Publishing the Full Text of the Memorandum of Agreement (MOA) Between the Bureau of Internal Revenue (BIR) and Its Multi-Sectoral Partners

August 9, 2023 REVENUE MEMORANDUM CIRCULAR NO. 82-2023 SUBJECT : Publishing the Full Text of the Memorandum of Agreement (MOA) Between the Bureau of Internal Revenue (BIR) and Its Multi-Sectoral Partners TO : All Internal Revenue Officers, Employees, and Others Concerned For the information and guidance of all concerned, attached as Annex "A" is the full text of the Memorandum of Agreement (MOA) between the Bureau of Internal Revenue (BIR) with nine (9) multi-sectoral partners namely the Philippine Chamber of Commerce and Industry (PCCI), Tax Management Association of the Philippines (TMAP), Management Association of the Philippines (MAP), Financial Executives Institute of the Philippines (FINEX), Philippine Institute of Certified of Public Accountants (PICPA), Association of Certified Public Accountants in Public Service and Practice (ACPAPP), Association of Certified Public Accountants in Commerce and Industry (ACPACI), Philippine Exporters Confederation, Inc. (PHILEXPORT), and the Joint Foreign Chambers of the Philippines (JFC) that will effectively address issues and concerns raised by the partner-stakeholders on matters that impact tax administration through consultation and collaboration. SDAaTC All internal revenue officers, employees and others concerned are hereby enjoined to give this Circular the widest dissemination and publicity possible. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue ANNEX A Memorandum of Agreement KNOW ALL MEN BY THESE PRESENTS: The Memorandum of Agreement hereinafter referred to as MOA, is made and entered into by and between: The Philippine Chamber of Commerce and Industry , with principal office at the 3rd Floor, Commerce and Industry Plaza, 1030 Campus Avenue Corner Park Avenue, McKinley Hill, Fort Bonifacio, Taguig City, herein represented by its president, GEORGE T. BARCELON and herein referred to as "PCCI" ; The Tax Management Association of the Philippines , with principal office at G12 Valero Plaza, 124 Valero Street, Salcedo Village, Makati City, herein represented by its president, ATTY. SUZETTE A. CELICIOUS-SY and herein referred to as "TMAP" ; The Management Association of the Philippines , with principal office at Ramon V. del Rosario Sr. Center for Management Excellence, Unit 608, Ayala Tower One, Ayala Triangle, Ayala Avenue, 1226 Makati City, herein represented by its president, ATTY. BENEDICTA DU-BALADAD and herein referred to as "MAP" ; AaCTcI The Financial Executives Institute of the Philippines , with principal office at Roberto de Ocampo Center for Financial Excellence, Unit 1901, 139 Corporate Center, Valero St., Salcedo Village, Makati City, herein represented by its president, WILSON P. TAN and herein referred to as "FINEX" ; The Philippine Institute of Certified Public Accountants , with principal office at Shaw Boulevard, Mandaluyong City, herein represented by its president, ATTY. RANDY B. BLANZA and herein referred to as "PICPA" ; The Association of Certified Public Accountants in Public Practice , with principal office at Unit 2308 City Land 10 Tower 1, HV Dela Costa Street corner Ayala Avenue, Makati City, herein represented by its president, ROMUALDO V. MURCIA III and herein referred to as "ACPAPP" ; The Association of Certified Public Accountants in Commerce and Industry , with principal office at Nuestra Casa Condominium, 2419 Calle Osmea Poblacion, Makati City, herein represented by its president, ANNA LISSA C. CHUA-DYCAICO and herein referred to as "ACPACI" ; The Philippine Exporters Confederation, Inc. , with principal office at ITC Complex Roxas Boulevard, corner Sen. Gil J. Puyat Ave., Pasay, herein represented by its president, SERGIO R. ORTIZ-LUIS JR. and herein referred to as "PHILEXPORT" ; The Joint Foreign Chambers of the Philippines , with the enumerated principal addresses of its embers, herein represented by its primary delegate, ATTY. MIMI LOPEZ-MALVAR and herein referred to as "JFC" The American Chamber of Commerce with principal office at 2nd Floor, Corinthian Plaza Building, 171 Paseo de Roxas corner Gamboa Street, Legazpi Village, Makati City, herein referred to as "AMCHAM" ; The Australian-New Zealand Chamber of Commerce with principal office at 6th Floor, One Ayala Avenue corner EDSA, Barangay San Lorenzo, Makati City, herein referred to as "ANZCHAM" ; The Canadian Chamber of Commerce with principal office at 40th Floor PBCom Towers, 6795 Ayala Avenue corner Rufino Road, Makati City, herein referred to as "CANCHAM" ; The European Chamber of Commerce with principal office at 19th Floor, Philippine AXA Life Centre, Sen. Gil Puyat Avenue cor. Tindalo St., Makati City, herein referred to as "ECCP" ; The Japanese Chamber of Commerce and Industry of the Philippines, Inc. with principal office at 22nd Floor, Trident Tower, 312 Senator Gil Puyat Avenue, Makati City, herein referred to as "JCCIPI" The Korean Chamber of Commerce with principal office at Unit 1104 Antel Corporate Center, 121 Valero St., Salcedo Village, Makati City, herein referred to as "KCCP" acEHCD The Philippine Association of Multinational Companies Regional Headquarters, Inc. with principal office at 2415 Cityland 10 Tower 2 H.V. dela Costa Street, Salcedo Village, Makati City herein referred to as "PAMURI" - and - The Bureau of Internal Revenue , with principal office at BIR National Office Building, BIR Road, Diliman, Quezon City, herein represented by its Commissioner, ROMEO D. LUMAGUI, JR. and herein referred to as "BIR" ; The PCCI, TMAP, MAP, FINEX, PICPA, ACPAPP, ACPACI, PHILEXPORT, JFC, and the BIR are collectively called "Parties" and individually called "Party" to this Agreement. WITNESSETH WHEREAS , PCCI is recognized as the "voice of Philippine business" and has an extensive network of small and medium enterprises (MSMEs), local chambers, industry/sectoral associations nationwide and bilateral business councils, and initiates programs and services geared toward the development of MSMEs and enables them to contribute to the economic development of the country; WHEREAS , TMAP is a premier organization of tax professionals that was established to, among others, assist the Philippine government as it determines the appropriate tax direction, institutes improvements in the tax system, and pursues tax reforms in general so as to augment the rapid development of the Philippine economy; WHEREAS , MAP is an organization that connects top management practitioners with each other, promotes management excellence for nation-building and advocates for reforms that help shape a brighter future for the Philippines, envisions to be the Philippines' leading organization committed to promoting management excellence for nation-building; WHEREAS , FINEX is a non-stock, non-profit organization of finance executives in the country, which aims to develop, improve, and disseminate, among its members and the public, knowledge, expertise, skills, best practices, and relevant policies and principles in the field of financial management and practice and capital market development, is an advocate not only of professional excellence and social involvement but also of national interest, especially on financial issues with great national impact, and one that is involved in capital market development and in institutionalizing the cooperation of private sector and government for supporting public policies that promote the raising of capital in financial markets to encourage investments in the economy. It aims to assist government in formulating and implementing appropriate policies and legislation involving business and finance in order to spur national development; WHEREAS , PICPA is a registered non-stock corporation, an accredited professional organization of Certified Public Accountants (CPA) by the Professional Regulation Commission (PRC), which was founded in November 1929 to promote and maintain high professional and ethical standards among accountants, advance the science of accounting, develop and improve accountancy education, encourage cordial relations among accountants, and protect the Certificate of Certified Public Accountant granted by the Republic of the Philippines; EcTCAD WHEREAS , ACPAPP is an organization of CPA professionals created primarily to strengthen the position of the CPAs in public practice and to reserve the unity of their combined strength, and aims to provide service to its members that will maintain and further enhance their professional development and to take advocacy role in promoting and protecting the interest of its members, promote high professional standards and high ethical standards in the profession; WHEREAS , ACPACI is group of professionals in the commerce and industry sectors that provides quality financial and allied services for effective business decisions. It maintains active participation with other sectoral organizations in the accounting profession and is a dynamic member of the national organization of certified public accountants, and plays an active role in national issues and in promoting harmony in the community and in the environment, a dynamic organization that keeps abreast with national developments taken from active participation and involvement by all the members; WHEREAS , PHILEXPORT is a private, non-stock, a non-profit umbrella organization of Philippine exporters mandated under the Export Development Act of 1994 to strengthen the country's export industry through its advocacy, export promotion and development programs, and leads the export community and works with government in the pursuit of sustainable export-led national growth and development; WHEREAS , JFC is a coalition of the American, Australian-New Zealand, Canadian, European, Japanese, Korean chambers and PAMURI. The JFC supports and promotes open international trade, increased foreign investment, and improved conditions for business to benefit both the Philippines and the countries the JFC members represent AMCHAM, ANZCHAM, CANCHAM, ECCP, JCCIPI, KCCP and PAMURI. Alternate delegate/s for each member may be submitted for record and reference during dialogues, consultations and meetings. WHEREAS , BIR is the primary government agency that comprehends the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith; WHEREAS , BIR through its Large Taxpayers Service, Regional Offices and Revenue District Offices implements various programs and services that facilitate the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith; WHEREAS , all parties recognize the important role of taxation as a major driver in Philippine economic development; WHEREAS , all parties recognize the important role of the members of the working group in the country's economic growth; WHEREAS , all parties recognize the need to ensure that the policies and regulations for taxation are comprehensive, lawful, and free from any form of prejudice; WHEREAS , all parties commit their efforts to improve the taxation system through studying tax laws and to provide technical assistance that will foster diligent tax compliance; SDHTEC WHEREAS , all parties have signified their intent to formalize/institutionalize their partnership; NOW THEREFORE , for and in consideration of the premises and of mutual covenants and stipulations hereinafter set forth, all parties hereto have agreed and do hereby agree as follows: Article 1: Purpose and Objectives. The purpose of this MOA is to create the "BIR-Multi-Sectoral Working Group," hereinafter referred to as "Working Group" whose primary objective is to engage in a regular dialogue and consultations to guide and to give advice on the drafting of Revenue Issuances, to facilitate and ensure compliance by the business sector. Article 2: Scope of the Agreement. The Parties agree to cooperate, within the context of their respective mandates, policies and resources, and instruments, to contribute to the following key initiatives: 1. Creation of a "BIR-Multi-Sectoral Working Group" which will be a mechanism for consultations regarding issues on tax administration; 2. Sharing of knowledge and expertise on best practices on taxation policies and regulations and strategies on how the Philippine business tax system can be improved to make the Philippine business environment conducive and supportive of business growth and expansion; 3. Advocacy for comprehensive, relevant, and lawful policies, plans, and regulations for tax administration. Article 3: Responsibilities. The responsibilities of the Parties are as follows: 1. BIR : a. Designate an official and alternate representative to the Working Group; b. Convene the Working Group in partnership with the Parties; c. Host the "BIR-Multi-Sectoral Working Group" meetings, as needed; d. Assign a focal person who will coordinate with the Parties' focal person to ensure the implementation of activities pursuant to this Agreement; e. Participate and promote the activities covered in the Agreement. 2. PCCI, TMAP, MAP, FINEX, PICPA, ACPAPP, ACPACI, PHILEXPORT, and JFC : a. Designate an official and alternate representative to the Working Group who are knowledgeable on tax issues and can officially speak on behalf of their organizations; b. Host meetings of the Working Group, as needed; HSAcaE c. Assign a focal person who will coordinate with the BIR and the private sector members of the Working Group on the implementation of the activities pursuant to this Agreement; d. Participate and promote the activities covered in the Agreement; and e. Attendance to meetings/consultations/discussion by Member Representative shall be mandatory for issues/concerns pertinent to the Sector/Industry represented by the organization. Article 4: Implementation of Specific Projects. Any joint project to implement the purpose of this MOA which shall require activities and/or involve payment/disbursement of funds, shall be set forth in a separate written agreement by the Parties' authorized representative. Article 5: Data Privacy. The Parties to this MOA both recognize their responsibilities under Republic Act No. 10173, also known as the Data Privacy Act of 2012, with respect to the data that they collect, record, organize, update, use, consolidate or destroy. Article 6: Confidentiality. Except as required by law or pursuant to prior written consent, each of the Parties agrees to protect and not to disclose any Confidential Information under Section 270 of the NIRC, as amended and information protected by the Data Privacy Act, obtained or accessed through the other Party on account of the implementation of this MOA. The Parties agree to take all reasonable steps to ensure their personnel and authorized agents comply with this confidentiality clause. This clause shall survive the termination of this MOA. Article 7: Non-Exclusivity. It is expressly understood and agreed by the parties that this is not an exclusive agreement. Nothing in this Memorandum shall be construed as creating any exclusive arrangement between the parties from either acquiring similar, equal, or like services or from executing similar contracts with other entities. Article 8: Severability. In case any one or more of the provisions contained herein shall, for any reason, be held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any of the provisions of this Agreement. Article 9: Amendment. This Agreement shall be amended, altered, and/or modified through consultation between and among the parties which shall be effected through an addendum, duly signed by the parties, to be applicable from the date agreed upon up to expiration of the MOA. Article 10: Withdrawal. Any of the parties may withdraw from the Agreement by giving a thirty (30)-day prior notice to the other parties. Provided that the withdrawal of any party, other than the BIR, shall not affect the subsistence of this Agreement. Article 11: Effectivity. This MOA shall take effect immediately upon signing hereof and shall continue for a period of one year unless otherwise affected by the withdrawal of any of the parties in relation to Article 10 of this Agreement. The same terms and conditions of this Agreement may subsist beyond said period provided that the parties desirous thereof, shall enter into a renewal agreement. AScHCD IN WITNESS WHEREOF, the Parties have signed this Memorandum of Agreement at Quezon City on this 8th day of August , 2023 . BUREAU OF INTERNAL REVENUE (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue MULTI-SECTORAL PARTNERS (SGD.) GEORGE T. BARCELON President PHILIPPINE CHAMBER OF COMMERCE AND INDUSTRY Signed by representative ATTY. BENEDICTA DU-BALADAD President MANAGEMENT ASSOCIATION OF THE PHILIPPINES (SGD.) ATTY. SUZETTE A. CELICIOUS-SY President TAX MANAGEMENT ASSOCIATION OF THE PHILIPPINES (SGD.) ATTY. RANDY B. BLANZA President PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Signed by representative WILSON P. TAN President FINANCIAL EXECUTIVES INSTITUTE OF THE PHILIPPINES (SGD.) ANNA LISSA C. CHUA-DYCAICO President ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS IN COMMERCE AND INDUSTRY (SGD.) ROMUALDO V. MURCIA III President ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS IN PUBLIC PRACTICE (SGD.) SERGIO R. ORTIZ-LUIS JR. President PHILIPPINE EXPORTERS CONFEDERATION, INC. (SGD.) ATTY. MIMI LOPEZ MALVAR Primary Delegate JOINT FOREIGN CHAMBERS OF THE PHILIPPINES SIGNED IN THE PRESENCE OF: (SGD.) ACIR LILIBETH B. MARANAN BIR (SGD.) ATTY. CARLOS T. CARADO II PCCI Chairman for Taxation Committee (SGD.) OIC-ACIR JETHRO M. SABARIAGA BIR (SGD.) ATTY. EUNY MATA PEREZ MAP Chair Tax Committee (SGD.) ATTY. BEVERLY S. MILO BIR (SGD.) ATTY. PETER CALIMAG JFC-ECCP Asst. Corporate Secretary (SGD.) RICHARD R. IBARRA PAMA President ACKNOWLEDGMENT Republic of the Philippines) Quezon City) S.S. BEFORE ME , a Notary Public, for and in Quezon City this 9th day of August 2023 , personally appeared: HESIcT NAME IDENTIFICATION CARD ROMEO D. LUMAGUI, JR. TIN No. 243-407-196 GEORGE T. BARCELON TIN No. 133-445-717 ATTY. SUZETTE A. CELICIOUS-SY SSS ID No. 33-2198702-9 BENJAMIN R. PUNONGBAYAN TIN No. 106-201-599 ATTY. RANDY B. BLANZA TIN No. 925-955-425 ROMUALDO V. MURCIA III TIN No. 906-174-059 MICHAEL ARCATOMY H. GUARIN PHILIPPINE PASSPORT No. P7807300B ANNA LISSA C. CUA-DYCAICO PRC ID No. 0088913 SERGIO R. ORTIZ-LUIS JR. TIN No. 107-846-762 ATTY. MIMI LOPEZ-MALVAR PHILHEALTH ID No. 01-050818445-5 all known to me to be the same persons who executed the foregoing instrument and hereby acknowledged to me that the same is their free and voluntary act and deed. This instrument consisting of eight (8) pages, including this page on which this acknowledgment is written refers to a Memorandum of Agreement and signed on each and every page thereof by the concerned parties and their witnesses and sealed with my notarial seal. WITNESS MY HAND AND NOTARIAL SEAL. (SGD.) ATTY. MARKNEIL S. COLLADO NOTARY PUBLIC FOR AND IN QUEZON CITY Appellate Division, Legal Service, BIR National Office Building Room 807, Diliman, Quezon City ADM. MATTER No. NP-084 (2022-2023) Roll of Attorney No. 60141 IBP No. 012320 (Lifetime Member); Leyte PTR No. 4298900; 2/27/23; Quezon City My Commission Expires on December 31, 2023 Doc. No. 502 Page No. 102 Book No. 13 Series of 2023.