officer I-Assessment and Ms. Mariceline C. Daba,
Revenue Officer IV-Assessment, both from Revenue District Office No. 98,
Revenue Region No. 16, Cagayan de Oro City and have consequently been
cancelled. All official transactions involving the use of said forms are therefore
considered as INVALID.

use of the same.

Deputy Commissioner
July 30, 2018
SUBJECT : Lost Three (3) Sets of Unused BIR Form No. 0535 —

Concerned
Notice is hereby given of the loss of three (3) sets of unused BIR Form No.
0535 — Taxpayer Information Sheet, bearing the following serial numbers: HSAcaE
TIS201100206243-TIS201100206245
The abovementioned forms were reported as lost by Mr. Noel C.

Marcellano, Revenue Officer III-(A), Revenue District Office No. 27, Revenue
Region No. 5, Caloocan City and have consequently been cancelled. All official

use of the same.

Deputy Commissioner
(31)
July 17, 2018
SUBJECT : Circularizing the Full Text of DOF-DBM-DTI-BOI Joint

Administrative Order No. 01-2015 Providing for the
"Guidelines for the Tax Payment Certificate Mechanism to
Implement the Fiscal Support for the Comprehensive
Automotive Resurgence Strategy (CARS) Program under
Executive Order No. 182, Series of 2015"
TO : All Internal Revenue Officials, Employees, Business

Establishments and Others Concerned

employees and others concerned, attached as Annex "A" hereof is the full text of
DOF-DBM-DTI-BOI Joint Administrative Order No. 01-2015 issued on 16
November 2015, providing for the "Guidelines for the Tax Payment Certificate
Mechanism to Implement the Fiscal Support for the Comprehensive Automotive
Resurgence Strategy (CARS) Program under Executive Order No. 182, Series of
2015." SDHTEC

ANNEX A
DOF-DBM-DTI-BOI Joint Administrative Order No. 01-15 dated November 16, 2015
(32)
July 9, 2018
SUBJECT : Qualification Standards of Revenue Officer (Compliance)

Positions

Concerned
For the information and guidance of all concerned, circularized herewith is

Civil Service Commission (CSC) Resolution No. 1800646 promulgated on June
29, 2018 re: Qualification Standards (QS) for Revenue Officer I to IV Positions in
the Compliance Section of the Revenue District Offices in the Regional Offices;
Bureau of Internal Revenue. The approved QS shall take effect immediately and
shall serve as the basis in the evaluation of candidates for recruitment, promotion,
reappointment and other human resource actions to fill the vacant positions,
subject to the necessary publication.
All revenue officials and employees are hereby enjoined to give this

ATTACHMENT
CSC Resolution No. 1800646 dated June 29, 2018
(33)
July 20, 2018
SUBJECT : Circularizing the Full Text of Department Administrative

Order No. 16-01 Series of 2016 of the Department of Trade
and Industries (DTI)

Concerned

employees and others concerned, attached hereof is the full text of Department
Administrative Order No. 16-01 Series of 2016, "Amending Article II, DAO No.
01 S. of 2003, on the Implementing Rules and Regulations of Republic Act No.
9178, otherwise known as the Barangay Micro Business Enterprises Act of
2002, and Rule 4, Sections 1 (b) ii and Sec. 3 of the Implementing Rules and
Regulations of RA No. 10644, otherwise known as the Go Negosyo Act'' of
the DTI dated April 22, 2016 which provides guidelines on registering Barangay
Micro Business Enterprises (BMBEs) at Negosyo Centers and DTI offices. AaCTcI

ATTACHMENT
April 22, 2016
DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 001-16
SUBJECT : Amending Article II, DAO No. 01, S. of 2003, on the

Implementing Rules and Regulations of Republic Act No. 9178,
Otherwise Known as the Barangay Micro Business Enterprises
Act of 2002, and Rule 4, Sections 1 (b) ii and Sec. 3 of the
Implementing Rules and Regulations of RA No. 10644,
Otherwise Known as the Go Negosyo Act
WHEREAS, the "BMBEs Act of 2002" was issued on November 13, 2002 and
Implementing Rules and Regulations thereof was issued on February 7, 2003 as DTI
Department Administrative Order No. 1, Series of 2003";
WHEREAS, DTI, through the Bureau of Small and Medium Enterprise

Development (BSMED), is mandated to promote and develop Micro, Small and Medium
Enterprises (MSMEs) in the country by initiating and implementing programs and
projects addressing the specific needs of MSMEs in areas concerning entrepreneurship
development, institutional strengthening, and productivity improvement. Further, it is
tasked to review and formulate policies and strategies geared towards the advancement of
MSMEs;
WHEREAS, Republic Act No. 10644, otherwise known as "Go Negosyo Act",
provided for the establishment of Negosyo Centers in all provinces, cities and
municipalities nationwide; and for a unified and simplified business registration;
WHEREAS, under the Go Negosyo Act, the DTI through the Negosyo Center in
the city/municipal level, shall have the sole power to issue the Certificate of Authority
(CA) for BMBEs to avail of the benefits provided by RA No. 9178;
WHEREFORE, this Department Administrative Order is hereby issued to
effectively and efficiently meet the objective/s of the BMBEs Act of 2002 and the Go
Negosyo Act: TIADCc
SECTION 1. Rule II of DAO No. 01, Series of 2003 dated February 7,

2003 on Registration of BMBE is hereby amended to read as follows:
"Sec. 3. Who are eligible to apply as BMBE. — Any person,

natural or juridical, such as partnership, corporation, association and
cooperative, having the qualifications and none of the disqualifications shall
be eligible to register as BMBEs.
Sec. 4. Qualifications of a BMBE. — A person applying to be

registered as a BMBE shall meet the following qualifications:
a) With an asset of not more than Three Million PESOS

(PhP3,000,000.00) excluding land;
b) Engaged in the production, processing or manufacturing

of products or commodities, including agro-processing, trading and
services;
c) Registered with the Department of Trade and Industry

(DTI) for sole proprietorships; for juridical persons: with the
Securities and Exchange Commission (SEC), for corporations and
associations; and with the Cooperative Development Authority for
cooperatives.
However, entities rendering services in connection with the

exercise of one's profession by a person duly licensed by the
government after having passed a government licensure examination
are disqualified from applying for BMBE Certificate of Authority.
cSEDTC
Sec. 5. Place of Registration. — Applications for BMBE

Certificate of Authority shall be filed with the Negosyo Centers established
in each province, city, or municipality or in the DTI offices where Negosyo
Centers have not been set up.
Sec. 6. Requirements for Registration. — The following shall

be submitted in support of the duly filled up BMBE application form (see
Annex "1"):
a) Certificate of Business Name Registration from the

Department of Trade and Industry (DTI), or
b) Certificate of Registration from the Securities and

Exchange Commission (SEC), or
c) Certificate of Registration from the Cooperative
Development Authority (CDA).
Sec. 7. Procedure for Registration. — The applicant shall

follow the steps herein enumerated in applying for BMBE Certificate of
Authority (CA):
1. Accomplish and file the application form for BMBE

Certificate of Authority;
2. The DTI, through the Negosyo Center, evaluates the

application for purposes of determining the eligibility
and qualification as a BMBE;
3. The DTI, after finding the applicant to be eligible and

qualified, issues the BMBE Certificate of Authority
(see Annex "2") within fifteen (15) working days from
receipt of application with complete requirements;
otherwise, the BMBE Certificate of Authority shall be
deemed approved (where in such case, it becomes
ministerial on the part of DTI to issue the BMBE
Certificate of Authority).
The BMBE Certificate of Authority shall be effective

for a period of two (2) years commencing from the
date of issuance. The CA may be renewed for the
same period of two (2) years and every two (2) years
thereafter subject to the applicant's continued
compliance with the eligibility requirements as
prescribed by law and this DAO.
Section 8. Fees and Charges. — The registration and issuance of

the CA shall be free of charge.
Section 9. Transfer of Ownership. — The BMBE shall report to

the DTI through the Negosyo Center of any change in the status of its
ownership structure and shall surrender the original copy of the BMBE
Certificate of Authority for notation."
SECTION 2. Rule 4, Section 1 (b) ii of DTI-DAO No. 14-5, Series of 2014

is hereby superseded by this DAO.
SECTION 3. Use of the BMBE Fund. — Only the interest earnings as may
be realized from the BMBE fund, it being given with an endowment, shall be used for
technology transfer, production and management training, marketing assistance pursuant
to RA No. 9178, the BMBEs Act of 2002, and as source of Start-up Fund for MSMEs
pursuant to RA No. 10644 or the Go Negosyo Act.
SECTION 4. Repealing Clause. — All orders, issuances, rules and
regulations pertaining to the registration of BMBEs that are inconsistent herewith are
hereby repealed or modified accordingly.
SECTION 5. Effectivity. — This Order shall take effect after fifteen (15)
days from its publication in a newspaper of general circulation.
Issued this 22nd day of April 2016 in Makati City, Philippines. SDAaTC
Approved by:
(SGD.) ADRIAN S. CRISTOBAL, JR.

Secretary
Department of Trade and Industry
Recommended by:
(SGD.) ZENAIDA C. MAGLAYA

Undersecretary
Regional Operations Group
Department of Trade and Industry
ANNEX 1
Application for Registration as Barangay Micro Business Enterprise (BMBE)
ANNEX 2
BMBE Certificate of Authority
Published in The Philippine Star on May 11, 2016.
June 28, 2018
SUBJECT : Clarifying the Requirements on the Withdrawal from the

Bank Deposit Account/s of a Deceased Depositor/Joint
Depositor without the Required Electronic Certificate
Authorizing Registration
Pursuant to Section 27 of Republic Act (R.A.) No. 10963, otherwise

known as the "Tax Reform Acceleration and Inclusion (TRAIN) Law," further
amending Section 97 of the National Internal Revenue Code (NIRC) of 1997, as
amended, and as provided under Revenue Regulations (RR) No. 12-2018
dated January 25, 2018, this Circular is hereby issued to clarify the requirements
on the withdrawal from the bank deposit account/s of a deceased depositor/joint
depositor without the required electronic Certificate Authorizing Registration
(eCAR).
1. The executor, administrator, or any of the legal heir/s of a
decedent who, prior to death, maintained bank deposit/s may be
allowed withdrawal from the said bank deposit account/s within
one (1) year from the date of death of the depositor/joint
depositor but the amount withdrawn shall be subject to six
percent (6%) final withholding tax;
2. For joint account, the final withholding tax shall be based on

the share of the decedent in the joint bank deposit/s;
3. Prior to such withdrawal, the Bank shall require the executor,

administrator, or any of the legal heir/s withdrawing from the
deposit account to present a copy of the Tax Identification
Number (TIN) of the estate of the decedent and BIR Form No.
1904 of the estate, duly stamped received by the concerned
Revenue District Office (RDO) of the Bureau of Internal
Revenue in accordance with the existing guidelines on the
issuance of TIN;
4. The bank shall issue the corresponding BIR Form No. 2306
certifying the withholding of six percent (6%) final tax, file the
prescribed quarterly return on the final tax withheld and remit
the same on or before the last day of the month following the
close of the quarter during which the withholding was made;
5. All withdrawal slips to be used for purposes of implementing

Section 27 of the TRAIN Law shall contain the following terms
and conditions:
(a) A sworn statement by any one of the surviving joint

depositor/s to the effect that all the other joint depositor/s
is/are still living at the time of withdrawal; and
(b) A statement that the withdrawal is subject to six percent

(6%) final withholding tax.
Bank deposit/s already declared for estate tax purposes and is/are indicated
in the eCAR issued by the concerned RDO to the executor, administrator, or any
of the legal heir/s of the decedent, presented to the bank for withdrawal of the said
bank deposit/s, shall no longer be subject to the six percent (6%) final withholding
tax.
This Circular shall not be construed as preventing the bank from requiring
pertinent documents in accordance with its existing policy or in pursuance of a
requirement under applicable laws, rules and regulations, for the purpose of,
among others, ascertaining the identity and the right to claim of the heir/s or its
authorized representative before allowing any withdrawal from the bank deposit
account/s.
enjoined to give this circular as wide a publicity as possible.

July 3, 2018
SUBJECT : Lost One (1) Set of Unused BIR Form No. 0535 —

Concerned
Notice is hereby given of the loss of one (1) set of unused BIR Form No.
0535 — Taxpayer Information Sheet with the hereunder stated serial number, to
wit:
TIS201400257907
The abovementioned form was reported as lost by Ms. Hidjarah B.

Macarambon, Revenue Officer III (A), Revenue District Office No. 98, Revenue
Region No. 16, Cagayan de Oro City and have consequently been cancelled. All
official transactions involving the use of said form is therefore considered as
INVALID.

the same.

Deputy Commissioner
(34)
June 22, 2018

May 2018

2018-06-01, 2018-06-02, and 2018-06-03, for the month of May circularizing the
weekly Price of Sugar at Millsite issued by the Sugar Regulatory Administration
(SRA) pursuant to Revenue Regulations (RR) No. 13-2015.


ANNEX A
(35)
June 26, 2018
SUBJECT : Publishing the Full Text of the Inter Agency Task Force
(IATF) Memorandum Circular No. 2018-1 dated May 28,
2018 by the Secretary of Department of Budget and
Management (DBM), Entitled "Guidelines on the Grant of
the Performance-Based Bonus (PBB) for Fiscal Year
2018" under Executive Order No. 80-2012 and Executive
Order No. 201 s. 2016

Concerned
concerned, attached is a copy of the Inter Agency Task Force (IATF)
Memorandum Circular No. 2018-1 dated May 28, 2018 by the Secretary of
Department of Budget and Management (DBM), entitled "Guidelines on the Grant
of the Performance-Based Bonus (PBB) for Fiscal Year 2018" under Executive
Order No. 80-2012 and Executive Order No. 201 s. 2016.

ATTACHMENT
Inter-Agency Task Force on the Harmonization of

National Government Performance Monitoring, Information and Reporting
Systems
(Administrative Order No. 25 s. 2011)
May 28, 2018

Agencies of the National Government, including
Constitutional Commissions, Congress, The Judiciary,
Office of the Ombudsman, State Universities and
Colleges, Government-Owned or -Controlled
Corporations, Local Water Districts, and Local
Government Units
SUBJECT : Guidelines on the Grant of the Performance-Based

Bonus for Fiscal Year 2018 under Executive Order No.
80 s. 2012 and Executive Order No. 201 s. 2016
1.0 BACKGROUND AND RATIONALE
1.1 In his 2017 State of the Nation Address, President Rodrigo Duterte
called for a government equipped with political will and braced by a concerned
citizenry to be able to overcome the problems facing the country through
collective purpose and collaborative actions. He emphasized the need for
heightened transparency and deeper accountability to the Filipino people to fight
corruption and cleanse the bureaucracy.
1.2 Hence, among his priorities is to ensure citizen-centric public service

to bring the government closer to people with the citizenry empowered to evaluate
and give feedback on public services and the bureaucracy, especially on frontline
transactions. He reiterated his directive to all government offices to quickly
respond and yield meaningful results in streamlining processes, working more
efficiently, and providing high quality and genuine public service that Filipinos
deserve without delay and bureaucratic red tape. He underscored the responsibility
of each public servant to act with commitment and urgency in protecting and
serving the values, welfare and well-being of every Filipino.
1.3 Moreover, in his Veto Message in the Fiscal Year (FY) 2018 National
Budget, President Duterte declared confidence in strengthening the country's
foundation for a matatag, maginhawa, at panatag na buhay that Filipinos aspire
for. The FY 2018 National Budget represents the sound priorities and programs
aimed at fostering the golden age of infrastructure, secure peace and order, and
accelerate human capital development for sustained and inclusive growth. To this
goal, he called for efficient, responsible and disciplined utilization of the National
Budget.
1.4 To tighten the advocacy for intensified public accountability,

heightened transparency, stronger fiscal discipline, and more efficient government
processes, the government is leveraging the priorities of its Results-Based
Performance Management System (RBPMS) and its people-centered
Performance-Based Incentive System (PBIS) through requirements and conditions
aiming to fight corruption, achieve higher citizen satisfaction and implement a
firmer validation process to recognize outstanding performance in government
service.
2.0 PURPOSE
This Memorandum Circular is issued to prescribe the criteria and conditions

for the grant of Performance-Based Bonus (PBB) for FY 2018 performance to be
given in FY 2019.
3.0 COVERAGE
3.1 This Circular covers all Departments, Bureaus, Offices and Other
Agencies of the National Government, including Constitutional Commissions,
Congress, The Judiciary, Office of the Ombudsman, State Universities and
Colleges (SUCs), Government-Owned or -Controlled Corporations (GOCCs),
Local Water Districts (LWDs) and Local Government Units (LGUs).
3.2 The implementation of this circular shall be done in close coordination

with the following:
a. Department of Budget and Management (DBM) for the

Departments and attached agencies;
b. Office of the President-Office of the Executive Secretary
(OP-OES), Office of the Cabinet Secretary (OP-OCS), and
DBM for the Other Executive Offices (OEOs), including the
OP-attached agencies and GOCCs covered by DBM;
c. Commission on Higher Education (CHED) for the SUCs;
d. Governance Commission for GOCCs (GCG) for GOCCs

covered by Republic Act No. 10149;
e. Local Water Utilities Administration (LWUA) for LWDs;
f. Department of the Interior and Local Government (DILG) for

LGUs; and
g. Department of Education (DepEd) for regional and division

offices, and secondary and primary schools.
3.3 All officials and employees of eligible departments/agencies holding

regular plantilla positions; contractual and casual personnel having an
employer-employee relationship with the said agencies, and whose compensation
are charged to the Personnel Services budget; as well as those occupying positions
in the DBM-approved contractual staffing pattern of the agencies concerned are
covered by this Circular.
4.0 ELIGIBILITY CRITERIA
Each agency must satisfy the following conditions to be eligible for the
grant of PBB. See Annex 1: Master List of Departments/Agencies and Prescribed
Delivery Units in Departments/Agencies:
4.1 Good Governance Conditions: Satisfy 100% of the Good

Governance Conditions (GGCs) for FY 2018 set by the AO 25
Inter-Agency Task Force (IATF) as provided in Section 5.0;
4.2 Performance Targets of Agencies: Achieve each one of the

Physical Targets, Support to Operations (STO) and General
Administration and Support Services (GASS) requirements for
FY 2018.
To align government's performance with the priorities of the

Duterte Administration toward the efficient delivery of
citizen-centric public services, the AO 25 IATF is requiring
National Government Agencies (NGAs), and GOCCs covered
by DBM to streamline government processes, achieve higher
citizen/client satisfaction, and sustain fiscal discipline as
detailed in Section 6.0.
Notwithstanding the above, the physical targets of SUCs,

GOCCs covered by RA 10149, LWDs and LGUs shall pertain
to the following:
a. For SUCs, achieve each one of the Congress-approved

performance targets under the FY 2018 General
Appropriations Act, and the FY 2018 STO and GASS
requirements;
b. For GOCCs covered by RA No. 10149, achieve the

targets reflected in their approved FY 2018 Performance
Scorecard and eligibility requirements specified in a
separate guideline to be issued by GCG;
c. For LWDs, achieve each one of the physical targets,

STO and GASS indicators as identified by LWUA in a
Joint Memorandum Circular to be issued by LWUA and
DBM; and
d. For LGUs, performance targets shall be based on the

Guidelines on the Grant of PBB for LGUs to be issued
by the AO 25 IATF and DILG.
4.3 Performance Rating of Employees and CES positions. Use

the CSC-approved Strategic Performance Management System
(SPMS) in rating the performance of the First and Second Level
officials and employees of departments/agencies in NGAs,
GOCCs and LGUs, including officials holding managerial and
Director positions but are not Presidential appointees. The
rating of the performance of Career Executive Service (CES)
officers and incumbents to CES positions shall be based on the
requirement to be issued by the Career Executive Service Board
(CESB).
5.0 FY 2018 GOOD GOVERNANCE CONDITIONS (GGCs)
5.1 The AO 25 IATF sets the following GGCs based on performance

drivers of the RBPMS and the priorities of the Duterte Administration for 1)
heightened transparency, 2) stronger public accountability, and 3) more inclusive
and people-centered public service:
a. Maintain/Update the agency Transparency Seal (TS)
pursuant to Section 99 of the General Provisions of the FY
2018 General Appropriations Act (GAA). The TS page should
be accessible by clicking the TS logo on the home page. See
Annex 2: Guideline on Transparency Seal for full details of
requirements, which shall include the following:
1) Agency's mandate and functions; names of its officials

with their position and designation, and contact
information;
2) Annual Financial Reports;
3) DBM Approved Budget and Corresponding Targets for

FY 2018;
4) Major Projects, and Programs, Beneficiaries, and Status

of Implementation for FY 2018;
5) FY 2018 Annual Procurement Plan (FY 2018 APP

Non-CSE), Indicative FY 2019 APP Non-CSE, and FY
2019 APP for Common-Supplies and Equipment (FY
2019 APP CSE). See also Section 6.4.;
6) Quality Management System (QMS) Certification to

ISO 9001:2015 issued by any of the certification bodies
(CBs) accredited by the International Accreditation
Forum (IAF) members or similar standards relating to
Total Quality Management (TQM), e.g., Philippine
Quality Award, ISO/IEC 17025, ISO 17020, and
Omentum Accreditation Canada, of at least one (1) core
process or frontline service. See also Section 6.3;
7) System of Agency Ranking Delivery Units for FY 2018

PBS. See Section 8.6;
8) The Agency Review and Compliance Procedure of

Statements and Financial Disclosures (See Section
6.5.a); and
9) The Final People's Freedom to Information (FOI)

Manual signed by head of agency; Agency Information
Inventory; 2017 and 2018 FOI Summary Report, and
2017 and 2018 FOI Registry (See Section 6.5.b).
b. Post/Update the PhilGEPS posting of all Invitations to Bids
and awarded contracts pursuant to the Government
Procurement Reform Act (RA No. 9184) for transactions from
November 16, 2017 to January 31, 2018, including the Early
Procurement of FY 2019 Non-CSE items. Agencies should
track their status through PhilGEPS microsite:
http://data.philgeps.gov.ph/directory/pbb.aspx. See Annex 6:
Guideline on PhilGEPS Posting.
c. Maintain/Update the Citizen's or Service Charter or its

equivalent, reflecting the agency's enhanced service standards
for all its frontline services to citizens, businesses, and
government agencies, consistent with the objectives of the
Anti-Red Tape Act of 2007 (RA No. 9485), and the President's
directive to reduce processing time of all public transactions
with government, and ensure accessible and convenient
delivery of services to the public, as reiterated in CSC
Memorandum Circular No. 14, s. 2016.
The Certificate of Compliance (CoC) submitted pursuant to

CSC MC No. 14, s. 2017 shall be the basis for the validation for
FY 2018. For agencies which have not submitted the CoC, the
same shall be complied with pursuant to the guidelines set forth
in CSC MC No. 14, 2017 and shall be submitted on or before
August 1, 2018 to the CSC's Office for Strategy Management
through the AO 25 Secretariat. The CSC validation shall be
complemented with reports on feedback and complaints from
citizens gathered by the OP, PMS, CSC and PCOO from the
8888 Hotline and the FOI portals. The CSC shall issue
guidelines in the validation of the Citizen's Charter
requirements for FY 2018.
5.2 Non-compliance with any of the GGCs will render the entire
department/agency ineligible for the PBB. Assessment of agency compliance with
GGC requirements shall be conducted starting October 1, 2018.
6.0 FY 2018 PERFORMANCE TARGETS
With respect to the Physical Targets, the AO 25 IATF sets the following
requirements to strengthen the performance of departments and agencies in
efficiently providing public services.
6.1 Streamlining and Process Improvement of the Agency's
Critical Services covering Government-to-Citizens (G2C),
Government-to-Businesses (G2B), and
Government-to-Government (G2G) transactions as cited in the
agency's Citizen's/Service Charter. To promote the periodic
measurement of agency performance in delivering said
services, agencies shall determine and report the following
using the Modified Form A-Department/Agency Performance
Report (See Annex 3A):
a. Number of Steps. For each critical service,

departments/agencies shall report the number of steps
necessary to complete the service/process.
b. Transaction Costs. These are the costs incurred by the

transacting citizens/clients in securing services from
government. For purposes of FY 2018 PBB, these costs
are categorized as follows:
1) Primary Transaction Costs/Fees. These are the

fees incurred by the transacting citizens/clients
paid to government agencies in availing the
critical services. These are the fees declared in the
agency's Citizen's/Service Charter. Examples are
application fees, registration fees, etc.
2) Other Transaction Costs. These are the other

fees that transacting citizen/client has to pay in
obtaining supporting information from another
agency to secure needed primary information.
Examples of these costs are those for getting birth
certificates to secure passports, barangay
clearance to secure business permit, and required
photos, printing costs, photocopying costs, etc.
c. Substantive Compliance Costs which are the

incremental costs to the target group in complying with a
regulation, other than administrative costs (OECD, 2014,
p. 13). These costs can include implementation costs,
direct labor costs, overhead costs, equipment costs,
material costs, and external service costs. Examples are
the purchase of early warning devices for vehicle
owners, installation of accelerograph for building with
10 floors and up, maintenance of waste disposal system
for establishments, etc.
d. Number of Signatures. Departments/Agencies shall

declare the number of signatures required to complete
each service/process, including the initials required.
e. Number of Documents. For each critical service,

departments/agencies shall indicate the total number of
documents necessary to complete the transaction cycle.
The number of documents shall refer to the documents
required from the transacting citizens/clients, and the
documents that are used by departments/agencies in their
internal processing until the completion/delivery of the
critical service to the transacting citizens/clients.
f. Turnaround Time. For each critical service,

departments/agencies shall estimate the turnaround time
to complete the service/process. Turnaround time is the
sum of the waiting and processing time. It starts from the
moment the transacting citizen/client enters the queue or
fills out a form, and the waiting time incurred until the
service has been completed/delivered.
The information above shall serve as the baseline data for each
service/process. Departments/agencies should aim to achieve
the following improvements for each of their critical
services/processes:
a. Reduction in the number of signatures to not more than

three (3);
b. Simplification of application forms or documentary

requirements; and
c. 50% reduction in the turnaround time and completion of

the transaction within 15 days.
Departments/agencies shall declare the bureaus/offices/delivery

units responsible for the delivery and completion of each
critical service. Every bureau/office/delivery unit should be
declared in at least one (1) of the critical services, or other key
processes performed by the department/agency. The details of
the performance of bureaus/offices/delivery units shall be
reported using the Modified Form A1 (See Annex 3B). The
declaration of responsible bureaus/offices/delivery units for
each critical service or other key processes shall provide
performance data as basis in the ranking of each delivery unit.
See also Sections 6.7 and 8.1.
In the event the department/agency is unable to achieve the

targets they set in this section, they shall provide
justifications/explanations using the "Remarks" column. The
acceptance of explanation shall be subject to the review and
recommendation of the validating agency.
6.2 Citizen/Client Satisfaction. In order to determine the

effectiveness of the streamlining and process improvements
initiated by agencies, the satisfaction level of the citizens/clients
will be measured and reported. Thus, agencies should embed
feedback mechanisms and citizen/client satisfaction
measurement in their process improvement efforts. Agencies
shall report the results of the Citizen/Client Satisfaction Survey
for each service.
The description of the methodology of the survey, and the

agency improvement action plan for FY 2019 shall be
submitted using Citizen/Client Satisfaction Report (See Annex
4).
GOCCs covered by RA No. 10149 will report the results of

client/customer satisfaction survey based on the standard
methodology and corresponding questionnaire prescribed by
the GCG.
The DAP will be conducting training fora to assist the agencies

in these streamlining and process improvement efforts. The AO
25 Secretariat can be contacted for the schedule of these
trainings.
6.3 STO Target. Initial certification/Recertification of the QMS

for at least one (1) core process or frontline service as
mandated under its existing pertinent laws.
For the ISO 9001:2015 QMS certification, it must be issued by

any of the certification bodies (CBs) accredited by the
International Accreditation Forum (IAF) members. Preferably,
the CB is accredited by the Philippine Accreditation Bureau
under the Department of Trade and Industry, which is the
Philippine Accreditation Body of the IAF. ISO 9001:2015 QMS
equivalent certifications/attestations granted by similar
internationally recognized bodies promoting Total Quality
Management (TQM) shall be considered, e.g., Philippine
Quality Award, ISO/IEC 17025, ISO 17020, and Omentum
Accreditation Canada.
The certification must be valid until December 31, 2018 or a

later date, and must be posted in the agency TS page not later
than December 31, 2018. A certified-true copy of the Agency's
QMS Certificate/s shall be submitted to the Government
Quality Management Committee (GQMC), through the DBM
Secretariat — Systems and Productivity Improvement Bureau,
immediately after obtaining a QMS Certificate or
Recertification not later than December 31, 2018, for
verification purposes.
For frontline agencies, it is expected that the core process

pertains to an agency process most demanded by citizens and
business and targeted for improvement under Sections 6.1 and
6.2 above.
6.4 GASS Targets. The common GASS targets shall include the
following:
a. Budget Utilization Rate (BUR), which shall consist of:
1) Obligations BUR computed as obligation rates

for Maintenance and Other Operating Expenses
(MOOE) and Capital Outlays (CO) of all
programs, activities, and projects funded in FY
2018 from all appropriation sources, including
those released under the General Appropriations
Act as the allotment order policy, net of savings
from procurement, and implementation of
cost-cutting measures; and
2) Disbursements BUR which is measured by the

ratio of total disbursements (cash and non-cash,
excluding Personnel Services) to total obligations
for MOOE and CO in FY 2018, net of goods and
services obligated by December 31, 2018 but
accounts payable and not yet due and demandable
on the said date.
3) BUR for GOCCs is computed as follows:
Obligations BUR = Total Obligations/DBM

Approved Corporate Operating Budget (both net
of Personnel Services)
Disbursement BUR = Total Actual

Disbursement/Total Actual obligations (both net
of Personnel Services)
4) BUR for SUCs is computed as follows:
i. Obligations and Disbursements BUR

will be the same as those for
department/agencies.
ii. Because all income of the SUCs (e.g., trust

funds, internally generated income, and
revolving funds) should benefit and
improve the SUCs operations, its
Obligations and Disbursements utilization
rates will also be reported following the
reporting format in Annex 5: FY 2018 GAA
Accomplishments and BUR Form for
SUCs.
b. Sustained Compliance with Audit Findings. Fully

implement 30% of the prior years' audit
recommendations as shown in the Report on Status of
Implementation of Prior Years' Recommendations.
These recommendations will exclude the Property, Plant
and Equipment (PPE)-related items of the Annual Audit
Report (AAR). Audit findings closed in FY 2017 should
also not recur. The objective is to improve the agency's
internal control processes, enhance operational
effectiveness, and eliminate, resolve and remedy most, if
not all, of the agency audit findings, by the end of 2020.
c. Compliance with Quarterly Submission of Budget

and Financial Accountability Reports (BFARs)
Online Using the DBM's Unified Reporting System
(URS) 15 days after end of each quarter, as provided in
Section 95 of the FY 2018 GAA.
d. Submission of Annual Procurement Plan (APP-non

CSE) approved by the Head of Procuring Entity (HOPE)
to the Government Procurement Policy Board (GPPB) in
the format prescribed under GPPB Circular No. 07-2015
by posting it in the agency TS.
1) FY 2018 APP-non CSE should have been

submitted to the GPPB-TSO on January 31, 2018
per Section 7.3.5 of the 2016 Revised
Implementing Rules and Regulations of RA No.
9184. The same should be posted on the agency
TS page on not later than one month after the
issuance of this Circular.
2) To support Early Procurement, the Indicative FY

2019 APP-non CSE consistent with the FY
2019 National Expenditure Program (NEP)
should be posted on the agency TS page not later
than August 31, 2018.
The APP non-CSE submissions must indicate: "APP for

CY <Year> of <Complete Name of Head
Office/Agency><Regions ___ to ___, if applicable> for
PBB" in the subject line. The list of agencies complying
with the APP submission requirement shall be posted in
the GPPB website (www.gppb.gov.ph).
e. Submission of FY 2019 Annual Procurement

Plan-Common-Use Supplies and Equipment (FY
2019 APP-CSE) to the DBM-Procurement Service on or
before August 31, 2018 in the prescribed format by
DBM-PS. The same should be posted in the agency TS
page not later than August 31, 2018.
f. Undertaking of Early Procurement for at least 50%

of the value of goods and services based on the
department's/agency's budget submitted to the
Congress consistent with the NEP. In transitioning
towards annual cash-based budgeting,
departments/agencies should subject at least 50% of the
volume of their goods and services requirements for the
FY 2019 operations to Early Procurement, short of
award, from September to December 2018.
Departments/Agencies should update their PhilGEPS
postings for Early Procurement by posting the Approved
Contract and Notice to Proceed in PhilGEPS on or
before January 31, 2019. DBM shall soon be issuing a
Budget Circular on this.
g. Submission of results of FY 2017 Agency

Procurement Compliance and Performance
Indicators (APCPI) System, per GPPB Resolution No.
10-2012, complete with the following forms: (1) APCPI
— Self-Assessment Form; (2) APCPI — Consolidated
Procurement Monitoring Report; (3) APCPI —
Procurement Capacity Development Action Plan; and
the Questionnaire on or before August 31, 2018. The
APCPI Tool may be downloaded from the GPPB
website using this link:
http://www.gppb.gov.ph/apcpi/apcpi.html. Submit either
in electronic (Excel) format through apcpi@gppb.gov.ph
indicating: "2017 APCPI Initial Results of <Complete
Name of Head Office/Agency> for PBB" in the subject
line; or printed (signed) copies hand carried/mailed
through the GPPB-TSO front desk. The list of agencies
complying with the APCPI requirement shall be posted
in the GPPB website (www.gppb.gov.ph).
6.5 Other cross-cutting requirements. The AO 25 IATF sets the

following cross-cutting requirements:
a. Establishment and Conduct of Agency Review and

Compliance Procedure of SALN pursuant to Section
10 of the Code of Conduct and Ethical Standards for
Public Officials and Employees (RA No. 6713), and
CSC Resolutions Nos. 1300455 and 1500088. Each
department/agency shall have a SALN Review and
Compliance Committee to implement the provisions on
reviewing and complying with SALN requirements to
determine whether said statements have been submitted
on time, are complete, and are in proper form.
Agency heads should ensure that officials and employees

covered by RA No. 6713 submitted their 2018 SALN to
the respective SALN repository agencies, as prescribed
in the rules provided under CSC Memorandum Circular
No. 3 s. 2015. The Agency Review and Compliance
Procedure of SALN used by the department's/agency's
SALN Review and Compliance Committee should be
cascaded to all employees. The scanned copy of the
same shall be uploaded in the agency TS page not later
than October 1, 2018. See also Sections 7.11, 7.14 and
11.3 on SALN requirement.
b. Comply with the Freedom of Information (FOI)

Program pursuant to Executive Order No. 2, s. 2016,
based on the enhanced requirements of the Presidential
Communications Operations Office (PCOO). Agencies
should comply to the following FOI requirements within
the set deadline:
1) The People's FOI Manual duly signed by the

Head of the Agency and uploaded in the agency
TS page on or before September 30, 2018;
2) The Agency Information Inventory uploaded in

the agency TS page on or before September 30,
2018;
3) The 2017 and 2018 FOI Summary Report

uploaded in the agency TS page on or before
January 31, 2019;
4) The 2017 and 2018 FOI Registry uploaded in the

agency TS page on or before January 31, 2019;
and,
5) A screenshot of the agency website's home page

containing a visible and functional FOI logo
linked to the electronic FOI portal
(www.foi.gov.ph) submitted through email:
foipco@gmail.com on or before September 30,
2018.
Agencies should submit the accomplished FOI Reports

strictly in Excel format (.xls) based on templates
provided in this link: www.bit.ly/2018FOIReports.
Submissions not compliant to the file format and
templates will not be considered. All agencies including
those already onboard the eFOI portal, are required to
send the soft copy submissions to foipco@gmail.com.
Policy issuances and memoranda can be accessed in this
link: www.foi.gov.ph/resources.
6.6 In case a department/agency is not able to meet any of the

above performance targets, the Department Secretary/Head of
Agency should submit the justifications/explanations and
supporting documents to warrant reconsideration. For
validation purposes, justifiable reasons are factors that are
considered outside the control of the agency. Acceptance of
justifications/explanations shall be subject to the
recommendation of validating agencies.
6.7 To reinforce fairness in the assessment of the performance of

each delivery unit under operations with those under support
services, departments/agencies should also declare critical
services provided to internal units/employees performed by the
latter delivery units. Doing so will strengthen the accountability
of every delivery unit in streamlining and improving their
processes and services to citizens/clients, and internal
units/employees. Likewise, it will also provide performance
data to support the equitable ranking of each delivery unit.
Departments/Agencies shall also report applicable baseline
information enumerated in Sections 6.1 and 6.2.
7.0 ELIGIBILITY OF INDIVIDUALS
7.1 Department Secretaries, Heads of Other Executive Offices,

Chairpersons and Commissioners of Constitutional Offices, Heads of Attached
Agencies, Presidents of SUCs, and non-ex officio Heads of GOCCs covered by
DBM are eligible only if their respective departments/agencies/institutions are
eligible. If eligible, their maximum PBB rate for FY 2018 shall be equivalent to
65% of their monthly basic salary as of December 31, 2018. They should not be
included in the Form 1-Report on Ranking of Delivery Units.
7.2 Non-ex officio Board Members of GOCCs covered by DBM may be

eligible to a rate equivalent to 65% of the monthly basic salary of the highest
corporate official of the GOCC concerned subject to the following conditions:
a. The GOCC has qualified for the grant of the FY 2018 PBB;
b. The Board Member has 90% attendance to duly called board

meetings and committee meetings as certified by the Board
Secretary;
c. The Board Member has nine (9) months aggregate service in

the position; and
d. The GOCC has submitted the appropriate annual

Board-approved Corporate Operating Budget (COB) to DBM in
accordance with the Corporate Budget Circular No. 22 dated
December 1, 2016.
7.3 Employees belonging to the First, Second and Third Levels should
receive a rating of at least "Satisfactory" based on the agency's CSC-approved
Strategic Performance Management System (SPMS) or the requirement prescribed
by the CESB.
7.4 Personnel on detail to another government agency for six (6) months
or more shall be included in the ranking of employees in the recipient agency that
rated his/her performance. Payment of the PBB shall come from the mother
agency.
7.5 Personnel who transferred from one government agency to another

agency shall be rated and ranked by the agency where he/she served the longest. If
equal months were served for each agency, he/she will be included in the recipient
agency.
7.6 Officials and employees who transferred from government agencies

that are non-participating in the implementation of the PBB, shall be rated by the
agency where he/she served the longest; the official/employee shall be eligible for
the grant of PBB on a pro-rata basis corresponding to the actual length of service
to the participating implementing agency, as stated in Section 7.8.
7.7 An official or employee who has rendered a minimum of nine (9)

months of service during the fiscal year and with at least Satisfactory rating may
be eligible to the full grant of the PBB.
7.8 An official or employee who rendered less than nine (9) months but a
minimum of three (3) months of service and with at least Satisfactory rating shall
be eligible for the grant of PBB on a pro-rata basis corresponding to the actual
length of service rendered, as follows:
LENGTH OF SERVICES % OF PBB

8 months but less than 9 months 90%
The following are the valid reasons for an employee who may not meet the
nine-month actual service requirement to be considered for PBB on a pro-rata
basis:
a. Being a newly hired employee;
b. Retirement;
c. Resignation;
d. Rehabilitation Leave;
e. Maternity Leave and/or Paternity Leave;
f. Vacation or Sick Leave with or without pay;
g. Scholarship/Study Leave;
h. Sabbatical Leave.
7.9 An employee who is on vacation or sick leave, with or without pay,

for the entire year is not eligible to the grant of the PBB.
7.10 Personnel found guilty of administrative and/or criminal cases by final

and executory judgment in FY 2018 shall not be entitled to the PBB. If the penalty
meted out is only a reprimand, such penalty shall not cause the disqualification to
the PBB.
7.11 Officials and employees who failed to submit the 2017 SALN as
prescribed in the rules provided under CSC Memorandum Circular No. 3 s. 2015;
or those who are responsible for the non-compliance with the establishment and
conduct of the review and compliance procedure of SALN, shall not be entitled to
the FY 2018 PBB.
7.12 Officials and employees who failed to liquidate all cash advances
received in FY 2018 within the reglementary period, as prescribed in COA
Circular 97-002 dated February 10, 1997 and reiterated in COA Circular 2009-002
dated May 18, 2009, shall not be entitled to the FY 2018 PBB.
7.13 Officials and employees who failed to submit their complete SPMS
Forms shall not be entitled to the FY 2018 PBB.
7.14 Agency heads should ensure that officials and employees covered by
RA No. 6713 submitted their 2017 SALN to the respective SALN repository
agencies, liquidated their FY 2018 Cash Advances, or completed the SPMS
Forms, as these will be the basis for the release of FY 2018 PBB to individuals.
7.15 Officials and employees responsible for the implementation of the

prior years' audit recommendations, QMS certification, or posting and
dissemination of the department/agency system of ranking performance of
delivery units, shall not be entitled to the FY 2018 PBB if the Department/Agency
fails to comply with any of these requirements.
8.0 RANKING OF DELIVERY UNITS
8.1 Departments/Agencies and their corresponding offices/delivery units

that meet the criteria and conditions in Section 4.0 are eligible to the FY 2018
PBB. Bureaus, offices or delivery units eligible to the PBB shall be forced ranked
according to the following categories:
RANKING PERFORMANCE CATEGORY

Top 10% Best Delivery Units
Next 25% Better Delivery Units
Next 65% Good Delivery Units
The declarations of responsible bureaus/offices/delivery units in the

completion of each critical service or other key processes shall be the basis for
equitable performance ranking of delivery units. The resulting ranking of
bureaus/offices/delivery units shall be indicated in the Annex 7: Form 1-Report on
Ranking of Delivery Units.
8.2 When identifying and determining delivery units,

departments/agencies must be guided by the Master List of Departments/Agencies
and Prescribed Delivery Units per Department/Agency (See Annex 1).
a. A delivery unit is the primary subdivision of the

department/agency performing substantive line functions,
technical services or administrative support, as reflected in the
Department's/Agency's organizational structure/functional
chart.
The identification of a delivery unit will depend on the type of

government entity, with due consideration to its mandate,
organizational level, and scope of operations, as follows:
TYPE OF GOVERNMENT ENTITY DELIVERY UNITS

Department or Department-Level • Offices
• Bureaus
• Services
• Regional Offices, if any
Agency Intermediate Level
• Offices
• Bureaus
• Services
• Regional/Field Units, if any
Division Level
• Divisions
• Field Units, if any
State University or College • Offices
• Services
• Campuses
• Colleges
GOCC • Offices
• Departments
b. For purposes of this Circular, agencies attached to a department

or department-level entity shall be treated as an agency separate
from its parent department and shall have a separate ranking of
delivery units.
c. To facilitate the ranking of delivery units, agencies may group

or cluster the delivery units based on similarities of tasks and
responsibilities for purposes of evaluating and ranking group
and individual performance, provided that the resulting ranking
distribution shall be in accordance with Section 8.1.
8.3 Only the personnel belonging to eligible delivery units are qualified
for the PBB. Refer also to exclusion of individuals as cited in Section 7. While
individual ranking shall be the basis for merit increase, promotion, further training
and/or disciplinary action, individual ranking shall no longer be included in the
Form 1 (See Annex 7).
8.4 To recognize high performance of government employees in relation

to the achievement of agency targets and requirements for the grant of the FY
2018 PBB, departments/agencies shall list the names of employees who belong in
the Best Delivery Units using the Form 1 (See Annex 7).
8.5 The GCG, the LWUA, the DILG, and the DepEd shall issue pertinent
Guidelines on the ranking of delivery units for GOCCs covered by GCG, LWDs,
LGUs, and DepEd Delivery Units respectively.
8.6 To heighten transparency among delivery units and employees,

departments/agencies shall cascade to their employees the agency
guidelines/mechanics in ranking delivery units for the grant of the FY 2018 PBB.
Departments/Agencies shall prepare the System of Agency Ranking Delivery
Units for FY 2018 PBB using the Form for the Guidelines/Mechanics in Ranking
Delivery Units (See Annex 8). The duly completed and signed agency guidelines in
ranking delivery units shall be posted on the agency TS page on or before October
1, 2018.
9.0 RATES OF THE PBB
9.1 The rates of the PBB for each individual shall be based on the
performance ranking of the individual's bureau or delivery unit with the rate of
incentive as a multiple of one's monthly basic salary as of December 31, 2018,
based on the table below:
PERFORMANCE CATEGORY MULTIPLE OF BASIC SALARY

Best Delivery Unit 0.65
Better Delivery Unit 0.575
Good Delivery Unit 0.50
10.0 SUBMISSION OF REPORTS
10.1 Departments/Agencies should submit FY 2018 accomplishments using

the Modified Form A-Department/Agency Performance Report, Modified Form
A1-Details of Bureau/Office Performance Report, Citizen/Client Satisfaction
Report, Form 1 and the PBB Evaluation Matrix. They should submit duly
completed and signed forms and reports to the IATF (two hard copies and e-copy
of Modified Form A-Department/Agency Performance Report, Modified Form
A1-Details of Bureau/Office Performance Report, Citizen/Client Satisfaction
Report, Form 1 and other supporting documents) through the AO 25 Secretariat
which shall endorse copies to the oversight/validating agencies for
review/evaluation. All forms and reports should be signed by the agency head or
the duly designated official.
10.2 Submission of agency physical accomplishments and other

requirements will be until February 28, 2019 for small agencies, and August 31,
2019 for big departments following the review schedule of the IATF under MC
2017-4, dated December 21, 2017. Agencies shall ensure that all explanations and
justifications are already attached to their submission.
10.3 The COA Audit Team Leaders shall verify/monitor compliance of

their respective agencies with the audit recommendations shown in the Status of
Implementation of Prior Years' Audit Recommendations in the Annual Audit
Report/Management Letter and submit a report thereon, to the concerned
Supervising Auditor (SA). The SA will then prepare a summary report for
submission to the concerned Cluster Director. Based on the reports submitted by
the SAs, the Cluster Director shall submit to the IATF Secretariat, copy furnished
the Sector Head and RMBO, PFMS, both of COA, a Summary List of Agencies
that complied with the required minimum 30% full implementation of audit
recommendations.
10.4 Results of the validation showing non-compliant agencies shall be

posted in the RBPMS website. The IATF shall conduct spot-checks to validate
claims and certifications made by departments/agencies.
10.5 The Department of Education shall have the same implementation

timeline of GGCs, Physical Targets, STO and GASS targets as indicated in
Section 10.6.
10.6 The AO 25 IATF sets the following implementation timeline for the
FY 2018 PBB.
REQUIREMENTS VALIDATING DEADLINE OF START OF

AGENCY SUBMISSION VALIDATION
Physical Targets
Operations
1. Streamlining and Process Composite Team February 28, 2019 March 1, 2019 (small
Improvement of Agency Services from AO 25 IATF (small agencies) agencies)
agencies
August 31, 2019 September 1, 2019
(big agencies) (big agencies)
2. Citizen/Client Satisfaction Composite Team February 28, 2019 March 1, 2019 (small
• Departments from AO 25 IATF (small agencies) agencies)
• OEOs agencies
• GOCCs covered by DBM August 31, 2019 September 1, 2019
• GOCCs covered by RA 10149 (big agencies) (big agencies)
• SUCs
• LWDs
3. Physical Targets for the following:
• SUCs (See Annex 5) CHED February 28, 2019 March 1, 2019
• GOCCs covered by RA 10149 GCG Based on GCG Based on GCG
timeline timeline
• LWDs LWUA February 28, 2019 March 1, 2019
• LGUs DILG February 28, 2019 March 1, 2019
Support to Operations (STO)
1. QMS Certification GQMC December 31, 2018 From January 1 to 31,
• Post QMS Certification in TS 2019
page
• Submit certified true copy of
QMS certificate to GQMC
through DBM-SPIB
General Administration and Support Services (GASS)
1. BUR February 28, 2019 March 1, 2019
• Departments, OEOs and DBM-BMBs (small agencies) (small agencies)
GOCCs covered by DBM concerned
• SUCs (See Annex 5) DBM Regional August 31, 2019 September 1, 2019
Offices and (big agencies) (big agencies)
DBM-BMB-F
2. Sustained Compliance with Audit COA December 31, 2018 December 31, 2018
Findings
3. Submission of BFARs online DBM and COA
through the URS
• First Quarter April 15, 2018 April 15, 2018
• Second Quarter July 15, 2018 July 15, 2018
• Third Quarter October 15, 2018 October 15, 2018
• Fourth Quarter January 15, 2019 January 15, 2019
4. COA Financial Reports COA March 30, 2018 March 30, 2018
• Small Agencies April 30, 2018 April 30, 2018
• Big Agencies
5. Procurement Documents
• FY 2018 APP-non CSE GPPB-TSO January 31, 2018 One (1) month after
the issuance of
resolution
• Indicative FY 2019 APP-non GPPB-TSO August 31, 2018 August 31, 2018
CSE
• FY 2019 APP-CSE DBM-PS August 31, 2018 August 31, 2018
• Undertaking of Early GPPB-TSO January 31, 2019 January 31, 2019
Procurement for at least 50%
of goods and services
• Results of FY 2017 APCPI GPPB-TSO August 31, 2018 August 31, 2018
System
Good Governance Conditions
1. Transparency Seal DBM-OCIO October 1, 2018 October 1, 2018
2. PhilGEPS Posting (transactions PhilGEPS January 31, 2019 February 1, 2019
above P1,000,000 and with
December 31, 2018 as cut-off),
including the Early Procurement
of FY 2019 Non-CSE items
3. Citizen's/Service Charter CSC August 1, 2018 August 1, 2018
• Certificate of Compliance
(CoC) pursuant to CSC MC
No. 14, s. 2017
Other cross-cutting requirements
1. Submission of SALN of Office of the April 30, 2018 April 30, 2018
employees President,
Ombudsman, CSC
2. Agency Review and Compliance CSC October 1, 2018 October 1, 2018
Procedure of Statement and
Financial Disclosures. Note:
Departments/Agencies shall
submit a list of SALN non-filers
using Form 1.
3. FOI Compliance
• People's FOI Manual PCOO September 30, 2018 September 30, 2018
• Agency Information Inventory September 30, 2018 September 30, 2018
• 2017 and 2018 FOI Summary January 31, 2019 January 31, 2019
Report
• 2017 and 2018 FOI Registry January 31, 2019 January 31, 2019
• Screenshot of agency's home September 30, 2018 September 30, 2018
page
4. Posting of Agency's System DAP October 1, 2018 October 1, 2018
Ranking Delivery Units
5. Submission of Agency Report on February 28, 2019 March 1, 2019 (small
Ranking of Delivery Units (Form 1 (small agencies) agencies)
and PBB Evaluation Matrix)
• Departments DBM-BMBs August 31, 2019 September 1, 2019
(big agencies) (big agencies)
• OEOs DBM-BMBs and
DBM-NCR
• GOCCs covered by DBM DBM-BMB-C
• SUCs DBM-RO and
DBM-BMB-F
• LWDs LWUA and
DBM-BMB-C
11.0 EFFECTS OF NON-COMPLIANCE
11.1 For FY 2018, agencies that are unable to comply with all the Good
Governance Conditions shall be considered ineligible for the FY 2018 PBB.
11.2 Agencies that are unable to comply with Performance Targets shall be
considered ineligible for the FY 2018 PBB.
11.3 In the event the AO 25 IATF conducted random check of submitted

SALN of employees and found non-compliance with the guidelines prescribed by
the CSC and the posted Review and Compliance Procedure of the concerned
department/agency, such incident could be a cause to disqualify the
department/agency in the succeeding cycle of the PBB.
11.4 Prohibited Acts: A Department/Agency/GOCC/LWD/LGU, which,

after due process by the oversight agency has been determined to have committed
the following prohibited acts, shall be disqualified from the PBB in the succeeding
year of its implementation. Moreover, the CSC or Ombudsman shall file the
appropriate administrative case:
a. Misrepresentation in the submitted reports required for the

PBB, commission of fraud in the payment of the PBB and
violation of the provisions of this Circular; and
b. Evenly distributing PBB among employees in an agency, in

violation of the policy of paying the PBB based on the ranking
of delivery units.
12.0 FEEDBACK AND CHANGE MANAGEMENT
12.1 Department Secretaries/Head of Agencies with the support of their

Performance Management Groups should enhance the implementation of their
internal communications strategy on PBIS, and fulfill the following:
a. Engage their respective employees in understanding the PBIS,

the performance targets of their respective
departments/agencies, as well as the services and outputs that
they will need to deliver in order to meet these targets.
b. Disseminate the performance targets and accomplishments of

their departments/agencies to their employees through the
intranet and other means, as well as publish these on their
respective websites for the public's information.
c. Set up a Help Desk to respond to queries and comments on the

targets and accomplishments of their departments/agencies. The
Help Desk may be a facility that is embedded in the respective
websites of departments/agencies.
d. Set up a Complaints Mechanism to respond to the PBIS-related

issues and concerns raised by officials and employees of their
respective departments/agencies. Such may be incorporated in
the functions of their Grievance Committee.
12.2 The Department Secretary/Head of Agency shall designate a senior

official who shall serve as a PBB focal person. The offices responsible for the
performance management may be tasked to provide secretariat support to the PMG
and to recommend strategies to instill a culture of performance within the
Department/Agency.
13.0 INFORMATION AND COMMUNICATION
13.1 The Department Secretary/Head of Agency shall confirm with the

IATF the name, position and contact details (e-mail, landline, facsimile, cellular
phone) of the senior officials designated as the PBB focal person and the
spokesperson, respectively.
13.2 Departments/Agencies should strengthen their communications

strategy and ensure transparency and accountability in the implementation of the
PBB.
13.3 The IATF shall maintain the following communication channels:
a. AO 25 Secretariat at ao25secretariat@dap.edu.ph
b. RBPMS website www.dap.edu.ph/rbpms
c. Telephone: (02) 400-1469, (02) 400-1490, (02) 400-1582
d. Facebook: www.facebook.com/PBBsecretariat
e. Twitter: @pbbsecretariat
14.0 APPLICABILITY TO THE CONSTITUTIONAL BODIES,

LEGISLATIVE AND JUDICIAL BRANCHES
Congress, The Judiciary, Constitutional Commissions, and the Office of the

Ombudsman are encouraged to follow these guidelines to be eligible to the
Performance-Based Bonus.
15.0 EFFECTIVITY

Secretary, Department of Budget and
Management and Chairman, AO 25
Inter-Agency Task Force
ANNEX 1
Master List of Departments/Agencies

and Prescribed Delivery Units in Departments/Agencies
A. DEPARTMENTS
Department Delivery Units

1. Office of the President • Office of the Executive Secretary*
• Commissions
• Centers
• Technical and Staff Offices
• Offices of Presidential Advisers/Assistants
(per area of concern)
• Offices with special concerns
2. Office of the Vice-President • Office of the Vice-President
• Office of the Chief of Staff (including
Office of the Assistant Chief of Staff)
3. Department of Agrarian Reform
a. Office of the Secretary (Proper) • Office of the Secretary*
• Council Secretariat
• DAR Adjudication Boards
• Services
• Bureaus
• Regional Offices
4. Department of Agriculture
• Services
• Bureaus
• SOCSKSARGEN Area Development
Project Office
b. Agricultural Credit Policy Council • Office of the Executive Director*

• Staff
• Division
c. Bureau of Fisheries and Aquatic • Office of the Director*

Resources • Technical and Support Services
• Centers
• Regional Units
d. National Meat Inspection Services • Office of the Executive Director*

• Central Office Divisions
• Regional Centers
• Office of the Executive Director*
e. Philippine Carabao Center • Central Office Division

• Centers
f. Philippine Center for Post-Harvest • Office of the Director*

Development and Mechanization • Divisions
g. Philippine Council for Agriculture and • Office of the Director*

Fisheries • Divisions
h. Philippine Fiber Industry Development • Office of the Executive Director*

Authority • Central Office Divisions
5. Department of Budget and Management
• Bureaus
• Services
b. Government Procurement Policy Board • Office of the Executive Director*
— Technical Support Office • Divisions
c. Procurement Service • Office of the Executive Director*

(including Internal Audit, Legal, and
Corporate Planning Divisions)
• Functional Groups
6. Department of Education
a. Office of the Secretary (Proper) • Office of the Secretary* (including Early
Childhood Care Development Council)
• Bureaus
• Services
• Schools Division Offices
• Schools and Learning Centers
• National Educators Academy of the
Philippines
• National Council for Children's Television
b. Early Childhood Development Center
c. National Book Development Board • Office of the Executive Director*

• Divisions
d. National Council for Children's

Television
e. National Museum • Office of the Director*

• Divisions
f. Philippine High School for the Arts • Office of the Director*

• Basic and Arts Education
• Staff Divisions
7. Department of Energy
a. Office of the Secretary (Proper) • Office of the Secretary* (including
Investment Promotion Staff, Consumer
Welfare and Promotion Staff, Public
Affairs Staff and Internal Audit Division)
• Services
• Bureaus
• Geographical Offices
8. Department of Environment and Natural
Resources
• Bureaus
• Services
b. Environmental Management Bureau • Office of the Director*

• Regional offices
c. Mines and Geo-Sciences Bureau • Office of the Director*

d. National Mapping and Resource • Office of the Administrator*

Information Authority • Branches
e. National Water Resources Board • Office of the Executive Director*

• Divisions
f. Palawan Council for Sustainable • Office of the Chairman* (including Office

Development Staff of the Executive Director)
• Divisions
9. Department of Finance
• Services
• Offices
• One-Stop Shop Center
b. Bureau of Customs • Office of the Commissioner*

• Collection/District Ports
c. Bureau of Internal Revenue • Office of the Commissioner* (including

Performance Evaluation Division)
• Services
• Revenue Data Centers
• Revenue Regional Offices
d. Bureau of Local Government Finance • Office of the Executive Director*

• Services
e. Bureau of Treasury • Office of the Treasurer of the Philippines*

• Services
f. Central Board of Assessment Appeals • Office of the Board*

• Offices of the Hearing Officers
g. Insurance Commission • Office of the Commissioner (including

Internal Audit Division)
• Services
• District Offices
h. National Tax Research Center • Office of the Executive Director*

• Branches
i. Privatization and Management Office • Office of the Executive Director*

• Services
j. Securities and Exchange Commission • Office of the Chairperson*

• Sectoral Offices
• Departments
• Extension Offices
10. Department of Foreign Affairs

a. Office of the Secretary • Office of the Secretary* (including
b. Technical Cooperation Council of the Technical Cooperation Council of the
Philippines Philippines, UNESCO National
c. UNESCO National Commission of the Commission of the Philippines)
Philippines • Technical and Support Offices
• Embassies
• Consulate General
• Diplomatic Mission
d. Foreign Service Institute • Office of the Director General

• Divisions
11. Department of Health
• Bureaus
• Services
• Special Hospital
• Medical Centers
• Treatment and Rehabilitation Centers
b. Commission on Population • Office of the Executive Director*

• Regional Population Offices
c. National Nutrition Council • Office of the Executive Director*

• Regional Nutrition Offices
12. Department of Information and
Communications Technology
a. Office of the Secretary (Proper) • Office of the Secretary* (including CIO
Corps, Legislative Liaison Division,
International Cooperation Division, Postal
Regulation Division, and Information and
Strategic Communications Division)
• Services
• Bureaus
b. Cybercrime Investigation and • Office of the Executive Director*

Coordination Center (including the Legal Division)
• Office of the Commissioner* (including

Office of the Director)
c. National Privacy Commission • Office of the Commissioner* (including

Commission Secretariat, Broadcast
Services Division, and Radio Spectrum
Planning Division)
d. National Telecommunications • Branches
Commission • Regional Offices
13. Department of the Interior and Local
Government
• Technical and Support Services
• Bureaus
b. Bureau of Fire Protection • Office of the Chief of the Fire Bureau*
• Regional Fire Stations
c. Bureau of Jail Management and • Office of the Chief of the Jail Bureau*
Penology • Directorates
• Jail Units by Region
d. Local Government Academy • Office of the Director*

• Divisions
e. National Police Commission • Office of the Commissioner*

• Staff Services
f. Philippine National Police • Office of the Chief PNP

• Directorate
• Support Units
• Regional Police Operations
g. Philippine Public Safety College • Office of the President*

• Institutes
• Academy
• College
14. Department of Justice
a. Office of the Secretary • Office of the Secretary*
a.1 National Prosecution Service • Prosecution Staff*
• Regional Prosecution Offices
b. Bureau of Corrections • Office of the Director*

• Prison and Penal Farms
c. Bureau of Immigration • Office of the Commissioner* (including

board of Special Inquiry)
• Airport/Sub-port Offices
d. Land Registration Authority • Office of the Administrator*
e. National Bureau of Investigation • Office of the Director*

• Services
f. Office of the Government Corporate • Office of the Government Corporate

Counsel Counsel*
• Administrative Unit
• Sectoral Teams
g. Office of the Solicitor General • Office of the Solicitor General*

• Legal Divisions
• Support Services
h. Parole and Probation Administration • Office of the Administrator*

i. Presidential Commission on Good • Office of the Commissioner*

Government • Technical and Support Services
j. Public Attorney's Office • Office of the Chief Public Attorney*

• Services
• District Offices
15. Department of Labor and Employment

• Services
• Bureaus
• Philippines Overseas Labor Offices
b. Institute for Labor Studies • Office of the Executive Director*

• Divisions
c. National Conciliation and Mediation • Office of the Executive Director*

Board • Central Office Divisions
• Regional Conciliation Mediation Branches
d. National Labor Relations Commission • Office of the Chairman*
• Office of the Executive Clerk of Court
• Court Divisions
• Regional Arbitration Boards/Branches
• Sub-Regional Arbitration Boards/Branches
e. National Maritime Polytechnic • Office of the Executive Director*

• Divisions
f. National Wages and Productivity • Office of the Executive Director*

Commission • Central Office Divisions
• Regional Tripartite Wages and
Productivity Boards
g. Overseas Workers Welfare • Office of the Administrator*

Administration • Technical and Staff Offices
• Regional Welfare Offices
• Foreign Posts
h. Philippine Overseas Employment • Office of the Administrator*

Administration • Branches
• Regional Centers
i. Professional Regulation Commission • Office of the Commissioner*

• Services
• Offices
• Regional Offices/Extension Units
16. Department of National Defense
a. DND Proper (Office of the Secretary) • Office of the Secretary*
b. Government Arsenal • Office of the Director*

• Divisions
c. National Defense College of the • Office of the Director*

Philippines • Divisions
d. Office of Civil Defense • Office of the Administrator*

• Services
• Operation Center
e. Philippine Veterans Affairs Office • Office of the Administrator*

(Proper) • Services
f. Veterans Memorial Medical Center • Office of the Director*

• Medical Service
• Administrative and Support Divisions
g. Armed Forces of the Philippines • Office of the Commanding General*

i. Philippine Army • Commands
ii. Philippine Air Force • Office of the Commanding General*

• Commands
iii. Philippine Navy • Office of the Flag Officer in Command*

• Commands
iv. General Headquarters • Office of the Chief of Staff*

• Commands
17. Department of Public Works and Highways • Office of the Secretary*
• Bureaus
• Unified Project Management Offices
18. Department of Science and Technology
a. Office of the Secretary • Office of the Secretary* (including
International Technology Cooperation
Unit, Science and Technology Foundation
Unit, and Special Projects Division)
• Services
b. Advanced Science and Technology • Office of the Director*

Institute • Divisions
c. Food and Nutrition Research Institute • Office of the Director*

• Divisions
d. Forest Products Research and • Office of the Director*

Development Institute • Divisions
e. Industrial Technology Development • Office of the Director*
f. Metals Industry Research and • Office of the Executive Director*

Development Center • Divisions
g. National Academy of Science and • Office of the Executive Director*

Technology • Divisions
h. National Research Council of the • Office of the Executive Director*

Philippines • Divisions
i. Philippine Atmospheric, Geophysical • Office of the Administrator*

and Astronomical Services • Divisions
Administration
j. Philippine Council for Agriculture, • Office of the Executive Director*

Aquatic and Natural Resources • Divisions
Research and Development
k. Philippine Council for Health Research • Office of the Executive Director*

and Development • Divisions
l. Philippine Council for Industry, Energy • Office of the Executive Director*

and Emerging Technology Research and • Divisions
Development
m. Philippine Institute of Volcanology and • Office of the Director*

Seismology • Divisions
n. Philippine Nuclear Research Institute • Office of the Director*

• Divisions
o. Philippine Science High School • Office of the Executive Director*

(including Technical and Staff Divisions)
• Campuses
p. Philippine Textile Research Institute • Office of the Director*

• Divisions
q. Science Education Institute • Office of the Director*
• Divisions
r. Science and Technology Information • Office of the Director*

s. Technology Application and Promotion • Office of the Director*

19. Department of Social Welfare and
Development
• Services
• Bureaus
b. Council for the Welfare of Children • Office of the Executive Director*
• Divisions
c. Inter-Country Adoption Board • Office of the Director*
• Divisions
d. National Council on Disability Affairs • Office of the Executive Director*
• Divisions
e. Juvenile Justice and Welfare Council • Office of the Executive Director*
• Divisions
20. Department of Tourism
• Offices
• Services
• Foreign Field Offices
b. Intramuros Administration • Office of the Administrator*

• Divisions
c. National Parks Development Committee • Office of the Executive Director*

• Divisions
21. Department of Trade and Industry
• Bureaus
• Services
b. Board of Investments • Office of the Governor*
• Services
c. Construction Industry Authority of the • Office of the Executive Director*

Philippines (Construction Manpower • Board
Development Foundation) • Foundation
d. Philippine Trade Training Center • Office of the Executive Director*

• Divisions
e. Design Center of the Philippines • Office of the Executive Director*

• Divisions
f. Intellectual Property Office • Office of Director General*

• Bureaus
22. Department of Transportation
• Services
• DOT-CAR
• DOT-CARAGA
i. Land Transportation Office • Central Office Divisions

ii. Land Transportation Franchising & • Central Office Divisions

Regulatory Board • Regional Franchising and Regulatory
Offices
b. Civil Aeronautics Board • Office of the Executive Director*

• Divisions
c. Maritime Industry Authority • Office of the Administrator*

• Services
d. Office of Transportation Cooperatives • Office of the Board Chairman (including

Office of the Executive Director)*
• Divisions
e. Office for Transportation Security • Office of the Administrator*

• Services
f. Philippine Coast Guard • PCG Headquarters
• Coast Guard Districts
g. Toll Regulatory Board • Office of the Board of Directors*

(including office of the Executive Director)
• Divisions
23. National Economic and Development
Authority
a. Office of the Director-General • Office of the Director-General*
• Services
• Staff
b. Philippine National Volunteer Service • Office of the Director*

Coordinating Agency • Divisions
c. Public-Private Partnership Center of the • Office of the Executive Director*

Philippines • Services
d. Philippine Statistical Research and • Office of the Executive Director*

Training Institute • Divisions
e. Philippine Statistics Authority (National • Office of the National Statistician*

Statistics Office, Bureau of Agricultural • Services
Statistics, Bureau of Labor and • Regional Services Offices
Employment Statistics, National
Statistical Coordination Board)
f. Tariff Commission • Office of the Chairman*

• Divisions
24. Presidential Communication Operations
Offices
a. Presidential Communications • Office of the Press Secretary*
Operations Office (Proper) • Services
• Media Research and Development Staff
• Offices (e.g., FOI-PMO)
b. Bureau of Broadcast Services • Office of the Director*

• Divisions
c. Bureau of Communications Services • Office of the Director*
• Divisions
d. National Printing Office • Office of the Director*

• Divisions
e. News and Information Bureau • Office of the Director*

• Divisions
• Presidential Press Staff
• Philippine News Agency
f. Philippine Information Agency • Office of the Director*

• Divisions
• Regional Information Centers
g. Presidential Broadcast Staff — Radio • Office of the Executive Director*

Television Malacañang (RTVM) • Divisions
B. CONSTITUTIONAL OFFICES AND OTHERS
Agency Delivery Units

1. Civil Service Commission • Office of the Chairperson*
• Services
2. Commission on Audit • Office of the Chairperson*
• Clusters
• Services
3. Commission on Human Rights • Office of the Chairman*
• Field Operations
• Field Units
4. Office of the Ombudsman
a. Office of the Ombudsman • Office of the Ombudsman*
• Technical and Support Offices
• Clusters
b. Office of the State Prosecutor • Office of the State Prosecutor*
• Bureaus
5. Autonomous Region in Muslim Mindanao • Office of the Governor*
• Departments
• Agencies
C. OTHER EXECUTIVE OFFICES

1. Career Executive Service Board • Office of the Executive Director
• Divisions
2. Climate Change Commission • Office of the Chairperson*
• Divisions
3. Commission on Filipinos Overseas • Office of the Chairman
• Divisions
4. Commission on Higher Education • Office of the Chairman*
• Staff
• Services
• Legal Education Board
• UniFAST Board
5. Commission on the Filipino Language • Office of the Chairman*
• Divisions
6. Cooperative Development Authority • Central Offices
• Extension Offices
7. Dangerous Drugs Board • Office of the Chairman*
8. Energy Regulatory Commission • Office of the Chairman (including the
Internal Audit Division and the Office of the
Executive Director)*
• General Counsel and Secretariat of the
Commission
• Services
9. Fertilizer and Pesticide Authority • Office of the Executive Director*
• Divisions
10. Film Development Council of the • Office of the Chairman (including the Office
Philippines of the Executive Director)*
• Administrative and Finance Unit
• Cinema Evaluation Board and Archive Unit
• Festival and PFESO Unit
11. Games and Amusements Board • Office of the Chairman*
• Divisions
• Field Offices
12. Governance Commission for the • Office of the Chairman* (including Strategy
Government-Owned or Controlled Management Division)
Corporations • Technical and Staff Offices
13. Housing and Land Use Regulatory Board • Office of the Chairman and Executive
Officer*
• Divisions
• Project Pool
• Field Offices
14. Housing and Urban Development • Office of the Chairman
Coordinating Council • Divisions
15. Metropolitan Manila Development • Office of the Chairman* (including Council
Authority Secretariat, Management Information Staff
and Public Affairs Staff)
• Office of the General Manager*
• Services
• Offices
16. Mindanao Development Authority • Office of the Chairperson*
• Divisions
17. Movie and Television Review and • Office of the Chairman
Classification Board • Office of the Executive Director
• Divisions
18. National Anti-Poverty Commission • Office of the Director General*
19. National Commission for Culture and the • Office of the Chairman (including the Office
Arts (Proper) of the Executive Director)*
• Divisions
20. National Historical Commission of the • Office of the Commission Chairman*
Philippines (National Historical Institute) • Office of the Executive Director*
• Divisions
21. National Library of the Philippines • Office of the Director*
• Divisions
22. National Archives of the Philippines • Office of the Executive Director*
(formerly Records Management and • Divisions
Archives Office)
• Regional Archival Networks
23. National Commission on Indigenous • Office of the Chairman*
Peoples • Office of the Executive Director*
24. National Commission on Muslim Filipinos • Office of the Chairman*
• Office of the Director*
• Bureaus
• Services
25. National Intelligence Coordinating Agency • Office of the Director General*
• Directorates
26. National Security Council • Office of the Director General*
• Technical and Support Units
27. National Youth Commission • Office of the Chairman* (including Office of
the Executive Director)
• Divisions
28. Office of the Presidential Adviser on the • Office of the Presidential Adviser*
Peace Process • Technical and Support Services
29. Optical Media Board • Office of the Executive Director*
• Divisions
30. Pasig River Rehabilitation Commission • Office of the Executive Director*
• Services
• Technical Offices
31. Philippines Commission on Women • Office of the Executive Director*
(National Commission on the Role of
Filipino Women) • Divisions
32. Philippine Competition Commission • Office of the Chairman* (including Office of
33. Philippine Drug Enforcement Agency • Office of the Director General*
• Technical Offices
34. Philippine Racing Commission • Office of the Chairman* (including Office of
• Divisions
35. Philippine Sports Commission • Office of the Chairman/Commission
Members*
• Office of the Executive Director
• Services
36. Presidential Commission for the Urban • Office of the Chairman*
Poor • Divisions
37. Presidential Legislative Liaison Office • Office of the Legislative Adviser*
• Liaison Offices
• Divisions
38. Presidential Management Staff • Office of the PMS Head
• Services
39. Technical Education and Skills • Office of the Executive Director*
Development Authority • Technical and Staff Offices
• Services
D. STATE UNIVERSITIES AND COLLEGES

1. Colleges • Office of the President*
• Services
• Campuses (with Charter)
• Colleges (with CHED accreditation)
2. Universities • Offices of the President*
• Services
• Campuses (with Charter)
• Colleges (with CHED accreditation)
CAR
1. Abra Institute of Science and Technology
2. Apayao State College
3. Benguet State University
4. Ifugao State University
5. Kalinga State University (Kalinga-Apayao State College)
6. Mountain Province State University (Mt. Province State Polytechnic

College)
Region I
7. Ilocos Sur Polytechnic State College
8. Don Mariano Marcos Memorial State University
9. Mariano Marcos State University
10. North Luzon Philippines State College
11. Pangasinan State University
12. University of Northern Philippines
Region II
13. Batanes State College
14. Cagayan State University
15. Isabela State University
16. Nueva Vizcaya State University
17. Quirino State College
Region III
18. Aurora State College of Technology
19. Bataan Peninsula State University
20. Bulacan Agricultural State College
21. Bulacan State University
22. Central Luzon State University
23. Don Honorio Ventura Technological State University
24. Nueva Ecija University of Science and Technology
25. Pampanga State Agricultural University (Pampanga Agricultural

College)
26. Philippine Merchant Marine Academy
27. Ramon Magsaysay Technological University
28. Tarlac College of Agriculture
29. Tarlac State University
Region IV-A
30. Laguna State Polytechnic University
31. Southern Luzon State University
32. Batangas State University
33. University of Rizal System
34. Cavite State University
Region IV-B
35. Marinduque State College
36. Mindoro State University (Mindoro State College of Agriculture and

Technology)
37. Occidental Mindoro State College
38. Palawan State University
39. Romblon State University
40. Western Philippines University
Region V
41. Bicol University
42. Bicol State College of Applied Sciences and Technology
43. Camarines Norte State College
44. Camarines Sur Polytechnic College
45. Catanduanes State College
46. Central Bicol State University of Agriculture
47. Dr. Emilio B. Espinosa, Sr. Memorial State College of Agriculture

and Technology
48. Partido State University
49. Sorsogon State College
Region VI
50. Aklan State University
51. Capiz State University
52. Carlos Hilado Memorial State College
53. Guimaras State College
54. Iloilo State University of Science and Technology (Iloilo State

College of Fisheries)
55. Central Philippines State University
56. Northern Iloilo State University (Northern Iloilo Polytechnic State

College)
57. Northern Negros State College of Science and Technology
58. University of Antique
59. West Visayas State University
60. Iloilo Science and Technology University (Western Visayas College

of Science and Technology)
Region VII
61. Bohol Island State University
62. Cebu Normal University
63. Cebu Technological University
64. Negros Oriental State University
65. Siquijor State College
Region VIII
66. Eastern Samar State University
67. Eastern Visayas State University
68. Leyte Normal University
69. Naval State University
70. Northwest Samar State University
71. Palompon Polytechnic State University (Palompon Institute of

Technology)
72. Samar State University
73. Southern Leyte State University
74. University of Eastern Philippines
75. Visayas State University
Region IX
76. JH Cerilles State College
77. Jose Rizal Memorial State University
78. Western Mindanao State University
79. Zamboanga City State Polytechnic College
80. Zamboanga State College of Marine Sciences and Technology
Region X
81. Northwestern Mindanao State College of Science and Technology
82. Bukidnon State University
83. Camiguin Polytechnic State College
84. Central Mindanao University
85. Mindanao University of Science and Technology
86. Misamis Oriental State College of Agriculture and Technology
Region XI
87. Davao del Norte State College
88. Davao Oriental State College of Science and Technology
89. Southern Philippines Agri-Business, Marine and Aquatic School of

Technology
90. University of Southeastern Philippines
91. Compostela Valley State College
Region XII
92. Cotabato State University (Cotabato City State Polytechnic College)
93. Cotabato Foundation College of Science and Technology
94. Sultan Kudarat State University
95. University of Southern Mindanao
CARAGA
96. Agusan Del Sur State College of Agriculture and Technology
97. Caraga State University
98. Surigao Del Sur State University
99. Surigao State College of Technology
ARMM
100. Basilan State College
101. Mindanao State University System
102. Sulu State College
103. Tawi-Tawi Regional Agricultural College
104. Adiong Memorial Polytechnic College
NCR
105. Marikina Polytechnic College (Marikina Polytechnic State College)
106. Eulogio "Amang" Rodriguez Institute of Science and Technology
107. Philippine Normal University
108. Philippine State College of Aeronautics
109. Polytechnic University of the Philippines
110. Rizal Technological University
111. Technological University of the Philippines
112. University of the Philippines System (UP)
Note:
* Including the Office(s) of the Deputy Head(s) and immediate support staff.
ANNEX 2
Guideline on Transparency Seal
1. All agencies should maintain a Transparency Seal page accessible by

clicking the TS logo on the Home page. It should be visible. Submit the link to the
website (recommended.gov.ph domain) when applying for PBB.
2. The following are the required documents pursuant to Section 99 of the

General Provisions of the FY 2018 General Appropriations Act (GAA) and this 2018
PBB Guideline:
I. Agency's mandate and functions; names of its officials with their

position and designation, and contact information.
II. DBM Approved Budget and Corresponding Targets for FY

2018.
Budget for FY 2018
GAA performance targets for FY 2018
III. Modifications made pursuant to the general and special

provisions in the FY 2018 GAA.
(Indicate if not applicable)
IV. FY 2018 Annual Procurement Plan (FY 2018 APP non-CSE),

Indicative FY 2019 APP non-CSE; and FY 2019 APP for
Common-Supplies and Equipment (FY 2019 APP CSE).
V. Major Projects, Programs and Activities, Beneficiaries, and

Status of Implementation for FY 2018.
(Indicate if not applicable)
Major Projects, Programs 2018

Beneficiaries 2018
Status of Implementation 2018
VI. Annual Financial Reports (whole year/as of December end of the

year/4th Quarter. Incomplete or non-cumulative will not be counted)
A. FOR NGA/SUCs
2014-2018 FAR No. 1: SAAOBDB (Statement of

Appropriations, Allotments, Obligations, Disbursements and
Balances as of December YEAR)
2014-2018 BAR No. 1 — Annual Physical Report of

Operations/Physical Plan
B. FOR GOCC/WD
2014-2018 Annual Report
VII. Annual Reports on the Status of Income authorized by law to be

deposited outside the National Treasury, including the legal basis,
beginning balance, income collected, and its sources, expenditures
and ending balance. (Indicate if not applicable)
VIII. QMS Certification of at least one core process by an

international certifying body (ICB) accredited by the International
Accreditation Forum (IAF) members. Preferably, the ICB is
accredited by the Philippine Accreditation Board, Department of
Trade and Industry, which is a member of the IAF and authorized to
accredit ICBs. The QMS ISO Certification should be posted not later
than December 3, 2018.
IX. System of Ranking Delivery Units for FY 2018 PBB should be

cascaded to all employees, and posted in the TS page not later than
October 1, 2018. The system should be signed and approved by the
Head of Agency. The posting should also include the
activities/details of cascading efforts, and the contact information
that employees may coordinate with regarding cascading of System
of Ranking Delivery Units.
X. The Agency Review and Compliance Procedure of Statements

and Financial Disclosures should be cascaded to all employees. The
scanned copy should be posted in the TS page not later than October
1, 2018.
XI. The Final People's Freedom to Information (FOI) Manual signed

by head of agency; Agency Information Inventory; 2017 and
2018 FOI Summary Report, and 2017 and 2018 FOI Registry
should be posted not later than October 1, 2018.
3. The links to the documents should open in a new tab/page for preview
with option to download. No auto-download files. The following are the prescribed
formats:
- New page/section in the website (No pdfs, xls, jpgs etc.): Items I
(Mandate, directory)
- XLS, or PDF for Items II, III, IV and V. (Open in new tab for
preview, please no automatic downloading of files. You can use
google drive, Dropbox or any other file hosting software to let you
preview the file when clicked)
4. Post the documents in the prescribed order as indicated in this guideline for
easier validation and checking.
5. There should be no nesting folders. Post the links to the documents in a

single webpage reserved for the transparency seal. If the files are hidden in folders, there
is a risk that the documents might be overlooked by the validator.
ANNEX 3A
Modified Form A — Department/Agency Performance Report
ANNEX 3B
Modified Form A1 — Details of Bureau/Office Performance Report
ANNEX 4
Citizen/Client Satisfaction Report
1. All departments/agencies should measure and report the satisfaction level of

citizens/clients that they served. Measuring the satisfaction level of citizens/clients shall
generate verifiable data and tangible evidences that can help departments/agencies
determine their effectiveness in relating with citizens/clients. These data should guide
departments/agencies in identifying approaches on continuously refining their processes.
2. There are different ways to measure citizen/client satisfaction. To enable

agencies adopt a measurement technique that fits the nature of their critical services, the
AO 25 IATF prescribes no standard method in measuring satisfaction. This guide shall
serve as reference in identifying a minimum standard, some elements and practices in
conducting and reporting citizen/client satisfaction.
3. Measurement approach should have the following basic properties:
a. The method should be valid. It should exhibit a clear and

measurable goal. It should be particularly crafted to gather data that
shall be analyzed, interpreted and reported.
b. The method should be replicable. It should allow repeatability. The

measurement should generate results that can be tracked over time.
The questions should be crafted in manner that they can be repeated,
and yield results that can be compared to baseline data.
c. The method should have a specific timeline of measurement. For

purposes of the FY 2018 PBB, departments/agencies can set their
own timeline within 2018 to implement improvement. The
measurement should coincide with the department's/agency's roll out
of their process improvement.
4. Since there are different critical services provided by departments/agencies,

the AO 25 IATF prescribes no specific sample size. However, departments/agencies shall
ensure that respondents are the citizens/clients who availed the critical service.
5. Results should reflect satisfaction ratings of citizens/clients who availed the

critical services.
6. All departments/agencies should report the results of the measurement using

template below. Agencies should clearly define the scope and period covered of the
satisfaction measurement; describe the methodology; results of measurement and
interpretation of data; and agency improvement plan for 2019 toward improving
citizen/client satisfaction.
___________________________________________
<Department/Agency's Name and Letterhead>
CITIZEN/CLIENT SATISFACTION REPORT
I. Description of the Citizen/Client Satisfaction Survey
II. Improvement Action Plan for FY 2019
Prepared by: Approved by:
________________________________ ______________________________________
Name of Officer/Designation/Date Department Secretary/Agency Head/Date
ANNEX 5
Modified Form A for SUCs-Performance Report for State Universities and Colleges
(SUCs)
ANNEX 6
Guideline on PhilGEPS Posting
Maintain/Update the PhilGEPS posting of all Invitations to Bids and

awarded contracts pursuant to the Government Procurement Reform Act, Republic Act
No. 9184, for transactions from November 16, 2017 to January 31, 2018, including the
Early Procurement of FY 2019 Non-CSE items. Certificate of compliance to PhilGEPS is
no longer necessary.
Agencies should track their status through PhilGEPS microsite:

http://data.philgeps.gov.ph/directory/pbb.aspx.
Departments/agencies should ensure that the status of notices in the

PhilGEPSystem for all transactions for the period November 16, 2017 to January 31,
2018, including the Early Procurement of FY 2019 Non-CSE items, is updated on or
before January 31, 2019. Failed or cancelled bid status should still be updated in
PhilGEPS.
If the agency is unable to update the system or post the BAC Resolution, Notices
of Award/Bid Results, Actual Approved/Awarded Contracts and Notices to
Proceed/Purchase Orders for transactions above one million (P1,000,000) in the
PhilGEPS due to factors that are outside the control of the agency, the agency should
submit a letter to or inform PhilGEPS and submit a letter of explanation addressed to the
AO25 IATF on or before January 31, 2019. Acceptance of explanation/justification shall
be subject to the recommendation of PhilGEPS.
See the required actions for each status of Notice in PhilGEPS:
Status of Notice Status of Required Action

in PhilGEPS Award in
PhilGEPS
Closed/Closed — Null Identify specific bid result and explain the status of each line item
Pending Opening
The justification should be signed by the Head of Procuring

Entity and by the BAC Chair and submit to
ao25secretariat@dap.edu.ph.
Closed/Closed — Posted Identify specific bid result for each line item and post the Notice
Pending Opening to Proceed and Approved Contract in PhilGEPS
In the event that the agency cannot post the NTP and Approved
Contract in PhilGEPS, a justification for each item should be
submitted. The justification should be signed by the Head of
Procuring Entity and by the BAC Chair and submit to
Awarded Null Identify specific bid result for each line item and post the Award
Notice, Notice to Proceed, Approved Contract and BAC
Resolution in PhilGEPS
In the event that the agency cannot post the Award Notice, Notice
to Proceed, Approved Contract and BAC Resolution in
PhilGEPS, a justification for each item should be submitted. The
justification should be signed by the Head of Procuring Entity
and by the BAC Chair and submit to
Awarded Posted Post the Notice to Proceed and Approved Contract in PhilGEPs
In the event that the agency cannot post the Notice to Proceed
and Approved Contract in PhilGEPS, a justification for each item
should be submitted. The justification should be signed by the
Head of Procuring Entity and by the BAC Chair and submit to
If departments/agencies are unable to post, they must provide a justification

signed by the Head of Procuring Entity and by the BAC Chair and submit to
ao25secretariat@dap.edu.ph. Kindly follow the format below:
(Department/Agency's Letterhead)
The justification/s being issued in response to the non-compliance of posting of
the following items on the PhilGEPS website:
Reference Notice Title Line Item ID Notice Award Remarks/

No. Status Status Explanation
IN WITNESS WHEREOF, we have hereunto affixed our signatures on the

_____ day of __________________ 2018 at ________________________
(City/Municipality), Philippines.
Signed by: Noted by:
_________________________ _________________________
BAC Chair Head of Procuring Entity
Date: Date:
ANNEX 7
Form 1 Report on Ranking of Offices/Delivery Units
ANNEX 8
Guideline/Mechanics in Ranking Offices/Delivery Units for the Grant of FY 2018

Performance-Based Bonus (PBB)*
Department/Agency: ______________________________
(Agency should provide the guidelines and process in determining and evaluating the performance ranking of
units within the department/agency.)
_________________________ _________________________
Head of HR Department Agency Head
Date: Date:
* Departments/Agencies shall cascade to their employees the procedures in ranking

offices/delivery units.
This document shall be posted on the agency TS page on or before October 1,

2018.
July 3, 2018
SUBJECT : Entry into Force, Effectivity and Applicability of the

Philippines-Mexico Double Taxation Agreement

Concerned
The Agreement between the Government of the Republic of the

Philippines and the Government of the United Mexican States for the Avoidance
of Double Taxation with Respect to Taxes on Income and the Prevention of
Fiscal Evasion has entered into force on 18 April 2018.
Article 29 (Entry into Force) of the Agreement provides that it shall have
effect in respect of taxes withheld at source, to income paid or credited on or after
the first day of January in the calendar year next following that in which the
Agreement enters into force, and in respect of other taxes, for any taxable year
beginning on or after the first day of January in the calendar year next following
that in which the Agreement enters into force. Accordingly, the Agreement shall
have effect on income that arises in the Philippines beginning January 1, 2019.
Tax Treaty Relief Applications invoking the Philippines-Mexico Double

Taxation Agreement should be filed with, and addressed to, the International Tax
Affairs Division (ITAD) at Room No. 811, Bureau of Internal Revenue, National
Office Building, Diliman, Quezon City, Philippines. For this purpose, the
concerned Mexican resident and income earner, or his duly authorized
representative, should file a duly accomplished Application for Relief from
Double Taxation (BIR Form No. 0901) or Certificate of Residence for Tax Treaty
Relief (CORTT Form), whichever is applicable, together with the required
documents, pursuant to Revenue Memorandum Order Nos. 72-2010 and
08-2017, respectively.
This Circular should be given the widest publicity possible.

June 21, 2018
SUBJECT : Lost Ten (10) Sets of Unused BIR Form No. 0423 —
Apprehension Slip

Concerned
Notice is hereby given of the loss of ten (10) sets of unused BIR Form No.
0423 — Apprehension Slip, bearing the following serial numbers:
APS200100000628 — 1 Set
APS200100000638-APS200100000639 — 2 Sets
APS200100000641-APS200100000647 — 7 Sets
The abovementioned forms were reported as lost by Mr. Alfredo O.

Pagdilao, Jr., Revenue Officer IV-A, Revenue District Office No. 27, Revenue
Region No. 5, Caloocan City and have consequently been cancelled. All official

use of the same.

Deputy Commissioner
(36)
June 25, 2018
SUBJECT : Circularizing the Full Text of Republic Act (RA) No.

11032, "An Act Promoting Ease of Doing Business and
Efficient Delivery of Government Services, Amending for
the Purpose Republic Act No. 9485, Otherwise Known as
the Anti-Red Tape Act of 2007, and for Other Purposes,"
Otherwise Known as the "Ease of Doing Business and
Efficient Government Service Delivery Act of 2018"

Concerned

employees and others concerned, attached as Annex "A" hereof is the full text of
Republic Act (R.A.) No. 11032, otherwise known as the "Ease of Doing Business
and Efficient Government Service Delivery Act of 2018."
circular as wide a publicity as possible.

ANNEX A
Republic Act No. 11032 dated May 28, 2018
June 21, 2018
SUBJECT : Clarifying the Functions of the Office of the Regional

Director Relative to the Approval and Signing of Decisions
on Administrative Cases under Revenue Administrative
Order (RAO) No. 3-2014, as Amended by RAO No. 4-2017
TO : All Revenue Officials and Employees Concerned
Revenue Administrative Order (RAO) No. 4-2017 "Defining the Functions

of the Offices of the Regional Director and Assistant Regional Director" was
issued amending RAO No. 3-2014 dated November 5, 2014 "Organization and
Functions of the Regional Offices, its Divisions & Sections and Revenue District
Offices," and reiterated the following functions of the Office of the Regional
Director:
"18. Approves and issues the appropriate Formal Charge(s)

against concerned personnel involving light offenses as
defined under letter F of Rule 10, Schedule of Penalties,
Revised Rules on Administrative Cases in the Civil Service
and the Revised Code of Conduct for Bureau of Internal
Revenue Officials and Employees;
"19. Reviews, approves and signs Formal Charge(s) indorsed by

or emanating from the Regional Investigation Division;
"20. Reviews, approves and signs decisions on administrative

cases emanating from the Legal Division;"
Light Offenses listed under Rule 10, Section 46 (F), Revised Rules on
Administrative Cases in the Civil Service (RRACCS) 1(37) are punishable by:
1st offense — Reprimand;
2nd offense — Suspension of one (1) day to thirty (30) days; and
3rd offense — Dismissal from the service.
Moreover, Light Offenses listed under Section 43 of the Revised Code of

Conduct for Revenue Officials and Employees 2(38) (RCC) also have the same
penalties as above, except for Simple Dishonesty 3(39) which has the following
penalties:
1st offense — Suspension of one (1) month and one (1) day to six (6)
months;
2nd offense — Suspension of six (6) months and one (1) to one (1) year;
and
3rd offense — Dismissal from the service.
In case of a finding of guilt, the imposable penalty for the Light Offense
depends on the number of times the same Light Offense was committed by
the personnel respondent, such that an employee charged and found guilty of
Habitual Tardiness for the 2nd time will be meted out a penalty of Suspension of
one (1) day to thirty (30) days.
There is therefore a need to clarify the extent of the authority of the

Regional Directors in approving and signing Decisions on Administrative Cases in
order to align the same with the approving authorities of the Commissioner of
Internal Revenue and Deputy Commissioner for Legal Group.
HENCE, let it be clarified that the Regional Director shall:
1. Approve and sign Decisions on Light Offenses, emanating from

the Legal Division, with an imposable penalty of
REPRIMAND;
2. Initial and recommend the approval of Decisions, emanating

from the Legal Division, where the respondent is found guilty
for the same Light Offense for 2nd or 3rd time; and
3. Initial and Recommend the approval of Decisions, emanating

from the Legal Division, finding the respondent guilty for
Simple Dishonesty.
The recommendation for approval of the Decision in appropriate cases shall

be indorsed to:
• The Office of the Deputy Commissioner-Legal Group

(ODCIR-LG), for Decisions imposing a penalty of Suspension
of One (1) Day to Thirty (30) Days; or
• Office of the Commissioner of Internal Revenue (OCIR) for

Decisions imposing a penalty of Suspension of more than
Thirty (30) Days or Dismissal from the service.
through the Internal Affairs Service.
Circular as all revenue officials and wide a publicity as possible.

Footnotes
1. Now Section 50 (F), Rule 10 of the 2017 Rules on Administrative Cases in the
Civil Service (2017 RACCS) promulgated under CSC Resolution No. 1701077,
dated July 3, 2017 amending RRACCS under CSC Resolution No. 11-01502.
2. RMO No. 53-2010.
3. Section 35 (C) in relation to Section 8 (m) of the RCC.
May 29, 2018
SUBJECT : Clarifying the Imposition of Penalties and Interest on the

Filing of an Amended Return
This Circular is issued to clarify and reiterate the imposition of surcharge,

interest and compromise penalty for filing of an amended return and the interest
rate to be imposed in accordance with Section 249 (A) of the National Internal
Revenue Code of 1997, as amended by Republic Act (RA) No. 10963,
otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Background
In response to the issue raised in an email dated May 26, 2017 to the
Presidential Complaint Center and referred to the Office of the Deputy
Commissioner-Operations Group prior to the effectivity of RA No. 10963,
Memorandum No. 016-2018 was issued and circularized through Revenue
Memorandum Circular (RMC) No. 21-2018. In the said memorandum, it was
stated that —
"Under the above quoted provisions, it is clear that interest of twenty percent
(20%) and penalty equivalent to twenty-five percent (25%) of the amount
due shall be imposed on failure to file any return and pay the tax due thereon
on the date prescribed or failure to pay the full or part of the amount of tax
shown on any return as required under the provisions of the National
Internal Revenue Code or rules and regulations. Thus, in an amendment of
return where an additional tax is due per amended return, 20% interest and
25% penalty shall be imposed based on the additional tax to be paid per
amended return."
Clarification
Section 75 of Republic Act No. 10963 provides that —
"SEC. 75. Section 249 of the NIRC, as amended, is hereby further

amended to read as follows:
'SEC. 249. Interest. —
'(A) In General. — There shall be assessed and collected on any

unpaid amount of tax, interest at the rate of double the legal interest rate
for loans or forbearance of any money in the absence of an express
stipulation as set by the Bangko Sentral ng Pilipinas from the date
prescribed for payment until the amount is fully paid: Provided, That in no
case shall the deficiency and the delinquency interest prescribed under
Subsections (B) and (C) hereof, be imposed simultaneously.'" (Emphasis
supplied)
Pursuant to Section 1 of Bangko Sentral ng Pilipinas (BSP) Circular No.

799 Series of 2013, the rate of interest in the absence of stipulation shall be:
"Section 1. The rate of interest for the loan or forbearance of any

money, goods or credits and the rate allowed in judgements, in the absence
of an express contract as to such rate of interest, shall be six percent (6%)
per annum."
Based on the foregoing, beginning January 1, 2018, the effectivity date of
the TRAIN Law, the interest rate shall be 12% per annum, until a new interest rate
shall be prescribed by the BSP.
Thus, in an amendment of a return where an additional tax is due per

amended return, 25% penalty and 12% interest shall be imposed based on the
additional tax to be paid.
As regards the imposition of compromise penalties, as stated in

Memo-016-2018 dated March 15, 2018, compromise penalties per Revenue
Memorandum Order (RMO) No. 7-2015 which updates the Schedule of
Compromise Penalties specified in RMO No. 19-2007, are only amounts
suggested by the Bureau of Internal Revenue in settlement of criminal liability for
violations committed by taxpayers, the payment of which are consensual in nature,
and may not therefore be imposed or exacted on the taxpayer. Thus, in the event
that a taxpayer refuses to pay the suggested compromise penalty, the violation
shall be referred to the appropriate office for criminal action.
All revenue officers and employees are hereby enjoined to give this

June 13, 2018

17-2018, Specifically the Deadline for the Processing of
Pending VAT Refund/Credit Claims Filed Prior to the
Effectivity of RMC No. 54-2014
In order to give sufficient time to all concerned offices to complete the

processing, review and approval of all pending VAT claims filed prior to the
effectivity of RMC No. 54-2014, the deadline prescribed in Item No. VI.A.1
of RMC No. 17-2018 is hereby moved from June 30, 2018 to December 14,
2018.

June 14, 2018
SUBJECT : Lost One (1) Pad of Unused BIR Form No. 2524 —
Revenue Official Receipt

Concerned
Notice is hereby given of the loss of one (1) pad of unused BIR Form No.
2524 — Revenue Official Receipt, bearing the following serial numbers:
3738701-M to 3738750-M
The abovementioned forms was reported as lost by Ms. Nerissa V. De Leon

and Ms. Josefina M. Velasco, Revenue District Office No. 109, Revenue Region
No. 18, Koronadal City and have consequently been cancelled. All official

use of the same.

Deputy Commissioner
(40)
June 8, 2018
SUBJECT : Amending Revenue Memorandum Circular No. 69-2017

Re: Registration and Compliance Requirements of
Individuals under a Job Order or Service Contract
Agreement with the Departments and Agencies of the
Government, Instrumentalities, Local Government Units
(LGUs), State Colleges and Universities, Including
Government-Owned and/or -Controlled Corporations
(GOCCs) and Government Financial Institutions (GFIs)

Concerned
In line with Republic Act No. 10963, otherwise known as "Tax Reform
for Acceleration and Inclusion (TRAIN) Act," as implemented by Revenue
Regulations (RR) No. 8-2018 and RR No. 11-2018, this Circular is being
issued to amend Revenue Memorandum Circular No. 69-2017 dated August 17,
2017 re: registration and tax compliance requirements of individuals under a Job
Order or Service Contract Agreement with the Departments and Agencies of the
Government, Instrumentalities, LGUs, State Colleges and Universities, including
GOCCs and GFIs.
The following terms shall be defined as follows:
1. Professional — refers to those individuals enumerated under

Section 2.57.2 (A) (1) of Revenue Regulations (RR) No. 2-98,
as amended and as defined under Section 2 (n) of RR No.
8-2018.
2. Other Service Providers or Supplier of Services — shall

refer to those individuals who are not identified under Section
2.57.2 (A) (1) of RR No. 2-98 and who render services or
labor-only for a fee or under a contract for service.
The following registration and compliance requirements are applicable only

to individuals under a Job Order or Service Contract Agreement with the
Departments and Agencies of the Government, Instrumentalities, LGUs, State
Colleges and Universities, including GOCCs and GFIs. Otherwise, policies
pursuant to Revenue Regulations No. 11-2018 shall be applicable:
A. Professionals and Other Supplier of Services Hired under a

Contract for Service or Job Order deriving gross receipts of
P250,000 and below in any 12-month period from a LONE
PAYOR and with no other source of income
Registration Requirements
1. Registration with the Bureau using BIR Form No. 1901

for Taxpayer Identification Number (TIN) issuance with
taxpayer type of 'Professional' or 'Professional — In
General' with the following documentary requirements:
a. Copy of service contract showing the amount of

income payment;
b. Any identification issued by an authorized

government body (e.g., Birth Certificate, passport,
driver's license, Community Tax Certificate, etc.)
that shows the name, address and birthdate of the
applicant; and
The Registration Officer shall add the words "— Job

Order" in the business name field, e.g., "Juan Dela Cruz
— Job Order."
2. Payment of Annual Registration Fee (ARF);
3. Tax Type: Income Tax; Percentage Tax; Registration

Fee (RF);
4. Exemption from the issuance of Certificate of

Registration (COR);
Bookkeeping and Invoicing Requirements
5. Exemption from compliance with the issuance of

registered receipts/invoices;
6. Exemption from the requirement of maintenance of

Books of Accounts;
Tax Compliance Requirements
7. Filing of Annual Income Tax Return (BIR Form No.

1701);
8. Exemption from filing of Quarterly Income Tax Return

(BIR Form No. 1701Q);
9. Not subject to creditable withholding tax rates; and
10. Filing and payment of Percentage Tax using Quarterly

Percentage Tax Return (BIR Form No. 2551Q):
a. If opted to avail of the Graduated Income Tax

Rates under Section 24 (A) (2) (a) of the
Tax Code, as amended — Subject to
withholding of three percent (3%) percentage
tax under Section 5.116 (A) (1) of Revenue
Regulations (RR) No. 2-98, as amended;
b. Exempted from filing and payment of

percentage tax and/or withholding of
percentage tax if qualified and opted to avail of
the 8% income tax rate and submits an Income
Payee's Sworn Declaration of his/her gross
receipts/sales (Annex "A1") to the lone income
payor/withholding agent, together with a copy
of duly received BIR Form No. 1901 or copy of
BIR Form No. 0605 — Annual Registration
Fee payment, in lieu of the COR (not required
to attach COR).
Availment of the Eight Percent (8%) Income Tax Rate Option
Professionals and Other Supplier of Services hired under a

Contract for Service or Job Order deriving gross receipts of
P250,000 and below in any 12-month period from lone
payor and with no other source of income, shall signify the
intention to elect the 8% income tax rate in filing of BIR
Form No. 1905 (Application for Registration Information
Update) or filing of 1st Quarterly Percentage Tax Return.
B. Professionals and Other Supplier of Services Hired under a

Contract for Service or Job Order deriving gross receipts
ABOVE P250,000 and NOT EXCEEDING P3,000,000 in any
12-month period from LONE PAYOR and with no other
source of income

for issuance of TIN and Certificate of Registration
(COR) specifying a taxpayer type of 'Professional' or
'Professional — In General' with the following
documentary requirements:

income payment;

driver's license, Community Tax Certificate, etc.)
applicant; and

Order" in the business name field, e.g., "Juan Dela Cruz
— Job Order."
2. Payment of Annual Registration Fee (RF);
3. Tax Types: RF, Income Tax (IT-1701), VAT or
Percentage Tax
a. For VAT taxpayers:
- End date the Form Type 2550M/2550Q

if taxpayer will avail of substituted VAT
return.
b. For Non-VAT Taxpayer:
- End date the Form Type 2551Q if

taxpayer will avail of substituted
percentage tax return or the eight
percent (8%) income tax rate.
4. Approval of Authority to Print (ATP) for the issuance of

registered principal receipts/invoices (except if qualified
under the substituted receipts); 1(41)
5. Registration and maintenance of Books of Accounts;
6. Filing and Payment of Annual Income Tax Return using

BIR Form No. 1701;
7. Filing and payment of Quarterly Income Tax Return

8. Attaching Financial Statements to the filed Income Tax

Return, if applicable, except, if qualified and availed of
the option to be taxed at 8% income tax rate;
9. Subject to creditable withholding tax rates of:
a. For Professional —
Five percent (5%) — if the payee submits an

Income Payee's Sworn Declaration of his/her
gross receipts/sales to the lone income
payor/withholding agent with a copy of COR;
Ten percent (10%) — if the payee failed to
provide the lone income payor/withholding
agent of Income Payee's Sworn Declaration of
his/her gross receipts/sales; or if the payee is
VAT-registered regardless of amount of gross
receipts/sales;
b. For Other Supplier of Services —
Two percent (2%) expanded withholding tax — if

the payee submits an Income Payee's Sworn
Declaration of his/her gross receipts/sales to
the lone income payor/withholding agent with
a copy of COR;
Ten percent (10%) — if the payee failed to

provide the lone income payor/withholding
agent of Income Payee's Sworn Declaration of
his/her gross receipts/sales; or if the payee is
VAT-registered regardless of amount of gross
receipts/sales;
10. Subject to withholding of Percentage Tax or VAT
- The government agency-payor is required to

withhold:
a. three percent (3%) percentage tax under

Section 5.116 (A) (1) of RR No. 2-98, as
amended; or five percent (5%) final VAT
withholding rate under Section 4.114-2 of
RR No. 16-2005, as amended; or
b. twelve percent (12%) VAT under Section

9.245 (A) of RR No. 2-98, as amended, if
the payee will avail of the substituted filing
of VAT return under RR No. 14-2003;
c. no withholding of Percentage Tax if the

payee is qualified and availed of the
option to be taxed at 8% income tax
rate;
11. Filing and Payment of quarterly VAT, except if the

payee availed of the substituted VAT return; or
Percentage Tax Returns, except if qualified and availed
of the option to be taxed at 8% income tax rate, or
availed of the substituted percentage tax return.
Substituted Percentage Tax/VAT Return and

Substituted Official Receipt (for those who are under the
graduated income tax rate and are therefore subject to
business tax).
Professionals and Other Supplier of Services Hired

under Contract for Services or Job Order who are
receiving income and opted to be taxed at Graduated
Income Tax Rates under Section 24 (A) (2) (a) of the
Tax Code, as amended, based on the net taxable
income, and with only one payor for the calendar year,
may opt to avail of the substituted filing of
Percentage/VAT return instead of filing quarterly returns
(with duly end-dated form types); and substituted
issuance of official receipts.
12. Substituted Percentage Tax/VAT Return
Pursuant to Revenue Regulations No. 14-2003,

Taxpayer-payee hired under contract of services or job
order with only one payor may opt to remit his
percentage tax/VAT through the withholding and
remittance of the same by the withholding agent-payor
which option is manifested by filing the "Waiver of the
Privilege to Claim Input Tax Credits" (Annex D) (for
VAT taxpayer only), "Notice of Availment on the
Option to Pay the Tax through the Withholding
Process" (Annex F) and "Notice of Availment on the
Substituted Filing of Percentage Tax/VAT Return"
(Annex B/C), which waiver and notice are
copy-furnished the withholding agent-payor and the
Revenue District Offices of both the payor and payee.
The lone payor, upon receipt of the notice, shall
mandatorily withhold the 3% percentage tax or
applicable VAT rate on income payment to the payee
and shall remit the same to the appropriate collection
agents of the Bureau.
The Taxpayer-payee whose gross receipts have already
been subjected to the withholding of 3% percentage tax
or 12% VAT by the lone payor, shall no longer be
required to file the quarterly percentage tax return (BIR
Form No. 2551Q) or the monthly VAT declarations
(BIR Form No. 2550M) and quarterly VAT returns (BIR
Form No. 2550Q). The BIR Form No. 1600 duly filed by
the payor serves as the substituted percentage tax/VAT
return of the payee with lone payor provided that BIR
Form No. 2306 (Certificate of Final Tax Withheld at
Source) duly executed and signed by both the payor and
the payee is attached to the filed BIR Form No. 1600.
The duly filed or stamped "Received" BIR Form 2306
shall serve the same purpose as the percentage tax/VAT
return (BIR Form 2551Q/2550M/2550Q) of the payee.
If the taxpayer-payee shall have additional clients or

customers within the taxable year, the taxpayer-payee
shall immediately file the "Notice of Cancellation on
the Availment of the Substituted Filing of Returns"
(Annex E).
13. Substituted Official Receipt
Taxpayer/Professional (seller of service) hired under

contract of services or job order, whose gross receipts
have been subjected to the withholding of 3% percentage
tax or applicable final VAT rate, shall be exempted from
the obligation of issuing duly registered principal receipt
for payments of services rendered. In lieu thereof, the
issued BIR Form No. 2306 (Certificate of Final Tax
Withheld at Source) for the payee with just one payor
shall be constituted and treated as the substituted official
receipt pursuant to the provisions of Section 237 of
NIRC, as amended.
In case of layoff during a taxable year, Professional and

Other Supplier of Services hired under the Contract of
Services or Job Order shall duly inform his home RDO
by updating his registration information using BIR Form
No. 1905 and immediately file the "Notice of
Cancellation on the Availment of the Substituted
Filing of Returns" (Annex E) within ten (10) calendar
days from the effectivity of separation from service.
Existing policies and procedures in the closure of
business shall be followed if the taxpayer shall not be
engaged in business activities or practice of his
profession, to facilitate the end-dating of applicable tax
types/form types.

Contract for Service or Job Order, deriving gross receipts
above P250,000 and not exceeding P3,000,000 in any
12-month period from lone payor and with no other source
of income, shall signify the intention to elect the 8% income
tax rate in the filing of any of the following:
a. BIR Form No. 1905 (Application for Registration

Information Update) and 1st Quarterly Income Tax
Return; or
b. 1st Quarterly Percentage Tax Return and 1st

Quarterly Income Tax Return; or
c. 1st Quarterly Income Tax Return only.
C. Professionals and Other Supplier of Services Hired under a

Contract for Service or Job Order deriving gross receipts
ABOVE P3,000,000 in any 12-month period from LONE
PAYOR and with no other source of income

for issuance of TIN and Certificate of Registration

income payment;

driver's license, Community Tax Certificate) that
shows the name, address and birthdate of the
applicant; and

Order" in business name field, e.g., "Juan Dela Cruz —
Job Order."
2. Payment of Annual Registration Fee (RF);
3. Tax Types: RF, Income Tax (IT-1701), VAT (end date

the Form Type 2550M/2550Q if taxpayer will avail of
substituted VAT return);

registered principal receipts/invoices (except if qualified
under the substituted receipts); 2(42)

7. Filing and Payment of Annual Income Tax Return using

BIR Form No. 1701;
8. Attaching Audited Financial Statements to the filed

Income Tax Return;
9. Subject to creditable withholding tax rates of Ten

percent (10%);
10. Subject to withholding of VAT

withhold:
a. five percent (5%) final VAT withholding

rate under Section 4.114-2 of RR No.
16-2005, as amended; or
b. twelve percent (12%) VAT under Section

9.245 (A) of RR No. 2-98, as amended, if
the payee will avail of the substituted filing
of VAT return under RR No. 14-2003; and
11. Filing and Payment of quarterly VAT, except if the

payee availed the substituted VAT return.
D. Professionals and Other Supplier of Services Hired under

Contract for Services or Job Order with MULTIPLE PAYOR
and/or other source of income

for the issuance of TIN and Certificate of Registration
a. Checklist of requirements under Annex A1 of

RMC No. 30-2018;
b. Additional requirement: Copy of service contract

showing the amount of income payment;
2. Payment of Annual Registration Fee (ARF);
3. Tax Types: RF, Income Tax (IT-1701/1701Q), VAT or

Percentage Tax;

registered principal receipts/invoices;

(BIR Form No. 1701Q) and Annual Income Tax Return
(BIR Form No. 1701);
7. Attaching Financial Statements (FS) to the filed Income

Tax Return, if applicable, except if qualified and availed
of the option to be taxed at 8% income tax rate or
Audited FS, if the gross sales/receipts and other
non-operating income of more than the VAT threshold;
8. Subject to creditable withholding tax rates of:
a. For Professional —
Five percent (5%) — if the payee's gross

income shall not exceed P3,000,000 and
submits an Income Payee's Sworn Declaration
of his/her gross receipts/sales (Annex "A2") to
the income payor/withholding agent with a
copy of COR;
Ten percent (10%) — if the payee's gross

income shall exceed P3,000,000 or
VAT-registered regardless of the amount; or if
the payee failed to provide the income
payor/withholding agent of Income Payee's
Sworn Declaration of his/her gross
receipts/sales;
b. For Other Supplier of Services —
Two percent (2%) expanded withholding tax — if

the payee submits an Income Payee's Sworn
Declaration of his/her gross receipts/sales
(Annex "A2") to the income payor/withholding
agent with a copy of COR;
Ten percent (10%) — if the payee's gross

income shall exceed P3,000,000 or
VAT-registered regardless of the amount;
9. Subject to creditable withholding of Percentage Tax or

VAT;

withhold three percent (3%) percentage tax under
Section 5.116 (A) (1) of Revenue Regulations
(RR) No. 2-98, as amended, except if the payee
is qualified and availed the option to be taxed
at 8% income tax rate; or five percent (5%) final
VAT withholding rate under Section 4.114-2 of
RR No. 16-2005, as amended;
10. Filing and Payment of the quarterly VAT; or Percentage
Tax Returns, except if qualified and availed of the option
to be taxed at 8% income tax rate;
11. Quarterly submission of the Summary List of Sales and

Summary List of Domestic Purchases for VAT
taxpayers.

Contract for Service or Job Order deriving gross receipts above
P250,000 and not exceeding P3,000,000 in any 12-month
period with multiple payors and/or other source of income shall
signify the intention to elect the 8% income tax rate in the filing
of any of the following:
a. BIR Form No. 1905 (Application for Registration

Information Update) and 1st Quarterly Income Tax
Return; or
b. 1st Quarterly Percentage Tax Return and 1st Quarterly

Income Tax Return; or
c. 1st Quarterly Income Tax Return only.
E. Summary
Table below clearly described the details on the registration,

filing and payment requirements for each type of taxpayers
previously defined.
Individuals under a Job Order or Service Contract Agreement Registration Fee COR Percentage/
with the Departments and Agencies of the Government, (RF)/ VAT
Instrumentalities, LGUs, State Colleges and Universities, Annual RF
including the GOCCs and GFI
Professionals and Other Supplier of Services deriving gross  x *

receipts of P250,000 and below in any 12-month period from
lone payor
Other Supplier of Services deriving gross receipts above   *
P250,000 in any 12-month from lone payor
Professionals deriving gross receipts above P250,000 in any   *
12-month period from lone payor
Other Supplier of Services receiving income from multiple   
payor and/or other source of income
Professionals receiving income from multiple payor and/or   
other source of income
* May avail of the substituted filing on Percentage Tax/VAT return and substituted official receipts.
** 10% creditable withholding tax rate shall be withheld, if the payee failed to submits sworn declaration; or if the payee is VAT-
Note: No creditable withholding of percentage tax, and the taxpayer is also not required to file quarterly percentage tax return if
All other issuances inconsistent herewith are hereby repealed or modified

accordingly. All internal revenue officers and employees are hereby enjoined to
give this Circular a wide publicity as possible.

ANNEX A1
Income Payee's Sworn Declaration of Gross Receipts/Sales

(For Self-Employed and/or Engaged in the Practice of Profession with Lone Income
Payor)
ANNEX B
Notice of Availment on the Substituted Filing of Percentage Tax Return
ANNEX C
Notice of Availment on the Substituted Filing of Value-Added Tax Return
ANNEX D
Sworn Declaration and Waiver of the Privilege to Claim Input Tax Credits under Section
110 of the Tax Code
ANNEX E
Notice of Cancellation on the Availment of the Substituted Filing of Percentage Tax/VAT

Return
ANNEX F
Notice of Availment on the Option to Pay the Tax through the Withholding Process
Footnotes
1. See Section B (13) of this circular.
May 11, 2018
SUBJECT : Clarifies Certain Provisions of Revenue Regulations (RR)

Nos. 8-2018 and 11-2018 Implementing the Income Tax
Provisions of Republic Act (R.A.) No. 10963, Otherwise
Known as the "Tax Reform for Acceleration and Inclusion
(TRAIN) Act"
Hereunder are the most frequently asked questions on income and

withholding tax provisions of RR Nos. 8-2018 and 11-2018, as amended
by RR Nos. 15-2018 and 14-2018, respectively. The stated RRs were
issued to implement the TRAIN law's income tax provisions including its
consequent withholding tax.
Q1: Are the personal exemption and additional exemption still the same under
the TRAIN law?
A1: The personal and additional exemptions previously provided under Section
35 of the 1997 Tax Code, as amended, have been removed under the
TRAIN Law. Starting January 1, 2018, said exemptions of individual
taxpayers were replaced with the first P250,000 of taxable income which is
now subject to zero percent (0%) rate of income tax, practically exempting
such income from income tax.
Q2: Under the TRAIN law, is there no change in the mandatory deductions such
as SSS, PhilHealth, Pag-IBIG, etc. from Gross Compensation of
employees? Please clarify.
A2: There is no change in the mandatory deductions from gross compensation of

employees. The allowed deductions are the employee's share in the SSS,
GSIS, PhilHealth and Pag-IBIG contributions (limited to compulsory
contributions) as well as the union dues. They are deductible to arrive at
the taxable compensation income.
Q3: Is there a change in the non-taxability of "de minimis" benefits under the
TRAIN Law?
A3: No, there is no change in the tax treatment for "de minimis" benefits. It is
still considered as compensation not subject to income tax and
consequently, not subject to withholding tax, and neither to fringe benefit
tax.
Q4: What are the benefits classified/considered as "de minimis"? Are there any
updates in the amount of "de minimis" benefits?
A4: As of January 1, 2018, the following are the "de minimis" benefits:
a. Monetized unused vacation leave credits of private

employees not exceeding ten (10) days during the
year;
b. Monetized value of vacation and sick leave credits

paid to government officials and employees;
c. Medical cash allowance to dependents of employees

not exceeding P1,500.00 per employee per semester
or P250.00 per month;
d. Rice subsidy of P2,000.00 or one (1) sack of 50 kg.

rice per month amounting to not more than P2,000.00;
e. Uniform and clothing allowance not exceeding

P6,000.00 per annum;
f. Actual medical assistance, e.g., medical allowance to

cover medical and healthcare needs, annual
medical/executive check-up, maternity assistance, and
routine consultations, not exceeding P10,000.00 per
annum;
g. Laundry allowance not exceeding P300.00 per month;
h Employees achievement awards, e.g., for length of

service or safety achievement, which must be in the
form of a tangible personal property other than cash or
gift certificate, with an annual monetary value not
exceeding P10,000.00 received by the employee
under an established written plan which does not
discriminate in favor of highly paid employees;
i. Gifts given during Christmas and major anniversary

celebrations not exceeding P5,000.00 per employee
per annum;
j. Daily meal allowance for overtime work and

night/graveyard shift not exceeding twenty-five
percent (25%) of the basic minimum wage on a per
region basis; and
k. Benefits received by an employee by virtue of a

collective bargaining agreement (CBA) and
productivity incentive schemes provided that the total
annual monetary value received from both CBA and
productivity incentive schemes combined do not
exceed ten thousand pesos (P10,000.00) per employee
per taxable year.
All other benefits given by employers which are not included in the above
enumeration shall not be considered as "de minimis" benefits, and hence,
shall be subject to income tax as well as withholding tax.
Q5: What shall be the tax treatment of the "de minimis" benefits given to
employees which are beyond the prescribed amount of benefits?
A5: The benefits given in excess of the maximum amount allowed as "de
minimis" benefits shall be included as part of "other benefits" which is
subject to the P90,000.00 ceiling. Any amount in excess of the P90,000
shall be subject to income tax, and consequently, to the withholding tax on
compensation.
Example: Ms. A received annual clothing allowance amounting to P10,000.

Her 13th month pay is P80,000. No other benefits were received for the
entire year. In this case, since the prescribed maximum amount for
clothing allowance is only P6,000 the excess of P4,000 shall be added to
the 13th month pay, thereby the entire benefits received amounted to
P84,000. In this scenario, the same shall still be exempt from income tax
since the ceiling amount for these other benefits is P90,000.00.
Q6: Are incentives given to employees also taxable? If yes, how much is
taxable?
A6: In general, any incentives given to employees shall form part of the
compensation subject to income tax, unless specifically exempted under a
special law or incentives are in the nature of the previously enumerated
"de minimis" benefits.
Q7: What is the treatment for the Premium on Health Card paid by the employer
for the "rank and file" employees, as well as for those employees holding
"managerial or supervisory" function?
A7: Premium on Health Card paid by the employer for all employees, whether
rank and file or managerial/supervisory, under a group insurance shall be
included as part of other benefits of these employees which are subject to
the P90,000.00 threshold. However, individual premiums (not part of
group insurance) paid for selected employees holding managerial or
supervisory functions are considered "fringe benefits" subject to fringe
benefits tax.
Q8: What would be the treatment of the additional income as a result of the
benefits provided under the Attrition Law wherein employees who are
performing well will receive rewards?
A8: The said additional income/benefits, whether in the form of cash or reward
in kind, shall form part of the compensation income subject to withholding
tax on compensation. The fair market value of the reward in kind shall be
included in the taxable compensation.
Q9: What would be the treatment of the commission given to an employee in

addition to the regular compensation received from the same employer
(income payor/withholding agent)? Is the remittance of the withholding
tax on commission separate from the tax withheld on compensation?
A9: The commission received from the same employer shall be considered as
supplementary income. It shall be added to the regular compensation
subject to income tax and consequently to withholding tax using the
withholding tax table on compensation. The tax withheld shall be filed
monthly and remitted using BIR Form No. 1601-C.
Q10: How do we determine if a government employee is considered a Minimum

Wage Earner (MWE)?
A10: The government entity/employer must be aware of the Statutory Minimum

Wage (SMW) prescribed for a particular geographical region by the
National Wages and Productivity Commission (NWPC) of the Department
of Labor and Employment (DOLE). The copy of the wage matrix they
provide the Bureau is circularized every time there are changes in the
SMW. If the wage of the employee is equal or below the said prescribed
SMW for a particular region, then the employee working within the same
region is considered a MWE.
Q11: Is the MWE exempt from income tax?
A11: The MWE is exempt from income tax on his basic SMW, overtime (OT)
pay, holiday pay, night shift differential (NDP) pay and hazard pay.
However, income other than those mentioned are subject to income tax.
Q12: What if the MWE receives service charge which is not included in the
enumerated exemptions such as holiday pay, overtime pay, etc., will he
still be exempt from income tax? If not, how will his income tax be
computed?
A12: The MWE will still be exempt from income tax on his SMW including the
other income earned specifically enumerated as exempt under the law.
However, income other than those in the enumeration shall already be
taxable. The taxable income shall be computed by deducting the
non-taxable/exempt portion and other deductions from the gross
compensation income. Then, the resulting taxable income shall be
multiplied to the applicable income tax rate using the prescribed tax table
to get the amount of income tax due.
Q13: For those whose basic pay is more than the SMW but does not exceed
P250,000, are other income like holiday pay, OT, NDP, hazard pay &
others also tax exempt?
A13: The employee is no longer considered an MWE since his basic pay is more
than the SMW. Thus, the amount of basic pay, OT pay, holiday pay, NDP
pay and hazard pay — shall be subject to income tax, and consequently, to
the withholding tax on compensation.
Q14: How do the employers present compensation exempt from tax under the
TRAIN law in BIR Form No. 1601C (monthly remittance of withholding
tax)? Will it be segregated from the schedule of MWEs?
A14: Compensation exempt from tax shall be included as part of those

non-taxable compensation and there is no need to segregate the same from
the schedule of MWEs since their compensation is also non-taxable.
Q15: Do the employees need to update their tax status and submit documents
thereon to BIR?
A15: Employees are not required to update their tax status and submit documents
thereon to the BIR.
Q16: Who are not qualified to avail of the 8% Income Tax rate?
A16: The following individuals are not qualified to avail of the 8% Income Tax
rate:
a) Purely compensation income earners;
b) VAT-registered taxpayers, regardless of the amount of

gross sales/receipts and other non-operating income;
c) Non-VAT taxpayers whose gross sales/receipts and

other non-operating income exceeded the
P3,000,000.00 VAT threshold;
d) Taxpayers who are subject to Other Percentage Taxes

under Title V of the Tax Code, as amended, except
those under Section 116 of the same title;
e) Partners of a General Professional Partnership (GPP)

since their distributive share from the GPP is already
net of costs and expenses; and
f) Individuals enjoying income tax exemption such as

those registered under the Barangay Micro Business
Enterprises (BMBEs), etc., since taxpayers are not
allowed to avail of double or multiple tax exemptions
under different laws, unless specifically provided by
law.
Q17: What are included in the "Other Percentage Taxes" under Title V of the Tax
Code, as amended?
A17: Other than Sec. 116, the following sections are included under the said Title
V:
Sec. 117 — Percentage Tax (PT) on domestic carriers and keepers of

garages
Sec. 118 — PT on international carriers
Sec. 119 — Tax on Franchises
Sec. 120 — Tax on overseas dispatch, message or conversation originating

from the Philippines
Sec. 121 — Tax on banks and non-bank financial intermediaries performing
quasi-banking functions
Sec. 122 — Tax on other non-bank financial intermediaries
Sec. 123 — Tax on life insurance premiums
Sec. 124 — Tax on agents of foreign insurance companies
Sec. 125 — Amusement taxes
Sec. 126 — Tax on winnings
Sec. 127 — Tax on sale, barter or exchange of shares of stock listed and
traded through the local stock exchange or through initial public offering
Q18: What are the salient features of both the graduated and the 8% income tax
rates? AIDSTE
A18: The features of Graduated Income Tax (IT) rates and 8% IT rate are as
follows:
Particulars Graduated IT Rates 8% IT Rates

Applicability In general, applicable to all May be availed by qualified individuals
individual taxpayers engaged in business/practice of profession
whose gross sales/receipts and other
non-operating income did not exceed
P3,000,000.00
Basis of IT net taxable income gross sales/receipts and other non-operating
income
Allowed Allowed itemized Allowed reduction of P250,000.00 from the
Deductions deductions or Optional gross, only for individual whose income
Standard Deduction (OSD) comes purely from business/practice of
profession; otherwise, no
reduction/deduction allowed
Business Tax Percentage Tax (PT) or If qualified: Not subject to PT
VAT
Required 1. If itemized: If qualified: No FS required
Financial FS — if gross is less
Statements than P3M
(FS) Audited FS — if gross is
more than P3M
2. If OSD: no FS required
Q19: How can individual taxpayers avail of the option of 8% income tax rate in
lieu of the graduated income tax rates and percentage tax?
A19: The taxpayers who are qualified for the option to be taxed at 8% income tax
rate can avail of the 8% income tax rate by signifying his intention to avail
of the same as soon as possible through the filing of any of the following:
1. For New Business Registrant (Individual)
1.a — BIR Form No. 1901 (Percentage Tax type shall

still be registered but shall be suspended or end-dated
in the BIR tax system); or
1.b — Initial quarterly percentage or income tax

return after the commencement of a new
business/practice of profession.
2. For Existing Individual Business Taxpayers
2.a — BIR Form No. 1905;
2.b — 1st Quarterly Percentage Tax Return; and/or
2.c — 1st Quarterly Income Tax Return.
The option to avail of the 8% income tax rate must be signified annually, on
or before May 15. Such election shall be irrevocable and no amendment of
option shall be made for the said taxable year, unless the gross
sales/receipts and other non-operating income exceeded the VAT threshold
of P3,000,000.00 in which case taxpayer shall automatically be subject to
the graduated income tax rate.
Q20: What is the income tax regime of a taxpayer who is otherwise qualified to
avail of the 8% income tax rate but failed to signify this selection?
A20: An individual taxpayer who is qualified to avail of the 8% income tax rate
but failed to signify his intention to avail of the same shall be subject to the
graduated income tax rates.
Q21: In the case of a purely self-employed/professional individual taxpayer who

opted for the 8% income tax, does he/she still need to file and pay the 3%
percentage tax?
A21: No, he/she is no longer required to file and pay the 3% percentage tax. The
8% income tax rate is in lieu of the graduated income tax rates and the
percentage tax under Section 116 of the Tax Code.
Q22: What is the base amount of the 8% income tax rate?
A22: The 8% income tax rate shall be based on the gross sales/receipts and other
non-operating income, net of returns and cash discounts. However, if the
individual earns income purely from business or practice of profession,
he/she is entitled to the reduction of P250,000.00 before computing for the
8% income tax.
Q23: Who are entitled to reduce their taxable gross sales/receipts and other
non-operating income by the amount of P250,000.00 for purposes of
computing the income tax due under the 8% income tax rate?
A23: Only individuals earning income purely from self-employment and practice
of profession are entitled to the amount allowed as reduction of
P250,000.00 under Sec. 24 (A) (2) (b) of the Tax Code, as amended,
for the purpose of computing the 8% income tax. Thus, mixed income
earners (earning both from compensation and business/practice of
profession) shall no longer be entitled to the P250,000.00 reduction on
their income from business/practice of profession since said amount has
already been applied in computing the income tax on compensation.
Q24: For filing of quarterly ITR for individuals earning purely from practice of
profession who opted for 8% income tax, how can the P250,000.00 be
deducted. Is it gross receipts for the quarter less P62,500.00 (250,000/4)
equals taxable income?
A24: There is no need to divide the amount of P250,000.00 allowed as reduction

into four quarters. The said amount was considered in the design of the
revised quarterly income tax returns (Form 1701Q) which reflect a
cumulative quarterly computation.
Q25: What tax rates are applicable for individuals who are earning income from
both compensation and self-employment (business or practice of
profession)?
A25: Compensation income shall be subject to the graduated income tax rates
under Section 24 (A) (2) (a) of the Tax Code, as amended. The
income from business or practice of a profession shall be subject to the
graduated income tax rates or if qualified, at taxpayer's option, be subject
to the 8% income tax rate based on gross sales/receipts.
Q26: Are returnable deposits or deposits held in trust, like security deposits under
lease agreements part of the definition of gross receipts?
A26: In general, all deposits received are included in the definition of Gross
Receipts under Section 2 (g) of RR 8-2018. However, returnable deposits
or deposits held in trust and recorded as Liability are excluded.
Q27: When does a taxpayer use the graduated income tax rates or the option of
8% income tax rate?
A27: Applicability of IT Rates per Individual Taxpayer's Income Classification.
Classification Graduated IT Rates &/ 8% IT Rates

or
a. Purely Compensation  n/a Not applicable (n/a)
b. Purely Business/Practice of Profession:
b.1 If gross sales/receipts and other  OR 
non-operating income did not
exceed P3M in a taxable year (at
taxpayer's option)
— subject to applicable — If qualified, taxable
business tax/es on gross sales/receipts
and other
non-operating income
in excess of
in lieu of graduated
rates and PT under
Sec. 116
b.2 If gross sales/receipts & other  n/a n/a
non-operating income exceed P3M
in a taxable year
— subject to applicable
business tax/es
c. Mixed Income (both compensation and business/practice of profession):
c.1 compensation  n/a n/a
c.2 engage in business/practice of
profession
c.2.i If gross sales/receipts &  OR 
other non-operating income
did not exceed P3M in a
taxable year (at taxpayer's
option)
— subject to applicable — If qualified: taxable
business tax/es on gross; in lieu of
graduated rates and
PT under Sec. 116
c.2.ii If gross sales/receipts &  n/a n/a
other non-operating income
exceed P3M in a taxable
year
— subject to applicable
business tax/es
Under the graduated IT Under the 8% IT regime:
regime: Total IT due = Income tax
1. allowed deductions are due from compensation
the itemized deductions (using graduated rates)
or the OSD (40%) to plus income tax due from
get taxable net income business/practice of
2. Total IT due = sum of profession (8% of gross
both the taxable income sales/receipts & other
from compensation and non-operating income)
business/profession
multiply by graduated
IT rate
Q28: Is an individual under a contract of service or job order arrangement

considered self-employed?
A28: Yes, an individual under a contract of service or job order arrangement is

considered self-employed.
Q29: What are the applicable withholding taxes and corresponding rates for
individuals hired under a Job Order or Contract for Service scheme?
A29: 1. Hired by Public or Government Sector. —
If the income-payor/withholding agent is a government entity, it shall

withhold both income and the applicable business taxes, if any. However,
if the payee's annual gross receipts will not exceed P250,000.00 from a
lone payor, the income payments may be exempt from both withholding
tax on income upon submission of a Sworn Declaration of Gross
Receipts/Sales attached as "Annex B-2" of RR No. 11-2018, together with
the copy of the Certificate of Registration (COR) or Copy of the BIR Form
1901 (duly received by the concerned BIR office), and withholding of
percentage tax, if payee signified the option to avail the 8% income tax
rate regime in the sworn declaration.
2. Hired by Private Sector. —
If the income-payor/withholding agent is a private entity, it shall withhold

income tax only since the corresponding business tax shall be paid by the
payee him/herself. However, if the payee's annual gross receipts will not
exceed P250,000.00 from a lone income payor, the income payments may
be exempt from withholding tax on income upon submission of a Sworn
Declaration of Gross Receipts/Sales attached as "Annex B-2" of RR No.
11-2018 together with the copy of the COR or Copy of the BIR Form 1901
(duly received by the concerned BIR office).
The nature of the service rendered shall determine the applicable

withholding tax rates on income. For services rendered by individuals
falling under Section 2.57.2 (A) of RR No. 11-2018, the rates prescribed
thereon shall be used, and all others not under the aforesaid section, shall
be subject to two percent (2%).
Q30: Why do taxpayers need to submit a copy of the COR together with their
Sworn Declaration to their Withholding Agent/Payor?
A30: The copy of the COR is required for the withholding agent/payor to
determine if the payee is actually registered with the BIR, and if payee is a
non-VAT taxpayer who may be qualified to avail of the option to be taxed
at 8% flat income tax rate if gross sales/receipts and other non-operating
income did not exceed P3M for the taxable year.
Q31: Are individuals under a contract of service or job order arrangement exempt
from income tax under the TRAIN law?
A31: No. In general, all individuals rendering service are subject to income tax.
Q32: If the Job Order personnel received only P6,000 or less per month, do they
need to execute sworn statement under Annex B-2?
A32: Under the above scenario, since the income shall be less than P250,000.00
per annum, they need to execute the sworn declaration using the format of
Annex B-2 so that no income tax withholding shall be made by the lone
income payor/withholding agent on the stated income payment.
Q33: In RR No. 8-2018, self-employed individual is defined/classified as

professional or non-professional. In RR No. 11-2018, only professionals
have the rates of 5% or 10%, what is the withholding tax rate for the
non-professionals?
A33: If the individual's service is not covered by the definition of a professional

under RR No. 8-2018 and does not fall under Section 2.57.2(A) of RR No.
2-98, as amended by RR No. 11-2018, the same shall be subjected to
2% income tax withholding.
Q34: What is the applicable withholding tax rate for director's fees?
A34: If the director receiving the director's fees is also an employee of the same
entity, the fees shall form part of the compensation subject to withholding
tax on compensation. However, if the director is not an employee of the
income payor then the subject taxpayer is considered a professional subject
to the creditable expanded withholding tax prescribed for a professional,
and subject also to the applicable business tax. Moreover, in the case of
government employee who seats as board member of other Government
Owned & Controlled Corporations (GOCCs) and is receiving director's
fees, honoraria and/or other benefits shall be subject to creditable
withholding tax at the higher rate for professional at 10%. The said income
shall be reported by the payee as other income to be included as part of the
compensation income in arriving at the total taxable income. The
corresponding withholding tax shall form part of the tax credits against the
income tax due.
Q35: Is a general professional partnership (GPP) subject to the creditable

expanded withholding tax?
A35: No, a GPP is not subject to income tax and thus, not subject to the creditable
expanded withholding tax. However, it is subject to the applicable business
tax. Further, the partners of the GPP is subject to income tax and to the
applicable withholding tax.
Q36: Are individual contractors also subject to the creditable expanded

withholding tax?
A36: Yes, they are still subject to the creditable expanded withholding tax at the
same withholding tax rate of 2%.
Q37: Will the withholding tax rates to be used for doctors/consultant who
submitted sworn declaration and signified to be taxed at 8% income tax
rate differ from those who opted the graduated income tax?
A37: No. The withholding tax rate for doctors/consultants who submitted the
sworn declaration (Annex B-2 of RR 11-2018) shall be 5%, regardless of
whether they are availing of the 8% income tax or the graduated income
tax rates. If the income payor/withholding agent, however, is a government
entity, it shall also withhold business tax if the payee selected to be taxed
using the graduated income tax rates.
Q38: What happens when Annex B-2 is submitted beyond the deadline of April
20, 2018?
A38: If the sworn declaration was only submitted by the income payee to the
payor after the deadline of April 20, 2018, the payee's excess tax withheld,
if any, prior to the approval of RR 11-2018, shall not be refunded by the
income payor. The payee's executed sworn declaration shall only be
applied by the withholding agent on all income payments after receipt of
such declaration.
Q39: Is the Affidavit of Declaration of Gross Income no longer required for

non-individuals in relation to the P720,000 threshold?
A39: It is still required under the existing rules and regulations and was not part of
the amendments under the TRAIN Act.
Q40: What is the withholding tax applicable to a diplomat's wife who is locally
employed?
A40: An individual who is employed locally is subject to withholding tax using
the withholding tax table on compensation.
Q41: What is the applicable withholding tax on income payments made to

self-employed professionals who failed to submit their sworn declaration
to the payor?
A41: The applicable withholding tax rate for self-employed professionals who
failed to submit sworn declaration to the payor is 10% for income tax.
Moreover, if the payor is a government entity, the same income payment is
also subject to either 3% percentage tax or 5% withholding VAT,
whichever is applicable.
Q42: Can you provide a guide for individual taxpayers on the taxability of their
earned income from business and/or practice of profession, and for
withholding agents/payors on the treatment of income payments if the
payee is under the graduated IT rates; if payee is qualified and opted for
the 8% IT rate; if subject or not to withholding taxes (WT)?
A42: This will serve as a guide for individual taxpayers engaged in business
and/or practice of profession as well as for withholding agents/payors on
the treatment of individual income earnings/payments:
Sales/Receipts If Graduated IT rates If 8% IT rate

Gross Amt. Tax Taxability WT Taxability WT
P250,000 and IT Taxable at Not subject Exempt, if taxpayer's No, for purely
below 0% entire income is derived business and/or
purely from business profession;
and/or practice of
Yes, if mixed
profession; subject to
income earner
8%, if mixed income
earner (with income from
both compensation, and
business and/or
profession), based on
gross sales/receipts &
other non-operating
income
PT Subject Subject, if Not subject Not subject
government
payor
Doc Payee's Sworn Declaration Payee's Sworn Declaration and COR
and COR
Above IT Taxable at Subject at 8% on gross Subject to
P250,000 to applicable applicable sales/receipts and other applicable rate
P3,000,000 graduated rates non-operating income;
rates on net however, for purely
income business/practice —
entitled to reduction of
P250,000
PT Subject Subject, if Not subject Not subject
government
payor
Doc Payee's Sworn Declaration Payee's Sworn Declaration and COR
and COR
Above IT Subject to Subject to WT Not entitled to avail
P3,000,000 applicable
rate
BT Now subject Subject to WT
to VAT of VAT, if
government
payor
* IT — Income tax; WT — Withholding tax; PT — Percentage tax; BT — Business tax.
Q43: What shall be the treatment of withheld taxes remitted using the old BIR
Form Nos. 1601-E, 1601-F and 0605 for the first two (2) months of the
quarter?
A43: The payments shall be deducted from the taxes due to be remitted for the
entire quarter.
Q44: Are individuals with consecutive employers qualified to avail of the

substituted filing of Annual Income Tax Return (AITR) if the latest
employer will consolidate income of the individual from previous
employment to the current employment income and the entire income is
subjected to the year-end adjustment wherein the tax due is computed prior
to the payment of the last compensation for the year?
A44: Based on existing policy, individuals with consecutive employers are not
qualified to avail of the substituted filing of AITR. Hence, they are
required to file an AITR.
Q45: What withholding tax certificate shall be issued to individuals under Job
Order or contract of service arrangement?
A45: The tax being withheld from an individual under Job Order or Contract of
Service arrangement is a creditable withholding tax; thus, the Certification
that shall be issued by the withholding agent shall be BIR Form 2307.
Q46: Is an employee with a lone employer within a year but is receiving

retirement pension qualified for substituted filing of the annual income tax
return (AITR)?
A46: Yes, the employee with a lone employer is still qualified to avail of the
substituted filing of AITR provided the income tax has been withheld
correctly. The retirement pension is not taxable.
Q47: What form shall be used by an employee who is not qualified for substituted
filing and what is the responsibility of the employer?
A47: An employee who is not qualified for substituted filing of Income Tax
Return is required to either use BIR Form No. 1700 (for purely
compensation income earner) or BIR Form No. 1701 (for self-employed or
mixed income earner). The responsibility of the employer is to provide the
employee with BIR Form No. 2316 (Certificate of Compensation and Tax
Withheld) not later than January 31 after the close of the calendar year.
Q48: Are the certificates of tax withheld filed by the employers and duly stamped
"received" by the Bureau tantamount to the substituted filing of Annual
Income Tax Returns (AITR) of the employees?
A48: Yes, it applies to all qualified employees. As discussed under RR No.

11-2018, "Qualified employees are those whose income comes from a lone
employer and the tax due on the compensation income was correctly
withheld by the employer."
Under the same RR, the Certificates of Tax Withheld shall refer to the
Certified List of Employees Qualified for Substituted Filing prescribed in
Annex "F" of the RR, with accompanying soft copy of the corresponding
BIR Form No. 2316. The list shall be stamped "Received" by the Bureau,
and this stamping is tantamount to the substituted filing of AITR of the
concerned employees.
Q49: The Creditable Withholding Tax Certificate and Form No. 1604C/F were not
included in the TRAIN Law. Do we still need to file/issue them?
A49: Yes, existing rules shall still apply since the TRAIN Law did not make
amendments on these issues.
Q50: Can eFPS filers still use the staggered filing allowed before in filing the
creditable and final withholding tax forms/returns to avoid eFPS
downtime?
A50: Yes, the same rules still apply with regards to eFPS filers who can file the
withholding tax forms/returns on staggered basis depending on industry
grouping.
Q51: Is an employee who is earning purely compensation income not exceeding

P250,000 from a lone employer still need to file an Annual Income Tax
Return (AITR)?
A51: No, an employee earning purely compensation income that does not exceed
P250,000 from a lone employer is not required to file an AITR. In this
case, the employer shall include the name of such employee in the
alphalist to be submitted to the BIR. However, an employee is required to
file an AITR for compensation earned within the same taxable year from
multiple employers, whether successive or concurrent, regardless of the
amount of compensation.
Q52: Is an employee who resigned before the year ends with only one employer
for the year required to file an AITR?
A52: No, the employee is not required to file an AITR if there is only one
employer during the year and the amount of withheld tax is equal to the
income tax due for the taxable year.
Q53: Are those who opted and are qualified for the 8% Income Tax rate still
required to attach the Financial Statement when filing an AITR?
A53: No, the Financial Statement is not required to be attached when filing an
AITR for those who opt and qualify for the 8% income tax rate.
Q54: A professional or self-employed did not avail of the 8% and opt for the
graduated table but claimed the OSD, can he be exempt from FS
submission?
A54: Yes, a taxpayer who opts for the OSD as the deduction to arrive at the
taxable income subject to the graduated income tax rates is exempt from
FS submission.
Q55: If a taxpayer opts to use the graduated income tax rate on income from
business or from practice of profession, when is the deadline for filing the
3% percentage tax?
A55: If a taxpayer opted to use the graduated tax rate on professional income, he
shall file a quarterly return of the amount of gross sales, receipts or
earnings and pay the 3% percentage tax due thereon within twenty-five
(25) days after the end of each taxable quarter.
Q56: What are the withholding tax forms that we can use? When are the due dates
for their filing?
A56: The matrix below shall serve as the taxpayer's guide on the withholding tax
forms to use and their due dates:
Withholding Frequency Forms/List Due Dates

Withholding Monthly 1601C — Monthly Remittance On or before the 10th day of the
Tax on Return of Income Taxes month following the month of
Compensation Withheld on Compensation withholding (eFPS filers on
staggered basis depending on
grouping)
Annually 1604C — Annual Information January 31 following the close
Returns of Income Taxes of the taxable year
Withheld on Compensation and
Annual Alphalist of Employees
2316 — Certificate of
Compensation Payment/Tax
Withheld for Compensation
Payment with or without Tax
Withheld (for employees)
Certified List of Employees On or before February 28
Qualified for Substituted Filing following the close of the
of ITR with copies of Form taxable year
2316 (For large taxpayers —
scanned copies of Form 2316
on storage media, i.e., usb, cd,
etc.)
Expanded Monthly (1st 0619E — Remittance of On or before the 10th day
Withholding two months of Creditable Income Taxes following the close of the month
Tax the quarter) Withheld (Expanded) (eFPS filers on staggered basis
depending on grouping)
Quarterly 1601EQ — Quarterly On or before the end of the
Remittance Return of month following the close of the
Creditable Income Taxes quarter
Withheld and Quarterly
Alphalist of Payees (QAP)
Form 2307 — Certificate of On or before the 20th day after
Creditable Tax Withheld at the close of the quarter or upon
Source (for payees) demand of the payee
Annually 1604E — Annual Information March 1 following the close of
Return of Creditable Income the taxable year
Taxes Withheld
(Expanded)/Income Payments
Exempt from Withholding Tax
and Annual Alphalist of Payees
Final Monthly (1st 0619F — Monthly Remittance On or before the 10th day
Withholding two months of Form of Final Income Taxes following the close of the month
Tax the quarter) Withheld (eFPS filers on staggered basis
depending on grouping)
Quarterly 1601FQ — Quarterly On or before the end of the
Remittance Return of Final month following the close of the
Income Taxes Withheld; quarter
Quarterly Alphalist of Payees
(QAP)
Final Tax Withheld at Source close of the quarter or upon
(for payees) demand of payee
Annually 1604F — Annual Information January 31 following the close
Return on Final Income Taxes of the taxable year
Withheld and Annual Alphalist
of Payees
Final WT on Quarterly 1602Q — Quarterly Remittance On or before the end of the
Interest paid on Return of Final Income Taxes month following the close of the
deposit, etc. Withheld on Interest Paid on quarter
Deposit and Deposit
Substitutes/Trusts/Etc.
Final WT on Quarterly 1603Q — Quarterly Remittance On or before the end of the
Fringe Benefits Return of Final Income Taxes month following the close of the
Withheld on Fringe Benefits quarter
Paid to Employees Other Than
Rank and File; Annual
Alphalist of Employees with
Fringe Benefits
Government Monthly 1600 — Monthly Remittance On or before the 10th day
Money Return of Value-Added Tax following the close of the month
Payments and Other Percentage Taxes
Withheld
Quarterly Form 2307 — Certificate of On or before the 20th day after
Creditable Tax Withheld at the close of the quarter or upon
Source (for payees) demand of the payee
Final Tax Withheld at Source close of the quarter or upon
(for payees) demand of payee
Q57: For new forms like 1601EQ for quarterly remittance returns of creditable
withholding tax, will there be an automatic updates on eFPS of the revised
and new forms?
A57: Yes, the revised and new forms will also be available in the eFPS. Kindly
wait for the advisory of its availability either in hard copy, in eBIRForms
and finally in eFPS. There will be workaround procedures in case of
system downtime.
Q58: Are the partners of the general professional partnership (GPP) required to
register as professionals? Can they opt to choose the 8%? Is there any
special registration required?
A58: Yes, they are required to register as professionals. However, there is no

option to avail the 8% income tax rate since their distributive share in the
net income of the GPP is already net of cost and expenses. No special
registration is required.
Q59: For the creditable expanded withholding tax, are we still required to submit
the Monthly Alphalist (MAP)?
A59: No. The requirement is to submit a Quarterly Alphalist (QAP) as an

attachment to the quarterly creditable/expanded withholding tax returns
(Form 1601EQ).
Q60: On the electronic submission of Alpha List, are there changes in the
formatting?
A60: Yes, there are revisions in the formatting of the quarterly as well as the
annual Alpha List. The Bureau shall issue an advisory on the availability
of these formats and a memorandum circular for the procedures on its use.
Q61: What is the retention period of our books of accounts under the TRAIN law?
A61: The TRAIN Law did not amend the retention period prescribed by Section
203 of the Tax Code, as amended, and implemented by RR No.
17-2013.
Q62: For record keeping, can we scan the documents for the years 2017 and
earlier to comply with the BIR regulation of 10 years' record keeping?
A62: Under RR No. 5-2014, within the first 5 years reckoned from the day
following the deadline in filing a return or if filed after the deadline, from
the date of the filing of the return, the taxpayer shall retain hardcopies of
the books of accounts, including subsidiary books and other accounting
records. Thereafter, taxpayer may retain only an electronic copy in an
electronic storage system which complies with the requirements under the
said RR. Failure to meet the requirements of the RR, the taxpayer shall
maintain and preserve the original hardcopy of the said books of accounts
and other accounting records for 10 years.
All internal revenue officials, employees and other concerned are hereby
enjoined to give this Circular as wide a publicity as possible.

(43)
May 21, 2018
SUBJECT : Publishing the Full Text of Memorandum Order No. 23

Dated May 8, 2018, Entitled "Renewing the Travel Tax
Exemption Policy to Travellers Departing from All
International Airports and Seaports in Mindanao and
Palawan to Any Destination in the Brunei
Darussalam-Indonesia-Malaysia-Philippines-East ASEAN
Growth Area (BIMP-EAGA)"

Concerned
concerned, attached is the letter dated May 8, 2018 from Atty. Concepcion Zeny
E. Ferrolino-Enad, Director IV of Malacañang Records Office and a certified copy
of Memorandum Order No. 23 dated May 8, 2018, entitled "RENEWING THE
TRAVEL TAX EXEMPTION POLICY TO TRAVELLERS DEPARTING
FROM ALL INTERNATIONAL AIRPORTS AND SEAPORTS IN
MINDANAO AND PALAWAN TO ANY DESTINATION IN THE BRUNEI
DARUSSALAM-INDONESIA-MALAYSIA-PHILIPPINES-EAST ASEAN
GROWTH AREA (BIMP-EAGA)."

ATTACHMENT
Memorandum Order No. 23 dated May 8, 2018
May 30, 2018
SUBJECT : Processing Time of One-Time Transactions for the

Issuance of Electronic Certificate Authorizing Registration
(eCAR)

Concerned
This Circular is hereby issued to classify One-Time Transactions (ONETT),

particularly on sale/exchange/donation and its corresponding processing time for
eCAR issuance, to wit:
Transactions Processing Time from the

Submission of Complete
Documentary Requirements
(working days)
Individual Taxpayer/Corporation with One (1)
Deed of Sale/Exchange/Donation:
a. One (1) to Three (3) properties 3 days
b. Four (4) to Ten (10) properties 5 days
c. Eleven (11) to Fifty (50) properties 10 days
d. More than Fifty (50) properties 20 days
Real Estate Developer — One (1) Deed of
Sale/Exchange involving Multiple Properties:
a. One (1) to Ten (10) properties 5 days
b. Eleven (11) to Fifty (50) properties 10 days
c. More than Fifty (50) properties 20 days

(44)
June 5, 2018
SUBJECT : Circularizing the Reportorial Requirements of Revenue

Regional Offices to the Internal Affairs Service
TO : All Revenue Officials and Employees Concerned
Under Revenue Administrative Order (RAO) No. 2-2014, the Internal

Affairs Service (IAS) has the function to develop and implement policies and
administer work programs, standards, guidelines and procedures, including forms
relative to this; to provide functional directions to all divisions under the Service
and to regional and district offices relative to the abovementioned functions; to
coordinate with concerned offices in the implementation of the said functions; to
monitor and coordinate the activities of the Regional Investigation Divisions
(RIDs) of the Regional Offices pertaining to the fact-finding investigation of
administrative cases of Bureau personnel; and to consolidate and/or prepare
prescribed reports for submission to the offices concerned.
The Regional Offices have been required to submit Monthly Reports to the
IAS regarding the handling and disposition of administrative complaints and
charges. Observing that some regions do not regularly forward these reports, the
Commissioner of Internal Revenue reiterated the submission of pertinent Reports
by the Regional Offices to the IAS in his Memorandum dated December 11, 2017
and the sanction for non-compliance.
It has been further observed that the contents of submitted reports from the
Regional Offices have varying formats. Therefore, this Circular is being issued to
disseminate the revised formats of the reports required to be submitted to IAS by
concerned offices in the Revenue Regions in order to facilitate the collation for
database purposes and integration of these reports in the IAS.
A. Assignment of Control Reference Number for Complaints;

Administrative Case Numbers for Formal Charges
1. For purposes of proper recording and tracking, every administrative

complaint received and recorded by the RID shall be assigned with a control
number:
Complaint Reference No. (Serial No.)-(Year Received)
• CRN 001-2018
• CRN 001-2019
2. In the Legal Division, every Formal Charge received and recorded

shall be assigned with a case number complying with Section 1, Rule IX, Revenue
Memorandum Order (RMO) No. 19-2011.
BIR-RR (Region No.) Admin. Case No. (Serial No.)-(Last 2 digits of the
year it was filed)
• BIR-RR01-Admin. Case No. 001-2018
• BIR-RR01-Admin. Case No. 001-2019
B. Uniform Format of Reports and Attachments
The reports to be submitted to the IAS shall conform to the formats hereto
appended as Annexes with sample entries.
REGIONAL INVESTIGATION DIVISION (RID)

Reports Annex
1. Monthly Accomplishment Report on Administrative Cases A
Attachments:
a) List of Complaints, Denunciations Investigated & Evaluated A-1
b) List of Formal Charges Issued A-2
c) List of Cases Forwarded to Internal Affairs Service A-3
d) List of Administrative Cases Closed A-4
2. Monthly Inventory of Pending Cases for Fact Finding/Preliminary B
Investigation
LEGAL DIVISION
Reports Annex
1. Monthly Accomplishment Report on Administrative Cases C
2. Monthly Inventory of Decisions Approved & Implemented C-1
FINANCE DIVISION
Report Annex
1. Monthly List of Revenue Collection Officers (RCOs) with D
Unreported/Unremitted Collections
C. Prompt Submission to the Internal Affairs Service
The monthly reports should be submitted no later than the 15th of the next
following month both for hard and soft copies.
INTERNAL AFFAIRS SERVICE Tel. No.: 922-9345

Room 609, 6th Floor Telefax: 926-5657
BIR National Office Bldg. Diliman,
820 Quezon City
Email: c/o
<verna.lissa.milla@bir.gov.ph>
D. Confidential Top Sheet
Hard copies of Monthly Reports and Indorsements of administrative case

dockets, bearing reports of the fact finding investigation conducted on complaints
in the nature of grave and less grave offenses, forwarded or transmitted to the IAS
shall contain a Confidential Top Sheet as required under RMO No. 12-2014.

ANNEX A
Revenue Region No. ___________

REGIONAL INVESTIGATION DIVISION
Monthly Accomplishment Report on Administrative Cases

For the month of _______________ 2018
KEY ACTIVITIES NO. OF CASES

1. Number of Complaints/Denunciations Received
2. Number of Approved Formal Charges Issued
3. Number of Cases Forwarded to Internal Affairs Service
4. Number of Administrative Cases Closed (Approved)
TOTAL
Prepared by: Submitted by:
_________________________________ _________________________________
Chief, Regional Investigation Division Regional Director
Date: __________________ Date: __________________
ANNEX A-1
List of Complaints/Denunciations Received

For the month of _______________ 2018
COMPLAINT DATE NAME OF NAME OF POSITION/ NATURE OF

REFERENCE RECEIVED COMPLAINANT/S SUBJECT PLACE OF COMPLAINT/
NUMBER PERSONNEL ASSIGNMENT DENUNCIATION(S)
(CRN)
1 003-2018 5-3-18 ZYX, Wvuts ABCDEF, Ghijk Revenue Officer/ Habitual Tardiness
L. RDO No. XX
2

_________________________________ _________________________________
ANNEX A-2
List of Approved Formal Charge/s Issued

for the month of _______________ 2018
COMPLAINT FORMAL CHARGE NAME OF SUBJECT POSITION/ NATURE OF

REFERENCE DATE APPROVED PERSONNEL PLACE OF ASSIGNMENT OFFENSE CHARG
NUMBER (CRN)
1 002-2018 5-7-18 QWERTY, Asdfg H. Revenue Officer/RDO No. XX Violation of
Office Rules and
Regulations (Sec. 18[
2

_________________________________ ______________________________
ANNEX A-3
List of Cases Forwarded to Internal Affairs Service

For the month of _______________ 2018
COMPLAINT NAME OF SUBJECT POSITION/ NATURE OF OFFENSE DATE OF

REFERENCE PERSONNEL PLACE OF TRANSMITTAL TO
NUMBER (CRN) ASSIGNMENT
1 005-2018 POIUY, Lkjh G. RCO, RDO XX Gross Misconduct & Dishonesty 01-15-2018

_________________________________ _________________________________
ANNEX A-4
List of Administrative Cases Closed (Approved)
For the month of _______________ 2018
COMPLAINT DATE NAME OF POSITION/ NATURE OF

REFERENCE RECEIVED SUBJECT PLACE OF COMPLAINT/ INVESTIGATOR
NUMBER PERSONNEL ASSIGNMENT DENUNCIATION(S) ASSIGNED/DATE
(CRN) ASSIGNED
1 003-2018 5-2-18 GFDSA, Bvcx Revenue Officer/ Violation of Reasonable Xyz, Opqrst
Z. RDO No. XX Office Rules (MOA _______)
(Non-wearing of
Uniform)
2 004-2018 5-2-18 RTYU, Fdsa Admin. Asst./ Discourtesy in the PLMN, Qazx
RDO No. XX discharge of official (MOA _______)
functions (Sec. 17b)

_________________________________ _________________________________
ANNEX B
RID Monthly Inventory of Pending Cases for Fact Finding/Preliminary Investigation

For the month of _______________ 2018
CRN NAME OF POSITION/ OFFENSE CHARGED INVESTIGATOR

RESPONDENT PLACE OF ASSIGNED
ASSIGNMENT
1 001-2018 ABCDEF, Ghijk L. Revenue Officer/ Violation of Reasonable Office Xyz, Opqrst
RDO No. XX Rules & Regulations (Violation
of RMO 58-2000, No Travel
Authority)
2

_________________________________ _________________________________
ANNEX C
LEGAL DIVISION
Monthly Inventory of Pending Administrative Cases
For the month of _______________ 2018
RR NAME OF POSITION/ NATURE OF OFFENSE CHARGED

ADMIN. CASE RESPONDENT PLACE OF
NO. ASSIGNMENT
1 RR#-AC-015-2017 ABCDEF, Ghijk L. Revenue Officer/ Violation of Reasonable Office Rules &
RDO No. XX Regulations (Violation of RMO 58-2000,
No Travel Authority)
2 RR#-AC-016-2017 MNBVC, Ytre W. RCO/RDO No. XX Violation of Reasonable Office Rules &
Regulations (Failure to submit
Clearance for RTAO-Sec. 31[2] RCC)
3 RR#-AC-019-2017 GFDSA, Bvcx Z. RO 1/RDO No. XX Habitual Tardiness

_________________________________ ________________________________
Chief, Legal Division Regional Director
ANNEX C-1
Monthly Inventory of Decisions Approved & Implemented

For the month of _______________ 2018
RR NAME OF POSITION/ OFFENSE DISPOSITION DECISION

ADMIN. RESPONDENT PLACE OF CHARGED
CASE NO. ASSIGNMENT APPROVED
1 RR#-AC-025-2017 RTYU, Fdsa Admin. Asst./ Habitual Tardiness Guilty
RDO No. XX
2 RR#-AC-020-2017 LKJH, Gfdsa RCO/ Willful failure to pay Case Dismissed

RDO No. XX just debts

_________________________________ ______________________________
ANNEX D
FINANCE DIVISION
Monthly List of Revenue Collection Officers (RSOs) with Unreported/Unremitted

Collections
As of _______________________
RDO No. Revenue Collection Officer Assigned Revenue Collection

Municipality/ies
Unreported/ Over-remittance
Unremitted
Total

_________________________________ _________________________________
Regional Investigation Division
Monthly Accomplishment Report on Administrative Cases

For the month of _______________ 2018
KEY ACTIVITIES NO. OF CASES

A. Number of complaints, denunciations investigated and evaluated
B. Number of Formal Charges Issued
C. Number of Cases Forwarded to Internal Affairs Service
D. Number of Formal Investigation (Hearing) Conducted
E. Number of Administrative Cases Closed
F. Others (Specify)
TOTAL

Monthly Inventory of Pending Administrative Cases

As of _______________ 2018
NAME OF SUBJECT CASE NO. and NATURE OF STATUS OF TH

PERSONNEL and PLACE DATE ASSIGNED VIOLATION/OFFENSE LAST ACTION
OF ASSIGNMENT

Monthly Report of Administrative Cases Handled

For the month of _______________ 2018
NAME OF SUBJECT NATURE OF DATE OF COMPLAINT/ DISPOSITION OF TH

PERSONNEL and PLACE COMPLAINT/ DENUNCIATION CASE/ACTION TAKE
OF ASSIGNMENT DENUNCIATION(S) RECEIVED

Monthly List of Revenue Collection Officers (RSOs) with Unreported/Unremitted

Collections
As of _______________
RDO No. Revenue Collection Officer Municipalities Unreported Total

Collection/
Overremittance
Total
Grand Total
Prepared by: Certified Correct:

Chief, Finance Division
May 21, 2018
SUBJECT : Circularizing the Ruling on the Proper Interpretation of

Section 214 of the National Internal Revenue Code of
1997, as Amended

Concerned
The provisions of Section 214 of the National Internal Revenue Code of

1997, as amended prescribe that:
"SEC. 214. Redemption of Property Sold. — Within one (1) year

from the date of sale, the delinquent taxpayer, or any one for him, shall have
the right of paying to the Revenue District Officer the amount of public
taxes, penalties, and interest thereon from the date of delinquency to the
date of sale, together with interest on said purchase price at the rate of
fifteen percent (15%) per annum from the date of purchase to the date of
redemption, and such payment shall entitle the person paying to the delivery
of the certificate issued to the purchaser and a certificate from the Revenue
District Officer that he has thus redeemed the property, and the Revenue
District Officer shall forthwith pay over to the purchaser the amount by
which such property has thus been redeemed, and said property thereafter
shall be free from the lien of such taxes and penalties.
The owner shall not, however, be deprived of the possession of the

said property and shall be entitled to the rents and other income thereof
until the expiration of the time allowed for its redemption." (underscoring
ours)
For the guidance of the taxpaying public and revenue officials of this
Bureau, more particularly, the respective national and regional committees
designated to conduct the public auction of seized/forfeited properties from
delinquent taxpayers, the following provisions are the pertinent excerpt of the
ruling dated March 13, 2018 issued by the Commissioner of Internal Revenue in
the proper interpretation of the said provisions of Section 214, in case of
redemption of the seized/forfeited properties by delinquent taxpayers:
"The above provision of the National Internal Revenue Code of 1997,

as amended, is clear that in case of redemption of property sold in public
auction, the delinquent taxpayer or any one for him shall have the right to
pay to the Revenue District Officer the following:
1. public taxes;
2. penalties prescribed under Section 248 of the

National Internal Revenue Code of 1997, as amended;
3. interest prescribed under Section 249 of the National

Internal Revenue Code of 1997, as amended, from the
date of delinquency to the date of sale; and
4. interest on purchase price at the rate of fifteen percent

(15%) per annum from the date of purchase to the
date of redemption.
Thus, for redemption to be valid, all public taxes including interests

and penalties must be paid. Otherwise stated, failure on the part of the
delinquent taxpayer or any one for him to pay all public taxes including
interest and penalties shall make the redemption invalid."
circular as wide a publicity as possible.
(45)
May 28, 2018

April 2018

2018-04-08, 2018-05-01, 2018-05-02, and 2018-05-04, for the month of April


ANNEX A
May 23, 2018
SUBJECT : Publishing the Daily Minimum Wage Rates in Region IV-A

Pursuant to Wage Order No. RB IVA-18

Concerned

employees and others concerned, we are publishing Wage Order No. RB IVA-No.
18 which was issued on February 28, 2018 and published at Philippine Star on
April 13, 2018:
Republic of the Philippines

REGION IV-A (CALABARZON)
WAGE ORDER NO. IVA-18
SETTING THE NEW MINIMUM WAGE

FOR PRIVATE ESTABLISHMENTS IN REGION IV-A
WHEREAS, the Regional Tripartite Wages and Productivity

Board-IVA (RTWPB-IVA) is mandated under R.A. 6727 "The Wage
Rationalization Act" to set applicable minimum wage of workers in private
establishments in the Region following a standard minimum wage fixing
process and set of criteria;
WHEREAS, Wage Order No. IVA-17 dated July 01, 2016 has
reached its anniversary date which paved the way for the filing of petitions
for minimum wage adjustments by the labor sector before the Board;
WHEREAS, a Notice of Public Consultation and Public Hearing

was published in a newspaper of general circulation on September 28, 2017;
WHEREAS, after due notice to all concerned sectors, the Board

conducted a series of provincial consultations on October 17, 2017 in Rizal;
October 24, 2017 in Quezon; November 08, 2017 in Batangas; November
15, 2017 in Cavite; November 21, 2017 in Laguna and a regionwide public
hearing on December 04, 2017 in Laguna, to inform the public about the
petitions filed and to determine the propriety of issuing a new wage order;
WHEREAS, the Board deemed it necessary to simplify the present

wage matrix structure by means of accelerating the grant of the remaining
increases in the 7-Year Area Reclassification Increase in W.O. No. IVA-17;
WHEREAS, in setting the new minimum wage in the region, the

Board considered the simplification of its wage matrix, the petitions,
position papers and public opinion as a result of the consultation and hearing
together with the need to determine the amount needed to restore the
purchasing power of the peso;
NOW, THEREFORE, by virtue of the power and authority vested

under Republic Act No. 6727, known as the Wage Rationalization Act, the
Regional Tripartite Wages and Productivity Board of Region IV-A hereby
issues this Wage Order.
SECTION 1. WAGE INCREASE. — Upon effectivity, the

new wage increases per day will range from a high of Twenty-One Pesos
and Fifty Centavos (Php21.50) to a low of Fourteen Pesos (Php14.00).
Those in the Extended Metropolitan Area namely Bacoor and Imus

in the Province of Cavite; Biñan City, Laguna Technopark and San Pedro
City in the province of Laguna; and Cainta and Taytay in the province of
Rizal shall have Twenty-One Pesos and Fifty Centavos (Php21.50) wage
increase.
The rest of the areas situated in the Growth Corridor Area, Emerging
Growth Area and Resource-Based Area shall receive an increase depending
on the amount needed to restore the loss purchasing power of the peso in
their present minimum wage which ranges from Fourteen Pesos up to
Sixteen Pesos and Fifty Centavos (Php14.00-Php16.50).
There shall be one wage rate for Agriculture per covered area
classification which shall be given in three (3) tranches as appearing in the
wage matrix together with the basic wage adjustment in this Wage Order.
There shall be an acceleration of the implementation of the

remaining tranches (3rd tranche up to 7th tranche) in reference to Wage
Order RB IVA-17 which shall be given in three (3) tranches, with their new
corresponding schedules, ending in December 01, 2020, as appearing in the
wage matrix together with the basic wage adjustment in this Wage Order.
There shall be an increase in selected areas ranging from Fifty

Centavos (P0.50) to Five Pesos (P5.00) to further simplify the minimum
wage rates per sector and area classification.
The lowest minimum wage rate or the floor wage in Region

IVA-CALABARZON Region shall be Three Hundred and Three Pesos
(Php303.00).
SECTION 2. NEW DAILY MINIMUM WAGE RATES.

— Upon effectivity, the new daily minimum wage rates of covered workers
in the private sector in Region IVA-CALABARZON shall be as follows:
Summary:
COVERED AREAS ADJUSTMENT NEW

MINIMUM WAGE RATE
Areas receiving Php378.50 Php21.50 Php400.00
minimum wage per W.O.
No. IVA-17
Areas receiving MW rates Php14.00 to Php16.50 Php317.00 to Php373.00
between Php356.50 and
Php302.50 per W.O. No.
IVA-17
Areas receiving Php283.00 Php20.00 Php303.00
floor wage per W.O. No.
IVA-17
Herein below is the detailed wage matrix showcasing the wage

increase per area:
Covered Areas Retail & Service Establishment Employing Not
More Than 10 Workers
W.O. NO. IVA-17 W.O. NO. IVA-18
Existing Basic Wage New Minimum
Minimum Wage Adjustment Wage
as of Jan. 1, 2017 upon effectivity of W.O. No. IVA-18
Province of Cavite 283.00 20.00 303.00
Alfonso, Amadeo, Bacoor, Carmona, Cavite
City, City of Dasmariñas, Gen. Emilio
Aguinaldo, Gen. Mariano Alvarez, General
Trias, Imus, Indang, Kawit, Magallanes,
Maragondon, Mendez, Naic, Noveleta, Rosario,
Silang, Tagaytay City, Tanza, Ternate, Trece
Martires City
Province of Laguna
Alaminos, Bay, Biñan City, Cabuyao City,
Calamba City, Calauan, Cavinti, Famy,
Kalayaan, Laguna Techno Park, Liliw, Los
Baños, Luisiana, Lumban, Mabitac, Magdalena,
Majayjay, Nagcarlan, Paete, Pagsanjan, Pakil,
Pangil, Pila, Rizal, San Pablo City, San Pedro
City, Sta. Cruz, Santa Maria, Santa Rosa City,
Siniloan, Victoria
Province of Batangas
Agoncillo, Alitagtag, Balayan, Balete, Batangas
City, Bauan, Calaca, Calatagan, Cuenca, Ibaan,
Laurel, Lemery, Lian, LIMA Technology
Center, Lipa City, Lobo, Mabini, Malvar,
Mataas na Kahoy, Nasugbu, Padre Garcia,
Rosario, San Jose, San Juan, San Luis, San
Nicolas, San Pascual, Santa Teresita, Santo
Tomas, Taal, Talisay, City of Tanauan, Taysan,
Tingloy, Tuy
Province of Rizal
Angono, City of Antipolo, Baras, Binangonan,
Cainta, Cardona, Jala-Jala, Morong, Pililla,
Rodriguez (Montalban), San Mateo, Tanay,
Taytay, Teresa
Province of Quezon
Agdangan, Alabat, Atimonan, Buenavista,
Burdeos, Calauag, Candelaria, Catanauan,
Dolores, General Luna, General Nakar,
Guinayangan, Gumaca, Infanta, Jomalig, Lopez,
Lucban, Lucena City, Macalelon, Mauban,
Mulanay, Padre Burgos, Pagbilao, Panukulan,
Patnanungan, Perez, Pitogo, Plaridel, Polillo,
Quezon, Real, Tagkawayan, City of Tayabas,
Tlaong, Sampaloc, San Andres, San Antonio,
San Francisco (Aurora), San Narciso, Sariaya,
Unisan
All workers covered by this Wage Order receiving wage rates less
than the prescribed minimum wage shall be adjusted at least to the new
minimum wage rates prescribed herein.
SECTION 3. COVERED WORKERS AND

EMPLOYEES. — The minimum wage rates prescribed under this Wage
Order shall apply to all minimum wage workers and employees in private
establishments in Region IV-A (CALABARZON Region) regardless of their
position, designation or status of employment and irrespective of the method
by which their wages are paid.
This Wage Order shall not cover kasambahay/domestic workers,

persons employed in the personal service of another and workers of
Barangay Micro Business Enterprises (BMBEs) with Certificates of
Authority, pursuant to R.A. 10644 otherwise known as Go Negosyo Act
of 2014.
SECTION 4. BASIS OF MINIMUM WAGE. — The

minimum wage prescribed under this Order shall be for the normal working
hours, which shall not exceed eight (8) hours work a day.
SECTION 5. APPLICATION TO WORKERS OF

CONTRACTORS OR SUBCONTRACTORS. — All workers of
legitimate contractors or subcontractors in the construction and other
industries are entitled to the prescribed minimum wage, provided for under
Section 1 of this Wage Order. The prescribed wage rates of covered workers
shall be borne by the principal or "user enterprise" and the service agreement
or contract shall be deemed amended accordingly.
In the event, however, that the principal fails to pay the prescribed
wages, the contractor or sub-contractor shall be jointly and severally liable
with the principal or "user enterprise."
SECTION 6. APPLICATION TO PRIVATE

EDUCATIONAL INSTITUTIONS. — In the case of private educational
institutions, the share of covered workers and employees in the increase in
tuition fees for School Year 2018-2019 shall be considered as compliance
with the wage rates prescribed herein. However, payment of any shortfall in
the wage increase set forth herein shall be covered starting School Year
2019-2020.
Private educational institutions which have not increased their tuition

fees for School Year 2018-2019 may defer compliance with the wage rates
prescribed herein until the beginning of School Year 2019-2020.

wage rates prescribed herein starting school year 2019-2020.
SECTION 7. APPLICATION TO WORKERS PAID BY

RESULTS. — All workers paid by result, including those who are paid on
piece work, takay, pakyaw or task basis, shall receive the minimum wage for
the normal working hours which shall not exceed eight (8) hours work a day,
or a proportion thereof for working less than the normal working hours.
SECTION 8. APPLICATION TO MOBILE, BRANCH

AND TRANSFERRED PERSONNEL. — For those workers working in
branches or agencies of establishments in or outside the region, the
minimum wage rates shall be those applicable in the place where they are
stationed or based. The minimum wage rates of workers, who by the nature
of their work have to travel, shall be those applicable in the domicile or head
office of the employer. In the case of mobile worker/employee, the home
base rate shall apply. The transfer of personnel from a high rate
city/municipality to a lower rate city/municipality shall not be a valid ground
for the reduction of the wage rates being enjoyed by the workers prior to
such transfer.
SECTION 9. APPLICATION TO SEASONAL OR

TEMPORARY WORKERS. — Seasonal, reliever, week-ender, temporary
or promo jobber workers directly hired by the principal or engaged by a
contractor or subcontractor shall receive the prescribed minimum wage.
SECTION 10. APPLICATION TO SPECIAL GROUPS OF

WORKERS. — Wages of apprentices and learners shall in no case be less
than seventy-five percent (75%) of the minimum wage prescribed in this
Wage Order. All recognized learnership and apprenticeship agreements
entered into before the effectivity of this Wage Order shall be considered
automatically modified insofar as their wage clauses are concerned to reflect
the provisions of this Wage Order.

the minimum wage prescribed in this Order, pursuant to R.A. 7277,
otherwise known as the Magna Carta for Disabled Persons.
SECTION 11. EXEMPTION. — Upon application with and

as determined by the Board based on documentation and other requirements
in accordance with applicable rules and regulations issued by NWPC, the
following may be exempted from the application of this Wage Order:
a) In case of a calamity, establishments adversely

affected by calamities such as natural and/or
human-induced disasters per NWPC Resolution No.
1, Series of 2014 on Amended Rules on Exemption.
b) Distressed establishment per NWPC Guidelines No.
2, Series of 2007 on Amended Rules on Exemption.
SECTION 12. PRODUCTIVITY AND OTHER

PERFORMANCE INCENTIVE. — In order to sustain rising levels of
wages and enhance competitiveness, labor and management, as partners, are
encouraged to adopt productivity improvement schemes such as time and
motion studies, good housekeeping, quality circles, labor and management
cooperation and implement gain-sharing and other performance incentive
schemes in order to improve the quality of life of workers and in turn enable
them to perform better and contribute to enterprise growth.
Pursuant to the Two-Tiered Wage System, the Board issued an

Advisory attached to the W.O. No. RB IVA-16 for reference.
SECTION 13. EFFECTS ON EXISTING WAGE

STRUCTURE. — Where the application of the wage increase prescribed
under this Wage Order results in distortion in the wage structure within the
establishments, it shall be corrected in accordance with the procedure under
Article 124 of the Labor Code, as amended.
SECTION 14. COMPLAINTS FOR NON-COMPLIANCE.

— Complaints for non-compliance with this Order shall be filed with the
Department of Labor and Employment-Regional Office-IVA (DOLE-RO
IVA) or to any DOLE-Provincial Field Office in the Region, and shall be the
subject to the conciliation and mediation process under Single Entry
Approach (SEnA). However, if settlement fails, the case becomes subject of
enforcement proceedings under Article 128 and 129 of the Labor Code, as
amended.
SECTION 15. APPEAL TO THE COMMISSION. — Any

party aggrieved by this wage order may file an appeal to the NWPC, through
the board, in three (3) printed copies, not later than ten (10) days from the
publication of this Wage Order.
SECTION 16. FREEDOM TO BARGAIN. — This Wage

Order shall not be construed to prevent workers from bargaining for higher
wages with their respective employers.
SECTION 17. NON-DIMINUTION OF BENEFITS. —

Nothing in this Wage Order shall be construed to reduce any existing wage
rates, allowances, and benefits of any form under existing laws, decrees,
issuances, executive orders and/or under any contract of agreement between
the workers and employers.
SECTION 18. PENAL PROVISIONS. — Any employer who

refuses or fails to pay the corresponding minimum wage rates provided
under this Order shall be subject to the penalties under R.A. 6727 and R.A.
8188.
SECTION 19. PROHIBITION AGAINST INJUNCTION.

— No preliminary injunction or temporary restraining order may be issued
by any court, tribunal or any entity against the Board, this Wage Order or
any proceedings before the Regional Board.
SECTION 20. REPORTING REQUIREMENT. — All

business establishments shall submit a verified report on their wage structure
to the Board not later than January 31 of each year and every year thereafter
in accordance with the form prescribed by the National Wages and
Productivity Commission.
SECTION 21. REPEALING CLAUSE. — All orders,

issuances, rules and regulations, or parts thereof inconsistent with this Wage
Order are hereby repealed, amended or modified accordingly.
SECTION 22. SEPARABILITY CLAUSE. — If for any

reason, any section or provision of this Wage Order is declared
unconstitutional or invalid, the other provisions or parts shall remain valid.
SECTION 23. IMPLEMENTING RULES. — The Regional

Board shall prepare the necessary rules and regulations to implement this
Wage Order, subject to the approval of the Secretary of Labor and
Employment.
SECTION 24. EFFECTIVITY. — This Order shall take effect

fifteen (15) days upon publication in a newspaper of general circulation.
Approved this 28th day of February, 2018 in Calamba City, Laguna.
(SGD.) MA. ZENAIDA A. ANGARA-CAMPITA

Regional Director, DOLE-IVA
Chairperson
(SGD.) LUIS G. BANUA

Regional Director, NEDA-IVA
Vice-Chairperson
(SGD.) MARILOU Q. TOLEDO

Regional Director, DTI-IVA
Vice-Chairperson
(SGD.) RENATO B. ALMEDA
Employers' Representative
(SGD.) DELIA T. UY
(SGD.) PATROCINIO S. CAISIP

Workers' Representative
(SGD.) ENGLEBERT C. LASANG

CLARIFICATORY ORDER
APRIL 26, 2018
WHEREAS, the RTWPB-IVA (Regional Board) issued an Errata

dated April 13, 2018 published at the Philippine Star on April 18, 2018 with
Readjusted Matrix stating that the Two (2) Pesos up to Five (5) Pesos will
not form part of the new minimum wage of those areas to receive the same,
in effect deleting the said Two (2) Pesos up to Five (5) Pesos simplification
increase in Wage Order RB IVA-18;
WHEREAS, the Regional Board, during its April 26, 2018 Meeting,
found that the said deletion of Two (2) Pesos up to Five (5) Pesos has no
legal basis in law and in existing rules of minimum wage fixing;
WHEREAS, the Regional Board agreed to issue this Clarification

Order to show its intention to include the simplification adjustment of Two
(2) Pesos up to Five (5) Pesos being part of Wage Order RB IVA-18 to take
effect on December 01, 2019;
NOW THEREFORE, IN VIEW OF THE FOREGOING, THIS

BOARD HEREBY RESOLVES TO INCLUDE THE TWO (2) PESOS
UP TO FIVE (5) PESOS SIMPLIFICATION ADJUSTMENT OF THE
AFFECTED AREAS AS STATED IN THE WAGE ORDER RB
IVA-18 EFFECTIVE DECEMBER 01, 2019.
(SGD.) ATTY. EVELYN R. RAMOS

Chairperson
(SGD.) MARILOU Q. TOLEDO
Vice Chairperson, DTI
(SGD.) LUIS G. BANUA

Vice Chairperson, NEDA
(SGD.) RENATO B. ALMEDA

PATROCINIO S. CAISIP
(SGD.) ATTY. DELIA T. UY

(SGD.) ENGLEBERT C. LASANG


May 18, 2018
SUBJECT : Creation of Fast Lane for All One-Time Transactions

(ONETT) Involving Simple Transaction

Concerned
In line with the BIR's efforts to promote the delivery of quality service to all
stakeholders, all One-Time Transaction (ONETT) Teams are hereby directed to
create a fast lane that will cater to individuals or corporations filing Capital Gains
Tax or Donor's Tax Returns with only one (1) Deed of Sale/Exchange/Donation
involving one (1) to three (3) properties. To comply with the provisions of
Republic Act (RA) No. 9485, otherwise known as the "Anti Red Tape Act of
2007" (ARTA), these transactions shall be processed and the corresponding
eCARs released within three (3) working days upon submission of complete
documentary requirements.
The ONETT under the fast lane shall be processed by the Group Supervisor
of the Assessment Section assigned as Officer of the Day and approved by the
Assistant Revenue District Officer/Revenue District Officer (RDO) depending on
the threshold set forth under Revenue Memorandum Order No. 55-2016. The
submission of the complete documentary requirements should include a Certificate
from the Bank signed by the Cashier and countersigned by the Manager with bank
seal that will be secured by the taxpayer immediately after payment for cash
transaction from the Authorized Agent Bank (AAB). Consequently, the RDO shall
request for the specimen signatures of the Cashier and Bank Manager from the
AABs located within his/her jurisdiction. DETACa

May 25, 2018
SUBJECT : Suspension of the Use of the Update of Exemption of

Employees (UEE) Data Entry Module in Filing of the BIR
Form No. 2305 (Certificate of Update of Exemption and of
Employers and Employee's Information) and 2305 Batch
File Validation Module

Concerned
Section 35 of the National Internal Revenue Code (NIRC) of 1997, as

amended, which allowed personal and additional exemptions for an individual
taxpayer, has been repealed by Section 12 of Republic Act (RA) No. 10963
otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law
effective January 1, 2018. Thus, taxpayers with dependents are no longer required
to update their additional exemptions by filing the BIR Form No. 2305 —
Certificate of Update of Exemption and of Employer's and Employee's
Information.
This is to circularize the suspension of the use of Update of Exemption of

Employees (UEE)/Batch File Validation Modules and the submission of report
pursuant to Revenue Memorandum Circular (RMC) No. 59-2015. Change of
civil status and Employee's Information shall now be done manually using BIR
Form No. 1905 (Application for Registration Information Update).
enjoined to give this Circular as wide publicity as possible. HEITAD

May 23, 2018
SUBJECT : Clarification on the Issuance of Taxpayer Identification

Number (TIN) for Corporations Relative to Its Corporate
Term under the Corporation Code of the Philippines

Concerned
Relative to Revenue Memorandum Order No. 30-2005, this Circular is

being issued to clarify policies on the issuance of TIN of corporations that have
reached its corporate life as originally stated in its Articles of Incorporation.
Section 11 of the Corporation Code of the Philippines provides:
"Section 11. Corporate term. — A corporation shall exist for a period not
exceeding fifty (50) years from the date of incorporation unless sooner
dissolved or unless said period is extended. The corporate term as originally
stated in the articles of incorporation may be extended for periods not
exceeding fifty (50) years in any single instance by an amendment of the
articles of incorporation, in accordance with this Code: Provided, That no
extension can be made earlier than five (5) years prior to the original or
subsequent expiry date(s) unless there are justifiable reasons for an earlier
extension as may be determined by the Securities and Exchange Commission
(SEC)."
In line with the above provision, the following policies shall be adopted:
1. A corporation or partnership whose corporate life has been

granted an extension by SEC prior to the expiration of its
corporate life, shall not be issued a new TIN. It is however
mandated that the taxpayer shall update its registration record
by submitting BIR Form No. 1905, attaching a copy of the
newly issued SEC Certificate of Registration (SEC COR) and
the Amended Articles of Incorporation bearing the same name
as a proof of its corporate life extension. HEITAD
2. Corporation or Partnership with typographical errors (Corporate

Name errors, etc.) in its first SEC COR —
A corporation or partnership that has been issued a second or

new SEC COR to correct typographical errors (Corporate Name
errors, etc.) shall not be issued a new TIN, but, the taxpayer is
required to update its registration with the Revenue District
Office (RDO) where such corporation/partnership is registered.
3. Expired Corporations or Partnership —
3.1 A corporation or partnership whose registration with

SEC has been revoked or its corporate life has expired
shall cease to exist as a juridical entity to do business.
Expired corporations are those with corporate terms that
have lapsed without being renewed or extended.
3.2 While SEC allows the re-registration of expired

corporation using the same corporate name as reflected
in the SEC COR, such corporation is a new corporation
bearing a new SEC Registration Number and new
pre-generated TIN as confirmation that the same is a
separate and distinct entity from the expired corporation.
3.3 The pre-generated TIN issued thru SEC to the newly

registered corporation using the name of the expired
corporation shall be confirmed by the BIR using BIR
Form No. 1903 for the issuance of BIR Certificate of
Registration and application for Authority to Print
principal/supplementary invoices/receipts, simultaneous
with the application for cancellation of the old TIN of
the expired corporation, following existing procedures.
3.4 The new TIN of the said corporation shall be used in all
of its future transactions with the Bureau.
3.5 The TIN of corporation or partnership which ceased to

exist as a juridical entity due to the expiration of its
corporate life shall be used by the said corporation in the
process of liquidation/winding-up its business and shall
be cancelled upon the issuance of clearance by the
Bureau.
3.6 In case the expired corporation is classified as a Large
Taxpayer (LT), such registration status shall be carried
over by the newly registered corporation that assumed
the business name and operations of the expired
corporation. Hence, registration will have to be made
with the LT Division where the old corporation is
registered. ATICcS
4. In merger of corporations, the surviving corporation shall retain

its TIN while the TIN of the merged corporation shall be
cancelled following the existing procedures in the cancellation
of registration. In the consolidation of corporations, a new TIN
shall be issued to the new corporation and the TINs of the
consolidated corporations shall be cancelled following the
existing procedures in the cancellation of registration.

February 2, 2018
SUBJECT : Institutionalization of BIR Social Media Fan

Pages/Profiles
TO : All Internal Revenue Officials and Employees and Others
Concerned
This is to announce the institutionalization of the BIR Social Media Fan

Pages/Profiles effective immediately.
The BIR Social Media Fan Pages/Profiles' Icons shall be visible at the
bottom rightmost area of the BIR Website (https://www.bir.gov.ph) home page
and shall be accessed using the Social Media Links:
Site Link
Facebook https://facebook.com/birgovph
Twitter https://twitter.com/birgovph
Google https://plus.google.com/+birgovphl
Youtube https://youtube.com/+birgovphl
These shall supplement the existing BIR Website as another channel for tax
information dissemination. The contents shall focus on the following:
• Daily Tax Reminders;
• Monthly Tax Calendars;
• BIR Issuances (Revenue Regulations, Revenue Memorandum

Circulars and selected Revenue Memorandum Orders);
• BIR News;
• Tax Campaign Videos; and
• Job Openings.
These shall not be used as an avenue of taxpayer requests for legal opinions
and/or queries involving application/interpretation of tax laws and tax exemption
rulings; same applies for legal matters falling under Section 270 of the
National Internal Revenue Code of 1997, as amended, regarding the unlawful
divulgence of trade secrets as well as information by Republic Act No. 10173,
otherwise known as the "Data Privacy Act of 2012," are excluded from this
issuance.
All queries and clarifications, other than those posted in the social media
accounts, shall be emailed to the Customer Assistance Division (CAD) at
contact_us @bir.gov.ph or by calling either of these telephone numbers:
981-7345/981-7347/981-7348/981-7366/981-7368.
For your information and guidance.

May 8, 2018
SUBJECT : Reiterates the Imposition of Value-Added Tax on Goods

Disposed of or Existing as of the Date of Change in or
Cessation of Status of a Person as VAT-Registered
Taxpayer Pursuant to Sec. 4.106-8 of Revenue Regulations
(RR) No. 16-2005, Implementing Sec. 106 (C) of the Tax
Code of 1997, as Further Amended by R.A. 10963,
Otherwise Known as the "Tax Reform for Acceleration and
Inclusion" or the TRAIN Law
This Circular is issued to reiterate and clarify the taxability of goods or

properties originally intended for sale or use in business, including capital goods,
disposed of or existing as of the date of change in or cessation of status of a person
as VAT-registered taxpayer pursuant to Sec. 4.106-8 of RR No. 16-2005,
implementing Sec. 106 (C) of the Tax Code of 1997, as further amended by
R.A. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion"
or the TRAIN Law.
It has been observed that taxpayers who changed their status from VAT to
Non-VAT due to the increase in the VAT threshold of P3,000,000.00 as provided
for under Section 109 (BB) of the TRAIN Law, amending the Tax Code of
1997, are submitting only the "Application for Registration Information Update"
(BIR Form 1905) without filing the quarterly VAT returns and paying the tax due
on the inventories existing as of the date of change of status.
The pertinent provision of Sec. 106 (C) of the Tax Code of 1997, as
implemented by Sec. 4.106-8 of RR No. 16-2005, states as follows:
"(C) Changes in or Cessation of Status of a VAT-registered Person

— The tax imposed in Subsection (A) of this Section shall also apply to
goods disposed of or existing as of a certain date if under circumstances to
be prescribed in rules and regulations to be promulgated by the Secretary of
Finance, upon the recommendation of the Commissioner, the status of a
person as a VAT-registered person changes or is terminated."
Sec. 4.106-8 of Revenue Regulations No. 16-2005:
"SEC. 4.106-8. Change or Cessation of Status as

VAT-registered Person. —
(a) Subject to output tax CAIHTE
The VAT provided for in Sec. 106 of the Tax Code shall apply to
goods or properties originally intended for sale or use in business, and
capital goods which are existing as of the occurrence of the following:
(1) Change of business activity from VAT taxable status to

VAT-exempt status. An example is a VAT-registered person engaged in a
taxable activity like wholesaler or retailer who decides to discontinue such
activity and engages instead on life insurance business or any other
business not subject to VAT.
(2) Approval of a request for cancellation of registration due to

reversion to exempt status.
(3) Approval of a request for cancellation of registration due to a

desire to revert to exempt status after the lapse of three (3) consecutive years
from the time of registration by a person who voluntarily registered despite
being exempt under Sec. 109(2) of the Tax Code.
(4) Approval of a request for cancellation of registration of one
who commenced business with the expectation of gross sales or receipts
exceeding P1,500,000.00 (now P3,000,000.00) but who failed to exceed
this amount during the first twelve months of operation." (emphasis
supplied)
Pursuant to the afore-quoted provisions, it is hereby emphasized that goods

or properties originally intended for sale or use in business, including capital
goods, disposed of or existing as of the date of change of status of a taxpayer from
VAT to Non-VAT are subject to VAT imposed under Section 106 (A) of the
Tax Code of 1997, as amended. Hence, taxpayers are required to file the quarterly
VAT return covering the period when the change of status transpired and pay the
corresponding VAT due thereon.
All revenue officials concerned are enjoined to give this Circular as wide a
publicity as possible.

May 3, 2018
SUBJECT : Reiteration of the Guidelines in Registration, Updates and

Other Tax Compliance Requirements of Candidates,
Political Parties/Party List Groups and Campaign
Contributors

Concerned
All candidates, political parties/party list groups and campaign contributors
have the duty to register or update their registration with the Bureau in relation to
their candidacy. Hence, this Circular is being issued to reiterate the guidelines in
registration, update and other tax compliance requirements of candidates, political
parties/party list groups and campaign contributors pursuant to Revenue
Regulations (RR) No. 8-2009, as amended, RR No. 7-2011 and other
related revenue issuances.
I. REGISTRATION
1. The Client Support Section (CSS) of the concerned Revenue District

Office (RDO) having jurisdiction over the residence address, head or principal
office of registering candidates, political parties/party list groups and campaign
contributors shall verify their registration in the Bureau's Integrated Tax System
(ITS)/Electronic Tax Information System (eTIS-1). RDO may secure the official
list of candidates and political party/party list groups from the Commission on
Elections (COMELEC).
2. For individual candidates, political parties/party list groups or

campaign contributors who are NOT YET REGISTERED [with no existing
Taxpayer Identification Number (TIN)] with the BIR:
The CSS shall:
2.1 Candidates
2.1.1 Require the individual candidate to submit the following to the

RDO having jurisdiction over his place of residence:
a. Duly accomplished BIR Form 1901;
b. Any identification issued by an authorized government

body (e.g., Birth Certificate, passport, driver's license)
applicant; and
c. Certificate of Candidacy (COC) from the COMELEC.
2.1.2 Register and tag the candidate in the ITS/eTIS-1 with the
following:
ITS eTIS-1
a. Taxpayer Type Professional Professional — In General
b. Special Code "Politician" —
c. PSOC Code 7511 — General (overall) 1141 — Senior Officials of
public service activities political Party organizations
d. Tax Type Expanded Withholding Tax Expanded Withholding Tax
(WE) (WE)
e. Form Type BIR Form No. BIR Form No.
1601EQ-Quarterly Remittance 1601EQ-Quarterly Remittance
Return of Creditable Income Return of Creditable Income
Taxes Withheld Taxes Withheld
f. Alpha Numeric Tax Code WI680 — Individual Income WI680 — Individual Income
(ATC) payments made by political payments made by political
parties and candidates of local parties and candidates of local
and national elections on all and national elections on all
their purchases of goods and their purchases of goods and
services related to campaign services related to campaign
expenditures and income expenditures and income
payments made by individuals payments made by individuals
juridical persons for their juridical persons for their
purchases of goods and services purchases of goods and services
intended to be given as intended to be given as
campaign contributions to campaign contributions to
political parties and candidates political parties and candidates
2.2 Political Parties/Party List Groups
2.2.1 Require the political parties/party list groups to submit the

following to the RDO having jurisdiction over the head or
principal office of political parties/party list groups:
a. Duly accomplished BIR Form 1903; and
b. COC from the Commission on Elections (COMELEC)

as attachments.
2.2.2 Register and tag the political parties/party list groups in the
ITS/eTIS-1 with the following:
ITS eTIS-1
a. Taxpayer Type Non-stock Non-Profit Non-stock Non-Profit
Organizations (NONST) Organizations (NONST)
b. PSIC Code 7511 — General (overall) 94920 — Activities of political
public service activities organizations
c. Tax Type Expanded Withholding Tax Expanded Withholding Tax
(WE) (WE)
d. Form Type BIR Form No. 1601EQ BIR Form No. 1601EQ
e. ATC WC680 WC680
2.3 Campaign Contributors
2.3.1 Individual campaign contributors shall be registered under

Executive Order No. 98 (E.O. 98) as taxpayer type with the
RDO having jurisdiction over his place of residence using BIR
Form No. 1904.
2.3.2 Non-individual campaign contributors shall be registered with

the RDO having jurisdiction over its principal place of
business/Head Office using BIR Form No. 1903.
3. For individual candidates or political parties/party list groups

REGISTERED (with existing TIN) with the BIR:
The CSS shall:
3.1 Candidates and Political Parties/Party List Groups registered as

Business Taxpayer
3.1.1 Require the individual candidates or political parties/party-list

groups to submit the following with the RDO having
jurisdiction over the place of residence of the candidates or the
head or principal office of political parties/party list groups:
a. For individual:
i. Duly accomplished BIR Form 1901;
ii. Any identification issued by an authorized

driver's license) that shows the name, address and
birthdate of the applicant; and
iii. COC from the COMELEC.
b. For non-individual:
i. Duly accomplished BIR Form 1903; and
ii. COC from the COMELEC
3.1.2 Register the above candidate or political party/party list group
as BRANCH and tag in the ITS/eTIS-1 the following:
ITS eTIS-1
a. Taxpayer Type
a.1. Individual Professional Professional-In General
a.2 Non-individual Non-stock Non-Profit Non-stock Non-Profit
Organizations (NONST) Organizations (NONST)
(Individual only)
c. PSIC/PSOC Code
c.1 Individual 7511 — General (overall) 1141 — Senior Officials of
public service activities political Party organization
c.2 Non-individual 7511 — General (overall) 94920 — Activities of political
public service activities organizations
(WE) (WE)
e. Form Type BIR Form No. 1601EQ BIR Form No. 1601EQ
f. ATC
f.1 Individual WI680 WI680
f.2 Non-individual WC680 WC680
3.2 Candidates Registered as Local Employee (LOCAL):
3.2.1 Require the individual candidates to submit the following to the

RDO where their principal employer is registered:

applicant; and
c. COC from the COMELEC.
3.2.2 Update and tag him/her in the ITS/eTIS-1 with the following:
ITS eTIS-1
(WE) (WE)
f. ATC WI680 WI680
3.2.3 For individual candidates registered as local employees in

ITS/eTIS-1 but neither working nor engaged in business during
election period, they must update their records and be registered
as E.O. 98 and follow the guidelines for such as stated in this
circular.
3.3 Candidates Registered Under E.O. 98 and/or One-Time

Transaction (ONETT):
3.3.1 Require the individual candidates to submit the following to the

RDO where their principal employer is registered:

applicant; and
c. COC from the COMELEC.
3.3.2 For candidates whose registration is with a different RDO, the

CSS Chief of the New RDO shall fax/email the above BIR
Form (with attachments) to the Old RDO;
3.3.3 The Old RDO shall transfer the registration information of the
candidate to the New RDO;
3.3.4 The New RDO shall update the candidate's registration

information and tag him/her in the ITS/eTIS-1 with the
following:
ITS eTIS-1
(WE) (WE)
f. ATC WI680 WI680
4. If the individual candidate, political party/party list group or campaign

contributor is registered with the BIR but not yet uploaded in the ITS nor
existing with Old Status in eREG TIN Query:
The CSS Chief of the concerned RDO shall encode/tag the registration
information of the candidate, political party/party list or campaign contributor by
following the preceding guidelines above, whichever is applicable.
5. All candidates and political parties/party list groups registered with the
BIR prior to the issuance of this circular shall be updated based on the above
guidelines by the CSS of the RDO concerned, whichever is applicable. In addition,
the CSS shall monitor all registered candidates or political parties/party list groups
that were elected and otherwise, to make appropriate updates of their respective
registration information after the elections.
6. Post-Election
The registration of individuals in their capacity as candidates shall

automatically end ten (10) days after the deadline of filing the Quarterly
Remittance Return of Creditable Income Taxes Withheld (BIR Form No.
1601EQ). The CSS Chief of the concerned RDO shall end date the Form Type
1601EQ and Tax Type WE of candidates that were registered and/or updated, and
cancel the Branch Code of those that were registered as BRANCH for purposes of
this circular. However, the registration of political parties including party list
groups shall subsist.
Every candidate and treasurer of the political parties/party list groups shall
submit the Statement of Contributions and Expenditures to COMELEC and RDO
having jurisdiction over the candidates/political parties/party list groups within 30
days after the election.
II. ANNUAL REGISTRATION FEE AND CERTIFICATE OF

REGISTRATION
All candidates and political parties/party list groups shall pay an Annual
Registration Fee (ARF) in the amount of five hundred pesos (P500) and be issued
a Certificate of Registration (COR).
III. REGISTRATION OF BOOKS
All candidates and political parties/party list groups shall keep books and
other accounting records such as Cash Receipts Journal (basis for Statement of
Contributions for submission to COMELEC), Cash Disbursements Book (basis for
Statement of Expenditures for submission to COMELEC) or their equivalent and
register the same to the concerned RDO.
IV. ISSUANCE OF BIR REGISTERED NON-VAT OFFICIAL RECEIPT
Aside from the Books of Accounts, all candidates and political parties/party
list groups shall also register Non-VAT Official Receipts (ORs), at least in
duplicate copies thru Application for an Authority to Print (ATP) using BIR Form
1906 to the concerned RDO. These Non-VAT ORs shall be issued for every
contribution received, whether in cash or kind. Contribution received in kind shall
be valued at their cash equivalent or fair market value. The original copies of such
ORs shall be issued to the contributors/donors while the duplicate shall be retained
by issuing political parties/party-lists and candidates.
V. WITHHOLDING OF TAXES
Income payments made by political candidates and political

parties/party-list groups on their purchases of goods and services as campaign
expenditures, and income payments made by individuals or juridical persons for
their purchases of goods and services intended to be given as campaign
contribution to political parties and candidates shall be subject to five percent (5%)
creditable withholding tax pursuant to RR No. 11-2018. The following are
considered among those covered by expanded withholding tax, but not limited to
payments for: (a) media services, (b) printing jobs, (c) talent/entertainment fees,
(d) rentals of both real and personal property/ies. Likewise, BIR Form No. 2307
(Certificate of Creditable Tax Withheld at Source) shall be issued upon demand.
Expenses incurred by the candidates which were given free of charge, such
as use, rental or hire of land, water or aircraft, equipment, facilities, apparatus and
paraphernalia used in the campaign shall be assessed by the candidate and declare
the amount commensurate with the expenses for the use thereof, based on the
prevailing rate in the locality and shall be included in the total expenses incurred
by the candidate.
Deadline — the five (5%) percent Creditable Withholding Tax (CWT) shall
be filed and remitted not later than the last day of the month following the close of
the quarter during which the withholding was made, using BIR Form No. 1601-EQ
through Electronic Filing and Payment System (eFPS)/eBIRForms Package or
AABs or RCOs under the jurisdiction of the BIR Office where the withholding
agent is registered. As withholding agents, they are also required to submit the
Quarterly Alphalist of Payees (QAP) (available for download in the
"downloadable" section in the BIR website) through the eSubmission facility of
the BIR.
The payor/withholding agent, who may be an individual candidate, a

political party/party list group, or any juridical entity, is further required to file the
Annual Information Return of Creditable Taxes Withheld (Expanded)/Income
Payments Exempt from Withholding Tax (BIR Form No. 1604-E) as well as the
Statement of Contributions and Expenditures duly stamped "Received" by the
COMELEC on or before March 1 following the year of election.
Expenses that were not subjected to the 5% CWT as herein required are not
considered utilized campaign funds, and the candidates, political parties/party-list
groups are precluded from claiming such expenditures as deductions from
his/her/its campaign contributions. As such, the full amount corresponding to said
expense shall be reported as unutilized campaign funds subject to income tax.
VI. DONOR'S TAX
Both Section 94 (a) of Batas Pambansa Bilang 881, otherwise known as the
Omnibus Election Code of the Philippines, and the final paragraph of Section
13 of Republic Act No. 7166 provide that contributions in cash or in kind to
any candidates, political parties or party list groups, duly reported to COMELEC,
are exempt from the imposition of Donor's Tax.
It is hereby emphasized that only those donations/contributions that have

been utilized/spent during the campaign period as set by the COMELEC are
exempt from donor's tax. Perforce, donations utilized before or after the campaign
period are subject to donor's tax and not deductible as political contribution on the
part of the donor.
Donations made by corporations in violation of Section 36 (9) 1(46) of the

Corporation Code of the Philippines are subject to donor's tax and may not be
deducted as political contribution on the part of the Donor/corporation.
VII. INCOME TAX
As a general rule, campaign contributions are not included in the taxable

income of the candidate to whom they were given, the reason being that such
contributions were given not for the personal expenditure/enrichment of the
concerned candidate, but for the purpose of utilizing such contributions for his/her
campaign. Thus, to be considered as exempt from the income tax, these campaign
contributions must have been utilized to cover a candidate's expenditures for
his/her electoral campaign.
Unutilized/excess campaign funds, net of the candidate's or political

party's/party list's campaign expenditures, shall be considered as subject to income
tax and as such, must be included in their/his taxable income as stated in their/his
Income Tax Return (ITR) pursuant to RR No. 72011, to wit:
1. Individual Candidates
a. In case of those registered as professional or those previously

registered as self-employed individual who branched-out for the
purpose of election period following the guidelines above,
unutilized/excess campaign funds shall be declared for the
quarter ending June 30 using BIR Form No. 1701Q and shall be
filed on or before August 15 of the taxable year.
b. In case of a candidate who is purely compensation income

earner within the taxable year, he/she shall file BIR Form No.
1700 to include such unutilized/excess funds on or before April
15 of the following taxable year.
c. In case of a candidate who is neither a self-employed nor a

compensation income earner as of the date of election, he/she
shall declare such unutilized/excess campaign funds by filing a
short-period return for the period-covering January 1 up to the
date of election (2nd Monday of May) using BIR Form No.
1700 on or before August 15 of the taxable year.
2. Political Parties/Party list Groups
The unutilized/excess campaign funds shall be reported in the manner by

which domestic corporations are required to file their returns and pay taxes.
It should be noted that no further deduction, either itemized or optional,

shall be made against the said taxable income. Further, any candidate or political
party/party list group, whether winning or losing, who fails to file with
COMELEC the Statement of Contributions and Expenditures required under
Omnibus Election Code shall be automatically precluded from claiming such
expenditures as deductions from the campaign contributions making the entire
amount directly subject to income tax.
VIII. PRESERVATION OF ACCOUNTING RECORDS
All political parties/party list groups and candidates shall be responsible for
the preservation of records and contributions and expenditures, together with all
pertinent documents, for a period of at least three (3) years from the close of the
taxable year during which the election was held.
IX. PENALTIES
All candidates, political parties and party list groups who failed to register
and comply with the requirements of the BIR will be subjected to penalties under
the Revised Consolidated Schedule of Compromise Penalties for Violations of the
National Internal Revenue Code (NIRC) of 1997, as amended (RMO No. 7-2015).

Footnotes
1. Section 36 (9) of the Corporation Code of the Philippines provides:
"Sec. 36. Corporate powers and capacity. — Every corporation incorporated
under this Code has the power and capacity:
xxx xxx xxx
9. To make reasonable donations, including those for the public welfare or for
hospital, charitable, cultural, scientific, civic, or similar purposes: Provided, That
no corporation, domestic or foreign, shall give donations in aid of any political
party or candidate or for purposes of partisan political activity;"
May 16, 2018
SUBJECT : Publishing the Daily Minimum Wage Rates in Region XII

Pursuant to Wage Order No. RB No. 20

Concerned

employees and others concerned, we are publishing Wage Order No. RB XII-20
which was issued on April 13, 2018 and published at Brigada News Philippines on
April 26, 2018.

Region XII, Koronadal City
WAGE ORDER NO. RB XII-20
PROVIDING FOR NEW MINIMUM WAGE RATES IN REGION XII
WHEREAS, under R.A. No. 6727, otherwise known as the

Wage Rationalization Act, the Regional Tripartite Wages and Productivity
Board-Region XII (RTWPB XII), is mandated to periodically assess the
wage rates, and to conduct continuing studies in the determination of the
minimum wage rates applicable in the region;
WHEREAS, the Board decided motu proprio to review the

minimum wage in the region;
WHEREAS, after giving due notices to all concerned sectors, the

RTWPB XII conducted a public hearing/consultation on March 20, 2018 in
General Santos City;
WHEREAS, as a result of the review made on the prevailing

socio-economic conditions of the Region, as well that of the results of the
public hearing/consultation and deliberations conducted, the Board has
determined the need to increase the prevailing minimum wage rates without
impairing the viability of business and industry;
WHEREAS, the increase is consistent with the government's policy

of achieving higher levels of productivity to promote economic growth,
generate employment and to augment the income of workers;
NOW, THEREFORE, by virtue of the power and authority vested
under Republic Act No. 6727, the RTWPB XII hereby issues this Wage
Order:
SECTION 1. The New Daily Minimum Wage Rates. —

Upon the effectivity of this Wage Order, the new daily minimum wage shall
be as follows:
Sector/Industry Daily Minimum Basic Wage New Minimum

Wage Under Increase Wage Rates
Wage Order No.
RB XII-19
Non-Agriculture P295.00 P16.00 P311.00
Agriculture/Retail/Service P272.00 P18.00 P290.00
Establishment
SECTION 2. Coverage. — The wage rates prescribed under

this Wage Order shall apply to all minimum wage workers/employees in the
private sector in Region XII, regardless of their position, designation or
status of employment, and irrespective of the method by which their wages
are paid.
This Wage Order shall not cover the following: a) household or

domestic helpers under Republic Act 10361 or the Batas Kasambahay; and,
b) workers of registered Barangay Micro Business Enterprises (BMBEs)
with Certificate of Authority pursuant to Republic Act No. 9178.
SECTION 3. Basis of Minimum Wage Rates. — The

minimum wage rates prescribed under this Wage Order shall be for the
normal working hours, which shall not exceed eight (8) hours of work a day.
SECTION 4. Creditable Wage Increase/Allowances. —

Wage increases granted by an employer to each worker or employee within
three (3) months prior to the effectivity of this Order shall be credited as
compliance herewith. In case the increases given are less than the prescribed
minimum wage rates, the employer shall pay the difference.
Such creditable increases shall not include anniversary wage

increases, merit wage increases, and those resulting from regularization or
promotion of employees/workers, unless there is an agreement expressly
allowing such crediting.
SECTION 5. Productivity-Based Wages. — In order to

sustain rising levels of wages and enhance competitiveness, businesses are
strongly encouraged to adopt productivity improvement schemes such as
time and motion studies or work improvement and measurement, good
housekeeping, quality circles, labor management cooperation, as well as
implement gain-sharing programs over and above the regular minimum
wage provided. Accordingly, the Board shall provide the necessary studies
and technical assistance pursuant to Republic Act No. 6971 or the
Productivity Incentives Act of 1990.
SECTION 6. Application to Private Educational

Institutions. — In the case of private educational institutions, the share of
covered workers and employees in the increase in tuition fees for School
Year 2017-2018 shall be considered as compliance with the prescribed
increase under this Wage Order. However, payment of any shortfall shall be
covered starting School Year 2018-2019.
Private educational institutions, which have not increased their

tuition fees for the School Year 2017-2018 may defer compliance with the
minimum wage prescribed herein until the beginning of School Year
2018-2019.

minimum wage rates prescribed herein starting School Year 2018-2019.
SECTION 7. Application to Contractors. — In case of

contracts for construction projects and for security, janitorial and similar
services, the increase in the prescribed minimum wage rates under this Wage
Order shall be borne by the principals or clients of the construction/service
contractors and the contract shall be deemed amended accordingly as
mandated under the Labor Code.
In the event, however, that the principal or client fails to pay the
prescribed minimum wage rates, the construction/service contractor shall be
jointly and severally liable with his principal or client.
SECTION 8. Workers Paid by Result. — All workers paid

by result, including those who are paid on piecework, "takay," "pakyaw" or
task basis, shall be entitled to receive not less than the prescribed minimum
wage rates per eight (8) hours work a day, or a proportion thereof for
working less than eight (8) hours.
SECTION 9. Wages of Special Groups of Workers. —

Wages of apprentices and learners shall in no case be less than seventy-five
percent (75%) of the applicable minimum wage rates prescribed in this
Wage Order based on R.A. 7796 or otherwise known as the Technical
Education and Skills Development Act of 1994.
All recognized learnership and apprenticeship agreements entered
into before the effectivity of this Wage Order shall be considered
automatically modified insofar as their wage clauses are concerned to reflect
the new prescribed minimum wage rates.

the minimum wage rate prescribed herein pursuant to Republic Act No.
7277, otherwise known as the Magna Carta for Disabled Persons.
SECTION 10. Exemptions. — Upon application with and as

determined by the Board based on documentation and other requirements in
accordance with applicable rules and regulations issued by the National
Wages and Productivity Commission, the following may be exempted from
the applicability of this Order:
1. Retail/Service establishments regularly employing not

more than ten (10) workers; and,
2. Establishments adversely affected by calamities such

as natural and human-induced disasters.
SECTION 11. Effect of Application for Exemption. —

Whenever an application for exemption has been duly filed with the Board,
action on any complaint for alleged non-compliance thereto shall be deferred
pending its resolution. In the event that the application for exemption is not
granted, the applicant firm shall pay the appropriate compensation due to the
covered workers as provided for in this Wage Order plus interest of one
percent (1%) per month, retroactive from the effectivity of this Wage Order.
SECTION 12. Effects on Existing Wage Structure. — Where

the application of the increases or adjustments in the prescribed minimum
wages rates under this Wage Order results in distortion in the wage structure
within the establishment, the same shall be corrected in accordance with the
procedure provided for under Article 124 of the Labor Code of the
Philippines, as amended.
SECTION 13. Freedom to Bargain. — This Wage Order shall

not be construed to prevent workers from bargaining for higher wages with
their respective employers.
SECTION 14. Complaints for Non-Compliance. —

Complaints for non-compliance with this Wage Order shall be filed with the
Regional Office of the Department of Labor and Employment (DOLE)
having jurisdiction over the workplace and shall be subject to the mandatory
thirty (30) days conciliation and mediation process under Single Entry
Approach (SEnA). However, if settlement fails, the case becomes subject of
enforcement proceedings under Article 128 of the Labor Code of the
Philippines, as amended.
SECTION 15. Non-Diminution of Benefits. — Nothing in this
Wage Order shall be construed to reduce any existing wage rates,
allowances and benefits of any form under existing laws, decrees, issuances,
and executive orders or under any contract or agreement between workers
and employers.
SECTION 16. Appeal to the Commission. — Any party

aggrieved by this Wage Order may file a verified appeal to the National
Wages and Productivity Commission through the Board within ten (10)
calendar days from the publication of this Wage Order.
SECTION 17. Effects of Filing of Appeal. — The filing of the

appeal does not operate to stay this Wage Order unless the party appealing
this Wage Order shall file with the Commission an undertaking with a surety
or sureties satisfactory to the Commission for payment of the corresponding
wage adjustment to employees affected by this Wage Order in the event that
this Wage Order is affirmed.
SECTION 18. Penal Provision. — Any person, corporation,

trust or firm, partnership, association or entity which refuses or fails to pay
the prescribed minimum wage rates in accordance with this Wage Order
shall be subject to the penal provisions under RA 6727, as amended by RA
8188.
SECTION 19. Prohibition against Injunction. — No

preliminary or permanent injunction or temporary restraining order may be
issued by any court, tribunal or other entity against any proceedings before
the Regional Tripartite Wages and Productivity Board.
SECTION 20. Reporting Requirement. — Any person,

company, corporation partnership or any entity engaged in business shall
submit a verified itemized listing of their labor component to the Board not
later than January 31, 2019 and every year thereafter in accordance with
Section 3 of RA 6727 in relation to Article 124 of the Labor Code, as
amended, and in the form as prescribed by the Commission.
SECTION 21. Repealing Clause. — All orders, issuances,

rules and regulations, or parts thereof inconsistent with the provisions of this
Wage Order are hereby repealed, amended or modified accordingly.
SECTION 22. Separability Clause. — If, for any reason, any

section or provision of this Wage Order is declared unconstitutional or
illegal, the other provisions or parts hereof shall remain valid.
SECTION 23. Implementing Rules and Regulations. — The

Board shall submit to the Commission the necessary rules and regulations to
implement this Wage Order subject to the approval of the Secretary of Labor
and Employment not later than ten (10) days from the publication of this
Wage Order.
SECTION 24. Effectivity. — This Wage Order shall take

effect fifteen (15) days after its publication in a local newspaper of general
circulation in the region.
Approved, _______________, Koronadal City, Philippines.
(SGD.) ATTY. EUGENIO U. SOYAO

(SGD.) SIMPLICIO H. VILLARTA, JR.

(SGD.) WARREN GREGORIO A. MANILAY

(SGD.) JOEMARIE P. ANGELES

(SGD.) ARTURO G. VALERO

NEDA Director
Vice-Chairperson
(SGD.) IBRAHIM K. GUIAMADEL

DTI Director
Vice-Chairperson
(SGD.) SISINIO B. CANO, CESO IV

DOLE Director
Chairperson"

May 7, 2018
TO : All Regional Directors, Revenue District Officers,

Employees and Others Concerned
SUBJECT : Amendments on Revenue Memorandum Circular (RMC)

No. 55-2016 to Extend the Validity Date on the Certificate
of Accreditation Issued to
Developers/Dealers/Suppliers/Vendors/Pseudo-Suppliers
of Cash Register Machines (CRM), Point-of-Sale (POS)
Machines and/or Other Sales Machine/Receipting Software
This is relative to the five-year validity period provided under RMC No.
30-2015 and RMC No. 68-2015, which states that all new applications
for accreditation of machine/software of suppliers/distributors/dealers/vendors
shall be processed at the BIR National Office only and shall have a validity period
of Five (5) years from the date of issuance of Certificate of Accreditation.
The aforesaid provisions were further clarified in RMC No. 55-2015,

which stated the following validity dates based on the "Date of Issuance" of the
Certificate of Accreditation:
Date of Issuance on the Certificate of Valid Until

Accreditation
Prior to July 31, 2013 July 31, 2018
August 1, 2013 to July 31, 2014 July 31, 2019
August 1, 2014 to July 31, 2015 July 31, 2020
August 1, 2015 onwards Five-year validity shall commence
This Circular is hereby issued to amend the abovementioned provisions to
further extend the validity period of all Certificates of Accreditation which were
issued on the abovementioned dates. Hence, all
developers/dealers/suppliers/vendors/pseudo-suppliers of CRM, POS and/or other
Sales Machines/Receipting Software with valid Certificate of Accreditation issued
on or before July 31, 2015 shall be valid until July 31, 2020. On the other hand, all
Certificates of Accreditation issued on August 1, 2015 onwards shall follow the
five-year validity period based on the actual Date of Issuance.
In line with this, both primary and supplementary invoices/receipts must

reflect the corresponding Date of Issuance and Validity Period of Accreditation as
provided above.

May 10, 2018
SUBJECT : Lost Triplicate Copy from One (1) Set of Unused BIR Form
No. 0423 — Apprehension Slip

Concerned
Notice is hereby given of the loss of triplicate copy from one (1) set of
unused BIR Form No. 0423 — Apprehension Slip with the hereunder stated serial
number, to wit:
APS200400004924
The abovementioned form was reported as lost by Ms. Nelma Kristine G.

San Gabriel, Special Investigator, Regional Investigation Division, Revenue
Region No. 14, Government Center, Candahug, Palo, Leyte, and have
consequently been cancelled. All official transactions involving the use of said
form is therefore considered as INVALID.

the same.

Deputy Commissioner
May 17, 2018

Philippines-Sri Lanka Double Taxation Agreement

Concerned
The Convention between the Government of the Republic of the

Philippines and the Government of the Democratic Socialist Republic of Sri
Lanka for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with Respect to Taxes on Income has entered into force on 14 March
2018.
Paragraph 2, Article 29 (Entry into Force) of the Convention provides that

it shall have effect in respect of tax withheld at source on amounts paid to
non-residents on or after the first day of January in the calendar year next
following that in which the Convention enters into force, and in respect of other
taxes on income, for taxable year beginning on or after the first day of January in
the calendar year next following that in which the Convention enters into force.
Accordingly, the Convention shall have effect on income that arises in the
Philippines beginning January 1, 2019.
Tax Treaty Relief Applications invoking the Philippines-Sri Lanka Double

Taxation Agreement should be filed with, and addressed to, the International Tax
Affairs Division (ITAD) at Room No. 811, Bureau of Internal Revenue, National
Office Building, Diliman, Quezon City, Philippines. For this purpose, the
concerned Sri Lankan resident and income earner, or his duly authorized
representative, should file a duly accomplished Application for Relief from
Double Taxation (BIR Form No. 0901) or Certificate of Residence for Tax Treaty
Relief (CORTT Form), whichever is applicable, together with the required

May 17, 2018
Renegotiated Philippines-Thailand Double Taxation
Convention

Concerned
The Renegotiated Convention between the Government of the Republic

of the Philippines and the Government of the Republic of Thailand for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
Respect to Taxes on Income has entered into force on 05 March 2018.
Paragraph 2, Article 28 (Entry into Force) of the Convention provides that

it shall have effect in respect of taxes withheld at source on income paid to
non-residents on or after the first day of January in the calendar year next
following that in which the Convention enters into force, and in respect of other
taxes on income, in any taxable year beginning on or after the first day of January
in the calendar year next following that in which the Convention enters into force.
Accordingly, the Renegotiated Convention shall have effect on income that arises
in the Philippines beginning January 1, 2019.
Tax Treaty Relief Applications invoking the Renegotiated

Philippines-Thailand Double Taxation Convention should be filed with, and
addressed to, the International Tax Affairs Division at Room No. 811, Bureau of
Internal Revenue, National Office Building, Diliman, Quezon City, Philippines.
For this purpose, the concerned Thai resident and income earner, or his duly
authorized representative, should file a duly accomplished Application for Relief
from Double Taxation (BIR Form No. 0901) or Certificate of Residence for Tax
Treaty Relief (CORTT Form), whichever is applicable, together with the required

(47)
April 26, 2018
SUBJECT : Circularizing the Availability of the Newly Revised BIR

Form No. 1701Q (Quarterly Income Tax Return for
Individuals, Estates and Trusts) January 2018 (ENCS)

Concerned
This Circular is issued to prescribe the newly revised BIR Form No. 1701Q
(Quarterly Income Tax Return for Individuals, Estates and Trusts) January 2018
(ENCS), hereto attached as Annex "A" which was revised due to the
implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
The newly revised return shall be used by the taxpayers in filing and paying the
quarterly income tax return starting the first quarter of 2018.
Taxpayer shall file and/or pay through the following mode:
A. Manual Return —
1. The newly revised return [refers to the new BIR Form

No. 1701Q-Quarterly Income Tax Return as revised due
to the implementation of the TRAIN Law with revision
date of January 2018 (ENCS)] is already available under
the BIR Forms-Income Tax Return section of the BIR
website (www.bir.gov.ph).
2. Manual filers shall download the PDF version of the

newly revised BIR Form No. 1701Q, print it and then fill
out the applicable items/fields.
3. Payment of the income tax due thereon shall be made

thru:
a. Manual Payment —
• Authorized Agent Bank (AAB) located
Revenue District Office (RDO) where the
taxpayer is registered

be paid with the concerned Revenue
Collection Officer (RCO), thru the
MRCOS facility, under the jurisdiction of
the RDO
b. Online Payment —

Bancnet ATM/Debit Card

ATM/Debit
4. In case the manual filers had already filed and paid the
income tax due for the first quarter using the old return
[refers to the existing BIR Form No. 1701Q-Quarterly
Income Tax Return with revision date of July 2008
(ENCS)], taxpayer is still required to file the quarterly
income tax return using the newly revised BIR Form No.
1701Q and mark the return as an amended return. This is
to determine whether or not the taxpayer is availing of
the 8% income tax rate based on the gross sales/receipts
and other non-operating income in lieu of graduated
rates under Sec. 24 (A) (2) (a) and percentage tax under
Sec. 116 of the National Internal Revenue Code of 1997,
as amended.
Taxpayer shall fill out the applicable fields/items in the

newly revised return and if there is any payment made
using the old return, he/she shall indicate the amount
paid in Item No. 59 (Tax Paid in Return Previously
Filed, if this is an Amended Return) of the newly revised
return.
If the computation above resulted to a payable, taxpayer
shall pay the tax still due thereon in accordance with
number three (3) above of this RMC. Penalties shall
apply if payment is made after the due date. If the result
is no payment/overpayment, follow the existing
procedure for "No Payment Return" which is to file thru
the use of eBIRForms.
1. The newly revised return is already available in the

Offline eBIRForms Package v7.1.
2. eBIRForms filers shall use the newly revised BIR Form

No. 1701Q in filing and paying the quarterly income tax
due starting the first quarter of 2018.
3. Payment of the income tax due, if any, shall be made

thru:


the RDO


ATM/Debit
4. In case the eBIRForms filers had already filed and paid

the income tax due for the first quarter using the old
return, taxpayer is still required to file the quarterly
income tax return using the newly revised BIR Form No.
1701Q and mark the return as an amended return. This is
to determine whether or not the taxpayer is availing of
the 8% income tax rate based on the gross sales/receipts
and other non-operating income in lieu of graduated
rates under Sec. 24 (A) (2) (a) and percentage tax
under Sec. 116 of the National Internal Revenue
Code of 1997, as amended.

return.

apply if payment is made after the due date.
C. Electronic Filing and Payment System (eFPS)
1. The newly revised return is not yet available in the

eFPS.
2. As a work-around procedure, the eFPS filers shall use

the newly revised return in the Offline eBIRForms
Package v7.1 to file the quarterly income tax return for
the first quarter of 2018.
3. Payment of the income tax due, if any, shall be made

thru:


the RDO
• thru GCash Mobile Payment


ATM/Debit
4. In case the eFPS filers had already filed and paid the
income tax due for the first quarter using the old return,
taxpayer is still required to file the quarterly income tax
return using the newly revised BIR Form No. 1701Q in
the Offline eBIRForms Package v7.1 and mark the
return as an amended return. This is to determine
whether or not the taxpayer is availing of the 8% income
tax rate based on the gross sales/receipts and other
non-operating income in lieu of graduated rates under
Sec. 24 (A) (2) (a) and percentage tax under Sec. 116 of
the National Internal Revenue Code of 1997, as
amended.

return.

apply if payment is made after the due date.
Taxpayer shall signify his/her intention to elect the 8% income tax rate
either by updating his/her registration using BIR Form No. 1905 or by
checking/clicking Item No. 13 in BIR Form No. 2551Q or Item No. 16 in BIR
Form No. 1701Q, and such election/option shall be irrevocable for the taxable
year.
as possible.

ANNEX A
Quarterly Income Tax Return

for Individuals, Estates and Trusts
Guidelines and Instructions for BIR Form No. 1701Q [January 2018 (ENCS)]
Quarterly Income Tax Return for Individuals, Estates and Trusts
Who Shall File
This return shall be filed in triplicate by the following individuals regardless of

amount of gross income:
1) A resident citizen engaged in trade, business, or practice of

profession within and without the Philippines.
2) A resident alien, non-resident citizen or non-resident alien individual

engaged in trade, business or practice of profession within the
Philippines.
3) A trustee of a trust, guardian of a minor, executor/administrator of an

estate, or any person acting in any fiduciary capacity for any person,
where such trust, estate, minor, or person is engaged in trade or
business.
An individual whose sole income has been subjected to final withholding tax, or
who is exempt from income tax pursuant to the Tax Code and other laws, is not required
to file an income tax return.
Married individuals shall file a return for the taxable year to include the income of
both spouses, computing separately their individual income tax based on their respective
total taxable income. Where it is impracticable for the spouses to file one return, each
spouse may file a separate return of income. If any income cannot be definitely attributed
to or identified as income exclusively earned or realized by either of the spouses, the
same shall be divided equally between the spouses for the purpose of determining their
respective taxable income.
The income of unmarried minors derived from property received from a living
parent shall be included in the return of the parent except (1) when the donor's tax has
been paid on such property, or (2) when the transfer of such property is exempt from
donor's tax.
If the taxpayer is unable to make his own return, the return may be made by his
duly authorized agent or representative or by the guardian or other person charged with
the care of his person or property, the principal and his representative or guardian
assuming the responsibility of making the return and incurring penalties provided for
erroneous, false or fraudulent returns.
Compensation income need not be reported in the Quarterly Income Tax Return.
The same shall be reported in the Annual Income Tax Return only.
When and Where to File
The return of the taxpayers shall be filed as follows:
1st quarter — On or before May 15 of the current taxable year
2nd quarter — On or before August 15 of the current taxable year
3rd quarter — On or before November 15 of the current taxable year
The income tax return shall be filed with any Authorized Agent Bank (AAB)
located within the territorial jurisdiction of the Revenue District Office where the
taxpayer is required to register/where the taxpayer has his legal residence or place of
business in the Philippines. In places where there are no AABs, the returns shall be filed
with the Revenue Collection Officer of the Revenue District Office where the taxpayer is
required to register/where the taxpayer has his legal residence or place of business in the
Philippines. In case taxpayer has no legal residence or place of business in the
Philippines, the return shall be filed with the Office of the Commissioner or Revenue
District Office No. 39, South Quezon City.
When and Where to Pay
Upon filing of this return, the estimated tax due shall be paid to the Authorized
Agent Bank (AAB) where the return is filed. In places where there are no AABs,
payments shall be made directly to the Revenue Collection Officer who shall issue an
Electronic Revenue Official Receipt (eROR) therefor.
When the return is filed with an AAB, taxpayer must accomplish and submit
BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that
payment was received by the AAB. The AAB receiving the tax return shall stamp mark
the word "Received" on the return and also machine validate the return as proof of filing
the return and payment of the tax by the taxpayer, respectively. The machine validation
shall reflect the date of payment, amount paid and the transaction code, the name of the
bank, branch code, teller's code and the teller's initial. Bank debit memo number and date
should be indicated in the return for taxpayers paying under the bank debit system.
For eFPS Taxpayer
The deadline for electronically filing and paying the taxes due thereon shall be in
accordance with the provisions of existing applicable revenue issuances.
Tax Rate
The income from business or practice of profession shall be subject to the

following:
1. If the gross sales/receipts and other non-operating income do not

exceed the VAT threshold, the individual has the option to be taxed
at:
a. Graduated income tax rates prescribed under Section 24 (A)

(2) (a) of the Tax Code, as amended.
b. Eight percent (8%) income tax rate based on gross

sales/receipts and other non-operating income in lieu of the
graduated income tax rates under Section 24 (A) (2) (a) and
percentage tax under Section 116 of the Tax Code, as
amended.
2. If the gross sales/receipts and other non-operating income exceed the

VAT threshold, the individual shall be subject to the graduated
income tax rates prescribed under Section 24 (A) (2) (a) of the Tax
Code, as amended.
For individual earning income purely from self-employment or practice of

profession the eight percent (8%) tax rate is based on gross sales/receipts and other
non-operating income in excess of two hundred fifty thousand pesos (P250,000).
However for mixed income earner, the compensation income is subject to graduated rates
only and it is to be declared on annual basis in the final return (BIR Form No. 1701), and
the income for business/profession is also subject to the tax rates as discussed in the first
paragraph of this item (Tax Rate). In this case, if qualified, the 8% option if selected, the
same is based on gross sales/receipts and other non-operating income and the P250,000
reduction is no longer applicable.
Deductions
A taxpayer engaged in business or in the practice of profession shall choose either

the itemized or optional standard (described below) deduction. He shall indicate his
choice by marking with "X" the appropriate box, otherwise, he shall be deemed to have
chosen itemized deduction. The choice made in the return is irrevocable for the taxable
year covered.
Itemized Deduction — There shall be allowed as deduction from gross income all
the ordinary and necessary expenses paid or incurred during the taxable year in carrying
on or which are directly attributable to the development, management, operation and/or
conduct of the trade, business or exercise of a profession including a reasonable
allowance for salaries, travel, rental and entertainment expenses.
Optional Standard Deduction — A maximum of 40% of their gross sales or

receipts shall be allowed as deduction in lieu of the itemized deduction. This type of
deduction shall not be allowed for non-resident aliens. An individual who opts to avail of
this deduction need not submit the Account Information Return (AIF)/Financial
Statements.
Estimated Income Tax Liability
The taxpayers herein referred shall make and file a declaration of their estimated
income for the current period from which they shall derive their estimated income tax
liability.
Penalties
There shall be imposed and collected as part of the tax:
1. A surcharge of twenty-five percent (25%) for the following

violations:
a. Failure to file any return and pay the amount of tax or

installment due on or before the due date;
b. Filing a return with a person or office other than those with

whom it is required to be filed, unless otherwise authorized
by the Commissioner;
c. Failure to pay the full or part of the amount of tax shown on

the return, or the full amount of tax due for which no return is
required to be filed on or before the due date;
d. Failure to pay the deficiency tax within the time prescribed
for its payment in the notice of assessment.
2. A surcharge of fifty percent (50%) of the tax or of the deficiency tax,

in case any payment has been made before the discovery of the
falsity or fraud, for each of the following violations:
a. Willful neglect to file the return within the period prescribed

by the Code or by rules and regulations; or
b. A false or fraudulent return is willfully made.
3. Interest at the rate of double the legal interest rate for loans or
forbearance of any money in the absence of an express stipulation as
set by the Bangko Sentral ng Pilipinas from the date prescribed for
payment until the amount is fully paid: Provided, That in no case
shall the deficiency and the delinquency interest prescribed under
Section 249 Subsections (B) and (C) of the National Internal
Revenue Code, as amended, be imposed simultaneously.
4. Compromise penalty as provided under applicable rules and

regulations.
Required Attachments:
1. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if

applicable;
2. Duly Approved Tax Debit Memo, if applicable;
3. Authorization letter, if return is filed by authorized representative;
4. Proof of other payment/s made, if applicable; and
5. Summary Alphalist of Withholding Agents of Income Payments

Subjected to Withholding Tax at Source (SAWT), if applicable.
The quarterly income tax return does not have to be accompanied with Account
Information Form and/or Financial Statements.
Note: All background information must be properly filled out.
• The last 5 digits of the 14-digit TIN refers to the branch code
• All returns filed by an accredited tax agent on behalf of a taxpayer

shall bear the following information:
A. For Individual (CPAs, members of GPPs, and others)
a.1 Taxpayer Identification Number (TIN); and
a.2 BIR Accreditation Number, Date of Issue, and Date of

Expiry.
B. For members of the Philippine Bar (Lawyers)
b.1 Taxpayer Identification Number (TIN);
b.2 Attorney's Roll Number;
b.3 Mandatory Continuing Legal Education (MCLE)

Compliance Number; and
b.4 BIR Accreditation Number, Date of Issue, and Date of

Expiry.
April 25, 2018
SUBJECT : Over-the-Counter Acceptance of Certain Tax

Returns/Payment of Internal Revenue Taxes Due to the
Unavailability of the eFPS

Concerned
This Circular is hereby issued in the light of the unavailability of the

Bureau's electronic Filing and Payment System (eFPS) for the filing of tax returns
which deadlines fall on April 25, 2018.
Accordingly, all taxpayers who are mandated to use the eFPS shall be
allowed to file the said returns thru the eBIRForms facility, as well as to pay the
corresponding taxes due therefrom, if any, thru "over-the-counter" with any
Authorized Agent Bank (AAB) falling under the jurisdiction of the Revenue
District Office where the taxpayers are registered without the corresponding
payment of penalties for late filing, until April 26, 2018.

(48)
May 3, 2018
SUBJECT : Amended Documentary Requirements for New Business

Registrants

Concerned
This Circular is being issued to amend Annexes A1 to A3 of Revenue

Memorandum Circular (RMC) No. 93-2016, as amended by RMC No.
137-2016. The documentary requirements of new business registrants were
amended in line with the Data Privacy Act of 2012 and in compliance with the
Ease of Doing Business (EODB).
The following changes on the list of documentary requirements have been

made in Annexes A1-A3 of the said RMC:
1. Removal of Books of Account in securing a Certificate of

Registration (COR) and Authority to Print (ATP). Books of
Account for new business registrants shall be registered by the
taxpayer within thirty (30) calendar days from the date of
business registration. Failure to register such within the
prescribed period shall be subject to penalties pursuant to
existing revenue issuances.
2. In case of an authorized representative who will transact with

the Bureau in behalf of the taxpayer, the following shall be
required:
2.1 For Individual
a. Special Power of Attorney (SPA); and
b. Identification Card (ID) of the authorized person.
2.2 For Non-Individual
a. Board Resolution indicating the name of the

authorized representative;
b. Secretary's Certificate; and
c. ID of the authorized person.
This Circular revokes all other issuances inconsistent herewith and shall
take effect immediately. All internal revenue officers and employees are hereby
enjoined to give this Circular a wide publicity as possible.

ANNEX A1
Application for Registration — Checklist of Documentary Requirements: Self-Employed

Individuals, Estates and Trusts
ANNEX A2.1
Application for Registration — Checklist of Documentary Requirements: Corporations,

Partnerships (Taxable or Non-Taxable)
ANNEX A2.2
Application for Registration — Checklist of Documentary Requirements: Cooperatives,

Associations (Taxable or Non-Taxable)
ANNEX A3
Application for Registration — Checklist of Documentary Requirements: Registration of

Branch and Facility Types
(49)
April 23, 2018

March 2018
This Circular is hereby issued in order to consolidate the weekly issued

2018-03-06, 2018-03-07, and 2018-04-05, for the month of March circularizing

comparative prices of sugar between the previous year and current year, the

ANNEX A
April 27, 2018
SUBJECT : Penalties Computed in BIR Form Nos. 1602 and 1603 of

the Electronic Filing and Payment System (eFPS)

Concerned
It has come to our attention that the existing old version of BIR Form Nos.
1602 (Monthly Remittance Return of Final Income Taxes Withheld on Interest
Paid on Deposits and Yield on Deposit Substitutes/Trusts/Etc.) and 1603
(Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits
Paid to Employees Other than Rank and File) loaded in the eFPS is computing
penalties for late filing and/or payment. The reason for this is that the deadline in
the eFPS is still being updated, to wit:
BIR Form Old Deadline Updated Deadline under
No. the TRAIN Law
1602 On or before the 10th day of the following not later than the last day
month in which withholding is made. of the month following the
close of the quarter during
which withholding was
made
1603 On or before the 10th day of the month
following the calendar quarter in which the
fringe benefits were granted.
In view of the ongoing updates of the Bureau's eFPS, taxpayers are advised
to disregard the penalties computed by the system and pay only the basic tax due,
provided that the payment shall be made on or before the last day of the month.
Any filing and/or payment beyond the deadline shall be subject to the applicable
penalties imposed/computed by the eFPS from updated due date until actually
paid.
For the guidance and information of all concerned.

April 16, 2018
SUBJECT : Circularizing New and Revised BIR Forms Affected by Tax

Reform for Acceleration and Inclusion (TRAIN) Law
Concerned
This Circular is issued to prescribe the following new and revised BIR
forms, to wit:
BIR Form BIR Form Name Availability of

No. the New/
Revised Return
1. 1601-EQ Quarterly Remittance Return of Creditable Manual return,
Income Taxes Withheld (Expanded) (refer to eBIRForms, eFPS
Annex "A" hereof)
2. 1601-FQ Quarterly Remittance Return of Final Income Manual return,
Taxes Withheld (refer to Annex "B" hereof) eBIRForms, eFPS
3. 1602Q Quarterly Remittance Return of Final Taxes Manual return
Withheld on Interest Paid on Deposits and
Deposit Substitutes/Trusts /Etc. (refer to Annex
"C" hereof)
4. 1603Q Quarterly Remittance Return of Final Income Manual return
Taxes Withheld on Fringe Benefits Paid to
Employees Other Than Rank and File (refer to
Annex "D" hereof)
5. 1601-C Monthly Remittance Return of Income Taxes Manual return
Withheld for Compensation (refer to Annex
"E" hereof)
1. BIR Form Nos. 1601-EQ/1601-FQ
1. The new manual returns are already available under the

BIR Forms-Payment/Remittance Form section of the
BIR website (www.bir.gov.ph).
2. Manual filers shall download the PDF format of the

return (BIR Form No. 1601-EQ/1601-FQ) and print it
then fill out the applicable items/fields.
3. Amount to be indicated in the return shall be the total

amount/taxes withheld for the quarter (i.e., January to
March, April to June, etc.). Likewise, remittances made
for the first 2 months of the quarter using BIR Form No.
0605 or the old return (BIR Form No. 1601-E/1601-F) or
the new remittance form under BIR Form No.
0619-E/0619-F once available, shall also be reflected in
the return.
4. Remittance of the tax due thereon, if any, shall be made

thru:


the RDO
• Landbank of the Philippines (LBP) Linkbiz

Portal, for taxpayers who have ATM
account with LBP and/or holders of

ATM/Debit
5. In case manual filers have remitted the creditable/final

taxes withheld for the third month using BIR Form No.
0605 or the old return (BIR Form No. 1601-E/1601-F) or
the new remittance form under BIR Form No.
0619-E/0619-F once available, the taxpayer still needs to
file the quarterly return (BIR Form No.
1601-EQ/1601-FQ) and indicate therein the total
amount/taxes withheld for the quarter and the total
remittances made for the three (3) months or for the
quarter as follows:
Particulars Item/Field No. in BIR Item/Field No. in BIR
Form No. 1601-EQ Form No. 1601-FQ
Remittance made for the 20 23
first month of the quarter
Remittances made for the 21 24
second and third months of
the quarter
In the event that the result after indicating the total

amount/taxes withheld and remittances made for the
quarter is still payable, the taxpayer shall remit the tax
due thereon per number four (4) above of this RMC.
If the result is no payment/over-remittance, follow the

existing procedure for "No Payment Return" which is to
file thru the use of eBIRForms. Use the BIR Form No.
1601-EQ or 1601-FQ loaded in the Offline eBIRForms
Package v7 to file the "No Payment Return."
6. In case of over-remittance in BIR Form No. 1601-EQ,

the over-remittance can be carried over to the next
quarter within the same taxable year.
B. Electronic Bureau of Internal Revenue Forms (eBIRForms) —
1. The new returns are already included in the Offline

eBIRForms Package v7 which can be downloaded from
the BIR website (www.bir.gov.ph).
2. eBIRForms filers shall use the return in filing and

remitting the creditable income taxes withheld
(expanded)/final income taxes withheld for the quarter
covering the three (3)-month period. The amount to be
indicated in the return (BIR Form No.
1601-EQ/1601-FQ) shall be the total amount/taxes
withheld for the quarter (i.e., January to March, April to
June, etc.). Likewise, remittances made for the first 2
months using BIR Form No. 0605 or the old return (BIR
Form No. 1601-E/1601-F) or the new remittance form
under BIR Form No. 0619-E/0619-F once available,
shall also be reflected in the return.

thru:


the RDO


ATM/Debit
4. In case eBIRForms filers have already remitted the

creditable/final income taxes withheld for the third
month using BIR Form No. 0605 or the old return (BIR
under BIR Form No. 0619-E/0619-F once available,
taxpayer still needs to file the quarterly return (BIR
Form No. 1601-EQ/1601-FQ) reflecting the total
amount/taxes remitted for the quarter as follows:

Remittance made for the first 20 23
month
second and third months
5. In case of over-remittance in BIR Form No. 1601-EQ
C. Electronic Filing and Payment System (eFPS) —
1. The new returns are already available in eFPS.
2. eFPS filers shall use the return in filing and remitting the
creditable income taxes withheld (expanded)/final
income taxes withheld for the quarter covering the three
(3)-month period. The amount to be indicated in the
return (BIR Form No. 1601-EQ/1601-FQ) shall be the
total amount/taxes withheld for the quarter (i.e., January
to March, April to June, etc.). Likewise, remittances
made for the first 2 months using BIR Form No. 0605 or
the old return (BIR Form No. 1601-E/1601-F) or the
new remittance form under BIR Form No.
0619-E/0619-F once available, shall also be reflected in
the return.
3. In case eFPS filers have already remitted the

creditable/final income taxes withheld for the third
month using BIR Form No. 0605 or the old return (BIR
under BIR Form No. 0619-E/0619-F once available, the
taxpayer still needs to file the quarterly return (BIR
Form No. 1601-EQ/1601-FQ) reflecting the total
amount/taxes remitted for the quarter as follows:

Remittance made for the first 20 23
month
second and third months
4. After efiling, proceed to online payment by clicking the

proceed to payment button and remit the taxes due, if
any.
5. In case of system down or the returns are not available in

the eFPS filers account, eFPS filers shall still use BIR
Form No. 0605 or the new remittance form under BIR
Form No. 0619-E/0619-F once available, in filing and
remitting the creditable taxes withheld (expanded)/final
income taxes withheld for the month.
6. Once the returns become available in eFPS, the eFPS

filers shall file the return (BIR Form No.
1601-EQ/1601-FQ) and indicate the total amount/taxes
remitted for the quarter.
7. In case of over-remittance in BIR Form No. 1601-EQ

In all cases (A to C above), the required attachment of Quarterly Alphalist

of Payees (QAP) shall still be submitted thru esubmission@bir.gov.ph or thru the
dedicated email address of the RDO having jurisdiction over the registered address
of the withholding agent, using the revised Alphalist Data Entry and Validation
Module Version 6.0 which can be downloaded from the BIR website
(www.bir.gov.ph) under the downloadable section.
2. BIR Form No. 1602Q
1. The new manual return is already available under the

BIR Forms-Payment/Remittance Form section of the
BIR website (www.bir.gov.ph).
2. Manual filers shall download the PDF format of BIR

Form No. 1602Q and print it then fill out the applicable
items/fields.
3. Amount to be indicated in the return shall be the total

amount/taxes withheld for the quarter (i.e., January to
March, April to June, etc.). Likewise, remittances made
for the first 2 months of the quarter using BIR Form No.
0605 or the old return (BIR Form No. 1602) or the new
remittance form (BIR Form No. 0619-F) once available,
shall also be reflected in the return.

thru:


the RDO


ATM/Debit
5. In case manual filers have already remitted the taxes

withheld for the third month using BIR Form No. 0605
or the old return (BIR Form No. 1602) or the new
remittance form (BIR Form No. 0619-F) once available,
the taxpayer still needs to file the quarterly remittance
return (BIR Form No. 1602Q).
The taxpayer shall use eBIRForms once the return is

included in the new Offline eBIRForms Package and
indicate therein the total amount/taxes withheld and the
total remittances made for the quarter as follows:
Particulars Item/Field No. in BIR

Form No. 1602Q
Remittance made for the first month 18
Remittances made for the second and third months 19
6. In case of over-remittance, the over-remittance can be
carried over to the next quarter within the same taxable
year.
1. The new return is not yet included in the Offline

eBIRForms Package v7.
2. eBIRForms filers shall still use the enhanced old BIR

Form No. 1602 [refers to the existing monthly
remittance return in eBIRForms and eFPS with revision
date of August 2001 (ENCS)] loaded in the Offline
eBIRForms Package v7 in remitting the taxes withheld
for the quarter covering the three (3)-month period. The
amount to be indicated shall be the total amount/taxes
withheld for the quarter.

thru:


the RDO

ATM/Debit
4. In case eBIRForms filers already remitted the taxes

withheld for the first and second months of the quarter
using BIR Form Nos. 0605 or 1602 or the new
remittance form BIR Form No. 0619-F once available,
then the amount to be remitted is only the taxes withheld
for the third month.
5. Once the new return becomes available in the new

Offline eBIRForms Package, eBIRForms filers shall file
BIR Form No. 1602Q and indicate the total
amount/taxes withheld and the amount remitted for the
quarter covering the three (3)-month period as follows:

Form No. 1602Q

year.
1. The new return is not yet available in eFPS.
2. eFPS filers shall still use the existing BIR Form No.
1602 loaded in the eFPS in remitting the taxes withheld
for the quarter covering the three (3) months period. The
amount to be indicated shall be the total amount/taxes
withheld for the quarter (i.e., January to March, April to
June, etc.).
3. In case eFPS filers already remitted the taxes withheld

for the first and second months of the quarter using
either BIR Form No. 0605 or 1602 or the new remittance
form (BIR Form No. 0619-F) once available, then the
amount to be remitted is only the taxes withheld for the
third month.

proceed to payment button and remit the taxes due, if
any.
5. Once the new return become available in eFPS, eFPS

filers shall file BIR Form No. 1602Q and indicate the
total amount/taxes withheld and amount remitted for the
quarter covering the three (3) month period as follows:

Form No. 1602Q

year.
3. BIR Form No. 1603Q
1. The newly revised manual return is already available

under the BIR Forms-Payment/Remittance Form section
of the BIR website (www.bir.gov.ph).

items/fields.

thru:

the RDO


ATM/Debit
1. The newly revised return is not yet included in the

Offline eBIRForms Package v7.
2. eBIRForms filers shall still use the existing BIR Form

No. 1603 loaded in the Offline eBIRForms Package v7
in remitting the taxes withheld for the quarter covering
the three (3)-month period.
3. The tax rate of the alphanumeric tax code (ATC) WF360

is not yet updated and still 32% in BIR Form No. 1603.
To complete the 35% tax rate, eBIRForms filers shall
use and file BIR Form No. 0605 for the 3% deficiency
tax reflecting the following:
a. Tax Type WR Withholding Tax — Fringe

Benefits
b. ATC MC 031-Deficiency Tax
4. Remittance of the tax due thereon, shall be made thru:

the RDO


ATM/Debit
1. The newly revised return is not yet available in eFPS.
2. eFPS filers shall still use the existing BIR Form No.
1603 loaded in the eFPS in remitting the taxes withheld
for the quarter covering the three (3)-month period.
3. The tax rate of the alphanumeric tax code (ATC) WF360

is not yet updated and still 32% in BIR Form No. 1603.
To complete the 35% tax rate, eFPS filers shall use and
file BIR Form No. 0605 for the 3% deficiency tax
reflecting the following:
a. Tax Type WR Withholding Tax — Fringe

Benefits
b. ATC MC 031-Deficiency Tax

proceed to payment button and remit the taxes due.
4. BIR Form No. 1601-C
1. The newly revised manual return is already available under the

BIR Forms-Payment/Remittance Form section of the BIR
website (www.bir.gov.ph). Manual filers shall download the
manual forms, print the form and fill out the applicable
items/fields.
2. The newly revised return is not yet available in eFPS and

eBIRForms. eFPS/eBIRForms filers shall still use the existing
BIR Form No. 1601-C in eFPS and Offline eBIRForms
Package v7 in remitting the taxes withheld for compensation.
3. Remittance of the tax due thereon for manual and eBIRForms

filers, if any, shall be made thru:
• Authorized Agent Bank (AAB) located within the

territorial jurisdiction of the Revenue District
Office (RDO) where the taxpayer is registered
• In places where there are no AABs, the return

shall be filed and the tax due shall be paid with
the concerned Revenue Collection Officer (RCO),
thru the MRCOS facility, under the jurisdiction of
the RDO

Portal, for taxpayers who have ATM account with
LBP and/or holders of Bancnet ATM/Debit Card
• DBP Tax Online, for holders of VISA/Master

Credit Card and/or Bancnet ATM/Debit
4. For eFPS filers, after efiling, proceed to online payment by

clicking the proceed to payment button and remit the taxes due.
5. The eFPS/eBIRForms filers shall use the newly revised return
once it is available in eFPS or included in the new Offline
eBIRForms Package.
For the guidance and information of all concerned.

April 19, 2018
SUBJECT : Circularizing the Revised BIR Form No. 2551Q (Quarterly

Percentage Tax Return) January 2018 (ENCS)

Concerned
This Circular is issued to prescribe the revised BIR Form No. 2551Q
(Quarterly Percentage Return) January 2018 (ENCS), hereto attached as Annex
"A" which was revised due to the implementation of the Tax Reform for
Acceleration and Inclusion (TRAIN) Law.
Taxpayer shall file and/or pay through the following mode:
A. Manual Form —
1. The newly revised BIR Form No. 2551Q [refers to the

new quarterly percentage tax return which was revised
and affected by the implementation of the TRAIN Law
and with revision date of January 2018 (ENCS)] is
already available under the BIR Forms-VAT/Percentage
Tax Returns section of the BIR website
(www.bir.gov.ph).

items/fields.
3. Taxable amount to be indicated in the quarterly

percentage tax return shall be the total gross
sales/receipts for the quarter (i.e., January to March,
April to June, etc.).
4. Payment of the percentage tax due thereon shall be made

thru:


the RDO


ATM/Debit
5. In case manual filers paid the percentage taxes due for

the first and second months of the quarter using BIR
Form No. 2551M, taxpayer still needs to file the
quarterly percentage tax return (BIR Form No. 2551Q)
and indicate in the return the total gross sales/receipts for
the quarter and the total payment made in the first two
(2) month/s. The payment/s made shall be reflected in
Item No. 17-Other Credit/Payment Made of the newly
revised BIR Form No. 2551Q.
6. If manual filers also paid the percentage tax due for the
third month using BIR Form No. 2551M, taxpayer still
needs to file the quarterly percentage tax return (BIR
Form No. 2551Q) and indicate in the return the total
gross sales/receipts for the quarter and the total
payments made for the three (3) month/s in Item No.
17-Other Credit/Payment made of the newly revised BIR
Form No. 2551Q.
If the computation above resulted to a payable, taxpayer shall

pay the tax due thereon per number four (4) above of this RMC.
If the result is no payment/overpayment, follow the existing
procedure for "No Payment Return" which is to file thru the use
of eBIRForms. Use the enhanced old BIR Form No. 2551Q
[refers to the existing quarterly percentage tax return in
eBIRForms and eFPS with revision date of February 2002
(ENCS)] in Offline eBIRForms Package v7 to file the "No
Payment Return" and, as a work around procedure, reflect the
payment/s made in Item No. 20A-Creditable Percentage Tax
Withheld per BIR Form No. 2307.
1. The newly revised BIR Form No. 2551Q is not yet

available in eBIRForms.
2. eBIRForms filers shall use the enhanced old BIR Form

No. 2551Q in Offline eBIRForms Package v7, which
contained all the alphanumeric tax codes (ATCs)
enumerated in BIR Form No. 2551M (i.e., PT010,
PT040, PT041, PT120, PT130, etc.), in filing the return.

percentage tax return shall be the total gross
sales/receipts for the quarter.
4. In case eBIRForms filers already paid the percentage

taxes for the first and/or second and/or third month of
the quarter, as a work around procedure, payment/s
made are to be reflected in Item No. 20A — Creditable
Percentage Tax Withheld per BIR Form No. 2307.
5. Payment of the percentage tax due thereon shall be made

thru:


the RDO


ATM/Debit
1. The newly revised BIR Form No. 2551Q is not yet

available in eFPS.
2. eFPS Filers shall use the enhanced old BIR Form No.
2551 in the system which contained all the alphanumeric
tax codes (ATCs) enumerated in BIR Form No. 2551M
(i.e., PT010, PT040, PT041, PT120, PT130, etc.) in
filing the return.
percentage return shall be the total gross sales/receipts
for the quarter.
4. In case eFPS filers already paid the percentage taxes for

the first and/or second and/or third month of the quarter,
as a work around procedure, payment/s made are to be
reflected in Item No. 20A — Creditable Percentage Tax
Withheld per BIR Form No. 2307.

proceed to payment button and pay the percentage tax
due.
as possible.

April 16, 2018
SUBJECT : Lost Five (5) Sets of Unused BIR Form No. 0535 —

Concerned
Notice is hereby given of the loss of five (5) sets of unused BIR Form No.
0535 — Taxpayer Information Sheet, bearing the following serial numbers:
TIS201100008865
TIS201100008866
TIS201100008867
TIS201100008868
TIS201100210321
The abovementioned forms were reported as lost by Ms. Irene M. Calalang,

Revenue Officer III, Revenue District Office No. 27, Revenue Region No. 5,
Caloocan City, and have consequently been cancelled. All official transactions
involving the use of said forms are therefore considered as INVALID.

use of the same.

Deputy Commissioner
(50)
April 10, 2018
SUBJECT : Guidelines in the Filing, Receiving and Processing of 2017

Income Tax Returns Including Its Attachments

Concerned
For the information and guidance of all concerned, this Circular is being
issued to prescribe the UPDATED guidelines in the filing, receiving and
processing of 2017 Income Tax Returns including its attachments, due on or
before April 16, 2018 (since April 15, 2018 falls on a Sunday) or on or before the
15th day of the fourth month following the close of the taxpayer's taxable year
(taxpayers covered by fiscal year), as well as to finally clarify the previously
issued advisories on the matter.
I. Manner of Filing of Returns. Taxpayers who are mandated to use

eBIRForms/eFPS (Annex "A") under existing issuances, and those who opted to
file manually, shall file and pay strictly in accordance with the following
guidelines:
Manner of Filing Where to File and Pay Required Attachments
Where to Submit When to Submit
A. With Payment
1. Manual Filing • Authorized Agent • AAB Upon filing

Bank (AAB) located
Forms are available
within the territorial
thru the following:
jurisdiction of the
(a) RDO — for Revenue District
the BIR Office (RDO) where
official printed the taxpayer is
forms; registered;
(b) BIR website • In places where there • RDO
— for the are no AABs, the
downloadable return shall be filed
forms printed and the tax due shall
in A4 size be paid with the
bond paper; or concerned Revenue
(c) Collection Officer
Computer-gen (RCO), thru the
erated income MRCOS facility, under
tax return the jurisdiction of the
forms printed RDO;
in A4 size Note:
bond paper All RDOs and AABs
from should accept BIR official
eBIRForms printed forms or
Facility. photocopied or
electronic/computer-genera
ted income tax returns, in
lieu of the officially
printed forms, provided
that the said forms are
originally filled out and
signed by the taxpayer or
his/her/its duly authorized
representative.
2. eFPS Facility • File and pay directly Concerned Large Within fifteen
using eFPS facility, for Taxpayer (15) days from
income tax returns Division the deadline of
available in the eFPS (LTD)/RDO filing, or date of
facility; electronic filing
of the return,
• eBIRForms System,
whichever comes
for filing of income tax
later
returns not available in
the eFPS facility and
submit and pay using
eFPS facility; or
• File the income tax
returns thru the eFPS
facility and pay thru
the PhilPass facility of
the Bangko Sentral ng
Pilipinas, for banks
availing the said
payment facility.
3. eBIRForms Electronically file using Within fifteen

System eBIRForms Package and (15) days from
pay to any of the the deadline of
following: filing, or date of
• AAB electronic filing
• Authorized Agent
of the return,
Bank (AAB) located
whichever comes
within the territorial
later
jurisdiction of the
RDO where the
taxpayer is registered;
• In places where there • RDO
are no AABs, the
return shall be filed
and the tax shall be
paid with the
concerned Revenue
Collection Officer
(RCO), thru the
MRCOS facility, under
the jurisdiction of the
RDO;
• RDO
• For electronic payment
using the following
facilities:
 GCash Mobile
Payment
 Landbank of the
Philippines (LBP)
Linkbiz Portal, for
taxpayers who
have ATM
account with LBP
and/or for holders
of Bancnet
ATM/Debit Card
 DBP Tax Online,
for holders of Visa
Master/Credit
Card and/or
Bancnet
ATM/Debit
B. No Payment Returns
1. eFPS Facility • File directly using Concerned Large Within fifteen

eFPS facility, for Taxpayer (15) days from
income tax returns Division the deadline of
available in the eFPS (LTD)/RDO filing, or date of
facility; or electronic filing
of the return,
• eBIRForms System,
whichever comes
for filing of income tax
later
returns not available in
the eFPS facility.
2. eBIRForms Electronically file using • RDO Within fifteen

System eBIRForms Package (15) days from
the deadline of
filing, or date of
electronic filing
of the return,
whichever comes
later
However, in case of unavailability of both the eFPS and eBIRForms

System, thru an Advisory duly issued and posted in the Bureau's website, the
following guidelines shall be strictly observed by the mandated users of these
systems:
Type of Taxpayers Where to File and Pay Required Attachments
Where to When to
Submit Submit
With Payment Returns
Non-Large Taxpayers • Authorized Agent Bank • AAB Within fifteen

Service (LTS) (AAB) located within the (15) days from
registered taxpayers territorial jurisdiction of the deadline of
mandated to use the the RDO where the filing or date of
facilities of eFPS and taxpayer is registered; electronic filing
eBIRForms • RDO of the return
• In places where there are
whichever
no AABs, the return shall
comes later
be filed and the tax shall
be paid with the
concerned Revenue
Collection Officer (RCO),
thru the MRCOS facility,
under the jurisdiction of
the RDO;
• RDO -do-
• If tax payment will be
made thru the following
electronic facilities:
 GCash Mobile
Payment
 Landbank of the
Philippines (LBP) -do-
Linkbiz Portal, for
taxpayers who have
ATM account with
LBP and/or for
holders of Bancnet
ATM/Debit Card
 Development Bank of
the Philippines (DBP)
Tax Online, for
holders of Visa
Master/Credit Card
and/or Bancnet
ATM/Debit Card
the income tax return
shall be filed with the
RDO where the taxpayer
is duly registered,
together with a copy of
documentary proof of
payment generated by the
above facilities.
For LTS-registered The income tax return shall Concerned LTS Upon filing
taxpayers be filed and the tax due shall Office where the
be paid with any branch of taxpayer is duly
LBP and DBP nearest to the registered
LTS-registered taxpayer's
Head Office
With No Payment Returns
For both non-LTS and The income tax return shall Concerned LTS Upon filing
LTS-registered be filed with the LTS Office/RDO
taxpayers Office/RDO where the where the
concerned taxpayer is duly taxpayer is duly
registered registered
Provided, further, that in case of unavailability of ONLY the eFPS facility,

all taxpayers mandated to use the facilities of eFPS and eBIRForm shall file their
returns thru the eBIRForm facility, print the submitted income tax returns in three
(3) copies for purposes of payment of the income tax due thru the appropriate
payment channels described above. Finally, should the eFPS and/or eBIRForm
System shall be subsequently available, thru an Advisory posted in the Bureau's
website, all the mandated users shall re-submit their manually filed returns with
the eFPS or eBIRForm System, as the case may be, within five (5) days from the
issuance of the said Advisory. On the other hand, all concerned RDOs retrieving
the manually filed returns from the AABs shall ensure that no double
encoding/uploading of information of filed returns with the Integrated Tax Returns
(ITS) and/or electronic Tax Information System (eTIS).
Considering that the LTS tax collections consist the most significant share
in the total tax collections of this Bureau, all concerned RDOs shall prioritize the
retrieval of the physical copies of the ITRs and Batch Control Sheets from the LBP
and DBP branches pertinent to income tax collections from the LTS-registered
taxpayers and transmit the same to the concerned LTS Office within ten (10) days
from the date of retrieval. Moreover, the pertinent provisions of Revenue
Memorandum Order No. 36-2016 on the transfer in-transfer procedures for
the proper crediting of the income taxes collected from these LTS-registered
taxpayers shall likewise be given preference.
II. Optional Manual Filing of "No Payment Returns." The following

individuals may file manually "No Payment Returns" with the RDO where they
are registered using officially printed forms/photocopied or
electronic/computer-generated returns:
(1) Senior Citizen (SC) or Persons with Disabilities (PWDs) filing
for their own return;
(2) Employees deriving purely compensation income from two or

more employers, concurrently or successively at any time
during the taxable year, or from a single employer, although the
income of which has been correctly subjected to withholding
tax, but whose spouse is not entitled to substituted filing;
(3) Employees qualified for substituted filing under RR 2-98

Sec. 2.83.4, as amended, but opted to file for an ITR and are
filing for purposes of promotion, loans, scholarship, foreign
travel requirements, etc.
III. Printed Copy of e-Filed Tax Returns. Taxpayers who have

electronically filed and/or paid ITRs using eBIRForms or eFPS without any
attachments required, need not submit printed copy of e-Filed tax returns to
the concerned LTS Office/RDO.
IV. Required Attachments. The required attachments (Annexes "B1 to

B5") and accompanying schedules shall be submitted to the concerned LTS
Offices/RDOs, or AABs located within the territorial jurisdiction of the concerned
LTS Offices/RDOs where the taxpayer is registered, as the case may be.
Taxpayers who have electronically filed shall also submit a copy of

electronically filed ITR with Filing Reference Number (FRN) thru eFPS facility or
an email Tax Return Receipt Confirmation and a copy of electronically filed ITR
thru eBIRForms facility, together with the required attachments within fifteen (15)
days from the deadline of filing or date of electronic filing of the return whichever
comes later.
The Summary Alphalist of Withholding Tax (SAWT) using the Data Entry
Module of the BIR shall be emailed to esubmission@bir.gov.ph, if applicable.
V. Receiving and Stamping. RDOs, concerned LTS Offices and all

AABs shall receive the income tax returns by stamping the official receiving seal
on the space provided for in the three (3) copies of the returns, whether or not the
taxpayer is under the jurisdiction of a regional office with Document Processing
Division (DPD). Any copies of the return in excess of 3 copies shall not be
stamped "RECEIVED" by the RDO, LTD and AAB. However, in the case of
corporations and other juridical persons, there shall be stamped "RECEIVED" in
at least two (2) extra copies of the Audited Financial Statements (AFS) for filing
with the Securities and Exchange Commission (SEC).
The attached AFS to the ITR shall be stamped received only on the page of
the Audit Certificate, the Statement of Financial Position, the Statement of
Comprehensive Income and/or its equivalent and Statement of Management's
Responsibility. The other pages of the financial statements and its attachments
need not anymore be stamped received.
VI. Supplemental Information. The disclosure of Supplemental

Information under BIR Form Nos. 1700 and 1701 is OPTIONAL on the part of
the individual taxpayer filing ITR covering and starting with calendar year 2017
due for filing on or before April 16, 2018.
All other circulars and revenue issuances inconsistent herewith are hereby
amended, modified or revoked accordingly. All internal revenue officers and
employees are hereby enjoined to give this Circular as wide a publicity as possible.

ANNEX A
Reminder to All Taxpayers Mandated to File and Pay Electronically
ANNEX B1
Required Attachments: BIR Form No. 1700
ANNEX B2
Required Attachments: BIR Form No. 1701
ANNEX B3
Required Attachments: BIR Form No. 1702RT
ANNEX B4
Required Attachments: BIR Form No. 1702MX
ANNEX B5
Required Attachments: BIR Form No. 1702EX
March 27, 2018
SUBJECT : Lost One (1) Set of a Used but Unissued BIR Form No.
2313-R — Electronic Certificate Authorizing Registration
for Transaction Involving Transfer of Real Properties

Concerned
Notice is hereby given of the loss of one (1) set of a used but unissued BIR
Form No. 2313-R — Electronic Certificate Authorizing Registration (eCAR) for
transaction involving transfer of real properties with the hereunder stated serial
number, to wit:
eCR201600319382
The abovementioned form was reported as lost by Ms. Rosebelle A.

Mediodia, Revenue Officer I, Revenue District Office No. 78, Revenue Region
No. 12, Bacolod City and have consequently been cancelled. All official
transactions involving the use of said form is therefore considered as INVALID.

the same.

Deputy Commissioner
March 27, 2018
SUBJECT : Publishing the Daily Minimum Wage Rates in Region I

Pursuant to Wage Order No. RB1-19

Concerned

employees and others concerned, we are publishing Wage Order No. RB1-19
which was issued on November 24, 2017 and published at City Bulletin Herald on
January 10, 2018:

REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD-I
WAGE ORDER NO. RB1-19
"PROVIDING FOR NEW DAILY-MINIMUM WAGE RATES OF

WORKERS AND EMPLOYEES IN REGION 1"
WHEREAS, the Regional Tripartite Wages and Productivity Board

No. 1 (RTWPB-1) is mandated under R.A. 6727 (The Wage
Rationalization Act) to periodically review the prevailing socio-economic
and other conditions in the Region and if necessary to determine the
applicable daily minimum wage rates;
WHEREAS, the previous Wage Order No. RB1-18 issued by the

Board on 20 July 2016 which took effect on 2 October 2016 had already
reached its one (1) year anniversary on 02 October 2016;
WHEREAS, in the absence of any petition for wage increase, the

Board, motu proprio, reviewed the existing wage rates, and after due notice
to concerned labor and management sectors, conducted public hearings on
23 October 2017 in Dagupan City, Pangasinan; 26 October 2017 in San
Fernando City, La Union; and 27 October 2017 in Bantay for the Provinces
of Ilocos Sur and Ilocos Norte with concerned labor and management sectors
in order to determine whether there is a need to adjust the minimum wages
in the Region;
WHEREAS, after giving due consideration on the results of the

public hearings and consistent with the government policy of inclusive
growth, the Board deemed it necessary to adjust the prevailing daily wage
rates of workers/employees in the Region to enable them to cope with the
rising cost of living without impairing the viability of business and industry;
NOW THEREFORE, by virtue of the power and authority vested

under Republic Act No. 6727, otherwise known as the Wage Rationalization
Act, the Regional Tripartite Wages and Productivity Board-Region 1 hereby
issues this Order.
SECTION 1. NEW MINIMUM WAGE RATES. —
Upon the effectivity of this Order, the Minimum Wage Rates of all
workers/employees in the private sector in the Region shall be increased as
follows:
a. For workers in Large Non-Agriculture and

Commercial Fishing Establishments receiving
P280.00 under Wage Order No. RB1-18, an increase
of THIRTY PESOS (P30.00) per day.
b. For workers in Medium Non-Agriculture

Establishments receiving P265.00 under Wage Order
No. RB1-18, an increase of TWENTY PESOS
(P20.00) per day.
c. For workers in Small Establishments, an increase of

THIRTEEN PESOS (P13.00) per day.
d. For workers in Micro Establishments, an increase of

e. For workers in Agriculture Plantation, an increase of

f. For workers in Agriculture Non-Plantation, an

increase of THIRTEEN PESOS (P13.00) per day.
The new daily minimum wage rates of covered workers in the private
sector in Region 1 shall be as follows:
INDUSTRY/ ASSET SIZE MINIMUM AMOUNT OF NEW MINIMUM

SECTOR (As defined in SMED WAGE UNDER BASIC WAGE WAGE RATES
Resolution No. 1, W.O. NO. INCREASE UPON
Series of 2003) RB1-18 EFFECTIVITY
1. Non-Agriculture
- Large & Above P100M 280.00 30.00 310.00
Commercial
Fishing
- Medium P15,000,001-100M 265.00 20.00 285.00
- Small P3,000,001-15M 252.00 13.00 265.00
- Micro Up to P3M 243.00 13.00 256.00
2. Agriculture
- Plantation 252.00 13.00 265.00
- Non-Plantation 243.00 13.00 256.00
SECTION 2. COVERAGE. —
All workers/employees in the private sector receiving the minimum

wage rates in the Region are covered by the wage increase prescribed herein
irrespective of their positions, designations or status of employment and
regardless of the method by which their wages are paid.
This Order shall not cover Kasambahay/Domestic workers; persons

employed in the personal service of another including family drivers; and
workers and employees of registered Barangay Micro Business Enterprises
(BMBE) with Certificates of Authority pursuant to Republic Act 9178,
as amended.
SECTION 3. BASIS OF MINIMUM WAGE. —
The minimum wage rates prescribed under this Order shall be for the
normal working hours which shall not exceed eight (8) hours work per day.
SECTION 4. PRODUCTIVITY AND OTHER

PERFORMANCE INCENTIVE PROGRAM (PIP). —
In order to sustain increasing levels of wages and enhance

competitiveness, labor and management as partners are encouraged to adopt
productivity improvement schemes that will improve the quality of life of
workers and in turn enable them to produce and earn more, such as time and
motion studies, good housekeeping, quality circles, labor and management
cooperation as well as implement gain-sharing and other performance
incentive programs.
Pursuant to the Two-Tiered Wage System, Wage Advisory No.

RB1-01 has been issued to guide private establishments in the formulation,
adoption and implementation of productivity programs and performance and
productivity-based incentive that an enterprise may provide based on
agreement between workers and management.
The Board shall continue to issue advisories on PIPs for adoption by

all sectors in the Region.
SECTION 5. MINIMUM WAGE RATES APPLICABLE

TO BUSINESS ESTABLISHMENTS WITH MULTIPLE BUSINESS
ACTIVITIES. —
The minimum wage rates applicable to business establishments

performing multiple business activities not separately registered with any
appropriate government agency shall be determined in accordance with their
dominant business activity.
SECTION 6. CREDITABLE WAGE INCREASE. —
Wage increases granted by an employer within three (3) months prior

to the effectivity of this Wage Order by virtue of Collective Bargaining
Agreement in unionized establishments and those of the non-unionized
sectors setting equal or greater than the minimum wage rates herein provided
shall be considered compliance herewith; and
Anniversary wage increases, merit wage increases and those

resulting from their regularizations or promotion of employees shall not be
credited as compliance.
SECTION 7. WORKERS PAID BY RESULTS. —
All workers paid by results, including those who are paid on

piecework, "takay," "pakyaw" or task basis, shall receive not less than the
adjusted amount prescribed by this Order for the normal working hours
which shall not exceed eight (8) hours per day or a proportion thereof for
working less than eight (8) hours.
SECTION 8. WAGES OF SPECIAL GROUPS OF

WORKERS AND EMPLOYEES. —
Persons employed under Apprenticeship or Learnership Agreement

shall be entitled to not less than Seventy Five Percent (75%) of the new
minimum wage rates under this Order.
All Learnership and Apprenticeship Agreements entered into before

the effectivity of this Order shall be automatically modified insofar as their
wage clauses are concerned to reflect the new prescribed wage rates.

increase in this Order pursuant to R.A. 7277.
SECTION 9. APPLICATION TO PRIVATE

EDUCATIONAL INSTITUTIONS. —
All Private Educational Institutions shall implement this Order

starting School Year 2017-2018.
The share in the tuition fee increases of covered workers and

employees for School Year 2017-2018 shall be considered as compliance
with this Order, however, payment of any shortfall shall be given starting
School Year 2018-2019.
Private Educational Institutions which have not increased their

tuition fees for the School Year 2017-2018, may defer compliance with the
provisions of this Order until School Year 2018-2019.
SECTION 10. APPLICATION TO CONTRACTORS. —
In the case of contracts for construction projects and for security,

janitorial and similar services, the prescribed increase shall be borne by the
principals or clients of the construction/service contractors and the contracts
shall be deemed amended accordingly. In the event, however, that the
principals or clients fail to pay the prescribed increase, the
construction/service contractors shall be jointly and severally liable with
their principals or clients.
SECTION 11. MOBILE AND BRANCH

WORKERS/EMPLOYEES. —
The minimum wage rates of workers and employees, who by the

nature of their work have to travel, shall be those applicable in the domicile
or head office of the employer.
The minimum wage rates of workers and employees working in

branches or agencies of establishments within or outside the region shall be
those applicable in the place where they are stationed.
SECTION 12. TRANSFER OF WORKERS AND

EMPLOYEES. —
The transfer of workers and employees from one region to another
shall not diminish the wage rates being enjoyed by them prior to such
transfer. The workers and employees transferred to other regions with higher
wage rates shall be entitled to the minimum wage rate applicable therein.
SECTION 13. EXEMPTION. —
The following categories of establishments may be exempted from

compliance with this Order, upon application with and as determined by the
Board in accordance with the National Wages and Productivity Commission
(NWPC) Guidelines No. 2, Series of 2007 (NWPC Amended Rules on
Exemption):
1. Distressed establishments;
2. New business establishments;
3. Retail/Service establishments employing not more

than ten (10) workers; and
4. Establishments adversely affected by calamities such

as natural and human-induced disasters.
SECTION 14. DURATION AND EXTENT OF

EXEMPTION. —
Establishments that applied for exemption and found qualified may

be granted a partial or full exemption of one (1) year in accordance with the
NWPC Guidelines No. 02, Series of 2007.
SECTION 15. EFFECT OF APPLICATION FOR

EXEMPTION. —
An application for exemption duly filed shall have the effect of

deferring any action on any complaint for non-compliance with the Order
until resolution of the application by the Board.
In case the application for exemption is not approved, covered

workers and employees of the applicant-establishment shall be paid the
prescribed minimum wage rates under this Order plus one percent (1%)
simple interest per month retroactive to the effectivity of this Order.
SECTION 16. APPEAL TO THE COMMISSION. —
Any party aggrieved by this Order may file a verified appeal with the
NWPC through the Board within ten (10) calendar days from the publication
of this Order.
SECTION 17. EFFECT OF AN APPEAL. —
The filing of the appeal does not operate to stay this Order unless the
party appealing such Order shall file with the NWPC an undertaking with a
surety or sureties satisfactory to the NWPC for payment of the
corresponding increase for covered workers and employees in the event this
Order is affirmed.
SECTION 18. EFFECT ON EXISTING WAGE

STRUCTURE. —
In case the wage increases provided for by this Order result in the
distortion of the wage structure within an establishment, the same shall be
corrected in accordance with the procedure provided for under Article 124 of
the Labor Code, as amended.
SECTION 19. COMPLAINTS FOR NON-COMPLIANCE.

—
Complaints for non-compliance with this Order shall be filed with

the Department of Labor and Employment-Regional Office I (DOLE-Region
I) having jurisdiction over the workplace and shall be subject to the
mandatory thirty (30)-day conciliation and mediation process under Single
Entry Approach (SEnA). However, if settlement fails, the case becomes
subject of enforcement proceedings under Article 128 of the Labor Code, as
amended.
SECTION 20. NON-DIMINUTION OF BENEFITS. —
Nothing in this Order shall be construed to reduce any existing wage

rates, allowances and benefits of any form under existing laws, decrees,
issuances, executive orders and/or under any contract or agreement between
the workers/employees and employers.
SECTION 21. PENAL PROVISION. —
Any person, corporation, trust or firm, partnership, association or

entity who refuses or fails to pay the prescribed increases in this Order, shall
be punished by a fine of not less than P25,000.00 nor more than P100,000.00
or imprisonment of not less than two (2) years nor more than four (4) years
or both such fine and imprisonment at the discretion of the court pursuant to
the provision of Section 12 of R.A. 6727, as amended by R.A. 8188.
SECTION 22. PROHIBITION AGAINST INJUNCTION.

—
No preliminary or permanent injunction or temporary restraining

order may be issued by any court, tribunal or other entity against any
proceedings before the Board.
SECTION 23. FREEDOM TO BARGAIN. —
This Order shall not be construed to prevent workers in particular

firms or enterprises or industries from bargaining for higher wages with their
respective employers.
SECTION 24. REPORTORIAL REQUIREMENT. —
Any person, company, corporation, partnership or any entity engaged

in the business shall submit a verified itemized listing of their labor
component to the Board not later than 31 January 2018 and every year
thereafter in accordance with the form prescribed by the NWPC.
SECTION 25. REPEALING CLAUSE. —
All orders, issuances, rules and regulations, or parts thereof

inconsistent with the provision of this Order are hereby repealed, amended
or modified accordingly.
SECTION 26. IMPLEMENTING RULES. —
The Board shall prepare the necessary rules to implement this Order
subject to the approval of the Secretary of Labor and Employment.
SECTION 27. SEPARABILITY CLAUSE. —
If, for any reason, any section or provision of this Order is declared
unconstitutional or illegal, the other provisions or parts shall remain valid.
SECTION 28. EFFECTIVITY. —
This Order shall take effect fifteen (15) days after its publication in a
newspaper of general circulation in the Region.
UNANIMOUSLY APPROVED this 24th day of November, 2017,

City of San Fernando, La Union, Philippines.
ATTESTED BY:
(SGD.) ATTY. ROMINA E. BOADO-CABRILLOS

Board Secretary VI
APPROVED:
(SGD.) JERRY V. PARLAN
(SGD.) CATHERINE Q. PANGAN

(SGD.) SALVADOR R. POSERIO

(SGD.) ELISEO P. FLORA

(SGD.) NESTOR G. RILLON

Vice-Chairperson
(SGD.) FLORANTE O. LEAL

Vice-Chairperson
(SGD.) NATANIEL V. LACAMBRA

Chairperson"

(51)
April 2, 2018
SUBJECT : Circularizing Memorandum No. 016-2018 dated March 15,

2018 Regarding the Imposition of Surcharge, Interest and
Compromise Penalty for Filing of an Amended Tax Return

Concerned

employees and others concerned, attached as Annex "A" hereof is the copy of
Memorandum No. 016-2018 dated March 15, 2018 regarding the imposition of
surcharge, interest and compromise penalty for filing of an amended tax return.
All internal revenue officials and employees are hereby enjoined to be

guided accordingly and give this Circular as wide a publicity as possible.

ANNEX A
BIR Memorandum 016-18 dated March 15, 2018
March 21, 2018

February 2018

2018-03-02, 2018-03-03, and 2018-03-04, for the month of February circularizing
Administration (SRA), pursuant to Revenue Regulations (RR) No. 13-2015.


March 19, 2018
SUBJECT : Basis of Capital Gains and Documentary Stamp Taxes in
Sales Transactions of Real Property Previously Mortgaged
at a Value Higher Than Its Zonal or Fair Market Value

Concerned
This Circular is issued to clarify the basis for the computation of Capital
Gains Tax (CGT) and Documentary Stamp Taxes (DST) in a sales transaction of
previously mortgaged real property.
BACKGROUND
Some revenue district offices compute the CGT and DST in real property
sales transactions based on amounts other than what is set by law. In sales
transactions involving previously mortgaged properties, certain revenue district
offices have computed the CGT and DST on the transactions based on the
mortgage value previously appraised and not on the values set in Section 24 (D)
(1) and Section 196 in relation to Section 6 (E) of the National
Internal Revenue Code of 1997, as amended (Tax Code).
CLARIFICATION
The provisions of the National Internal Revenue Code of 1997, as amended,

(Tax Code) is explicit when it provided for the basis of the computations of CGT
and DST on the sale of real property. The provisions state:
"SECTION 24. Income Tax Rates. —
"(D) Capital Gains from Sale of Real Property. —
"(1) In General. — The provisions of Section 39(B) notwithstanding, a

final tax of six percent (6%) based on the gross selling price or current
fair market value as determined in accordance with Section 6(E) of this
Code, whichever is higher, is hereby imposed upon capital gains presumed
to have been realized from the sale, exchange, or other disposition of real
property located in the Philippines, classified as capital assets, including
pacto de retro sales and other forms of conditional sales, by individuals,
including estates and trusts: Provided, That the tax liability, if any, on gains
from sales or other dispositions of real property to the government or any of
its political subdivisions or agencies or to government-owned or -controlled
corporations shall be determined either under Section 24(A) or under this
Subsection, at the option of the taxpayer;"
"SECTION 196. Stamp Tax on Deeds of Sale and Conveyances of Real

Property. — On all conveyances, deeds, instruments, or writings, other than
grants, patents or original certificates of adjudication issued by the
Government, whereby any land, tenement or other realty sold shall be
granted, assigned, transferred or otherwise conveyed to the purchaser, or
purchasers, or to any other person or persons designated by such purchaser
or purchasers, there shall be collected a documentary stamp tax, at the rates
herein below prescribed, based on the consideration contracted to be paid
for such realty or on its fair market value determined in accordance
with Section 6(E) of this Code, whichever is higher: Provided, That when
one of the contracting parties is the Government, the tax herein imposed
shall be based on the actual consideration: x x x"
From the foregoing it is clear that the only basis for the computation of the
CGT and the DST are: (1) the gross selling price or the consideration contracted to
be paid for such realty; and (2) fair market value determined in accordance with
Section 6 (E) of the Tax Code.
It should be noted that the term "fair market value" as used in the provisions
is qualified by the phrase "determined in accordance with Section 6 (E) of this
Code." Section 6 (E) of Tax Code provides:
"SECTION 6. Power of the Commissioner to Make Assessments and

Prescribe Additional Requirements for Tax Administration and
Enforcement. —
xxx xxx xxx
"(E) Authority of the Commissioner to Prescribe Real Property

Values. — The Commissioner is hereby authorized to divide the Philippines
into different zones or areas and shall, upon consultation with competent
appraisers both from the private and public sectors, determine the fair
market value of real properties located in each zone or area. For purposes of
computing any internal revenue tax, the value of the property shall be,
whichever is the higher of:
"(1) the fair market value as determined by the Commissioner; or
"(2) the fair market value as shown in the schedule of values of the
Provincial and City Assessors."
In practice, the fair market value as determined by the Commissioner is

commonly known as the Zonal Value.
From the foregoing, the term "fair market value" is classified further to the:
a) Zonal Value set by the Commissioner of Internal Revenue and

published in department orders; and
b) Fair market value as shown in the schedule of the provincial or
city assessors.
Thus, revenue district officers cannot veer away from the provisions of the
law and consider the mortgage value of a property previously set.

accordingly. All concerned revenue officials and employees are hereby enjoined to
give this Circular as wide a publicity as possible.
This Circular takes effect immediately.
Very truly yours,

March 2, 2018
SUBJECT : Circularizing the Department Order No. 011-2018

Concerned
For the information and guidance of all concerned, quoted hereunder is the
full text of Department Order No. 011-2018 issued by the Department of Finance
on February 9, 2018:

DEPARTMENT OF FINANCE
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004
DEPARTMENT ORDER NO. 011-2018

09 February 2018
ACCREDITATION OF IMPORTERS AND CUSTOMS BROKERS
Pursuant to Section 1200 of the Republic Act No. 10863,

otherwise known as the Customs Modernization and Tariff Act (CMTA), the
authority to accredit and register customs brokers and importers is reverted
solely to the Bureau of Customs (BOC) for purposes of simplification of
process.
The BOC is, however, mandated to transmit to the Bureau of Internal

Revenue (BIR) on a quarterly basis the list of approved/accredited customs
brokers and importers for post-accreditation validation of tax compliance. In
case of any findings of tax deficiency or non-compliance, the BIR must
notify the BOC of such findings immediately.
The Bureau of Customs and the Bureau of Internal Revenue shall

issue the relevant orders and administrative issuances necessary for the
enforcement of this Order.
Accordingly, the Department Order No. 12-2014 and Department

Order 18-2014 are hereby repealed. All other orders, circulars, memoranda,
and other issuances, or parts thereof, which are inconsistent with this
Department Order are likewise repealed or modified accordingly.
This Department Order shall take effect immediately.
(SGD.) CARLOS G. DOMINGUEZ

Secretary of Finance

(52)
February 27, 2018

89-2017 and Certain Provisions of RMC No. 54-2014
Regarding the Processing of Claims for Issuance of Tax
Refund/Tax Credit Certificate (TCC) in Relation to
Amendments Made in the National Internal Revenue Code
of 1997, as Amended by Republic Act No. 10963, Known as
the Tax Reform for Acceleration and Inclusion (TRAIN)
For the information and guidance of all concerned, this Circular is issued to
amend the provisions in RMC Nos. 89-2017 and 54-2014 on the
processing of claims for issuance of tax refund/TCC, except claims processed
under the jurisdiction of the Legal Service.
I. Claims for value-added tax (VAT) refund
A. General Policies
1. Tax Verification Notices (TVNs) shall be issued by the

head of the processing office in the verification of claims
for VAT refund issued under this Circular.
2. The TVNs shall be manually issued until such time that

the Tax Verification Notice Monitoring System
(TVNMS) is fully operational.
3. Pursuant to Section 112 (C) of the National Internal

Revenue Code of 1997 (Tax Code), as amended by R.A.
No. 10963, the time frame to grant claims for VAT
refund is ninety (90) days from the date of submission of
the official receipts or invoices and other documents in
support of the application filed in accordance with
Subsections (A) and (B) of the Tax Code, as amended.
4. The claims shall be processed based on submitted

documents which shall be verified by the assigned
Revenue Officer (RO)/Group Supervisor (GS). This
process shall not be construed as an audit/investigation;
hence, the taxpayer-claimant may be issued subsequently
a Letter of Authority (LA) by the VAT Audit Section
(VATAS) in the Regional Assessment Division or the
investigating office having jurisdiction over the
taxpayer-claimant.
5. Any findings in the course of the verification/review of

the VAT claims that may lead to a deficiency in internal
revenue taxes, other than VAT, shall be communicated
by the processing/reviewing office to the concerned
investigating office having jurisdiction over the
taxpayer-claimant. However, if the findings involve
VAT, these may result to disallowance or denial of the
claim, or if the case warrants, for possible assessment of
VAT liability.
Should the claim be for denial, such fact should be

communicated in writing to the taxpayer within the
90-day period. The denial letter shall be signed by the
Commissioner (CIR)/Deputy Commissioner-Operations
Group (DCIR-OG)/Assistant Commissioner
(ACIR)/Regional Director, as the case may be.
6. Cases where the results would be an assessment on VAT

instead of a refund/TCC should be referred to the
VATAS, for Regional Offices where the VATAS is
already in place, Revenue District Office, Large
Taxpayers Audit Division or Large Taxpayers VAT
Audit Unit (LTVAU), as the case may be. A copy of the
Revenue Officer's memorandum report and documents
relevant to the findings shall be furnished to the
aforesaid offices. The concerned Revenue District
Officer/Chief of LT Audit Division/Head of
VATAS/Head of LTVAU shall evaluate the
report/findings referred to them and shall request for the
issuance of an electronic Letter of Authority (eLA), if
warranted.
However, if there is already an existing eLA covering

the same period, the concerned office shall consolidate
the findings referred to them with their findings and
recommend the issuance of a Notice for Informal
Conference/Preliminary Assessment Notice (PAN)/Final
Assessment Notice (FAN) for the collection of the
deficiency tax. Subsequently, a feedback on the action
taken shall be sent to the VAT claim processing office
within fifteen (15) days from receipt of the findings.
B. Claims for VAT refund by direct exporters
1. All claims by direct exporters shall be filed with and

processed by the VAT Credit Audit Division (VCAD),
including direct exporters under the jurisdiction of the
LTS.
2. The Tax Audit Review Division (TARD) shall review

the docket with report on claims processed by the VCAD
prior to approval of the claims.
3. The following are the authorized approving revenue

officials based on the amount of claims:
Amount of Claim Approving Revenue Official

Not more than P50,000,000.00 ACIR-Assessment Service (AS)
More than P50,000,000.00 up to DCIR-OG
P150,000,000.00
More than P150,000,000.00 CIR
C. Claims for VAT refund by other zero-rated taxpayers, indirect

exporters and claims filed in accordance with Sec. 112 (B)
of Tax Code, as amended by R.A. No. 10963
1. All claims for VAT refund by other zero-rated taxpayers,

indirect exporters and claims filed in accordance with
Sec. 112 (B) of the Tax Code, as amended, shall be filed
with and processed by the concerned Revenue District
Office and LT Audit Division having jurisdiction over
the taxpayer-claimant.
2. The docket with report on said claims shall be reviewed
by the Assessment Division/Office of the Head Revenue
Executive Assistant (HREA), and shall be subject to
approval/disapproval by the Regional
Director/ACIR-LTS, as the case may be, irrespective of
amount.
II. Claims for issuance of tax refund/TCC on income tax, erroneous payment
of taxes under Section 204 (C) and recovery of tax erroneously or
illegally collected under Section 229 of the Tax Code, as amended, and
other taxes, except VAT under Section 112
A. Issuance of eLA
1. An eLA shall be issued to cover the audit/verification of

claims for issuance of tax refund/TCC other than VAT
through the Electronic Letter of Authority Monitoring
System (eLAMS) or Case Management System (CMS)
of the electronic Tax Information System (eTIS).
2. The existing procedures in the request, issuance,

approval, as well as in the updating of the status of the
eLA, through eLAMS/CMS-eTIS, shall be observed by
all concerned offices.
B. Claims of taxpayers registered with the RDO
1. The RDO shall process all claims for tax refund/TCC

filed by their registered taxpayers-claimants which shall
be reviewed by the Assessment Division prior to
transmittal to the Regional Director.
2. The Regional Director shall be the authorized approving

official for claims amounting to Ten Million (10M)
Pesos and below. For claims exceeding 10M Pesos, the
reports on the said claims shall be signed by the
Regional Director, who shall recommend the
approval/issuance of the tax refund/TCC.
3. The docket for claims exceeding 10M shall be

transmitted to the TARD for further review prior to
approval of the revenue officials in accordance with the
thresholds set in item no. I.B.3 hereof.
4. All memorandum reports recommending claims within
the applicable thresholds in item I.B.3 hereof shall be
signed by the ACIR-AS prior to final approval by the
DCIR-OG/CIR.
C. Claims of taxpayers registered with the LTS
All claims filed with and processed by the Divisions under the
LTS shall be reviewed by the HREA prior to approval by the
ACIR-LTS.
III. Time frame to process claims for VAT claims under Sections 112 (A) and
(B) of the Tax Code, as amended further by R.A. No. 10963
1. The 90-day period prescribed under Section 112 (C) of the Tax
Code, as amended, shall start from the actual date of filing of
the application with complete documents duly received by the
processing office.
2. The 90-day period shall be applied prospectively, i.e., for

claims filed upon the effectivity of R.A. No. 10963.
3. The following time frame shall be strictly adhered to by the

processing, reviewing and approving offices:
Time Frame to Verify/Process, Review and

Approve/Disapprove the Claim
No. of Days from Receipt of Application

VCAD Cases For claims not For claims For claims
more than more than more than
P50,000,000.00 P50,000,000.00 up P150,000,000.00
to P150,000,000.00
Verification/processing 65 60 55
Review (TARD) 20 20 20
Recommending/Final
Approval
ACIR-AS 5 5 5
DCIR-OG 5 5
CIR 5
Total No. of Days 90 90 90
LTS Cases No. of Days from Receipt of Application
Verification/processing 60
Review (Office of the HREA) 20
Approval by ACIR-LTS 10
Total No. of Days 90
Regional Cases No. of Days from Receipt of Application

Verification/processing (RDOs) 60
Review (Assessment Division) 20
Approval by Regional Director 10
Total No. of Days 90
4. The concerned revenue officers/officials shall act on the

recommended claims in accordance with the abovementioned
time frame, including VAT claims on importations.
IV. Documents to be submitted by the taxpayer/claimant upon filing of the

application for VAT refund:
1. The application must be accompanied by complete supporting

documents enumerated in the Revised Checklist of Mandatory
Requirements (Annex "A.1") for claims filed pursuant to Sec.
112 (A) of the Tax Code, as amended, or Checklist of
Documentary Requirements (Annex "A.2") for claims filed
under Sec. 112 (B) of the same Tax Code.
2. The taxpayer-claimant shall also attach a notarized sworn

certification (Annex "B") attesting to the completeness and
veracity of the documents submitted. Accordingly, the claim
shall be processed based on the documents submitted, as well as
the books of accounts and accounting records, presented by the
taxpayer-claimant.
3. Failure on the part of the taxpayer-claimant to submit the

relevant vital document/s in support of his/its claim upon filing
of the application shall result to non-acceptance of the
application, and failure to present the books of accounts and
accounting records relevant to the claim is a ground for its
denial.
V. Other documents that will form part of a VAT refund/credit case docket
The RO assigned to process the claim should prepare, submit and/or attach
the reports/schedules and documents prescribed in Annex "C" hereof.
VI. Pending VAT refund/credit claims prior to the effectivity of R.A. No.
10963
A. VAT claims filed prior to the effectivity of RMC No. 54-2014
1. All pending claims shall continue to be processed in

accordance with RR No. 1-2017. These claims shall
be acted upon by the concerned offices not later than
June 30, 2018.
2. Claims in the possession of the Revenue District and

Regional Offices as of the effectivity of this Circular,
including those claims which require further review and
approval by the National Office shall no longer be
transmitted to the TARD. The concerned Regional
Assessment Division shall review these claims prior to
transmittal to the Regional Director for
approval/disapproval of the claim.
3. Claims in the possession of offices under the AS shall be

acted upon based on the thresholds set under item no.
I.B.3, while, claims in the possession of offices under the
LTS shall be subject to approval/disapproval of the
ACIR-LTS after review of the respective HREAs.
B. VAT claims filed after the effectivity of RMC No. 54-2014
1. All current pending claims filed prior to the effectivity of

R.A. No. 10963, otherwise known as the TRAIN, shall
be processed within the 120-day period, as clarified by
RMC No. 54-2014.
2. These claims shall be acted upon by the concerned

offices as mentioned in item nos. VI.A.2 and VI.A.3
hereof.
VII. Penalties
Any revenue officer or official who fails to act on the application within the
90-day period shall be punishable under Section 269 of the Tax Code, as
amended.
accordingly.
The amendments prescribed in this Circular shall take effect immediately.
All internal revenue officials and employees concerned are hereby enjoined

ANNEX A.1
Revised Checklist of Mandatory Requirements for Claims for VAT Refund
ANNEX A.1.1
Sworn Declaration of Taxpayer's Profile
ANNEX A.1.12
Schedule of Amortization of Input Tax on Imported Capital Goods Exceeding P1 Million

from Previous Quarter/Year
ANNEX A.2
Checklist of Documentary Requirements for Claims for Tax Refund/Tax Credit Certificate
(TCC)
Pursuant to Section 112 (B) of the Tax Code, as Amended by R.A. No. 10963
_____ 1. Duly accomplished application for Tax Credit/Refund (BIR Form

No. 1914)
_____ 2. Tax Clearance issued by the Revenue District Office due to

retirement/cessation of business
_____ 3. VAT returns for the periods covering the input tax being claimed
as certified by the BIR Office where the taxpayer/claimant is
registered, except for tax returns filed through eFPS
_____ 4. Schedule and copies of Official Receipts (ORs) and Sales
Invoices (SIs) supporting the input tax claim, duly certified by
authorized official
_____ 5. Schedule and copies of ORs and SIs issued by the taxpayer
covering the taxable periods of claim, duly certified by the
authorized official
_____ 6. List of ending inventory of goods, supplies, including capital

goods
_____ 7. Inventory of unused OR/SI together with the said OR/SI to be

destroyed
ANNEX B
Sworn Certification
ANNEX C
Documents Required to be Prepared/Attached to a VAT Refund/Credit Case Docket
A. Documents, Working Papers and Attachments
1. Copy of Tax Verification Notice (TVN)
2. Revenue Officer's Memorandum Report stating among others, the

following statements, pursuant to RMC No. 30-2006, to wit:
2.1 That the sources of VAT input tax had been verified against
the original VAT invoices or official receipts issued in
accordance with Section 113 in relation to Section 110 of the
Tax Code;
2.2 That the original copies of purchase invoices or official

receipts evidencing sources of input tax credits had been
prominently stamped, after the completion of the verification,
with the words "VAT REFUND CLAIMED" on the face of
the said invoices/official receipts;
2.3 That the proofs of actual exportation and foreign currency

remittances for export sales were verified; and
2.4 Computation of VAT Refund (in Philippine Pesos).
3. VAT Refund/Credit Notice (Annex "D" or Annex "E" whichever is
applicable) — to be prepared by the reviewing office
4. Sworn Declaration of Taxpayers Profile (Annex "A.1.1")
5. Authority to Issue VAT Refund/TCC (Annex "F") — to be prepared

by the reviewing office
6. Table of Contents
7. Docket Locator Form
8. For "big ticket" purchases pursuant to RMO No. 16-2007, the

following are required in addition to the copies of invoices or official
receipts submitted:
8.1 Summary Lists of Sales/Purchases/Importations as provided

by the AITEID and/or corresponding result of the verification
on RELIEF/BOC importations. In the absence of data on
sales of "big ticket" suppliers to claimants, proofs of
secondary evidence of payments of purchases with input tax
(e.g., cancelled checks, bank debit advice or any form of
settlement in favor of the supplier for the account of
taxpayer-claimant)
8.2 Indorsement to the Revenue District Officer having

jurisdiction over suppliers of the claimant on the duly
ascertained discrepancy, e.g., under-declaration of sales after
matching purchases of the claimant with the sales of his/its
suppliers from the pre-processed data provided by the
AITEID
9. Working papers showing —
9.1 Computation of recommended VAT refund/VAT due,

whichever is applicable
9.2 Computation of adjustment to the amount of claim, if

applicable
10. Reconciliation of sales and input taxes of Financial Statements'

figures with VAT returns' figures and application for VAT refund, if
applicable
11. Schedule of zero-rated, exempt and taxable sales (hard and soft
copies in prescribed formats — Annexes "A.1.2", "A.1.3", "A.1.4",
and "A.1.5") with initial of the investigating Revenue Officer
12. Reconciliation of Export Sales and Foreign Currency on Zero-Rated

Sale of Goods/Services, duly accounted for in accordance with the
rules and regulations of the Bangko Sentral ng Pilipinas (Annexes
"A.1.9" and "A.1.10", whichever is applicable)
13. Documentary proofs of foreign currency remittances for export sales
14. Reconciliation of total export sales vis-à-vis total foreign currency

remittances
15. Schedule of local purchases with input tax (hard and soft copies in
prescribed formats — Annex "A.1.6") with initial of the
investigating Revenue Officer
16. Alpha List of Local Suppliers with TIN as verified in ITS and total
purchases per supplier, identifying the "Big Ticket" suppliers
17. Schedule of Property, Plant and Equipment (PPE) Additions per

Financial Statement (hard and soft copies in prescribed format —
Annex A.1.8)
18. Schedule of importations and corresponding VAT payments (hard

and soft copies in prescribed formats — Annex "A.1.11") with initial
by the investigating Revenue Officer
19. Schedule of amortization of input tax pertaining to locally

purchased/imported capital goods over One Million from previous
quarter/year amortized during the period of claim (Annexes "A.1.7"
and "A.1.12")
20. Allocation of input tax among zero-rated, exempt and taxable sales,
if applicable
21. Schedule of off-setting of receivables and payables with supporting

documents, if applicable
22. Copy of the duly validated BIR Form 1600 and bank deposit slip, if
applicable, covering payment of Final VAT Withholding Tax is
required to be attached to the docket, in case of non-resident payees
B. VAT Claims on Importation
1. In case of approved claims on importations, a separate folder/docket

containing pertinent reports and documents has to be prepared for
transmittal to the BOC after approval of the report:
1.1 By the processing office
1.1.a. Schedule of Importations for the Period of Claim;
1.1.b. Invoices relative to importation, import declarations,

Single Administrative Document (SAD) import entry
documents and official receipts/Statement of
Settlement of Duties and Taxes (SSDT) covering
payment of VAT; and
1.1.c. Indorsement to BOC signed by the authorized

approving official.
1.2 By the reviewing office
1.2.a. Approved Authority to Issue VAT Refund/TCC;
1.2.b. Revenue Officer's Memorandum Report
ANNEX D

(Name of Office of the Approving Official)
VAT Refund/Credit Notice
________________
(Date)
___________________________
Name of Claimant/Taxpayer
___________________________
Address
Gentlemen/Sir/Madam:
This has reference to your claim for Value Added Tax (VAT) refund/credit
covering the period from ___________ to ___________ in the amount of Php
___________ pursuant to Section 112 of the National Internal Revenue Code (NIRC) of
1997, as amended.
In connection thereto, please be informed that, upon processing of the

aforementioned claim under Tax Verification Notice No. ________________ dated
___________, the amount of input tax allowable on local purchases is Php
_____________ as summarized below:
Amount
VAT Refund Claimed Phpx,xxx,xxx.xx
Less: Disallowances (xxx,xxx.xx)
––––––––––––––
Net Allowable VAT Refund/Credit Phpx,xxx,xxx.xx
=============
The approved report on the said claim may be subjected to audit/investigation and
should there be material findings, the amount allowable may be adjusted and/or an
assessment notice may be issued for the collection of any deficiency tax or excess tax
credit.
Very truly yours,
___________________________
Signature Over Printed Name
(Approving Revenue Official)
ANNEX E

(Name of Office of the Approving Official)
VAT Refund/Credit Notice
________________
(Date)
___________________________
Name of Claimant/Taxpayer
___________________________
Address
Gentlemen/Sir/Madam:
This has reference to your claim for Value Added Tax (VAT) refund/credit
covering the period from ____________ to ____________ in the amount of Php
______________ pursuant to Section 112 of the National Internal Revenue Code (NIRC)
of 1997, as amended.
In connection thereto, please be informed that, upon processing of the

aforementioned claim under Tax Verification Notice No. _______________ dated
____________, the total amount of input tax allowable on local purchases and
importation is Php ____________ as summarized below:
A. Local Purchases
Amount
––––––––––––––
Net Allowable VAT Refund/Credit Phpx,xxx,xxx.xx
––––––––––––––
B. Importations
Amount
––––––––––––––
Recommended Net Allowable VAT Refund/Credit Phpx,xxx,xxx.xx
––––––––––––––
Total Amount Allowable for VAT Refund/Credit (sum of A and B) Phpx,xxx,xxx.xx
=============
The amount of Php ______________ representing the recommended VAT refund

on importations is subject to further verification of actual receipts of VAT payments by
the Bureau of Customs (BOC), in compliance with the requirements of the Commission
on Audit.
The approved report on the said claim may be subjected to audit/investigation and
should there be material findings, the amount allowable may be adjusted and/or an
assessment notice may be issued for the collection of any deficiency tax or excess tax
credit.
Very truly yours,
___________________________
Signature Over Printed Name
(Approving Revenue Official)
ANNEX F
Authority to Issue VAT Refund/Tax Credit Certificate
(53)
February 26, 2018

January 2018

2018-02-01, 2018-02-02, and 2018-02-04, for the month of January circularizing


ANNEX A
(54)
January 3, 2018
SUBJECT : Competency-Based Job Descriptions of Revenue Officer

I-IV and Chief Revenue Officer II Positions under the
Assessment and Collection Sections of the Revenue District
Offices

Concerned
For the information and guidance of all concerned, circularized herewith are
the Competency-Based Job Descriptions (JDs) of the Revenue Officer I-IV
positions of the Assessment and Collection Sections and Chief Revenue Officer II
position of the Collection Section in the Revenue District Offices which were
prepared by the Technical Working Group on the Competency-Based Human
Resource and Learning (CBHR&L) and approved by the undersigned through the
unnumbered Memorandum dated June 30, 2017.
The JDs of the abovementioned positions shall now be used in lieu of the
existing Position Description Forms (PDFs) for all Human Resource Actions
requiring the said document.

ATTACHMENT
Revenue Officer I (Assessment)
Revenue Officer II (Assessment)
Revenue Officer III (Assessment)
Revenue Officer IV (Assessment)
Revenue Officer I (Collection)
Revenue Officer II (Collection)
Revenue Officer III (Collection)
Revenue Officer IV (Collection)
Chief Revenue Officer II (Collection)
March 1, 2018
SUBJECT : Monitoring of Compliance Section under the Revenue

District Office

Concerned
Revenue Administrative Order No. 3-2014 dated November 5, 2014

identified the core functions of the Compliance Section under the Revenue District
Office. These are related to public/taxpayer service such as the conduct of Tax
Compliance Verification Drive mapping operations, monitoring the compliance of
taxpayers and reviewing the quality of registration data and processes, all of which
are under the functional jurisdiction of Client Support Service.
In this regard, this Circular is hereby issued directing the Client Support
Service to monitor and/or coordinate the activities of the Compliance Section
under the Revenue District Office.

March 1, 2018
SUBJECT : Approval and/or Signing of Certificates of Zonal Values of

Real Properties

Concerned
This Circular is being issued to clarify the following provisions of Revenue

Administrative Order (RAO) No. 5-2017 (dated 14 September 2017), relative to
the approval and/or signing of Certificates of Zonal Values of Real Properties.
Section II
Office of the Revenue District Officer
xxx xxx xxx
19. Issues Certification of Zonal Values of Real Properties per

prescribed threshold under existing issuances;
Office of the Assistant Revenue District Officer
xxx xxx xxx
5. Approves and/or signs the following documents:
xxx xxx xxx
5.8 Certification of Zonal Values of Real Properties per

prescribed threshold under existing issuances.
To avoid any confusion as to the approval and/or signature of such

documents and to ensure the efficiency of operations at the Revenue District
Offices, the authority to approve and/or sign Certificates of Zonal Values of
Real Properties shall rest with the Assistant Revenue District Officer, and not
with the Revenue District Officer.
All concerned are enjoined to be guided accordingly, and to provide this
Circular with the widest possible publicity.

February 22, 2018
SUBJECT : Clarifying the Nature and Extent of the Power of the

Commissioner of Internal Revenue to Obtain Information
under Section 5 of the National Internal Revenue Code of
1997, as Amended, vis-à-vis Attorney-Client and
Accountant-Client Privilege
TO : All Revenue Officials/Employees and Others Concerned
Under Section 5 of the National Internal Revenue Code (NIRC), as

amended — in ascertaining the correctness of any return, or in making a return
when none has been made, or in determining the liability of any person for any
internal revenue tax, or in collecting any such liability, or in evaluating tax
compliance — the Commissioner of Internal Revenue (CIR) is empowered,
inter-alia, to obtain on a regular basis from any person other than the person
whose internal revenue tax liability is subject to audit or investigation any
information, such as, but not limited to, receipts or sales and gross income of
taxpayers, and the names, addresses, and financial statements of corporations,
registered partnerships, and their members. Non-compliance therewith by any
person warrants the imposition of the amount of One Thousand Pesos (P1,000) for
each such failure under Section 250 of the NIRC, as amended, as well as the
imposition of a fine of Ten Thousand Pesos (P10,000) and suffer imprisonment of
not less than one (1) year but not more than ten (10) years under Section 255
of the NIRC, as amended.
On the other hand, there is attorney-client privilege under the Code of

Professional Responsibility 1(55) and the Revised Rules on Evidence, 2(56)
wherein an attorney cannot, without the consent of his client, be examined as to
any communication made by the client to him, or his advice given thereon in the
course of, or with a view to, professional employment. Similarly, there is
accountant-client privilege under Republic Act (RA) 9298, or the Philippine
Accountancy Act of 2004, 3(57) and the Code of Ethics for Professional
Accountants stating that all working papers, schedules and memoranda made by a
certified public accountant in the course of an examination, including those
prepared and submitted by the client, incident to or in the course of an
examination, by such certified public accountant shall be treated confidential and
privileged, and that professional accountants shall refrain from disclosing outside
the firm or employing organization confidential information acquired as a result of
professional and business relationships.
Let it be clarified, however, that the power of the Commissioner to obtain

information under Section 5 of the NIRC of 1997, as amended, serves as an
exception to both the attorney-client and accountant-client privilege.
First, Rule 21.01 of the Lawyer's Code of Professional Responsibility

provides that a lawyer shall not reveal the confidence or secrets of his client
except, among others, when required by law. Second, in Genato v. Silapan, 4(58)
the Supreme Court stressed that the privilege against disclosure of confidential
communication or information does not extend to those made in contemplation of
a crime or perpetration of fraud. 5(59) Notably, attempt to evade or defeat tax is a
criminal offense defined and punishable under Section 254 of the NIRC, as
amended. Third, Section 29 of RA 9298 states that the accountant-client privilege
does not apply if the production of documents is through a subpoena issued by any
court, tribunal, or government regulatory or administrative body. Fourth, Section
140.1 of the Code of Ethics of Professional Accountants provides that professional
accountants shall refrain from disclosing outside the firm or employing
organization confidential information acquired as a result of professional and
business relationships unless there is a legal right or duty to disclose. Finally, taxes
are the lifeblood of our nation so its collection should be actively pursued without
unnecessary impediment. 6(60)
Clearly, therefore, the privileged communication of attorney-client and

accountant-client cannot be used to defeat the very purpose and objective of the
Commissioner's power to obtain information under Section 5 of the NIRC, as
amended.

Footnotes
1. CANON 21, Rule 21.01.
2. Rule 130, Section 124 (b).
3. Section 29.
4. A.C. No. 4078, July 14, 2003.
5. People vs. Van Alshine, 23 NW 594 (1885); Regala vs. Sandiganbayan, 262
SCRA 122 (1996).
6. G.R. No. 197117, April 10, 2013, First Lepanto Taisho Insurance Corp. v. CIR.
(61)
January 22, 2018

December 2017

2018-01-04, 2018-01-05, 2018-01-06, and 2017-01-08, for the month of December

ANNEX A
January 31, 2018
SUBJECT : Clarifying the Time of Withholding and Remittance of

Taxes Withheld by Withholding Agents Including National
Government Agencies and Instrumentalities, Local
Government Units and Government Owned and Controlled
Corporations Provided under Sec. 4 of Revenue
Regulations (RR) No. 12-2001
This circular is issued to clarify the time of withholding and remittance of

taxes withheld by withholding agents including national government agencies and
instrumentalities, local government units and government owned and controlled
corporations in view of the conflict between the provision of Section 2.57.4 of BIR
Revenue Regulations (RR) No. 2-98 as amended by Section 4 of RR 12-2001
vis-a-vis the guidelines and procedure provided under the Government
Accounting Manual (GAM).
Section 4 of RR No. 12-2001, amending Section 2.57.4 of RR No. 2-98

provides the following:
"SECTION 4. Time of Withholding. — Section 2.57.4 of RR 2-98, is

hereby amended to read as follows:
Section 2.57.4. Time of withholding. — The obligation of the payor to

deduct and withhold the tax under Section 2.57 of these Regulations arises at
the time an income payment is paid or payable, or their income payment is
accrued or recorded as an expense or asset, whichever is applicable, in the
payor's books, whichever comes first. The term "payable" refers to the date
the obligation becomes due, demandable or legally enforceable.
Provided, however, that where income is not yet paid or payable but the
same has been recorded as an expense or asset, whichever is applicable, in
the payor's books, the obligation to withhold shall arise in the last month of
return period in which the same is claimed as an expense or amortized for
tax purposes. x x x"
On the other hand, the GAM which prescribes uniform accounting

procedures in government financial procedures provides the following:
"During the construction period, all expenses incurred in relation to the

construction of the PPE shall be taken up in the books as Construction in
Progress (CIP) with the appropriate asset classification. As soon as the
construction is completed, the "Construction in Progress" account shall be
reclassified to the proper asset account. Likewise, all expenses such as
interest, license fees, etc., during the construction period shall be
capitalized."
The seeming conflict between the BIR Revenue Regulations and the GAM
occurred as a result of the illustrative example of the accounting entries in the
GAM itself whereby "Due to BIR" accounts were recognized only upon payment
of the accounts payable to the income payee.
Accordingly, and pursuant to the power of the Commissioner of Internal

Revenue to interpret tax laws and to decide tax cases provided under Section 4
of the 1997 National Internal Revenue Code, as amended, it is hereby clarified that
the obligation to withhold arises at the time an income payment is paid or payable,
or the income payment is accrued or recorded as expense or asset, whichever is
applicable, in the payor's books, whichever comes first. Stated otherwise, the
obligation to withhold taxes already arises when an expense or asset is already
recorded whether or not the same has been paid, pursuant to RR No. 12-2001.
In the case of government projects, the obligation to withhold arises at the

time that the government agency books construction of PPE as Construction in
Progress with the appropriate asset classification since what RR No. 12-2001
mandates is "whichever comes first."
All internal revenue officers and others concerned are strictly enjoined to
implement the provisions of this Circular.

December 13, 2017
SUBJECT : Additional Mandatory Requirements for All Economic

Zone Developers/Operators Duly Registered under the
Philippine Economic Zone Authority (PEZA) for the
Processing of Electronic Certificate Authorizing
Registration (eCAR)
This Circular is hereby issued in order to set a uniform guideline for all
Revenue District Offices (RDOs) in determining the tax treatment of the transfer
of property by Economic Zone Developer/Operator duly registered under the
Philippine Economic Zone Authority (PEZA) to another PEZA entity in relation to
the processing of Electronic Certificate Authorizing Registration (eCAR).
Accordingly, hereunder are the following additional documentary

requirements to be submitted by all PEZA Ecozone developers/operators aside
from those enumerated under Revenue Memorandum Order (RMO) No. 15-2003,
to wit:
1. Certified true copy of the latest PEZA Certificate of

Registration of the PEZA Ecozone developer/operator and the
parties to the transaction;
2. Certified true copy of PEZA Registration Agreement; and
3. Certified true copy of PEZA certificate of available tax

incentives as of the time of the transaction.
No further document shall be required to determine the tax treatment for the
following transactions:
1. Transfers of property within the Special Economic Zone (SEZ)

by an Ecozone developer/operator to a PEZA Economic Zone
Facilities Enterprises (EZFE);
2. Transfers of property within the SEZ by an Ecozone

developer/operator to a PEZA-registered buyer (other than
EZFEs):
3. Transfers of property within the SEZ by a PEZA Ecozone

developer/operator to a non-PEZA registered entity; and
4. Transfers of property outside the SEZ by a PEZA Ecozone

developer/operator, regardless of whether or not the buyer is
PEZA registered.
All revenue officials, employees and others concerned are hereby enjoined

(62)
December 14, 2017

dated November 22, 2017, Entitled "Clarifying and
Reinforcing Existing Rules and Regulations on Foreign
Travel Authorities, Travel Entitlements, and Travel Tax
Exemptions, Which Require the Approval of the Office of
the President"

Concerned
concerned, attached is the letter dated November 24, 2017 from Atty. Concepcion
Zeny E. Ferrolino-Enad, Director III of Malacañang Records Office and a certified
copy of Memorandum Circular No. 35 dated November 22, 2017, entitled
"CLARIFYING AND REINFORCING EXISTING RULES AND
REGULATIONS ON FOREIGN TRAVEL AUTHORITIES, TRAVEL
ENTITLEMENTS, AND TRAVEL TAX EXEMPTIONS, WHICH REQUIRE
THE APPROVAL OF THE OFFICE OF THE PRESIDENT."

ATTACHMENT

of the Philippines
Malacañang
MALACAÑANG RECORDS OFFICE
Manila, November 24, 2017

Manila
Sir:
Memorandum Circular No. 35 dated November 22, 2017 entitled "CLARIFYING AND
REINFORCING EXISTING RULES AND REGULATIONS ON FOREIGN
TRAVEL AUTHORITIES, TRAVEL ENTITLEMENTS, AND TRAVEL
EXEMPTIONS, WHICH REQUIRE THE APPROVAL OF THE OFFICE OF THE
PRESIDENT."
For this purpose, all concerned departments shall undertake measures to

disseminate said Memorandum Circular to your component units/bureaus,
government-owned and controlled corporations including agencies attached to or under
your administrative supervision.
Thank you.
Very truly yours,

FERROLINO-ENAD
Director III-Acting Head
ATTACHMENT
Memorandum Circular No. 35 dated November 22, 2017
(63)
January 3, 2018
SUBJECT : Publishing the Full Text of the Inter-Agency Task Force

(IATF) Memorandum Circular No. 2017-2 dated December
21, 2017, Entitled "Procedures Ensuring Quality of
Validation/Assessment of Requirements for the Grant of the
FY 2017 Performance-Based Bonus (PBB)"

Concerned
concerned, attached is a copy of the AO 25 Inter-Agency Task Force (IATF)
Memorandum Circular No. 2017-2 dated December 21, 2017, Entitled
"Procedures Ensuring Quality of Validation/Assessment of Requirements for the
Grant of the FY 2017 Performance-Based Bonus (PBB)."

ATTACHMENT
INTER-AGENCY TASK FORCE ON THE HARMONIZATION OF

NATIONAL GOVERNMENT PERFORMANCE MONITORING,
INFORMATION AND REPORTING SYSTEMS
(Administrative Order No. 25 S. 2011)
December 21, 2017

Agencies of the National Government, including
Constitutional Commissions, Congress, the Judiciary,
Office of the Ombudsman, State Universities and Colleges,
Government-Owned or -Controlled Corporations, Local
Water Districts, and Local Government Units
SUBJECT : Procedures Ensuring Quality of Validation/Assessment of

Requirements for the Grant of Performance-Based Bonus
(PBB) for Fiscal Year (FY) 2017
I. Background and Rationale
On its fifth cycle in 2016, the AO 25 Inter-Agency Task Force (IATF)

began the Continuous Improvement Phase implementing modified requirements
and criteria for the eligibility grant of the Performance-Based Bonus (PBB) of
National Government Agencies (NGAs). From its pilot years, the Results-Based
Performance Management System (RBPMS) already intended to achieve the
harmonization of all government reporting systems and the simplification of
submission and validation process. It was able to include government-mandated
reports of agencies to its requirements and showed significant results in
improvement and compliance.
Moving forward to a People-Centered Performance-Based Incentive

System (PBIS), its goal progressed to the tightening of requirements and
establishing of the system to all government institutions down to the individuals.
These, among others are believed to have enhanced the performance of NGAs and
would aid in restoring the trust of the Filipino people in the capacity of public
servants; as agents in making people's lives better, safer, and healthier. Our theme
for FY 2017 is "Tightening the PBB Eligibility Process," in which we aim to
incentivize agencies through a firmer validation process.
During the AO 25 Technical Working Group (TWG) meeting on July 31,

2017 and September 5, 2017, the proposed improvements and quality assurance
processes were presented and discussed. Following the agreement of the body and
approval of the IATF; herewith is the Procedures Ensuring Quality of
Validation/Assessment of Requirements for the Grant of PBB for FY 2017.
II. Guiding Principles
Payout:
a. For FY 2017 PBB, the target payout period to eligible

Departments and Attached agencies, Other Executive Offices
(OEOs), State Universities and Colleges (SUCs), and
Government-Owned or Controlled Corporations (GOCCs)
covered by the Department of Budget and Management (DBM),
will be on 31 May 2018 for small Agencies and 30 November
2018 for big Departments.
GOCCs under GCG, Local Water Districts (LWDs), and Local

Government Units (LGUs), target payout shall be based on the
identified timeline in their respective General Guidelines for the
FY 2017 PBB cycle.
b. Oversight/Validating agencies, including their field offices, are

still granted the authority to withhold the PBB.
c. Oversight/Validating agencies are granted authority to appeal in

behalf of the agencies they oversee/validate.
III. Validation of Good Governance Conditions
a. As stated in MC-2017-1 Section 10F, the Anti-Red Tape Act

(ARTA), Citizen's Charter/Service Charter validation shall now
be complemented with the reports on feedback and complaints
covered until 15 November 2017 from citizens gathered by the
Office of the President (OP), Presidential Management Staff
(PMS), Presidential Communications Operations Office
(PCOO), and the Civil Service Commission (CSC)'s Contact
Center ng Bayan (CCB)/Hotline #8888. The said agencies shall
issue a negative report on agencies, including those of GOCCs
and LGUS. Data will be mainly regarding transactions,
processing times, and frequency of these complaints. Based on
the said reports, the AO 25 IATF will determine eligibility of
reported agencies for FY 2017 PBB.
b. Related to Item A, if complaints were not resolved by the

agencies, they shall remain in the Non-Compliant (NC) list. For
those who are able to address the complaints against their
service, they must ensure that an improvement action plan and
non-recurrence of the complaint will be implemented. Hence,
the Oversight/Validating agencies will deliberate and determine
if an agency can be cleared from the NC list based on the
sufficiency of reports submitted and the implemented
improvements.
c. Further details on compliance may be found in the CSC

Memorandum Circular No. 14, s. 2017 Guidelines on the
Validation of the Citizen's Charter requirements for FY 2017
Performance-Based Bonus (PBB).
d. For compliance to PhilGEPS, agencies may monitor their status
through the PhilGEPS microsite:
http://data.philgeps.gov.ph/directory/pbb.aspx. This system will
guide agencies on the bid notice postings that need appropriate
action through the generation and downloading reports. Also, a
guide on how to use the site is available in the homepage.
e. Oversight/Validating agencies of Good Governance Conditions

(GGCs) shall provide a status of agency compliance by 29
December 2017. Agencies will be given a chance to remedy
their deficiencies before the release of the NC List on 31
January 2018.
IV. Validation of Physical and Financial Accomplishments
a. Apart from the Oversight/Validating agencies, the AO 25 IATF

will be designating a Composite Team that will review physical
accomplishments and agency reports, in particular the Budget
Utilization Rate (BUR) of agencies.
b. Amendment to Section 6.3 (a.1 and a.2) of MC-2017-1 shall

apply, in which the "Obligations BUR computed as obligations
of all programs, activities, and projects funded in FY 2017,
1(64) both continuing and current year, from all appropriation
sources, including those released under the General
Appropriations Act as the allotment order policy, for
Maintenance and Other Operating Expenses (MOOE) and
Capital Outlays (CO) in FY 2017, net of savings from
procurement, and implementation of cost-cutting measures.";
and
"Disbursements BUR which is measured by the ratio of total

disbursements (cash and non-cash, excluding Personnel
Services) to total obligations for MOOE and CO in FY 2017,
net of goods and services obligated by 31 December 2017 but
not yet delivered on the said date or not yet due and delivered
on the said date or not yet due and demandable."
c. The guidelines on the submission of BUR for State Universities

and Colleges (SUCs) including earmarked incomes shall be
based on a separate circular to be issued by DBM.
d. There will be a stricter review of physical accomplishments vs.
BUR, and justifications of agencies for not meeting their targets
and the 100% Disbursements BUR will not be accepted starting
this cycle, except for savings in Obligations and Disbursements
arising from efficiency measures implemented in procurement
and other agency operations. These savings must therefore be
clearly specified in the explanations and justifications on
submitted BUR reports.
e. The Composite Team review shall take place from March to

April 2018 for small Agencies, until October 2018 for big
Departments to allow time in further studying issues, concerns,
and justifications from the reports submitted by agencies.
f. Procedures on the validation for physical and financial

accomplishments of GOCCs under GCG, LWDs, and LGUs
issued Memorandum Circulars by GCG, LWUA, and DILG for
their Interim FY 2017 PBB, shall continue to be observed.
g. GOCCs under GCG must adhere to the ISO/QMS requirement

indicated in Sections 6.2 (a and b) of MC-2017-1 on STO
Targets, which reads:
g.1 Certification/continuing certification of the Quality

Management System (QMS) for at least one core
process. The certification must be issued by any
international certification body (ICB) accredited by the
International Accreditation Forum (IAF) members.
Preferably, the ICB is accredited by the Philippine
Accreditation Board, Department of Trade and Industry,
which is a member of the IAF and authorized to accredit
ICBs. The certification must be valid until December 31,
2017 or later date and must be posted in the agency
Transparency Seal. (See also Section 10.9)
g.2 If an agency is not yet ISO certified, it should have at

least an ISO-aligned documentation for at least one (1)
core process, to include the following:
g.2.1 Approved Quality Manual and approved

Procedures and Work Instructions Manual,
including Forms; and
g.2.2 Evidence of ISO 9001-aligned QMS

implementation, i.e., (1) Certification of the Head
of the Agency on the conduct of Internal Quality
Audit; and (2) Minutes of the FY 2017
Management Review.
g.3 For frontline agencies, it is expected that the core

process pertains to an agency process most demanded by
citizens and businesses." (emphasis and underscoring
supplied).
h. Submission of agency physical accomplishments and other

requirements will be until 28 February 2018 for small
Agencies and 31 August 2018 for big Departments. Agencies
shall also ensure that all explanations and justifications are
already attached in their submission.
V. Rating and Ranking/Amount of Incentives
a. Rating and Ranking — eligibility of individuals to the grant

of PBB shall remain based on the eligibility of the agencies and
ranking of their respective delivery units. Kindly refer to
MC-2017-1 Section 8.0 Ranking of Delivery Units for the
ranking distribution which also reads as follows:
Ranking Performance Category

Top 10% Best Delivery Units
Next 25% Better Delivery Units
Next 65% Good Delivery Units
b. Amount of Incentives — as provided in the Section 9.0 of

MC-2017-1, the rates of PBB shall also maintain and be based
on the performance ranking of the individuals bureau or
delivery unit, with the incentive as a multiple of one's basic
salary following the table below:
Performance Category Multiple of Basic Salary

Best Delivery Unit 0.65
Better Delivery Unit 0.575
Good Delivery Unit 0.5
c. Pertinent to FY 2017 PBB requirements, submission of
agency's Form 1.0 and PBB Evaluation Matrix will be on or
before 30 March 2018.
VI. Timeline
For purposes of assessing eligibility to the FY 2017 PBB, please be guided

by the following deadlines as issued under MC 2017-1:
Activity Deadline
a. Submission of FY 2017 4th Quarter BFARS thru January 31, 2018
online URS
b. Submission of APP FY 2017 approved by the HOPE April 17, 2017
to GPPB-TSO
c. Submission of FY 2016 Financial Reports to COA On or before March 31,
d. Submission of APCPI Self-Assessment Results for 2017
FY 2016 to GPPB-TSO
e. Submission of FY 2016 Financial Reports to COA On or before April 30, 2017
(for Big Agencies)
f. Submission of 2016 SALN
g. Validation of Transparency Seal Compliance October 1, 2017
h. Validation of Citizen's Charter Compliance
i. Validation of FOI Manual
j. Posting of Agency system of ranking delivery units
k. Submission of FY 2018 APP-CSE to DBM-PS as On or before November 30,
prescribed under DBM Circular Letter No. 2017-12 2017
dated October 19, 2017
l. Submission of Report on Ageing of Cash Advance On or before December 1,
Liquidation (November 15, 2017 as cut-off) 2017
m. Submission of Letter of explanation/justification if
unable to post in PhilGEPS (for transactions above
P1,000,000 and November 15, 2017 as cut-off)
n. Posting of QMS Certification in Agency On or before December 31,
Transparency Seal 2017
o. Submission of report on compliance with 30% of the
audit recommendations as shown in the Status of
Implementation of Prior Year's Recommendations in
the Annual Audit Report
p. Submission of report on all improvements made by
the agency to implement CSC Memorandum Circular
No. 14 s. 2016.
q. Submission of physical accomplishments using On or before January 31,
Forms A and A1, (December 31, 2017 as cut-off 2018
date) — see Annexes 2, 3, 4, 5
r. Validation of QMS Certification
s. Validation of STO Indicator as identified by Head of
Agency
t. Submission of agency's Form 1.0 and PBB March 31, 2018
Evaluation Matrix
u. Submission of DepEd physical accomplishments On or before April 30, 2018
using Forms A, A1, and Form 1.0 (April 1, 2018 as
cut-off date) — see Annexes 2, 3, 4, 5
VII. Effectivity
This Supplemental Guidelines shall take effect immediately.

Secretary, Department of Budget and
Management and Chairman, AO 25
Inter-Agency Task Force
Footnotes
1. This is consistent with the President's veto message under the FY 2017 General
Appropriations Act (GAA) for conditional implementation, directing all agency
heads to ensure obligation of all programs, activities and projects funded under
the GAA not later than 31 December 2017.
(65)
December 18, 2017
SUBJECT : CY 2018 Priority Programs

Concerned
This Order is being issued to publish and disseminate the Bureau of Internal
Revenue's Priority Programs for CY 2018. These Priority Programs were
identified and adopted by the Bureau during the CY 2018 Annual Planning
Session held last December 8 to 9, 2017.
The CY 2018 Priority Programs, which are enumerated in Annex A of this

Order, have taken into account the reforms under the Tax Reform for Acceleration
and Inclusion (TRAIN) program, and will address the Bureau's three (3) principal
objectives:
• Attain collection targets;
• Improve taxpayer satisfaction; and
• Strengthen good governance.
All Bureau offices are therefore enjoined to align their activities and
projects to these Programs, to ensure the achievement of these principal objectives,
and the fulfilment of the Bureau's mandate.

ANNEX A
CY 2018 BIR Priority Programs
No. PRIORITY PROGRAM OBJECTIVES

Overall Objective 1: Attain Collection Target
1 Expedite Updating of the Schedule of • To update/revise the existing Schedule of Zonal
Zonal Values Valuations, to reflect current real property valuation,
taking into account the most recent actual sales/transfer
and exchanges of properties. (This is a year-round
activity)
2 Intensified Audit Investigations • To intensify the investigation of taxpayer compliance,
and collect the right taxes, through the following:
o Maximize utilization of Computer Assisted Audit
Tools and Techniques (CAATTs)
o Joint and coordinated examination of:
- Franchisors including franchisees (Small and
Medium Enterprises, including distributors);
- Base Erosion and Profit Shifting
(BEPS)/Transfer Pricing;
- National Government Agencies (DPWH);
- Small Taxpayers;
- Government Owned and Controlled Corporations
(GOCCs); and
- Other industry issues
• To collect an amount equal to 3% of the Bureau's total
collection goal (net of voluntary compliance collectio
from Withholding Tax on compensation income, Tax
Remittance Advice [TRA], Withholding Tax of LGUs,
Special Allotment Release Order [SARO], and One-time
Transaction [ONETT]).
3 Enhanced Implementation of the • To increase collection by 6% of potentially recoverable
Arrears Management Program in arrears.
the Regional Offices
4 Broaden the Taxpayer Base • To expand the tax base through a 10% increase of active
registered taxpayers' registration, without increasing tax
rates, by the registration of non-registered taxpayers, as
a result of the Tax Compliance Verification Drive
(TCVD) and third-party registration.
• The program shall focus on the following:
o Focused Mapping (Taxpayers who did not renew
Authority To Print [ATP])
o Stop Filers (Medium Taxpayers/TAMP)
o Cash Register Machine (CRM)/Point of Sale (POS)
Post Evaluation-Training
o Cannot Be Located (CBL) Taxpayers
o Stocktaking Activities
o Summary List of Sales (SLS)/Summary List of
Purchases (SLP)/Inventory List
5 Run After Tax Evaders (RATE) • To review all pending cases with the Court of Tax
Appeals and the Department of Justice (DOJ), and
strengthen the program by filing a minimum of one (1)
significant case per semester, per RDO, to improve
voluntary compliance (the "fear factor" approach).
• To improve the quality of cases being filed.
6 Oplan Kandado • To strengthen the BIR's imposition of prescribed
administrative sanctions, through enforcement of at least
one (1) closure per semester, per RDO.
7 Taxpayer Account Management • To clean up the existing TAMP by 100%.
Program (TAMP) Clean-up
8 Large Taxpayers Service (LTS) — • To implement the Tax Reform Package in CY 2018
Excise Tax Program covering the following program:
o Sugar-Sweetened Beverages (SSB) Program
o Internal Revenue Stamps Integrated System (IRSIS)
on Alcohol Program
o Electronic Official Registry Book (eORB) Alcohol
Program
o Fuel Marking Program
9 Electronic Sales Reporting, Invoicing • To develop and implement the eInvoicing/eReceipting
and Receipting System.
Overall Objective No. 2: IMPROVE TAXPAYER'S SATISFACTION AND COMPLIANCE
10 Massive Tax Education • To increase levels of tax compliance through
Campaign/Public Awareness and information dissemination, making use of a
Education tri-media/social media/comprehensive communication
strategy.
• To effectively disseminate information on the Tax
Reform Package.
11 Information and Communications • To implement ICT Solutions to improve TP Satisfaction
Technology (ICT) Solutions for through:
Improved Taxpayer Services o Increase in the BIR's Internet access bandwidth
o Adequate server and hardware capacity
o Licenses and software
Overall Objective No. 3: STRENGTHEN GOOD GOVERNANCE (Effective Management and Integrity
of Tax Personnel and Collection)
12 Expedite recruitment of new Recruitment
personnel and promotion of qualified • To fill up Entry Level Positions at the rate of:
employees o 100% for twenty (20) or less vacant positions, and,
o 80% for more than twenty (20) vacant entry level
positions.
Promotions
• To submit the List of Promotable Employees, taking into
account the following:
o 100% of all next-in-rank employees to the positions
to be filled up are duly recommended; and
o 100% of all required documentation are submitted
-on time - to the Personnel Division.
• To attain Civil Service Commission (CSC)
Accreditation for the Regional Offices, with Maturity
Level 2 rating for all core systems.
13 Capacity Building for BIR officials Annual Training Calendar
and employees • To conduct 100% of all trainings scheduled in the
Training Calendar.
Taxpayers Service Excellence (TSE) Workshops
• To train 100% of all employees targeted for attendance
at the TSE Workshop.
Trainings at the Regional Offices
• To conduct 100% of all trainings assigned at the
Regional Offices.
• To train 100% of all employees targeted for training.
Trainings by the Information Systems Group
• Continuous Information Security Awareness and
Monitoring.
• Manpower/Technical Training.
Trainings by the Legal Group
• To conduct trainings on Mandatory Continuing Legal
Education (MCLE) Updates, particularly at the Regions
(in batches).
14 Attendance and Leave Management Leave Management
Program • To reconcile 100% of all Regional Office records
against the National Office records for the following:
o CY 2018 Retirees; and
o Other Officials and Employees.
Attendance Monitoring
• To attain the following:
o 100% of all employees use the Biometric Time
Recorder
o 100% of all absent employees file - on time - the
required Leaves of Absence
o 100% of employees observe the allowed working
breaks
15 Budget Utilization Program • To attain the following:
o 100% Obligation Budget Utilization Rate; and
o 100% Disbursement Budget Utilization Rate.
16 Building Program • At least one (1) Revenue District Office to submit the
appropriate budget proposal for the acquisition of a
building.
17 Action on administrative cases • To act upon administrative cases filed against erring
against erring revenue officials and revenue officials and employees.
employees
(66)
December 18, 2017

dated November 29, 2017, Entitled "Reminding All
Government Offices, Agencies, and Instrumentalities,
Including Government-Owned or -Controlled
Corporations, State Universities and Colleges, and Local
Government Units, to Comply with the Provisions of
Republic Act No. 9184 Requiring Publication of
Procurement Notices in their Respective Websites"

Concerned
concerned, attached is the letter dated December 1, 2017 from Atty. Concepcion
Zeny E. Ferrolino-Enad, Director III of Malacañang Records Office and a certified
copy of Memorandum Circular No. 36 dated November 29, 2017, entitled
"REMINDING ALL GOVERNMENT OFFICES, AGENCIES, AND
-CONTROLLED CORPORATIONS, STATE UNIVERSITIES AND
COLLEGES, AND LOCAL GOVERNMENT UNITS, TO COMPLY WITH THE
PROVISIONS OF REPUBLIC ACT NO. 9184 REQUIRING
PUBLICATION OF PROCUREMENT NOTICES IN THEIR RESPECTIVE
WEBSITES."

ATTACHMENT

of the Philippines
Malacañang
MALACAÑANG RECORDS OFFICE
Manila, December 1, 2017
Manila
Sir:
Memorandum Circular No. 36 dated November 29, 2017 entitled "REMINDING ALL
GOVERNMENT OFFICES, AGENCIES AND INSTRUMENTALITIES,
INCLUDING GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS,
STATE UNIVERSITIES AND COLLEGES, AND LOCAL GOVERNMENT
UNITS, TO COMPLY WITH THE PROVISIONS OF REPUBLIC ACT NO. 9184
REQUIRING PUBLICATION OF PROCUREMENT NOTICES IN THEIR
RESPECTIVE WEBSITES."
For this purpose, all concerned departments shall undertake measures to

disseminate said Memorandum Circular to your component units/bureaus,
government-owned and controlled corporations including agencies attached to or under
your administrative supervision.
Thank you.
Very truly yours,

FERROLINO-ENAD
Director III-Acting Head
November 29, 2017
MEMORANDUM CIRCULAR NO. 36
REMINDING ALL GOVERNMENT OFFICES, AGENCIES, AND

-CONTROLLED CORPORATIONS, STATE UNIVERSITIES AND COLLEGES,
AND LOCAL GOVERNMENT UNITS, TO COMPLY WITH THE PROVISIONS
OF REPUBLIC ACT NO. 9184 REQUIRING PUBLICATION OF
PROCUREMENT NOTICES IN THEIR RESPECTIVE WEBSITES
WHEREAS, Section 28, Article II of the 1987 Constitution provides that the
State shall adopt and implement a policy of full public disclosure of all its transactions
involving public interest;
WHEREAS, it is the policy of the State to promote good governance and to

adhere to the principles of transparency, accountability, equity, efficiency, and economy
in its procurement process;
NOW, THEREFORE, all government offices, agencies, and instrumentalities,

including government-owned or -controlled corporations, state universities and colleges,
and local government units, are hereby directed to comply strictly with the provisions of
Republic Act No. 9184, otherwise known as the Government Procurement Reform Act,
and its 2016 Revised Implementing Rules and Regulations requiring the publication and
posting of the Invitation to Bid/Request for Expression of Interest in (i) any conspicuous
place in the premises of the Procuring Entity; (ii) PhilGEPS website and the website of
the Procuring Entity; and (iii) a newspaper of general circulation nationwide, in such
manner and for such length of time as may be necessary under the circumstances or as
may be provided for by law or regulations, in order to ensure the widest possible
dissemination thereof.
This Memorandum Circular shall take effect immediately.
DONE in the City of Manila, this 29th day of November, in the year of Our Lord,
Two Thousand and Seventeen. CAIHTE
January 8, 2018
SUBJECT : Transition Procedures for All Electronic Filing and

Payment System (eFPS) Filers in Filing Tax Return
Affected by the Revised Tax Rates on Excisable Articles
Pursuant to the Provisions of Republic Act (RA) No. 10963,
Otherwise Known as the Tax Reform for Acceleration and
Inclusion (TRAIN), Specifically Sections 42, 43, 45, 46, 47,
and 48 Thereof, Governing Excise Tax on Cigars and
Cigarettes, Petroleum Products, Automobiles,
Non-Essential Services (Invasive Cosmetics Procedures),
Sweetened Beverages, and Mineral Products, Respectively

Concerned
Relative to the implementation of the Revised Tax Rates on Cigars and

Cigarettes, Petroleum Products, Automobiles, and Mineral Products and
introduction of new excise tax forms for Non-essential Services (Invasive
Cosmetics Procedures) and Sweetened Beverages, pursuant to the provisions of
Republic Act (RA) No. 10963, otherwise known as the Tax Reform for
Acceleration and Inclusion (TRAIN), the following BIR forms are being
enhanced:
1. BIR Form No. 2200-T (Excise Tax Return for Tobacco

Products);
2. BIR Form No. 2200-P (Excise Tax Return for Petroleum

Products);
3. BIR Form No. 2200-AN (Excise Tax Return for Automobiles

& Non-essential Products); and
4. BIR Form No. 2200-M (Excise Tax Return for Mineral

Products).
The following BIR forms are being introduced, to wit:
1. BIR Form No. 2200-S (Excise Tax Return for Sweetened

Beverages); and
2. BIR Form No. 1620-XC (Final Withholding of Excise Tax on

Cosmetic Procedures).
Inasmuch as the changes in the excise tax rates are not yet reflected in the
eFPS, hence, the following procedures shall be adopted by all eFPS filers pending
enhancement to the eFPS, to wit:
1. E-file using the existing online forms (BIR Form No.

2200-T/BIR Form No. 2200-P/BIR Form No. 2200-AN/BIR
Form No. 2200-M) in order to proceed to e-payment.
1.1 Returns with Purely Prepayment/Advance Deposit/Other
similar schemes
1.1.1 Go to Part II (Manner of Payment) and tick the

2nd box in Item No. 15 (Prepayment/Advance
Deposit) of BIR Form No. 2200-T or BIR Form
No. 2200-P or BIR Form No. 2200-AN or BIR
Form No. 2200-M.
1.1.2 Proceed to Item No. 23A (Tax payment/Deposit)

in Part III (Payments and Application of the
aforementioned forms and key-in the amount to
be paid/deposited in the field provided.
1.1.3 Click the "Validate" button to check system

computation.
1.1.4 If all figures are correct, click "Submit" button.
1.1.5 Click "Proceed to Payment" button to effect

payment/deposit transaction.
1.2 Returns Involving Payment on Actual Removals
1.2.1 Go to Part II (Manner of Payment) and tick the

1st box in Item No. 15 (Payment on Actual
Removal) of BIR Form No. 2200-T or BIR Form
No. 2200-P or BIR Form No. 2200-AN or BIR
Form No. 2200-M.
1.2.2 Schedule 1 — Summary of Removals and Excise

Tax Due on Cigars and Cigarettes, Petroleum
Products, Automobiles, Mineral Products and
Mineral Products Chargeable against Payments
will appear on the screen.
Since the revised tax rates on alcohol products

and tobacco products are not yet in place, fill up
"4. OTHERS (please specify)" for details of
removals using "XA" as ATC Codes for alcohol
products, "XT" for tobacco products, "XP" for
Petroleum Products, "XGAN" for Automobiles
and "XM" for Mineral Products.
1.2.3 The "Total Tax Due" will automatically be
populated to Item No. 16 (Excise Tax Due from
Schedule 1).
1.2.4 E-pay by clicking "Proceed to Payment" button

to effect payment transaction.
2. Once the enhanced version of the aforesaid forms are available

in eFPS, there will be an announcement via the BIR Website as
to the guidelines if there is a necessity to amend previously
filed excise tax returns in eFPS.
For newly introduced BIR forms, specifically BIR Form No. 2200-S
(Excise Tax Return for Sweetened Beverages) and BIR Form No. 1620-XC (Final
Withholding of Excise Tax on Cosmetic Procedures), the following procedures
shall be adopted to wit:
1. Fill-in the applicable BIR form [pre-printed or downloaded

form in BIR website (www.bir.gov.ph) under the BIR Forms
section of the website] using the new tax rates then compute the
tax due thereon.
2. File and pay manually via over-the counter of Authorized

Agent Banks (AABs) under the jurisdiction of the Revenue
District Office (RDO) where the taxpayer is registered.
All concerned taxpayers shall be responsible in ensuring that the correct

excise tax due is being declared and paid for each and every removal of excisable
articles. Accordingly, since BIR has also devised a system of validating the
accuracy of removal declarations and excise tax payments in the meantime that the
eFPS for BIR Form Nos. 2200-T, 2200-P, 2200-AN, 2200-M, 2200-S and
1620-XC are still undergoing enhancements, any deficiency excise taxes that will
be discovered in the said validation process shall be likewise subject to all
applicable penalties incident thereto in accordance with existing revenue rules and
regulations.
All Revenue Officials are hereby enjoined to give this Circular as wide a
publicity as possible.

January 4, 2018
SUBJECT : Transition Procedures for All Taxpayers Affected by the

Revised Tax Rates on Documentary Stamp Tax Pursuant to
the Provisions of Republic Act (RA) No. 10963, Otherwise
Known as the Tax Reform for Acceleration and Inclusion
(TRAIN)

Concerned
This Circular is issued to provide transition procedures for all taxpayers

who are affected in filing the documentary stamp tax returns (BIR Form Nos. 2000
and 2000-OT) due to the revised tax rates pursuant to the provisions of RA No.
10963.
The abovementioned BIR forms are being enhanced and the Alphanumeric
Tax Codes (ATCs) affected by the increase in tax rates are as follows:
BIR Form Form Name ATC Affected Changes in Tax

No. Rate
1. 2000 Documentary Stamp Tax DS 101, 102, 104 Increase in the tax
Declaration/Return to 109, 112, 114 rate is 100% except
to 121, 125, 126, for DS 106, which
130 to 132 is 50% only
2. 2000-OT Documentary Stamp Tax DS 102 and 125 Increase in the tax
Declaration/Return — rate is 100%
One Time Transactions
The changes in tax rates mentioned above are not yet reflected and
implemented in the following:
1. Electronic Filing and Payment System (eFPS);
2. Electronic Bureau of Internal Revenue Forms (eBIRForms);

and
3. Manual Forms
thus, the following work around procedures in filing the BIR Form/Return
mentioned above shall be adopted by the following taxpayers:
1. eFPS Filers of BIR Form No. 2000 shall —
a) Use the existing BIR form in the eFPS;
b) Fill in the required information (e.g., date of

transactions, parties to the transactions, etc.);
c) Click and choose the applicable ATC, nature of

transaction, tax rate and tax due will automatically
appear;
d) Change the amount of tax due computed by the system

with the correct amount using the new tax rate as
follows:
ATC Description New Tax Rate

a. DS 101 Original issue of Shares of Stocks P2.00/200
b. DS 102 Sales, Agreements to Sell, Memoranda of Sales, Deliveries P1.50/200
or Transfer of Shares or Certificates of Stock with par value
c. DS 125 In case of stock without par value 50% of DST paid on original
issue
d. DS 104 Certificates of Profits or Interest in Property or P1.00/200
Accumulations
e. DS 105 Bank Checks, Drafts, Certificates of Deposit not Bearing P3.00
Interest and Other Instruments
f. DS 106 Original Issue of All Debt Instruments P1.50/200 of issue price or a
fraction of 365 days for
instrument with term of less
than 1 year
g. DS 107 Acceptance of Bills of Exchange or Order drawn in a P0.60/200
Foreign Country but payable in the Philippines
h. DS 108 Foreign Bills of Exchange and Letters of Credit P0.60/200
i. DS 109 Life Insurance Policies amount:
Does not exceed P100,000 Exempt
Exceeds P100,000 but does not exceed P300,000 P20.00
Exceeds P750,000 but does not exceed P1,000,000 P150.00
Exceeds P1,000,000 P200.00
j. DS 112 Policies of Annuities P1.00/200 of the premium or
installment payment on
contract price collected
Pre-Need Plans P0.40/200 of the premium or
contribution collected
k. DS 114 Certificates (Sec. 188 of the Tax Code) P30.00
l. DS 115 Warehouse Receipts P30.00 with value above 200
m. DS 116 Jai-alai, Horse Race Tickets, Lotto or Other Authorized P0.20/P1.00
Number Games
n. DS 117 Bills of Lading or Receipts P100.00 to P1,000 P2.00
Above P1,000 P20.00
o. DS 118 Proxies for voting at any election P30.00
p. DS 119 Powers of Attorney P10.00
q. DS 120 Leases and Other Hiring Agreements 1st P2,000 P6.00
In excess (P2.00/P1,000)
r. DS 121 Mortgages, Pledges and Deeds of Trust 1st P5,000 P40.00
In excess (P20.00/P5,000)
s. DS 126 Bills of Exchange or Drafts P0.60 on each P200
Charter Parties and Similar Instruments if gross tonnage of
the ship, vessel or steamer is:
t. DS 130 1,000 tons and below 1st 6 months P1,000
In excess + P100
u. DS 131 1,001 to 10,000 tons 1st 6 months P2,000
In excess + P200
v. DS 132 Over 10,000 tons 1st 6 months P3,000
In excess + P300
e) File the return then proceed to payment and pay the

corrected tax due thereon.
2. eBIRForms Users/Filers of BIR Form Nos. 2000 and/or

2000-OT shall —
1. File online using the existing BIR form in the
eBIRForms Package then pay the corresponding taxes
due thereon via:
a) Online payment thru GCash, Landbank Electronic

Payment Service (LBEPS) or BIR-DBP PayTax
Online (BDPTO); or
b) Manual payment via over-the-counter (OTC) of

Authorized Agent Banks (AABs) under the
jurisdiction of the Revenue District Office (RDO)
where the taxpayer is registered.
2. The above transactions will result to deficiency tax, and

to cover the deficiency tax, eBIRForms users/filers shall
likewise file online and pay online, thru GCash, LBEPS
or BDPTO, or pay manually via OTC of AABs under the
jurisdiction of the RDO where the taxpayer is registered,
the deficiency tax using BIR Form No. 0605 and fill in
the corresponding information in the Tax Type and ATC
fields stated below in lieu of the correct BIR form that
should have been used:
Supposed Tax Type ATC

BIR Form
to be Used
1. 2000 DS Documentary Stamp Tax All eBIRForms filers
shall use ATC MC 031
2. 2000-OT DO Documentary Stamp Tax — — Deficiency Tax
One Time
3. Manual Filers of BIR Form Nos. 2000 and/or 2000-OT shall

—
1. Fill-in the applicable BIR form [pre-printed or

downloaded form in BIR website (www.bir.gov.ph)
under the BIR Forms section of the website] using the
new tax rates then compute the tax due thereon.
2. File and pay manually via OTC of AABs under the

jurisdiction of the RDO where the taxpayer is registered.
All concerned taxpayers shall be responsible in ensuring that the correct tax
due is being declared and paid for accordingly. Any deficiency taxes that will be
discovered in the validation/audit process shall be subjected to all applicable
penalties incident thereto in accordance with existing rules and regulations.

January 4, 2018
SUBJECT : Transition Procedures for All Taxpayers Filing Tax

Returns Affected by the Revised Tax Rates Pursuant to the
Provisions of Republic Act (RA) No. 10963, Otherwise
Known as the Tax Reform for Acceleration and Inclusion
(TRAIN)

Concerned
In line with the implementation of the provisions of RA No. 10963

(known as TRAIN), various Bureau of Internal Revenue (BIR) Forms/Returns are
being developed or enhanced. Some of the forms/returns being enhanced and the
Alphanumeric Tax Codes (ATCs) affected are as follows:
BIR Form Changes in Tax

Form Name ATC Affected
No. Rate
1. 1602 Monthly Remittance Return of WI 170 and WC 170 From 7 1/2% to 15%
Final Income Taxes Withheld
2. 1603 Quarterly Remittance Return of WF 320 From 15% to 35%
Final Income Taxes Withheld
3. 2552 Percentage Tax Return for PT 200 From 1/2 of 1% to
Transactions Involving Shares of 6/10 of 1%
Stock Listed and Traded through
the Local Stock Exchange or
through Initial and/or Secondary
Public Offering
The changes in tax rates mentioned above are not yet reflected and
implemented in the following:
1. Electronic Filing and Payment System (eFPS);
2. Electronic Bureau of Internal Revenue Forms (eBIRForms);

and
3. Manual Forms.
thus, the following work around procedures in filing the said BIR forms/returns
shall be adopted by:
A. eFPS Filers shall —
1. File online using the existing BIR form in the eFPS then
pay online the corresponding taxes due thereon by
proceeding to payment. The result of this transaction is
deficiency tax;
2. To cover the deficiency tax, eFPS filers shall likewise

file and pay online the deficiency tax using BIR Form
No. 0605 and fill in the corresponding information in the
Tax Type and ATC fields stated below in lieu of the
correct BIR form that should have been used:
Supposed
BIR Form to Tax Type ATC
be Used
1. 1602 WB Withholding Tax — Banks and Other All eFPS filers shall
Financial Institutions use ATC MC 031 —
2. 1603 WR Withholding Tax — Fringe Benefits Deficiency Tax
3. 2552 ST Percentage Tax — Stocks
3. Once the enhanced versions of the aforesaid forms are

available in eFPS, there will be a
notification/announcement through a Revenue
Memorandum Circular (RMC). Guidelines shall be
issued accordingly if there is a necessity whether or not
to amend the previously filed returns in eFPS.
B. eBIRForms Users/Filers shall —
1. File online using the existing BIR form in the

eBIRForms Package then pay the corresponding taxes
due thereon via:
a) Online payment thru GCash, Landbank Electronic

Payment Service (LBEPS) or BIR-DBP PayTax
Online (BDPTO); or
b) Manual payment via over-the-counter (OTC) of

Authorized Agent Banks (AABs) under the
jurisdiction of the Revenue District Office (RDO)
where the taxpayer is registered.
2. The above transactions will result to deficiency tax, and

to cover the deficiency tax, eBIRForms users/filers shall
likewise file online and pay online, thru GCash, LBEPS
or BDPTO, or pay manually via OTC of AABs under the
jurisdiction of the RDO where the taxpayer is registered,
the deficiency tax using BIR Form No. 0605 and fill in
the corresponding information in the Tax Type and ATC
fields stated below in lieu of the correct BIR form that
should have been used:
Supposed Tax Type ATC

BIR Form to
be Used
1. 1602 WB Withholding Tax — Banks and Other All eFPS filers shall
Financial Institutions use ATC MC 031 —
2. 1603 WR Withholding Tax — Fringe Benefits Deficiency Tax
3. 2552 ST Percentage Tax — Stocks
C. Manual Filers shall —
1. Fill-in the applicable BIR form [pre-printed or

downloaded form in BIR website (www.bir.gov.ph)
under the BIR Forms section of the website] using the
new tax rates then compute the tax due thereon.
2. File and pay manually via OTC of AABs under the

jurisdiction of the RDO where the taxpayer is registered.
All concerned taxpayers shall be responsible in ensuring that the correct tax
due is being declared and paid for accordingly. Any deficiency taxes that will be
discovered in the validation/audit process shall be subjected to all applicable
penalties incident thereto in accordance with existing rules and regulations.

(67)
January 4, 2018
SUBJECT : Prescribes the Procedures on the Use of Withholding Tax

Table on Compensation Income and Advises on the Change
of Creditable Withholding Tax Rate on Certain Income
Payments to Individuals
Concerned
This Revenue Memorandum Circular (RMC) is issued pursuant to the

amendments to the National Internal Revenue Code introduced under Republic
Act No. 10963, effective January 1, 2018, with the following objectives:
(A) To supplement RMC No. 105-2017 dated December 28,

2017 by providing the steps on how to use the revised
Withholding Tax Table on Compensation; and
(B) To advise on the change in the Creditable Withholding Tax

Rate on Income Payments to Self-employed Individuals or
Professionals.
A. Steps in the Use of the Withholding Tax Table
In general, every employer paying compensation to its employee/s shall

deduct and withhold from such compensation a tax determined in accordance with
the prescribed Revised Withholding Tax Tables, version 2 (Annex "A").
Step 1. Determine the total amount of monetary and non-monetary

compensation paid to an employee for the payroll period: monthly, semi-monthly,
weekly or daily, as the case may be, segregating non-taxable benefits and
mandatory contributions.
Step 2. Use the appropriate table in Annex "A" for the applicable payroll
period.
Step 3. Determine the compensation range of the employee and apply the
applicable tax rates prescribed thereon.
Step 4. Compute the withholding tax due by adding the tax predetermined
in the compensation range indicated on the column used and the tax on the excess
of the total compensation over the minimum of the compensation range.
Sample Computations Using the Withholding Tax Tables
The following are sample computations of withholding tax on

compensation using the prescribed withholding tax tables:
Example 1: An employee receiving daily compensation in the amount of

P2,500.00, net of mandatory contributions.
Computation:
By using the daily withholding tax table, the withholding tax beginning
January 2018 is computed by referring to compensation range under column 4
which shows a predetermined tax of P356.16 on P2,192.00 plus 30% of the excess
of Compensation Range (Minimum) amounting to P308.00 (P2,500.00 -
P2,192.00) which is P92.40. As such, the withholding tax to be withheld by the
employer shall be P448.56.
Total taxable compensation P2,500.00

Less: Compensation Range (Minimum) 2,192.00
–––––––––
Excess P308.00
========
Withholding tax shall be computed as
follows:
Predetermined Tax on P2,192.00 P356.16

Add: Tax on the excess (P308.00 x 30%) 92.40
–––––––––
Total daily withholding tax P448.56
========
Example 2: An employee receiving weekly compensation in the amount of

P9,500.00, net of mandatory contributions.
Computation:
By using the weekly withholding tax table, the withholding tax beginning
which shows a predetermined tax of P576.92 on P7,692.00 plus 25% of the excess
of Compensation Range (Minimum) amounting to P1,808.00 (P9,500.00 -
P7,692.00) which is P452.00. As such, the withholding tax to be withheld by the
employer shall be P1,028.92.

–––––––––
Excess P1,808.00
========
follows:
Tax on P7,692.00 P576.92

Tax on the excess (P1,808.00 x 25%) 452.00
–––––––––
Total weekly withholding tax P1,028.92
========
Example 3: An employee receiving semi-monthly compensation in the

amount of P15,500.00, net of mandatory contributions.
Computation:
By using the semi-monthly withholding tax table, the withholding tax

beginning January 2018 is computed by referring to compensation range under
column 2 which shows a predetermined tax of P0.00 on P10,417.00 plus 20% of
the excess of Compensation Range (Minimum) amounting to P5,083.00
(P15,500.00 - P10,417.00) which is P1,016.60. As such, the withholding tax to be
withheld by the employer shall be P1,016.60.

–––––––––
Excess P5,083.00
========
follows:
Tax on P10,417.00 P0.00

Tax on the excess (P5,083.00 x 20%) 1,016.60
–––––––––
Total semi-monthly withholding tax P1,016.60
========
Example 4: An employee receiving monthly compensation in the amount

of P170,500.00 with supplemental compensation in the amount of P5,000.00, net
of mandatory contributions.
Computation:
By using the monthly withholding tax table, the withholding tax beginning
which shows a predetermined tax of P40,833.33 on P166,667.00 plus 32% of the
excess of Compensation Range (Minimum) amounting to P8,833.00 (P170,500.00
+ P5,000 - P166,667.00) which is P2,826.56. As such, the withholding tax to be
withheld by the employer shall be P43,659.89.

––––––––––
Excess P3,833.00
Add: Supplemental Compensation 5,000.00
––––––––––
Total Taxable compensation for the month P8,833.00
=========
Withholding tax shall be computed as follows:
Tax on P166,667.00 P40,833.33

Tax on the excess including supplemental 2,826.56
compensation (P8,833.00 x 32%)
––––––––––
Total monthly withholding tax P43,659.89
=========
B. Change in the Creditable Withholding Tax Rate on Income Payments

to Self-employed Individuals or Professionals
The following Income Payments to Self-employed Individuals or

Professionals shall be subject to Eight Percent (8%):
1. Professional fees, talent fees, commissions, etc. for services

rendered by individuals;
2. Income distribution to beneficiaries of Estates and Trusts;
3. Income Payment to certain brokers and agents;
4. Income Payments to partners of general professional

partnership;
5. Professional fees paid to medical practitioners; and
6. Commission of independent and/or exclusive sales

representatives, and marketing agents of companies.
All internal revenue officials, employees and other concerned are hereby
enjoined to give this Circular as wide publicity as possible.

ANNEX A
Revised Withholding Tax Table (Version 2)

Effective January 1, 2018 to December 31, 2022
DAILY 1 2 3 4
Compensation P685 and P685-P1,095 P1,096-P2,191 P2,192-P5,478
Range below
Prescribed 0.00 0.00 P82.19 P356.16
Withholding Tax + 20% over P685 + 25% over P1,096 + 30% over P2,192
WEEKLY 1 2 3 4
Compensation P4,808 and P4,808-P7,691 P7,692-P15,384 P15,385-P38,461
Range below
Prescribed 0.00 0.00 P576.92 P2,500.00
Withholding Tax + 20% over P4,808 + 25% over P7,692 + 30% over P15,385
SEMI-MONTHLY 1 2 3 4
Compensation P10,417 P10,417-P16,666 P16,667-P33,332 P33,333-P83,332
Range and below
Prescribed 0.00 0.00 1,250.00 5,416.67
MONTHLY 1 2 3 4
Compensation P20,833 P20,833-P33,332 P33,333-P66,666 P66,667-P166,666
Range and below
Prescribed 0.00 0.0 P2,500.00 P10,833.33
Endnotes
1 (Popup - Popup)
Attachments
2 (Popup - Popup)
Annex A
3 (Popup - Popup)
Annex A
4 (Popup - Popup)
Annex A
Annex B
Annex C
Annex D
5 (Popup - Popup)
Annex A
6 (Popup - Popup)
Annex A
7 (Popup - Popup)
* Note from the Publisher: Written as "10295" in the original document.
8 (Popup - Popup)
* Note from the Publisher: Written as "10295" in the original document.
9 (Popup - Popup)
Annex A
10 (Popup - Popup)
Attachment
Annex A
11 (Popup - Popup)
Annex A
Annex B
Annex C
12 (Popup - Popup)
Attachment
13 (Popup - Popup)
1. Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2018
under Executive Order (EO) No. 80, s. 2012 and EO 201, s. 2016 dated May 28,
2018.
14 (Popup - Popup)
2. Under ISO/IEC 17000 (Conformity assessment — Vocabulary and general
principles), the definitions which are essential for a proper understanding of
management system certification and accreditation are as follows:
Certification is a third-party attestation related to products, processes, systems or
persons.
Assessment is the process undertaken by an accreditation body to assess the
competence of a Conformity Assessment Body based on particular standard(s)
and/or other normative documents and for a defined scope of accreditation.
Accreditation is a third-party attestation related to a conformity assessment body
conveying formal demonstration of its competence to carry out specific
conformity assessment tasks.
Attestation is an issue of a statement, based on a decision following review, that
fulfilment of specified requirements has been demonstrated. The resulting
statement, referred to as a "statement of conformity," conveys the assurance that
the specified requirements have been fulfilled. Such an assurance does not, of
itself, afford contractual of other legal guarantees.
Registration is the other term for certification of QMS. [This is because the
process of conforming to the ISO-9001 standard concludes with a "Certificate of
Registration"
(www.pddnet.com/blog/2014/06/iso-9001-certification-vs-registration)].
15 (Popup - Popup)
3. Conformity assessment — Requirements for bodies providing audit and
certification of management systems.
16 (Popup - Popup)
4. As provided under Clause 9.5 Certification Decision of ISO/IEC 17021-1:2015
(Conformity assessment — Requirements for bodies providing audit and
certification of management systems), the CB shall ensure that the persons or
committees that make the decisions for granting or refusing certification,
expanding or reducing the scope of certification, suspending or restoring
certification, withdrawing certification or renewing certification are different from
those who carried out the audits. Moreover, the Certificate Decision Maker may
seek additional information or clarification from the audit team or other sources
during its technical review with respect to, among others, the certification
requirements, scope of certification, and the client's corrections and corrective
actions for non-conformities, if any.
17 (Popup - Popup)
Attachments
18 (Popup - Popup)
* Note from the Publisher: Written as "including those have already been" in the
original document.
19 (Popup - Popup)
* Note from the Publisher: Written as "RDO having jurisdiction over the place
where the Head Office and/or branch." in the original document.
20 (Popup - Popup)
Annex A
Annex B
21 (Popup - Popup)
Annex A
Annex B
22 (Popup - Popup)
Annex A
Annex B.1
Annex B.2
Annex B.3
Annex C
23 (Popup - Popup)
Attachments
24 (Popup - Popup)
* Note from the Publisher: Written as "Presidential Decree No. 247" in the original
document.
25 (Popup - Popup)
* Note from the Publisher: Written as "All Regional and District" in the original
document.
26 (Popup - Popup)
* Note from the Publisher: Copied verbatim from the official copy.
27 (Popup - Popup)
* Note from the Publisher: Written as "detail" in the original document.
28 (Popup - Popup)
Annex A
Annex B
29 (Popup - Popup)
Attachment
Annex A
Annex B
30 (Popup - Popup)
Annex A
31 (Popup - Popup)
Annex A
32 (Popup - Popup)
Attachment
33 (Popup - Popup)
Attachment
Annex 1
Annex 2
34 (Popup - Popup)
Annex A
35 (Popup - Popup)
Attachment
Annex 1
Annex 2
Annex 3A
Annex 3B
Annex 4
Annex 5
Annex 6
Annex 7
Annex 8
36 (Popup - Popup)
Annex A
37 (Popup - Popup)
1. Now Section 50 (F), Rule 10 of the 2017 Rules on Administrative Cases in the
Civil Service (2017 RACCS) promulgated under CSC Resolution No. 1701077,
dated July 3, 2017 amending RRACCS under CSC Resolution No. 11-01502.
38 (Popup - Popup)
2. RMO No. 53-2010.
39 (Popup - Popup)
3. Section 35 (C) in relation to Section 8 (m) of the RCC.
40 (Popup - Popup)
Annex A1
Annex B
Annex C
Annex D
Annex E
Annex F
41 (Popup - Popup)
42 (Popup - Popup)
43 (Popup - Popup)
Attachment
44 (Popup - Popup)
Annex A
Annex A-1
Annex A-2
Annex A-3
Annex A-4
Annex B
Annex C
Annex C-1
Annex D
45 (Popup - Popup)
Annex A
46 (Popup - Popup)
1. Section 36 (9) of the Corporation Code of the Philippines provides:
"Sec. 36. Corporate powers and capacity. — Every corporation incorporated
under this Code has the power and capacity:
xxx xxx xxx
9. To make reasonable donations, including those for the public welfare or for
hospital, charitable, cultural, scientific, civic, or similar purposes: Provided, That
no corporation, domestic or foreign, shall give donations in aid of any political
party or candidate or for purposes of partisan political activity;"
47 (Popup - Popup)
Annex A
48 (Popup - Popup)
Annex A1
Annex A2.1
Annex A2.2
Annex A3
49 (Popup - Popup)
Annex A
50 (Popup - Popup)
Annex A
Annex B1
Annex B2
Annex B3
Annex B4
Annex B5
51 (Popup - Popup)
Annex A
52 (Popup - Popup)
Annex A.1
Annex A.1.1
Annex A.1.12
Annex A.2
Annex B
Annex C
Annex D
Annex E
Annex F
53 (Popup - Popup)
Annex A
54 (Popup - Popup)
Attachment
55 (Popup - Popup)
1. CANON 21, Rule 21.01.
56 (Popup - Popup)
2. Rule 130, Section 124 (b).
57 (Popup - Popup)
3. Section 29.
58 (Popup - Popup)
4. A.C. No. 4078, July 14, 2003.
59 (Popup - Popup)
5. People vs. Van Alshine, 23 NW 594 (1885); Regala vs. Sandiganbayan, 262
SCRA 122 (1996).
60 (Popup - Popup)
6. G.R. No. 197117, April 10, 2013, First Lepanto Taisho Insurance Corp. v. CIR.
61 (Popup - Popup)
Annex A
62 (Popup - Popup)
Attachment
63 (Popup - Popup)
Attachment
64 (Popup - Popup)
1. This is consistent with the President's veto message under the FY 2017 General
Appropriations Act (GAA) for conditional implementation, directing all agency
heads to ensure obligation of all programs, activities and projects funded under
the GAA not later than 31 December 2017.
65 (Popup - Popup)
Annex A
66 (Popup - Popup)
Attachment
67 (Popup - Popup)
Annex A

RMC 2018 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RMC 2018 PDF

Uploaded by

Copyright:

Available Formats

November 15, 2018

REVENUE MEMORANDUM CIRCULAR NO. 107-18

SUBJECT : Amending Revenue Memorandum Circular (RMC) No.

TO : All Internal Revenue Officers, Employees and Others

This Circular is hereby issued to amend second paragraph of Revenue

In order to avail of the fast lane, payments amounting to

REVENUE MEMORANDUM CIRCULAR NO. 106-18

SUBJECT : Publishing the Full Text of Memorandum Circular No. 53

TO : All Internal Revenue Officials, Employees and Others

Office of the President

Malacañang Records Office

Manila, November 16, 2018

SECRETARY CARLOS G. DOMINGUEZ III

Very truly yours,

(SGD.) ATTY. CONCEPCION ZENY E.

November 12, 2018

MEMORANDUM CIRCULAR NO. 53

DIRECTING ALL GOVERNMENT OFFICES, AGENCIES AND

WHEREAS, it is the policy of the State to pursue an effective campaign against

WHEREAS, the Philippine Drug Enforcement Agency (PDEA) was created

WHEREAS, Section 4 of EO No. 15 provides that the National Anti-Illegal Drug

WHEREAS, Executive Order No. 66 (s. 2018) institutionalized the Philippine

NOW, THEREFORE, it is hereby DIRECTED that all government offices,

REVENUE MEMORANDUM CIRCULAR NO. 105-18

SUBJECT : Clarifying the Payment of Excise Tax on Domestic Coal

TO : All Internal Revenue Officers and Others Concerned

SECTION 1. Scope. — This circular is issued to clarify the payment

Section 151 of the National Internal Revenue Code (NIRC) of 1997, as

"SEC. 48. Section 151 of the NIRC, as amended, is hereby further

(A) Rates of Tax. — There shall be levied, assessed and collected

(1) On domestic or imported coal and coke,

Effective January 1, 2018, Fifty pesos (P50.00) per

Effective January 1, 2019, One hundred pesos

Effective January 1, 2020, One hundred fifty pesos

xxx xxx xxx" (Emphasis supplied)

Pursuant to the said amendment, RR No. 1-2018 was issued amending RR

"SEC.3. Amending Section 5 of RR No. 13-94

xxx xxx xxx

Coal produced under Coal Operating Contracts entered into by the

xxx xxx xxx"

2. The excise tax collected from the buyer/possessor shall be

Upon payment and remittance to BIR

Upon collection from first buyer

3. As a collecting agent of the excise tax due from the first

4. Finally, in the case of a producer subject to excise tax, such

SECTION 4. Transitory Provisions. —

The following transitory provisions shall be strictly observed by all

a. The excise tax due on domestic coal removed for domestic

b. The producer shall remit on or before December 31, 2018 to

d. A separate revenue issuance shall be issued covering excise tax

(SGD.) CAESAR R. DULAY

REVENUE MEMORANDUM CIRCULAR NO. 104-18

SUBJECT : Loss of Several Accountable Forms

TO : All Internal Revenue Officials, Employees and Others

Accountable Form Serial Number Missing Copy/Set

BIR Form No. 0535 TIS201400150251 4 duplicate to triplicate

BIR Form No. 0423 APS200100002934 1 set

The abovementioned forms were reported as lost by Mr. Haron R. Laingan,

Internal Revenue officials, employees and others concerned are requested to

(SGD.) CELIA C. KING

REVENUE MEMORANDUM CIRCULAR NO. 103-18

TO : All Internal Revenue Officials, Employees and Others

The abovementioned forms were reported as lost by Ms. Maricar Eunis V.