Allocation of CY 2013 BIR Collection Goal by Implementing Office

January 24, 2013 REVENUE MEMORANDUM ORDER NO. 001-13 TO : All Revenue Officials and Employees Concerned SUBJECT : Allocation of CY 2013 BIR Collection Goal by Implementing Office I. Background The overall CY 2013 collection goal of the Bureau of Internal Revenue has been set by the Department of Finance (DOF) at P1,253.679 billion. This goal includes the additional excise tax (sin tax) revenues, which shall be assigned to the Large Taxpayers Service (LTS). The collection goal, which is based on the CY 2013 Medium Term Revenue Program (MTRP) rundate January 15, 2013, is higher than the CY 2012 goal of P1,066.118 billion by P187.561 Billion, or 17.59%. II. Objective This Order is being issued to establish the following: 1. The policies, methodology and guidelines applied in the CY 2013 Collection Goal Allocation; and, 2. The distribution of the collection goal by Implementing Offices, Revenue District Offices and Large Taxpayer Units. III. General Policies and Guidelines Hereunder are the policies and guidelines observed relative to the data requirements and goal allocation methodology used in computing the final goal for the implementing offices. HDICSa A. Data Used 1. The CY 2012 estimated collection, which is the sum of: a. The total actual collections for the period January-November 2012, based on data from BIR Form 1209 reports validated by the concerned implementing offices with the Research and Statistics Division (RSD) as of January 4, 2013; and b. The estimated December collection based on the December 2012 goal. 2. Data considered as refinements for CY 2012 Collections: a. Special Taxes, which are comprised of Taxes on Government Securities, Travel Tax, and Excise Taxes for CY 2012, per BIR Form No. 1209 reports validated as of January 4, 2013; b. CY 2012 Collections from Non-Recurring Transactions, as of November 2012, where each single transaction accounts for at least ten percent (10%) of a particular Region's total collections for a specific month, based on figures provided in the BIR Form No. 1209 reports validated as of January 4, 2013. Only fifty percent (50%) of the actual amount will be considered as a refinement; c. CY 2012 estimated regular Corporate Income Tax Collections from MALAMPAYA, per the Excise LT Audit Division II report, as of January 4, 2013; and d. CY 2012 estimated BSP remittance of Final Withholding Tax (FWT) on interest due from domestic borrowings under Reverse Repurchase Agreements (RRPs), as well as other similar transactions, per the BIR Form 1209 report submitted by the LTS as of January 4, 2013. 3. Other Data considered: a. Economic assumptions/indicators provided in the MTRP (Table 1); cTDECH b. Collection Goals, by major tax type, culled from the abovementioned MTRP; c. The CY 2013 program on the volume of issuance of government securities and their corresponding taxes (FWT and Documentary Stamp Tax [DST]), as provided by the Bureau of the Treasury (BTr); and, d. The CY 2013 goal on Final Withholding Tax Remittance of BSP as estimated by the RSD on January 4, 2013, based on data provided by the LTS covering remittances from the BSP for the months of January-November 2012. B. Goal Allocation Methodology 1. Goal Allocation by Implementing Offices/Units and Revenue Districts a. The preliminary total goal on BIR Operations was allocated to all implementing offices, taking into account their CY 2012 estimated percent share to total collections subjected to refinements. The CY 2013 total goal, by implementing office, is provided in Table 2. b. The following taxes have been directly allocated to the LTS: Goal on Excise taxes amounting to P101.943 billion; The MALAMPAYA Income Tax goal of P9.185 billion; and Estimated goal on Final Withholding Taxes of the BSP (BSP-FWT) in the amount of P20.279 billion. b.1. The CY 2012 refined collection from old LTS taxpayers is estimated to grow by sixteen percent (16%). c. The actual refined collection for CY 2012 from the new LTS taxpayers (enlisted in CY 2011-2012) and the regional offices is projected to attain a growth rate ranging from 26%-30%. 2. Goal Allocation by Major Tax Type and Month The total goal allocation, by major tax type, was distributed proportionately among the implementing offices based on their share to total estimated CY 2012 collections on BIR operations. These goal allocations are provided in Table 3. The total monthly goal allocation by major tax type of the implementing offices was based on the monthly trend of estimated CY 2012 collections. See Table 4A-4F. C. Attachments The following tables are attached for the reference of all concerned revenue officials and personnel: aESIDH Table 1 Macroeconomic Assumptions and Collection Goal By Major Tax Type, CY 2013 Table 2 Collection Goal Allocation By Implementing Office, CY 2013 Table 3 Total Collection Goal Allocation By Implementing Office and Major Tax Type, CY 2013 Table 4A Monthly Collection Goal for Income Taxes By Implementing Office, CY 2013 Table 4B Monthly Collection Goal Allocation for Excise Taxes By Implementing Office, CY 2013 Table 4C Monthly Collection Goal Allocation for Value-Added Tax By Implementing Office, CY 2013 Table 4D Monthly Collection Goal Allocation for Percentage Taxes By Implementing Office, CY 2013 Table 4E Monthly Collection Goal Allocation for Other Taxes By Implementing Office, CY 2013 Table 4F Monthly Total Collection Goal Allocation By Implementing Office, CY 2013 Table 5 Monthly Collection Goal By Major Tax Type, CY 2013 D. Other Requirements 1. The Large Taxpayers Service shall allocate its goal among its implementing units, and prepare the corresponding memorandum within five (5) working days upon the issuance of this Order. 2. The Deputy Commissioner of Operations Group and the Assistant Commissioner of LTS shall prepare and submit the appropriate revenue issuance to establish the policies, guidelines and methodology for the individual goal allocation of the respective implementing units under their jurisdiction for the approval of the Commissioner. IV. Effectivity This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue TABLE 1 Macroeconomic Indicators and Assumptions and Collection Goal by Major Tax Type, CY 2013 TABLE 2 Collection Goal Allocation by Implementing Office, CY 2013 TABLE 3 Total Collection Goal Allocation by Implementing Office and Major Tax Type, CY 2013 TABLE 4A Monthly Collection Goal Allocation for Income Taxes by Implementing Office, CY 2013 TABLE 4B Monthly Collection Goal Allocation for Excise Taxes by Implementing Office, CY 2013 TABLE 4C Monthly Collection Goal Allocation for Value-Added Tax by Implementing Office, CY 2013 TABLE 4D Monthly Collection Goal Allocation for Percentage Taxes by Implementing Office, CY 2013 (In Thousand Pesos) TABLE 4E Monthly Collection Goal Allocation for Other Taxes by Implementing Office, CY 2013 (In Thousand Pesos) TABLE 4F Monthly Total Collection Goal by Implementing Office, CY 2013 TABLE 5 Monthly Collection Goal by Major Tax Type, CY 2013 <ftp://ftp.bir.gov.ph/webadmin1/pdf/68142RMO%201-2013.pdf> last visited March 20, 2013.