Transition Procedures for All Electronic Filing and Payment System (eFPS) Filers in Filing Tax Returns Affected by the Revised Tax Rates on Alcohol and Tobacco Products Pursuant to the Provisions of Republic Act No. 10351, "An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by Republic Act No. 9334, and for Other Purposes"

January 17, 2013 REVENUE MEMORANDUM CIRCULAR NO. 010-13 SUBJECT : Transition Procedures for All Electronic Filing and Payment System (eFPS) Filers in Filing Tax Returns Affected by the Revised Tax Rates on Alcohol and Tobacco Products Pursuant to the Provisions of Republic Act No. 10351 , "An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by Republic Act No. 9334, and for Other Purposes" TO : All Internal Revenue Officials, Employees and Others Concerned Relative to the implementation of the Revised Tax Rates on Alcohol and Tobacco Products pursuant to the provisions of Republic Act No. 10351 , the following BIR forms are being enhanced: 1. BIR Form No. 2200-A (Excise Tax Return for Alcohol Products); and 2. BIR Form No. 2200-T (Excise Tax return for Tobacco Products). In view thereof, the following procedures shall be adopted by all eFPS filers: 1. E-file using the existing online forms (BIR Form No. 2200-A/BIR Form No. 2200-T) 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-A or BIR Form No. 2200-T. 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. cEaTHD 1.1.3 Click the "Validate" button to check system computation. 1.1.4 If all figures are correct, click the "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-A or BIR Form No. 2200-T. 1.2.2 Schedule 1 Summary of Removals and Excise Tax Due on Alcohol or Tobacco 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 and "XT" for tobacco 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 Web as to the guidelines if there is a necessity to amend previously filed excise tax returns in eFPS. 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-A and 2200-T 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. ECTIHa All Revenue Officials are hereby enjoined to give this Circular as wide a publicity as possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT Excise Tax Return for Alcohol Products BIR FORM 2200-A Excise Tax Return for Alcohol Products Guidelines and Instructions Who Shall File This return shall be filed in triplicate by the following: 1. Manufacturer or producer of locally manufactured or produced alcohol products; and 2. Owner or person having possession of the alcohol products which were removed from the place of production without the payment of excise tax. For imported alcohol products, the excise tax shall be paid by the importer or owner to the Customs Officers before removal of such imported articles from the customs house. Time and Manner of Filing and Payment For each place of production, a separate return shall be filed and the excise tax shall be paid before removal of the alcohol products from the place of production with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office where the taxpayer is required to register. In places where there are no AABs, the return shall be filed and the tax due shall be paid with the Revenue Collection Officer or Duly Authorized City or Municipal Treasurer of the municipality or city falling under the jurisdiction of the aforesaid Revenue District Office. SCEHaD Identified large excise taxpayers under RDO 121 and Large Taxpayer District Office (LTDO) duly informed in writing as such by the Commissioner of Internal Revenue, or his duly authorized representative, shall file the excise tax return and pay the corresponding excise tax due with the AABs located in the BIR National Office, Diliman, Quezon City and those AABs chosen to serve them, respectively. For eFPS Taxpayers The filing of return and payment of excise tax due thereon shall be in accordance with the provisions of existing applicable revenue issuances. Penalties There shall be imposed and collected as part of tax: 1. A surcharge of twenty-five percent (25%) for each of the following violations: a) Failure to file any return and pay the tax due thereon on the date prescribed; b) Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed; 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; and 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 on the basis of such return 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) In case a false or fraudulent return is willfully made. 3. An interest of twenty percent (20%) per annum on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid. EDISaA 4. Compromise penalty. Attachment Required: All returns filed by an authorized representative must attach authorization letter. For amended return, proof of payment and the return previously filed. Note: This return shall be used in the following instances: 1. For payment of excise tax due on the actual volume of alcohol products to be removed from the place of production; and 2. For prepayments, advance deposits or other similar schemes in payment of excise tax on locally manufactured or produced alcohol products. The balance of advance payment or deposit of excise tax shall, in no case, be utilized in payment of penalties. In the event that the balance is insufficient to cover the excise tax due, penalties shall be computed and imposed on the difference. These shall be computed from the date of removal when the insufficiency shall have been incurred. All returns filed by an accredited tax agent on behalf of a taxpayer shall bear the following information: 1. For CPAs and others (individual practitioners and members of GPPs); 1.1 Taxpayer Identification Number (TIN); and 1.2 Certificate of Accreditation Number, Date of Issuance, and Date of Expiry. 2. For members of the Philippine Bar (individual practitioner and members of GPPs); 2.1 Taxpayer Identification Number (TIN); and 2.2 Attorney's Roll Number or Accreditation Number, if any. DACTSH ENCS Excise Tax Return for Tobacco Products BIR FORM 2200-T Excise Tax Return for Tobacco Products Guidelines and Instructions Who Shall File This return shall be filed in triplicate by the following: 1. Manufacturer or producer of locally manufactured or produced tobacco products; 2. Wholesaler, manufacturer, producer, owner or operator of the redrying plant, as the case may be, with respect to the payment of inspection fee on leaf tobacco, scrap, cigars, cigarettes and other tobacco products; and 3. Owner or person having possession of tobacco products which were removed from the place of production without the payment of excise tax. For imported tobacco products, the excise tax shall be paid by the importer or owner to the Customs Officers before removal of such imported articles from the customshouse. Time and Manner of Filing and Payment For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the tobacco products from the place of production with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office where the taxpayer is required to register. In places where there are no AABs, the return shall be filed and the tax due shall be paid with the Revenue Collection Officer or Duly Authorized City or Municipal Treasurer of the city or municipality falling under the jurisdiction of the aforesaid Revenue District Office. Identified large excise taxpayers under RDO 121 and Large Taxpayers District Office (LTDO) duly informed in writing as such by the Commissioner of Internal Revenue, or his duly authorized representative, shall file the excise tax return and pay the corresponding excise tax due with the AABs located in the BIR National Office, Diliman, Quezon City and those AABs chosen to serve them, respectively. ADCTac For eFPS Taxpayers The filing of return and payment of excise tax due thereon shall be in accordance with the provisions of existing applicable revenue issuances. Penalties There shall be imposed and collected as part of tax: 1. A surcharge of twenty-five percent (25%) for each of the following violations: a) Failure to file any return and pay the tax due thereon on the date prescribed; b) Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed; 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; and 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 on the basis of such return 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) In case a false or fraudulent return is willfully made. 3. An interest at the rate of twenty percent (20%) per annum on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid. 4. Compromise penalty. Attachment Required: All returns filed by an authorized representative must attach authorization letter. CSHEAI For amended return, proof of payment and the return previously filed. Note: This return shall be used in the following instances: 1. For payment of excise tax due on the actual volume of tobacco products to be removed from the place of production; and 2. For prepayments, advance deposits or other similar schemes in payment of excise tax on locally manufactured or produced tobacco products. The balance of advance payment or deposit of excise tax shall, in no case, be utilized in payment of penalties. In the event that the balance is insufficient to cover the excise tax due, penalties shall be computed and imposed on the difference. These shall be computed from the date of removal when the insufficiency shall have been incurred. All returns filed by an accredited tax agent on behalf of a taxpayer shall bear the following information: 1. For CPAs and others (individual practitioners and members of GPPs): 1.1 Taxpayer Identification Number (TIN); and 1.2 Certificate of Accreditation Number, Date of Issuance, and Date of Expiry. 2. For members of the Philippine Bar (individual practitioner and members of GPPs): 2.1 Taxpayer Identification Number (TIN); and IHCESD 2.2 Attorney's Roll Number or Accreditation Number, if any. ENCS