Issuance of "Payment Compliance Certificate" Required Under the Joint Budget/Finance Circular Nos. 289 and 2 78, Respectively, dated May 9, 1978, Implementing Section 23 of Presidential Decree No. 1177 and for Other Purposes

September 9, 1981 REVENUE MEMORANDUM CIRCULAR NO. 31-81 SUBJECT : Issuance of "Payment Compliance Certificate" Required Under the Joint Budget/Finance Circular Nos. 289 and 2 78, Respectively, dated May 9, 1978, Implementing Section 23 of Presidential Decree No. 1177 and for Other Purposes TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Budget Circular No. 289 and Finance Circular No. 2-78, the following rules and procedures are hereby promulgated to govern the issuance of "Payment Compliance Certificates" to units of Government, including government-owned or controlled corporations in settlement of their internal revenue tax liabilities: A. Entities entitled to the issuance of "Payment Compliance Certificate ." 1. Presidential Decree No. 1177, subjects all units of government including government-owned or controlled corporations to the payment of income taxes, custom duties, and others taxes and fees imposed under revenue laws. However, under the above-stated implementing circulars, all government units, including government-owned or controlled corporations which are exempted by law from the payment of taxes, duties and fees shall be entitled to either a tax subsidy or payments constituting equity contribution without necessity of paying cash or its equivalent; so that in lieu thereof, a "Payment Compliance Certificate" shall be issued by this Bureau. 2. To assure effective control in the issuance of said certificates, it is directed that the annual income tax returns filed by the aforesaid entities in the various Revenue Regions, after being processed therein under existing rules and regulations, should forthwith be segregated and transmitted by the Revenue Regional Director concerned to the Chief, Government and Tax Exempt Corporations Division of the National Office. B. Procedu res to be followed in the issuance of "Payment Compliance Certificate ." 1. All taxes, fees and others charges if found to be due from government units and government-owned and controlled corporations shall as a matter of uniform procedure be determined and assessed pursuant to the provisions of the National Internal Revenue Code, the payment compliance certificate being only a privilege to invoke by the tax-exempt unit or entity. 2. Hence, the "Payment Compliance Certificate" shall be issued upon request by any qualified unit of the government, including government-owned or controlled corporations, but only upon presentation of proof of exemption under existing law. acd 3. The "Payment Compliance Certificate" shall be issued by the Government and Tax Exempt Corporations Division to government units and government-owned and controlled corporations located within the Metro Manila area and by the Regional Director for those located outside the Metro Manila area. 4. The "Payment Compliance Certificate" shall be accomplished in the prescribed form (Annex "A") in six (6) copies and numbered consecutively with the following coding: Issuing Office - Number - Year of Return Illustration: NO-001-81 For the National Office RR- -001-81 For the Regional Office Note: If the issuing revenue region is Manila, then the numbering and coding will be as follows: RR-4A-001-81 C. Manner of accounting for "Payment Compliance Certificates ." 1. The copies prepared for the "Payment Compliance Certificate" shall be distributed as follows: Taxpaying Agency Original plus two copies Accounting Division, B.I.R. 2 copies Issuing Office 1 copy 2. The issuing office shall within five (5) days after the end of each quarter, compile and summarize in Annex "B" all "Payment Compliance Certificates" issued. Three (3) copies thereof, shall be forwarded to the Accounting Division. 3. The Accounting Division shall furnish the Data Processing Center and Receivable Accounts Division with a copy of Annex "B". casia D. On imported goods/commodities . 1. In the case of taxes, fees or charges on imported commodities/goods, no "Payment Compliance" shall be issued unless an Authority issued by the Ministry of Finance and/or Ministry of Budget approving the release of the importation from customs custody is presented. Taxes, fees and charges on shipments without the corresponding Authority from the Ministry of Finance and/or Ministry of Budget shall be treated as importations of articles with locally available equivalents and shall be subject to the payment of the corresponding taxes, fees and charges due thereon. E. Effectivity . 1. The provisions of this Revenue Memorandum Circular shall take effect immediately supplementing Revenue Memorandum Circular No. 95-78 dated November 7, 1978. RUBEN B. ANCHETA Acting Commissioner ANNEX A BIR Form No. _____ Republic of the Philippines Ministry of Finance BUREAU OF INTERNAL REVENUE Control No.____ PAYMENT COMPLIANCE CERTIFICATE Issued to : Name of Government Agency: _______________________________ Officer Representing Agency: ________________________________ Address: _______________________________________________ Tax Exempting Law: ______________________________________ (State the law and section thereof, or attach proof of exemption) To Whom It May Concern: Pursuant to Section 23 of Presidential Decree No. 1177, as implemented by Joint Budget Circular No. 289 and Finance Circular No. 2-78 dated May 9, 1978, and in view of the internal revenue tax liabilities of (Name of Government Agency or Unit) ____________________________________________ as per Attached tax return or BIR assessment notice, this PAYMENT COMPLIANCE CERTIFICATE is hereby issued in favor of the said agency for the following taxes and fees: cda Kind of Tax ____________ Year/or Period Covered ____________ Tax Due P___________ Surcharge ____________ Interest ____________ Compromise ____________ TOTAL AMOUNT DUE ____________ Remarks: _________________________________________________ _________________________________________________________ _________________________________________________________ Issued this ___________ day of ________ 19 _____. RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: DOMINGO C. PAZ Chief Gov't Tax Exempt Corporations Division Regional Director Attachment: As stated above (Accomplish in six (6) copies) BIR Form No. ________ QUARTERLY SUMMARY OF "PAYMENT COMPLIANCE CERTIFICATE" Quarter Ending _______ 1980 PCC Government Amount of Tax Date Issued Control No. Agency/Corp. Exempting Law Kind of Tax Period Covered and Penalties Certified Correct: _____________ Accomplish in 6 copies to be distributed as follows: Accounting Division - 5 copies Issuing Office - 1 copy