Clarifying the Provisions of Revenue Regulations No. 1-2013 on the Use of Electronic Tax Remittance Advice

July 15, 2014 REVENUE MEMORANDUM CIRCULAR NO. 057-14 SUBJECT : Clarifying the Provisions of Revenue Regulations No. 1-2013 on the Use of Electronic Tax Remittance Advice TO : All Internal Revenue Officials, Employees, National Government Agencies and Others Concerned Background It has been observed that certain National Government Agencies (NGAs), with the advice of some officials and employees of Revenue District Offices of the Bureau of Internal Revenue (BIR), are utilizing manual forms of Tax Remittance Advice (TRA) for the payment of internal revenue taxes, other than withholding taxes, in violation of Joint Circular No. 1-2000 and No. 1-2000A issued by the Department of Finance and Department of Budget and Management, as implemented by Revenue Regulations (RR) No. 1-2013. The above practice by these certain NGAs defeats the objectives for the issuance of the said joint circular and further distorts the revenue collection system of the BIR. Clarification It is hereby clarified and, therefore, reiterated that under the provisions of RR No. 1-2013, all NGAs are mandated to enroll with and use the Electronic Filing and Payment System (eFPS) in their filing of their applicable tax returns within the prescribed periods, as follows: HEASaC I. Regular Tax Returns Filed by NGAs BIR Form Due Date for Filing and Payment No. Description of the Tax Due 1601-C Monthly Remittance Return of On or before the 10th day following Income Taxes Withheld on the month in which withholding was Compensation made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year. 1601-E Monthly Remittance Return of On or before the 10th day following Creditable Income Taxes the month in which withholding was Withheld (Expanded) [Except for made, except for taxes withheld for transactions involving onerous the month of December of each year, transfer of real property classified which shall be filed on or before as ordinary asset] January 15 of the succeeding year. 1601-F Monthly Remittance Return of On or before the 10th day following Final Income Taxes Withheld the month in which withholding was made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year. 1603 Quarterly Remittance Return of On or before the 10th day of the Final Income Taxes Withheld month following the quarter in which on Fringe Benefits Paid to the withholding was made. Employees Other than Rank and File 1600 Monthly Remittance Return of On or before the 10th day of the Value-Added Tax and Other month following the month in which Percentage Taxes Withheld withholding was made. II. Tax Returns Filed by NGAs Exercising Proprietary Functions For all NGAs which are exercising proprietary functions, the tax returns enumerated below shall likewise be filed within the corresponding indicated periods using the Bureau's eFPS facility. However, the taxes due thereon shall be paid through the bank debit system of the eFPS' Authorized Agent Banks (AABs) where the NGA should be duly enrolled, and NOT through the eTRA System, considering that the tax returns below are not available in the eTRA System for the payment of the taxes due thereon. BIR Form Due Date for Filing and Payment No. Description of the Tax Due Thereon 1702 Annual Income Tax Return for On or before the 15th day of the fourth Corporations, Partnerships and month following the close of the Other Non-Individual Taxpayers taxable year (calendar or fiscal) 1702Q Annual Income Tax Return for Within sixty (60) calendar days Corporations, Partnerships and following the close of each of the first Other Non-Individual Taxpayers three (3) quarters of the taxable year (calendar or fiscal year) 2550M Monthly Value-Added Tax On or before the 20th day after the Declaration close of the month 2550Q Quarterly Value-Added Tax On or before the 25th day after the Return close of the taxable quarter 2551M Monthly Percentage Tax Return On or before the 20th day after the close of the month 2000 Documentary Stamp Tax Return On or before the 5th day after the close of the month when the transaction subject to DST occur. Based on the foregoing clarifications, it should be observed in above Table No. 1 under the "Regular Tax Returns Filed by NGAs" that the eTRA System covers only the payment of withholding taxes through the eTRA generated therefrom and, therefore, does not cover other internal revenue taxes. Moreover, considering that the eTRA System is mandated to be used as the platform for the payment of the withholding taxes, it is deemed understood that manual forms of TRA are no longer needed and, therefore, prohibited to be used by NGAs, unless the use of manual TRA forms are expressly allowed by written issuance or advisory issued by the Commissioner of Internal Revenue under certain exceptional circumstances. AHTICD All concerned revenue officials, employees and others concerned are hereby enjoined to give this Circular as wide a publicity as possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue