Amendment to DOF-DBM Joint Circular 1-2000

July 31, 2001 DOF-DBM JOINT CIRCULAR NO. 001-A-00 AMENDMENT TO JOINT CIRC ULAR NO. 1-20 00 DATED JANUARY 3, 2000 RE: GUIDELINES IN THE REMITTANCE OF ALL TAXES WITHHELD BY NATIONAL GOVERNMENT AGENCIES (NGAS) TO THE BUREAU OF INTERNAL REVENUE (BIR) 1.0 Purpose 1.1 Joint Circular No. 1-2000 dated January 3, 2000 is hereby amended to improve, facilitate and institute appropriate controls in the remittance of all taxes withheld by NGAs. 2.0 General Guidelines 2.1 The Department of Budget and Management (DBM) shall stop/discontinue the issuance of Tax Remittance Advices (TRAs) to NGAs upon approval and effectivity of this Circular. In lieu thereof, DBM shall authorize NGAs to remit all taxes withheld to the BIR. 2.2 All NGAs shall use a revised TRA form (Annex A)* in the remittance of all taxes withheld. These TRA forms shall be printed and distributed by the BIR. 2.3 All TRAs filed with the BIR by NGAs shall be supported by a properly accomplished Withholding Tax Returns (WTRs). The BIR shall immediately transmit the original copy of the TRA to the Bureau of Treasury (BTr). 2.4 The BIRs copy of the TRA duly stamped RECEIVED by the BTr shall be the basis of the BIR in recording the remittance of tax collection. 2.5 All NGAs shall include the TRAs filed with the BIR in the Summary List of Checks Issued and Cancelled (SLCIC) 3.0 Responsibilities 3.1 The DBM shall: 3.1.1 Authorize NGAs to remit all taxes withheld to BIR through TRA. Said disbursement authority shall be indicated in the Advice of Notice of Cash Allocation Issued; and 3.1.2 Require NGAs to include the TRAs filed with the BIR in the SLCIC. 3.2 The BIR-NO shall: 3.2.1 Print the TRA blank forms; 3.2.2 Provide BTr Central Office with the listing of serial numbers of all TRAs printed; and 3.2.3 Provide the offices concerned with a listing of BTr-Regional Offices (BTr-RO) where the BIR-RDOs shall submit the original copy of the TRA (Annex C)*. ASaTCE 3.3 The BIR Office concerned shall: 3.3.1 Inform in writing the BTr-RO about the serial numbers of the blank TRA form issued to NGAs within their jurisdiction. 3.3.2 Receive the TRAs filed by NGAs supported by WTRs; 3.3.3 Submit original copy of TRA to the BTr-RO; 3.3.4 Record the amount of taxes reflected in the TRA as tax collection in the JOURNAL OF TAX REMITTANCE BY GOVERNMENT AGENCIES based on the BIR copies of TRAs which are duly stamped RECEIVED by the BTr-RO; and 3.3.5 Record the collection in accordance with the illustrative accounting entries in Section 5.2 of Annex D * of JC 1-2000. 3.4 The BTr shall: 3.4.1 Receive the original copy of TRAs from BIR offices concerned, stamp the duplicate copies with the date and time of receipt and initial the said documents; 3.4.2 Record the deposits in the JOURNAL OF TAX DEPOSIT BY GOVERNMENT AGENCIES as deposit on a daily basis, upon receipt of TRA from the BIR; and 3.4.3 Record the deposits in accordance with the illustrative accounting entries in Section 5.3 of Annex D of JC 1-2000 3.5 The NGAs shall: 3.5.1 Requisition blank TRA forms from BIR office having jurisdiction over them. Subsequent requisitions shall be made only upon submission of the report on Tax Remittance Advice Used/Cancelled/Lost, using the attached format (Annex B)*; 3.5.2 Prepare TRA to cover remittance of taxes supported by applicable WTRs to wit: BIR Form Type of Taxes 1601-C Compensation 1601-F Final 1601-E Expanded 1600 Value Added and Percentage Tax 1603 Fringe Benefit Tax; 3.5.3 File the WTR with the corresponding TRA to the BIR-RDO concerned on or before the tenth (10th) day of the following month after the said taxes were withheld; 3.5.4 Record the remittance in accordance with the illustrative accounting entries in Section 51 of Annex D of JC 1-2000; and 3.5.5 Include the TRAs issued in the SLCIC to be submitted to DBM on or before the tenth (10th) day of the following month covered by the report. 4.0 Repealing Clause All provisions of Joint Circular No. 1-2000 dated January 3, 2000 which are inconsistent with the provisions of this Circular are hereby amended or repealed accordingly. 5.0 Effectivity This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation or official gazette. 6.0 Transitory Provision All requests made by the NGAs to DBM for the issuance of TRAs pursuant to Joint Circular No. 1-2000, shall no longer be received and processed by the DBM after the effectivity of this Amendatory Joint Circular. Thus, TRAs already in the possession of DBM upon the effectivity of this circular shall still be processed following the provisions of Joint Circular No. 1-2000 dated January 3, 2000. Adopted: 31 July 2001 (SGD.) JOSE ISIDRO N. CAMACHO (SGD.) EMILIA T. BONCODIN Secretary Secretary Department of Finance Department of Budget and Management