Prescribing Procedures and Guidelines Involving Redemption of Notice of Payment Schedule (NPS) Relative to the Implementation of the VAT TCC Monetization Program Pursuant to Executive Order (E.O.) No. 68 Dated March 27, 2012 and Joint Circular No. 2-2012 Dated May 31, 2012 among the DOF, Department of Budget and Management (DBM) and the BIR as Implemented by RMO No. 21-2012 Dated August 9, 2012

March 15, 2013 REVENUE MEMORANDUM ORDER NO. 005-13 SUBJECT : Prescribing Procedures and Guidelines Involving Redemption of Notice of Payment Schedule (NPS) Relative to the Implementation of the VAT TCC Monetization Program Pursuant to Executive Order (E.O.) No. 68 Dated March 27, 2012 and Joint Circular No. 2-2012 Dated May 31, 2012 among the DOF, Department of Budget and Management (DBM) and the BIR as Implemented by RMO No. 21-2012 Dated August 9, 2012 TO : All Internal Revenue Officials, Employees and Others Concerned I. Objectives : This Order is issued to: 1. Provide procedures and guidelines on the Redemption of Notice of Payment Schedule (NPS). DSAEIT 2. Define the duties, responsibilities and accountabilities of all officials and employees involved in the redemption and payment of NPS. 3. Comply with page 13, Section 27 IV Policies and Guidelines, Revenue Memorandum Order (RMO) No. 21-2012, dated August 9, 2012. II. Procedures and Guidelines : Financial Service (FS) shall: A. 1. Receive Masterlist of Notice of Payment Schedule (NPS) from Collection Programs Division (CPD). 2. Forward to Budget Division (BD) for preparation of letter request to Department of Budget and Management (DBM) thru Department of Finance (DOF) for the release of Special Allotment Release Orders (SAROs) and Notice of Cash Allocations (NCAs) based on the special budget. 3. Sign letter request and supporting documents for release of fund. B. 1. Receive NPS from VAT TCC holder. 2. Transmit to AFD the original NPS received for authentication by ELTRD. 3. Receive Report of Analysis (RA) made by ELTRD together with the original NPS from AFD to be attached to the DV. 4. Receive Disbursement Voucher (DV), Obligation Request (ObR) and entire VAT TCC Monetization docket from original VAT TCC issuing office. 5. Forward to Budget Division for processing of the ObR. 6. Receive DV, ObR and the entire VAT TCC Monetization docket. 7. Approve payment (Box B of DV). 8. Forward DV and entire VAT TCC Monetization docket to General Services Division (GSD) for check preparation. TaCSAD Budget Division (BD) shall: A. 1. Receive Masterlist of NPS VAT TCC Monetization Program from FS. 2. Prepare letter request to Department of Budget and Management (DBM) thru Department of Finance (DOF) for the release of funds and Special Budget, Cash Program and Listing of NPS for the current year. 3. Forward letter request and other supporting documents to FS for signature. 4. Forward signed letter request and supporting documents to DBM thru DOF. B. 1. Receive DV, ObR and entire VAT TCC monetization docket from FS. 2. Control and obligate funds (Box B of the ObR). 3. Transmit to Accounting Division (AD) for processing of payment. 4. Prepare and submit Report on Yearly Accountability to DBM on the last quarter of each year. Accounting Division (AD) shall: 1. Receive DV, certified ObR and entire VAT TCC Monetization docket from BD. 2. Process claims for monetization. 3. Stamp and sign the following on the face of the redeemed NPS. CANCELLED NPS No. _______ Redeemed under DV No. ______ dated ______ Per DOF/DBM/BIR Joint Circular No. 2-2012 dated May 31, 2012 4. Certify completeness of documents and cash availability by signing Box A of the DV. CAIaHS 5. Transmit the entire VAT TCC Monetization docket together with the DV to FS for approval of payment. 6. Prepare and submit Monthly List of NPS Redeemed by the Taxpayer to Collection Service and CPD. Accountable Forms Division (AFD) shall: 1. Receive original copy of NPS. 2. Forward the NPS to the Excise LT Regulatory Division, Attention: Laboratory Section, for authentication. 3. Receive the Report of Analysis (RA) from the ELTRD together with the original NPS copy. 4. Forward the RA and original NPS copy to the Financial Service. Excise LT Regulatory Division (ELTRD) shall: 1. Receive the original copy of NPS from the AFD for authentication. 2. Submit the Report of Analysis to the AFD together with the original NPS copy. General Services Division (GSD) shall: 1. Prepare refund check for the signature of the Cashier to be countersigned by the Chief, GSD for refunds amounting to P10,000.00 or below or for signature of Chief, GSD to be countersigned by the ACIR, Administrative Service (AS) for refunds amounting to more than P10,000.00. 2. Transmit check to AS for signature. 3. Release the refund check to the NPS holder or his/its representative after the receipt of the following documents. a. Official Receipt (OR) of the NPS holder as evidence of its receipt of the refund check. b. Special Power of Attorney (SPA) executed by the NPS holder authorizing his/its representative to claim the refund check in his/its behalf, if applicable. EDISTc c. Board Resolution approving the issuance of SPA to authorized representative, if applicable and d. Proper Identification Card (ID) of the NPS holder or the authorized representative. 4. Transmit to AD all VAT TCC monetization docket together with the DVs and other supporting documents processed and approved by the office. Administrative Service (AS) shall: 1. Receive check from GSD. 2. Countersign check. 3. Return check to GSD for release to NPS holder. III. Repealing Clause : All revenue issuances or portions thereof which are inconsistent herewith are hereby repealed, modified or amended accordingly. IV. Effectivity : This Order shall take effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue