TIN Issuance to Clients of Microfinance Non-Government Organizations (MF-NGOs) Pursuant to RMO No. 2-2018

October 25, 2018 REVENUE MEMORANDUM CIRCULAR NO. 091-18 SUBJECT : TIN Issuance to Clients of Microfinance Non-Government Organizations (MF-NGOs) Pursuant to RM O No. 2-20 18 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 (P50,000) 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. All internal revenue officers and employees are hereby enjoined to give this Circular a wide publicity as possible. cSaATC (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue 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 of 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 In ternal Revenue Code (NI RC), 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