IEMOP LEGAL BULLETIN

Issue
Date Issued Contents
No.
GUIDELINES AND PROCEDURES FOR IMPLEMENTATION
27 December OF BIR RULING OT-323-2021 (24 AUGUST 2021) FOR
1.0
2021 WESM TRANSACTIONS

Independent Electricity Market Operator of the Philippines Inc.

This IEMOP Legal Bulletin is an occasional publication that is prepared and published by the Legal Department of
the Independent Electricity Market Operator of the Philippines Inc.. The purpose of the Legal Bulletin is only to
provide information and guidance to the participants of the WESM on the matters contained in the Bulletin. This
document is not intended as a source of obligation or as authority on relevant WESM Rules and market manuals,
and other relevant government issuances that are covered in this Bulletin. While the authors of this Bulletin strive
to make this document complete and accurate, the actual contents may be incomplete or inaccurate, or may have
become superseded or modified. WESM participants and other readers are encouraged to refer to the relevant
official issuances for details.

Questions on this IEMOP Legal Bulletin may be addressed to the Legal Department, Independent Electricity Market
Operator of the Philippines Inc., 19th Floor Robinsons Equitable Tower, ADB Avenue, Ortigas Center, Pasig City
or by email at iemoplegal@iemop.ph..
 GUIDELINES AND PROCEDURES FOR IMPLEMENTATION OF BIR
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TRANSACTIONS

1. BACKGROUND/BIR RULING

1.1. Upon requests for revenue ruling submitted by the Independent Electricity
Market Operator of the Philippines Inc. (IEMOP), the Bureau of Internal
Revenue issued its BIR Ruling No. OT-323-2021 dated 24 August 2021.

1.2. Among other matters, the BIR ruled on the manner of the taxation of the
sales and purchase of electricity through the WESM. In summary, the BIR
ruled as follows:1

1.2.1. Customer/Buyer shall be the withholding tax agent for energy sold
and paid through the WESM; while the Customer/Buyer and
Generator/Seller shall be the withholding tax agents for market fees
collected by IEMOP.2
1.2.2. Transactions for the supply of energy and ancillary services through
the WESM shall be subject to the requirements of Section 237 of the
National Internal Revenue Code.3
1.2.3. All funds received by IEMOP for its own account as a result of the
administration and operation of the WESM are subject to VAT.4
Meanwhile, funds received by IEMOP intended and actually
earmarked for other entities are not included as part of IEMOP’s gross
receipts. These include energy fees and ancillary service fees.5
1.2.4. The use of the generation mix ratio (GMR) to account for zero-rated
sales of electricity is proper.6
1.2.5. Electricity purchased by Renewable Energy (RE) developers through
the WESM, if any, that is subsequently sold in the WESM shall be
generally subject to VAT unless it can be ascertained that the same
is generated from a renewable source of energy as required by the
Tax Code.7

2. SCOPE OF APPLICATION

2.1. These guidelines shall apply to all trading participants that purchase or sale
electricity through the WESM. The transactions of Indirect Members will
continue to be settled by their Direct Member counterparties following
prevailing market rules and manuals. If necessary and applicable, the
Direct WESM Member counterparties shall be responsible for submitting the

1
Please refer to BIR Ruling No. OT-323-2021 (24 August 2021) for the complete text of
the ruling.
2
BIR Ruling No. OT-323-2021, pp. 11-12.
3
BIR Ruling No. OT-323-2021, pp. 17-20.
4
BIR Ruling No. OT-323-2021, pp. 15-16.
5
BIR Ruling No. OT-323-2021, pp. 16-17.
6
BIR Ruling No. OT-323-2021, p. 20.
7
BIR Ruling No. OT-323-2021, p. 23.

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information required to be submitted by their Indirect Member

counterparties.

2.2. These Guidelines apply to all regions where the WESM is in operations.
Application to participants and transactions in Mindanao shall commence
simultaneously with the commercial operations of the WESM in Mindanao.

2.3. These guidelines shall apply to all transactions in the WESM, including
energy and reserve transactions. Application to reserve transactions shall
commence upon the commencement of the commercial operations of
trading of reserves in the WESM.

3. PARTICIPANT TAX INFORMATION AND REGISTRATION

3.1. All trading participants shall be required to provide the following information
and documents to IEMOP:

3.1.1. Information:
a) Tax Identification Number (TIN)
b) Tax registration status (e.g., VAT-registered, VAT zero-rated, on
income tax holiday or ITH)
c) Withholding agent (i.e., information if the trading participant is a
withholding agent)
3.1.2. Forms/Documents:
a) Copy of BIR Certificate of Registration (Form 2303)
b) If a VAT zero-rated customer, copy of proof of entitlement to VAT
zero-rating
c) If under income tax holiday (ITH), copy of document granting ITH

3.2. For registered trading participants, the foregoing documents and

information shall be submitted in print and scanned copies as follows:

3.2.1. Scanned copies shall be submitted through IEMOP’s tax data facility
which is an electronic facility that will be arranged by IEMOP. This
facility may be accessed by the authorized representatives of
registered trading participants.

3.2.2. For easier retrieval, scanned copies shall be saved as pdf files and
will bear filenames formatted as follows:

Document Type File Name

BIR Registration Shortname_Form 2303
(Form 2303)
• Company shortname as registered in the
WESM.

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Document Type File Name

Examples:
• PSALM_Form 2303
• MERALCO_Form 2303
• BATELEC II_Form 2303
• CEBEC2LRE_Form 2303
Tax Exemptions/ Shortname_(Type of Tax Incentive)_Month Year
Incentive Issued
Certificates
• Company shortname as registered in the
WESM.
• Type of tax incentive: VAT zero rating, ITH

Examples:
ADVENTRES_VAT Zero Rating_April 2021

3.2.3. Print copies shall be submitted to:

Registration and Stakeholder Services Division

Independent Electricity Market Operator of the Philippines
19F Robinsons Equitable Tower, ADB Ave., Ortigas Center, Pasig City

3.3. WESM Registration Applicants. For new WESM applicants, the foregoing
information and documents shall be included among the requirements for
registration and shall be submitted along with the registration application
and other registration requirements.

3.4. Annual/Continuing Submission. Trading participants shall be

responsible for ensuring that their information submitted to IEMOP is up to
date at all times.

3.4.1. Should there be any change in their tax registration status or to any
of the required information/data, the trading participant shall
immediately notify IEMOP of the new or change in information and
submit the requisite document showing change of status. No changes
shall be effected by IEMOP unless such notice and supporting
document is submitted.

3.4.2. Trading participants entitled to VAT zero-rating for their purchases

shall submit the certificate showing entitlement on or before 31
January of every year. If a trading participant fails to submit the new
certificate of entitlement within the deadline, all purchases of said
trading participant in the WESM will be subject to VAT (i.e., 12%).

3.4.3. Other trading participants whose grant of tax incentives expires on

an annual basis or at such other period shall submit their renewed

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certificates or other applicable document within the first billing month

following the expiration of their previous certificate. IEMOP shall
discontinue with the inclusion of the tax incentive in the WESM
settlements on the billing period immediately after expiration unless
the renewed certificate has been submitted.

3.5. Distribution/Dissemination of Documents and Information. Subject

to Section 3.6 on these guidelines, the foregoing documents submitted to
IEMOP shall be made available to all registered Trading participants that
have transactions in the WESM.

3.5.1. Copies of the same shall be made available through IEMOP’s tax data
facility that will be accessible to authorized representatives of
registered trading participants.

3.5.2. Should a Trading Participant wish to have print copies of the

documents, it may request and collect the same from IEMOP at its
office in Pasig City. IEMOP may charge a minimal fee to cover cost of
reproduction and other relevant expenses.

3.6. Data Privacy/Confidentiality. It is understood that the provision of the

foregoing documents to IEMOP and, thereafter, the provision by IEMOP to
all registered trading participants is to comply with the BIR Ruling. IEMOP
shall not be prevented by any trading participant from disseminating its
tax-related information or document to other trading participant/s by
claiming confidentiality or data privacy. IEMOP and all trading participants
receiving such information and documents shall only use and disclose the
same for the purposes set out in these guidelines. All data privacy laws
apply in full force and effect with respect to the use of the documents or
information for any other purpose.

3.7. IEMOP Data Privacy Policy. IEMOP processes relevant personal

information in accordance with its data privacy policy. IEMOP’s Privacy
Notice may be viewed or downloaded via
https://www.iemop.ph/about/legal-and-privacy/.

4. APPLICATION OF VALUE-ADDED TAX (VAT) ON WESM

TRANSACTIONS

4.1. IEMOP applies the value added tax (VAT) on WESM transactions in
accordance with prevailing laws and VAT regulations.

4.2. Zero-rated sales/Application of Generation Mix Ratio (GMR). Zero-

rated sales from renewable energy (RE) generation resources are accounted
for through the application of the Generation Mix Ratio (GMR).

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4.3. Zero-rated purchases.

4.3.1. Zero-rated purchases are purchases by (1) ecozone operators and

locators registered in the WESM and (2) RE developers during the
development and installation of their facilities pursuant to the
Renewable Energy Act of 20088. In either case, the Trading
Participant wanting their zero-rated purchases to be accounted for
shall submit the requisite certification or document from the relevant
government agency granting the tax incentive. Submission of these
documents to IEMOP shall be in the manner set out in Section 3 of
these guidelines.

4.3.2. Pursuant to the BIR Ruling, purchases by RE generators through the

WESM and subsequently sold are subject to VAT (i.e., 12% VAT or
0%).9 The generation mix ratio (GMR) shall be applied in calculating
the VAT amount in order to properly account for component of the
purchases that are from renewable generation and subject to VAT-
zero rating. For avoidance of doubt, purchases from the WESM by RE
generators include transactions accounted for in the WESM
settlements as bilateral contract quantities declared in favor of
customers of these RE generators but are actually supplied through
purchases from the market (i.e., over-declarations of BCQ).

5. SETTLEMENTS/CALCULATION OF TRADING & SETTLEMENT

AMOUNTS

5.1. IEMOP shall no longer issue WESM bills to any trading participant for their
sales or purchases through the WESM. It shall, however, continue to provide
settlement data showing the sales and purchase transactions of the trading
participant in accordance with the guidelines set out in this Section.

5.2. Consistent with the BIR Ruling, the sales and purchase transactions of
trading participants for each billing period shall be segregated and settled
separately.

5.3. The electricity that is purchased through WESM by RE Developers and

subsequently sold therein shall not be entitled to the zero percent (0%) VAT
unless it can be ascertained that the same is generated from a renewable
source of energy as required under the Tax Code. To properly account for
the component of these purchases that are generated from renewable
source of energy, the generation mix ratio (GMR) shall be applied in
calculating the VAT amount due.

8
Republic Act No. 9513, Section 15 and 21.
9
BIR Ruling OT-323-2021, p. 23.

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5.4. Energy Trading Amounts. For a trading participant that has both sales
and purchase transactions for energy in any billing period, IEMOP shall
separately calculate the (a) energy sales trading amounts which are the
calculated positive trading amounts, and (b) energy purchase trading
amounts which are the calculated negative trading amounts. Separate
settlement data shall be issued to the trading participants for each category
of trading amount.

5.4.1. For energy purchase trading amounts, the settlement data shall
show the trading amounts in two categories, namely, (a) purchases
from renewable energy generators (i.e., zero-rated sales) and (b)
purchases from all other sellers (i.e., VATABLE transactions).

5.4.2. The purchases from each participant-seller shall be calculated based

on the proportion that its total sales trading amount bears to the
aggregate sales trading amount of all participants-sellers for that
billing period. This is as shown in the following formula:

SA𝑠
SA𝑏,𝑠 = [ ] × SAb
∑𝑠∈𝑆[SA𝑠 ]
Where:
SAb,s refers to the energy purchase trading amount of Buyer b attributed
to Seller s for a specific Billing Period

SAb refers to the energy purchase trading amount of Buyer b for a specific
Billing Period

SAs refers to the energy sales trading amount attributed of Seller s for a
specific Billing Period

∑𝑠∈𝑆[SA𝑠 ] refers to the total energy sales trading amount for a specific
Billing Period

5.4.3. Renewable energy generators are identified based on their

registration data in the WESM. All other sellers include all other
trading participants that have calculated sales transactions (i.e.,
positive trading amounts) for the relevant billing period, regardless
of their registration category in the WESM.

5.4.4. The settlement data that shall be provided shall further identify
whether a particular seller has availed of income tax holiday (ITH).
Identification of trading participants that are on ITH shall be based
on information submitted to IEMOP in accordance with Section 3 of
these guidelines.

5.5. For energy sales trading amounts, the settlement data shall show the
trading amounts in two (2) categories, namely, (a) sales to VAT zero-rated
customers and (b) sales to all other customers or buyers.

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5.5.1. The sales to each customer-buyer shall be calculated based on the

proportion that its total purchase trading amount bears to the
aggregate purchase trading amounts of all customers-buyers for that
billing period. This is as shown in the following formula:

SA𝑏
SA𝑠,𝑏 = [ ] × SA𝑠
∑𝑏∈𝐵[SA𝑏 ]
Where:
SAs,b refers to the energy sales trading amount of Seller s attributed to
Buyer b for a specific Billing Period

SAb refers to the energy purchase trading amount of Buyer b for a specific
Billing Period

SAs refers to the energy sales trading amount attributed of Seller s for a
specific Billing Period

∑𝑏∈𝐵[SA𝑏 ] refers to the total energy purchase trading amount for a

specific Billing Period

5.5.2. VAT zero-rated customers are trading participants identified in

Section 4 of these guidelines and are registered or certified by the
competent government agency as such, and have submitted the
requisite document to IEMOP in accordance with Section 3 of these
guidelines. All other customers shall include all trading participants
with purchases transactions (i.e., negative trading amounts) for the
relevant billing period, regardless of their registration category in the
WESM.

5.5.3. The settlement data to be provided to each trading participant shall

indicate whether a customer-buyer is a withholding tax agent. The
identification of trading participants that are withholding tax agents
shall be based on information submitted to IEMOP in accordance with
Section 3 of these guidelines.

5.6. Reserve Trading Amounts. Upon commencement of the trading of

reserves in the WESM and subject to the final design for the trading and
settlement of reserves transactions, IEMOP shall separately calculate the
reserve sales trading amounts of each reserve provider/trading participant
and reserve purchase trading amount of the National Grid Corporation of
the Philippines or the identified customer-buyer of reserves in the WESM.

5.7. Settlement Data. For each billing period, IEMOP shall issue to each trading
their participant their preliminary settlement data and final settlement data,
in accordance with the WESM Rules and these guidelines. Separate
settlement data shall be issued for each set of trading amounts (i.e.,
purchase trading amounts and sales trading amounts).

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5.7.1. In accordance with the WESM Rules, the final settlement data shall
be binding for settlements. Trading participants shall settle or be
settled for their transactions in the WESM in accordance with the final
settlement data.

5.7.2. For every billing period, the final settlement data for each trading
amount category shall be accompanied by a settlement summary.
The settlement summary, which may be in the form of a cover letter,
shall bear a unique Settlement Reference Number. Among other
relevant information, the settlement summary shall indicate the total
settlement amounts due to or from the trading participant (i.e.,
payable or receivable amounts).

5.8. Adjustment Settlements. For adjustment settlements, regardless of the

reason for the adjustment, IEMOP shall likewise segregate the sales trading
amounts and the purchase trading amounts, as applicable. The adjustment
settlement data shall contain the same information as the final settlement
data. The adjustment settlement data shall likewise be accompanied by a
settlement summary and shall bear a Settlement Reference Number.

5.9. Settlement Timetable. The preliminary settlement data and final

settlement data shall be issued to trading participants following the WESM
billing and settlements timetable. Preliminary settlement data shall be
issued seven (7) days from the end of the billing period. Final settlement
data shall be issued eighteen (18) days from the end of the billing period.
Adjustment settlement data shall be issued each time an adjustment
settlement is performed, which is usually on the 15th of every month but
may also be scheduled on other days.

5.10. Provision of Settlement Data. All settlement data shall be provided to

the trading participants through the Central Registration and Settlement
System (CRSS), following usual procedures. The Settlement Summary
accompanying the settlement data shall be transmitted to the trading
participants likewise through the CRSS. A trading participant wish to receive
print copies of the Settlement Summary shall make a request to IEMOP in
writing. Upon such written request, the same shall be provided by IEMOP
and transmitted through courier subject to the prevailing policy of IEMOP
on data provision, particularly on payment of courier and other relevant
charges.

6. PAYMENTS AND COLLECTIONS OF TRADING AMOUNTS

6.1. Each trading amount calculated as described in Section 4 of these guidelines

will be separately settled and paid. Amounts payable by a trading
participant (i.e., purchase trading amounts) may not be offset against any
amount payable to that trading participant (i.e., sales trading amounts).
Amounts unpaid shall be subject to default interest.

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6.2. Payment Timetable. Following the WESM billing and settlements

timetable set out in the WESM Rules, all trading amounts shall be payable
as follows:

6.2.1. Payments for purchase trading amounts shall be remitted to IEMOP

in cleared funds on the 25th day of the following billing period, or the
following banking day if that day is a banking holiday in Pasig City.

6.2.2. Payments for sales trading amounts shall be remitted by IEMOP to

the trading participant on the 26th day of the following month or the
following banking day if the 26th day of the month falls on a banking
holiday in Pasig City.10

6.3. Payment Facility/Payment Form. All payments shall be remitted by or

to trading participants through the electronic fund transfer facility
maintained by IEMOP, or by other means allowed by IEMOP from time to
time. The Trading Participant remitting payment shall submit the requisite
Payment Form to IEMOP.

6.4. Drawdown from Prudential Guarantee. Should it become necessary for

IEMOP to draw from the prudential security deposit/instrument of any
participant, the amount that shall be drawn shall be the amount payable
net of withholding tax. The trading participant shall be responsible for
remitting to the BIR the withholding tax amount and to issue the
corresponding withholding tax certificate. IEMOP shall notify the trading
participant of the amount drawn from the security deposit, and the list of
trading participants to whom the corresponding withholding tax certificate
shall be issued.

6.5. Remittance of Share in Default Interest Collected. Default interest

remitted to IEMOP due to late payments shall be net of withholding tax and
will be allocated to all participant-sellers proportionately. IEMOP shall notify
the paying trading participant of the list of trading participants to whom the
corresponding withholding tax certificate shall be issued.

6.6. Monthly Collection Report. For each calendar month and within three (3)
working days from the end of the calendar month, IEMOP shall provide to
all participant- sellers a monthly collection report which shall contain the
following information, namely, (a) name of customer-buyer and
corresponding Settlement Reference Number, (b) principal amount paid, (c)
default interest amount paid, if applicable, (d) amount of tax withheld. Each
collection report shall pertain to remittances in one calendar month but shall
properly identify the billing period for which a remittance is made by making
reference to the Settlement Reference Number.

10If the due date for remittance of payments purchase trading amounts (normally the 25 th of the
month) falls on a banking holiday, remittance of payments for sales trading amounts shall then be
on the banking day following the date for remittance of payment for purchase trading amounts.

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7. WITHHOLDING TAXES ON INCOME

7.1. Trading participants that are withholding tax agents shall withhold taxes
from their payments for their purchase trading amounts and shall be
responsible for remitting the same to the BIR and to issue the corresponding
withholding tax certificates (i.e., BIR Form 2307) in accordance with
prevailing withholding tax regulations.

7.2. Withholding tax certificates shall be issued to each of the participant-sellers

listed in the final settlement data provided by IEMOP. Each withholding tax
certificate should pertain to payments covered by one Settlement Reference
Number. For this purpose, the customers-buyers issuing the withholding
tax certificate shall identify the Settlement Reference Number of the
transaction covered by the withholding tax certificate.

7.3. The original and scanned copies of the withholding tax certificates shall be
submitted to IEMOP no later than three (3) working days from the end of
the calendar month, through the following means:

7.3.1. Original copies shall be submitted at IEMOP’s Pasig offices.

7.3.2. Scanned copies shall be uploaded to the IEMOP tax data facility.

7.4. IEMOP shall provide to the participant-sellers the copies of the withholding
tax certificates issued to them as follows:

7.4.1. Original copies shall be collected from IEMOP’s Pasig offices.

7.4.2. Scanned copies may be downloaded from IEMOP’s tax data facility.

7.5. To facilitate retrieval, scanned copies shall be saved as pdf files and shall
have filenames using the following format:

Form 2307_Issuer shortname_Recipient Shortname_ Settlement Reference

Number

Example:
Form 2307_ADVENTRES_PSALM_1234567
Form 2307_MERALCO_APRI_1234567

8. INVOICING REQUIREMENTS

8.1. All participant-sellers shall issue Official Receipts corresponding to the

amounts remitted to them by IEMOP for their sales trading amounts, in
accordance with the BIR Ruling and Section 237 of the National Internal
Revenue Code, as amended.

8.2. Official Receipts shall be issued for each customer-buyer listed in the
Collection Report provided by IEMOP in accordance with Section 5 of these

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guidelines. The Official Receipt shall indicate the Settlement Reference

Number of the customer-buyer.

8.3. The original and scanned copies of the Official Receipts shall be submitted
to IEMOP no later than three (3) working days from issuance by IEMOP of
the monthly collection report referred to in Section 6 of these guidelines,
through the following means:

8.3.1. Original copies shall be submitted at the offices of the IEMOP at the
9th Floor Robinsons Equitable Tower, ADB Avenue, Ortigas Center,
Pasig City.
8.3.2. Scanned copies shall be uploaded to the IEMOP tax data facility.

8.4. Customer-buyers shall be provided the copies of the Official Receipts issued
to them as follows:

8.4.1. Original copies shall be collected from IEMOP’s Pasig offices.

8.4.2. Scanned copies may be downloaded from IEMOP’s tax data facility.

8.5. To facilitate retrieval, scanned copies shall be saved as pdf files and shall
have filenames using the following template:

Official Receipt _Issuer shortname_Recipient Shortname_ Settlement

Reference Number
Example:

Official Receipt_ADVENTRES_PSALM_1234567
Official Receipt_MERALCO_APRI_1234567

9. REMITTANCE OF VALUE ADDED TAX COLLECTIONS

9.1. Customer-buyers shall remit the value added tax (VAT) for their purchases
through the WESM to IEMOP in accordance with prevailing revenue
regulations. IEMOP shall, in turn, remit to the participant-sellers the VAT
amounts as these are remitted by the customers-sellers.

9.2. When remitting the VAT, the customer-buyer shall indicate in the Payment
Form, the Settlement Reference Number for which the VAT remittance
pertains. If the customer-buyers did not provide the payment form before
the remittance to the participant-sellers, IEMOP will automatically allocate
the VAT remittances received on a First In First Out (FIFO) basis.

9.3. Upon remittance of the VAT collections, IEMOP shall provide the participant-
sellers a VAT Remittance Report showing (a) names of the customer-buyers
and their respective Settlement Reference Number; and (b) VAT amount
remitted.

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9.4. Private distribution utilities and electric cooperatives that are unable to
remit in full the VAT amount corresponding to their WESM transactions shall
provide the pertinent documents to support the non-remittance.

9.4.1. The documents shall be submitted to IEMOP as follows:

a) Final Withholding VAT on Sales to Government: Certificate of
Creditable Tax Withheld at Source in the name of the participant-
sellers with respective Settlement Reference Number and
amount.
b)

9.4.2. IEMOP shall, in turn, provide these documents to the participant-

sellers by uploading the same in the IEMOP tax data facility.

9.4.3. It is understood that IEMOP shall only make available the documents
that are, in turn, submitted to it. It shall neither monitor nor reconcile
VAT payments of these customer trading participants.

10. MARKET FEES11

10.1. In accordance with the BIR Ruling, market fees collected by IEMOP shall be
subject to the withholding tax on income.

10.2. IEMOP shall deduct the market fees due from the amounts payable to
generation companies with transactions in the WESM.

10.2.1. The amount to be deducted shall be the market fees due net
of the applicable withholding tax. The amount equal to the
withholding tax, as calculated by IEMOP, shall be remitted to the
generation company Trading Participant together with its energy
trading amounts.

10.2.2. The generation company shall issue and submit to IEMOP the
withholding tax certificate (Form 2307) for the amount withheld.

10.2.3. IEMOP shall issue Official Receipts to the generation

companies for the market fees paid.

11. GLOSSARY OF TERMS

The italicized words and phrases in these guidelines shall have the following
meanings:

11
These guidelines shall apply pending the final resolution by the Department of Finance
of IEMOP’s request for review of its tax status.

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Word/Phrase Definition
Collection report The monthly report that IEMOP shall provide for
calendar month that IEMOP remits payments to all
participant-sellers which shall contain the following
information: (a) name of customer-buyer and
corresponding Settlement Reference Number; (b)
principal amount paid; (c) default interest amount
paid, if applicable; and (d) amount of tax withheld.
Each collection report shall pertain to transactions in
one calendar month.
Customer-buyer A trading participant that has purchases through the
WESM, as shown by its negative trading amounts, at
any given billing period.
Energy purchase trading The amount to be paid by a trading participant for
amount its purchases of energy through the WESM.
Energy sales trading The amount to be paid to a trading participant for its
amount sales of energy through the WESM.
Final settlement data The data provided by the Market Operator, no later
than 18 days after the end of each billing period, to
the trading participants which has transactions in the
WESM during the given billing period.
Official receipt The receipt issued by participant-seller for each -
customer-buyer listed in the Collection Report
provided by IEMOP in accordance with these
guidelines. It corresponds to the amounts remitted
to the trading participants by IEMOP for their sales
trading amounts, in accordance with the BIR Ruling
and Section 237 of the National Internal Revenue
Code, as amended, and shall indicate the Settlement
Reference Number of the customer-buyer.
Participant-seller A trading participant that has sales through the
WESM, as indicated by its positive energy trading
amounts for a given billing period.
Payment facility The electronic fund transfer (EFT) facility and
associated system and processes operated and
implemented by IEMOP for the collection and
remittance of payments for WESM transactions.
Payment Form Form in the format set by IEMOP submitted by
trading participant remitting payment for WESM
transactions through the IEMOP payment facility.
Preliminary settlement The settlement data provided by the Market
data Operator, within 7 days after the end of each billing
period, to the trading participants which has
transactions in the WESM for a given billing period.
Purchase trading amount The amount to be paid by a trading participant for
its transactions in the WESM.
Reserves purchase The amount to be paid by a trading participant in
trading amount respect of reserves traded through the WESM.
Reserves sales trading The amount to be paid to a trading participant in
amount respect of reserves traded through the WESM.

Guidelines & Procedures to Implement BIR Ruling OT-323-2021 Page 14 of 15

 GUIDELINES AND PROCEDURES FOR IMPLEMENTATION OF BIR
RULING OT-323-2021 (24 AUGUST 2021) FOR WESM
TRANSACTIONS

Word/Phrase Definition
Sales trading amount The amount to be paid to a trading participant in
respect to its WESM transactions for a given billing
period.
Settlement data Calculated trading amounts and input data, including
bilateral contract quantity and metered quantity
data, and market prices.
Settlement Reference A unique number assigned to the settlement
Number summary attached to the final settlement data and
adjustment settlement data, and shall also be
indicated in the withholding tax certificate and
official receipt.
Tax data facility The electronic repository set up by IEMOP where
scanned copies of documents specified in these
guidelines may be submitted or downloaded by the
authorized representatives of trading participants.
VAT Remittance Report The report that IEMOP shall provide to participant-
sellers showing the: (a) names of the customer-
buyers and their respective Settlement Reference
Number; and (b) VAT amount remitted.
Withholding tax A certificate to be accomplished and issued in
certificate accordance with prevailing withholding tax
regulations to recipients of income subject to
expanded withholding tax paid by a
Payor/Withholding Agent including government
money payments made by a government office
showing therein the monthly breakdown of the total
income payments made and the total taxes withheld
and remitted during the quarter/period.

Guidelines & Procedures to Implement BIR Ruling OT-323-2021 Page 15 of 15