Policies and Guidelines in the Certification of Electronic Tax Return Filing and/or Payment Solutions

December 11, 2018 REVENUE MEMORANDUM ORDER NO. 008-19 SUBJECT : Policies and Guidelines in the Certification of Electronic Tax Return Filing and/or Payment Solutions TO : All Internal Revenue Officials, Employees and Others Concerned I. BACKGROUND In line with the aim to provide faster, more reliable and convenient services to the taxpaying public, the BIR is continuously introducing enhancements to business processes by utilizing innovations in information technology (IT) to automate key tax services and functions. Through BIR's eServices, taxpayers can access registration services online, electronically prepare and file tax returns, and electronically pay their tax dues. HTcADC To further encourage taxpayer's compliance and keep pace with the shift of tax administration globally to digital tax services, the BIR recognizes innovations being introduced by private Tax Software Providers (TSPs) as mentioned in RMO No. 24-2013 in automating the tax return preparation, filing and payment of tax due thereon. The solutions, however, require certification from the BIR to ensure that the output of automated tax return filing and payment can be submitted to and processed by the BIR's database. BIR is issuing this Order to outline the policies and guidelines in certifying through the Electronic Tax Software Provider Certification System (eTSPCert System) the tax return filing, and/or payment solutions developed by third party commercial providers. II. OBJECTIVES This Order is issued to: 1. Establish policies, guidelines, and procedures for the certification of electronic tax return filing and/or payment solutions; 2. Define the duties and responsibilities of concerned BIR offices and officials relative to the certification of electronic tax return filing and/or payment solutions; and CAIHTE 3. Provide taxpayers with additional options for electronic tax return preparation, filing and/or payment of the tax due thereon. III. COVERAGE 1. The policies, guidelines, and procedures prescribed herein shall be applicable to TSPs who develop electronic tax return filing, and/or payment solution for their own clients, for sale as an off-the-shelf solution, or for subscription. 2. TSPs may submit their solutions for testing and certification as an: (1) e-filing; (2) e-payment; and (3) combination of e-filing and e-payment solution. IV. DEFINITION OF TERMS 1. Authorized Agent Banks (AABs) financial institutions that are accredited to collect the payment of internal revenue taxes on BIR's behalf; aScITE 2. Accredited Tax Agent (ATA) accredited tax practitioners who are engaged in tax practice and who are required to apply for accreditation prior to performance of services to their client-taxpayers. Their services include but are not limited to preparation, certification, audit and filing of tax returns, information returns or other statements required by the Tax Code or Regulations; 3. Certified Tax Filing, and/or Payment Solution (CTFPS) solution/software that has passed the BIR certification process and which allows taxpayers and ATAs to conveniently file tax returns and/or pay tax due thereon electronically; 4. eCert ID is a unique alphanumeric identification number that will be assigned to the TSP after the approval of each application. This will be the unique identifier for all future filings and submissions using the certified solution; 5. Electronic Filing is the process of preparing and submitting duly accomplished tax returns through the Online eBIRForms System, Electronic Filing and Payments System (eFPS), and certified tax return preparation and filing solutions; DETACa 6. Electronic Payment payment for goods and services using electronic payment instruments (credit cards, ATM/debit cards, mobile money) through electronic payment channels (internet, point of sales machines, and automated teller machines); 7. Extensible Markup Language (XML) a type of data format used for representation and transfer of structured data on the web or between different applications; 8. File Structure pertains to a list of data fields per BIR form and payment report. 9. Secured File Transfer Protocol (SFTP) a network protocol which facilitates data access and transfer over a secure data stream. It requires that the client-user be authenticated by the server and that the data transfer must take place over a secure channel. 10. Service Level Agreement (SLA) a contract between two contracting parties (usually a service provider and a user) specifying the level of service availability, quality, and timeliness of service delivery expected. 11. Tax Software Provider (TSP) an individual or organization whose business is to render electronic tax filing services to taxpayer-clients by offering third-party solutions, that is, an electronic tax return filing and/or payment solution that will generate the tax returns required and specified by the BIR; HEITAD 12. TSP Tool a standalone application that will handle the loading, validation, preparing, encrypting, compressing and submitting of the xml file. V. POLICIES AND GUIDELINES 1. The Bureau shall certify the Tax Filing and/or Payment Solution (TFPS) of the TSP provided it has passed the evaluation and testing prescribed in the procedures in Section VI, hereof. 2. An individual or non-individual TSP is eligible to apply for testing and certification of their tax return filing/payment solution provided said TSP is registered with the BIR. 3. The TSP who applies for certification of the TFPS shall enroll in the eTSPCert System and the applied TFPS shall undergo evaluation, testing and certification. Each approved application shall be given a corresponding eCert ID and Certificate. The eTSPCert System can be accessed at the BIR website (www.bir.gov.ph). 4. The TSP who shall apply for certification of their tax return filing/payment solution shall partner with any of the Authorized Agent Banks (AABs) and shall accept the terms and conditions of the Terms of Service Agreement (TOSA) set forth by the Bureau. 5. AABs shall apply for certification of their ePayment System for the BIR in the eTSPCert System. aDSIHc 6. Non-Individual TSPs are allowed to assign three (3) authorized representatives in the application for testing and certification of their tax return filing/payment solution. However, Individual TSPs are not allowed to assign authorized representative. 7. BIR Forms listed in Annex A are initially available for tax return filing solution certification. Such list, however, may be expanded to cover additional forms. TSP may select the tax forms they need to service their clients. 8. The Bureau shall issue certification for each approved BIR form application, provided that the output of the tax return filing and/or payment solution has passed the testing prescribed in the test procedures in Section VI, No. 3 hereof. The file structures of the tax returns and payment form required by BIR shall be adopted by the TSP in the submission of the return in XML format/payment in .CSV files. 9. Certification for e-filing (Annex B-1) shall be issued per BIR form applied for. Certification for e-payments (Annex B-2) shall be issued only once and covers all tax forms and types. TSPs applying for e-filing integrated with e-payments need to complete certification for e-filing before proceeding to e-payments testing and certification. 10. TSP shall ensure that their TFPS will generate correct tax/payment information. However, the accuracy and truthfulness of the input data shall be the responsibility of the concerned taxpayer-client. ATICcS 11. Non-AAB TSPs applying for ePayment or eFiling and ePayment Solution shall partner with an AAB with ePayment facility. Nominated partner AABs of a non-AAB TSP applying for ePayment integration that do not have certified BIR ePayment facility shall apply for ePayment solution certification thru the eTSPCert System. 12. Certified TFPS may be used by ATAs to file tax returns for their clients. 13. TSPs with Certified TFPS must ensure compliance with provisions of Republic Act No. 10173, otherwise known as 'Data Privacy Act of 2012' in handling taxpayer information. They are responsible for ensuring the protection, privacy and confidentiality of taxpayer data. Due to the sensitivity of information being transmitted, TSPs must implement an efficient security policy which will identify, authorize and track users of the system. 14. TSP shall be held responsible for any breach in their system, or any violations committed by their users, whether authorized or unauthorized. 15. AABs shall remain the BIR collection agent, and as such, TSPs with certified tax filing solution can enter agreements for technical integration with internet banking collection or internet payment gateways of AABs. 16. TSPs shall notify the BIR Collection Service, copy furnished Information Systems Group in writing for modifications or upgrades of their certified TFPS. Notifications shall be made within thirty (30) calendar days from implementation of upgrade or modification. ETHIDa 17. The BIR shall announce via the BIR official website (www.bir.gov.ph) the issuance of new versions of eBIRForms. The TSP tools and XML files for the new versions of the format shall be available for download within sixty (60) days from posting of the announcement, TSPs shall apply for re-testing and certification. 18. The certification shall be revoked by the BIR upon the occurrence of any of the following: a. Any misrepresentation committed in any of the submitted documents or information provided in the enrollment and application form; or b. Continuing or repeated non-compliance, willful violation, or non-performance of terms and conditions outlined in the terms of service agreement for the use of the system; or c. Connivance with taxpayers to under-declare taxes due and payment; or d. Non-application for re-testing within the prescribed period of 60 days from the date of publication of the announcement informing the public of new versions of eBIRForms; or TIADCc e. Failure to inform BIR of any enhancement in the certified TFPS. 19. TSPs are required to submit a list of their taxpayer clients (both VAT and non-VAT). VAT-registered TSP shall follow the existing issuance on the submission of summary list of sales (SLS) as prescribed by RR 8-2002 and amended by RR 1-2013. VI. PROCEDURES 1. ENROLLMENT 1.1. TSPs shall access the eTSPCert System in the BIR website at www.bir.gov.ph for enrollment. 1.2. TSPs shall fill up all the required fields in the enrollment form window and comply with all the instructions. 1.3. Authorized representatives of corporations and/or partnerships shall use the official business e-mail address of the corporation/business while sole proprietors may use the official business e-mail address or personal e-mail address. 1.4. The eTSPCert System shall validate the TSP registration data from the BIR Registration database. Upon successful validation, the eTSPCert System generates a temporary password and sends the password to the TSP's nominated e-mail address. 1.5. TSPs shall change the temporary password generated by the eTSPCert System upon receipt of the e-mail notification. 2. APPLICATION FOR CERTIFICATION 2.1 The TSP shall: cSEDTC i. Log in to the eTSPCert System and clicks on the "New Application Form" button. ii. Select the application type (1) e-filing (2) e-payment or (3) e-filing and e-payment. Non-AAB TSPs who will integrate their e-filing solutions with e-payment services can partner with AABs authorized by BIR to accept e-payments. AABs not yet authorized by BIR to accept on-line payment shall file separate applications for e-payment. iii. Select the BIR forms from the list of values that they will submit for testing and certification for e-filing solution. iv. Fill up all the required information fields; attach and submit all required documents as follows: For TSPs classified as Individual taxpayers and applying for tax return filing/payment solution: Sworn Application for the Certification of Electronic Tax Return Filing and/or Payment Solutions (Annex D) AIDSTE Non Disclosure Agreement (Annex E) For TSPs classified as Non-individual taxpayers and applying for tax return filing/payment solution certification: Sworn Application for the Certification of Electronic Tax Return Filing and/or Payment Solution Board Resolution authorizing any three (3) officers designated to file the application Non-Disclosure Agreement 2.2 The Evaluator from Collection Programs Division-Collection Service (CS) shall: i. Access the eTSPCert System; ii. Review and evaluate the completeness and validity of submitted documents, upon receipt of e-mail notification from eTSPCert System of application received from TSP; iii. Assess the TSP compliance in eFiling and ePayment of all taxes applicable to his line of business covering the latest taxable year; and SDAaTC iv. Accept the application of TSP if passed/complied to all functional requirements. 2.3 Each submitted application shall be given a corresponding Application Number which will be generated by eTSPCert System. 3. TESTING AND CERTIFICATION 3.1 The TSP shall: i. Log-in to the eTSPCert System, upon receipt of email notification of accepted application. ii. Proceed with the testing using the downloaded TSP Tool to process the XML File. iii. The TSP Tool shall handle the loading, validation, preparing, encrypting, compressing and submitting of the XMLfile. This will be a standalone application that will be available for download after the approval of TSP application. iv. The testing shall only be limited to the correctness of format and structure of the file to be transmitted to BIR. TSPs are given ninety (90) days to complete the testing. AaCTcI v. TSPs/AAB shall submit the Collection File Structure through SFTP. The SFTP log in credentials shall be given upon approval of TSP application. vi. Receive an email confirmation from BIR on the result of the testing. An electronic copy of the Certificate shall be issued to the TSP user after the test file/s has passed the validation and testing. 3.2 The Technical Evaluator from Taxpayer Service Systems Division-Information Systems Project Management Service (ISPMS) shall: i. Send the SFTP log in credentials to the TSP upon approval of TSP application; ii. Conduct evaluation and testing based on the submitted XML and/or Collection File Structure of TSP Solution; iii. Inform the Assistant Commissioners of CS and ISPMS on the result of evaluation and testing. 3.3 TSP shall receive an email notification on the result of the testing. A system generated Certification shall be attached to the email notification after the test file/s has passed the validation and testing. acEHCD 4. REPEALING CLAUSE All revenue issuances or portions thereof which are inconsistent herewith are hereby repealed, modified, or amended accordingly. 5. EFFECTIVITY This order shall take effect immediately. Date Issued: February 8, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A eBIR Forms Available for Certification 1. 0619-E 2. 0619-F 3. 1601-EQ 4. 1601-FQ 5. 1601-C 6. 2551Q 7. 1701-Q 8. 1604-CF 9. 1604-E 10. 1701 11. 1606 12. 1706 13. 2000-OT 14. 2550M 15. 2550Q 16. 1702-Q ANNEX B-1 Certification for e-Filing Certification of Electronic Tax Return Preparation and Filing Solution ANNEX B-2 Certification for e-Payment Certification of Electronic Tax Payment ANNEX C Terms of Service Agreement (ToSA) Terms of Service Agreement By accessing and/or using any part of the eTSPCert System, herein collectively called the "Service," you shall be deemed to have accepted to be legally bound by these Terms of Service. HSAcaE Please review the following terms carefully. The terms "Bureau," "we," "us" and "our" refer to the Bureau of Internal Revenue or BIR, the legal name of the owner of the system. The term "you" refers to the tax software provider or the authorized representative of a non-individual tax solutions provider. The Bureau reserves the right to modify these terms or provide additional terms from time to time. The continued use of the Service following the posting of any changes to the Terms of Service constitutes your acceptance of such changes. Description of Service The Service provides the facility to file and submit application for the certification of electronic tax filing and/or payment solution data structure; download TSP tools, eBIR forms .xml data structure per each of the tax forms, and BIR collection data structure; test if the tax filing and/or payment solution contains the correct file structure and that the tax return resulting therefrom can be successfully transmitted, received, validated and viewed at the eBIRForms System, and receive a certification attesting to the abovementioned. General User's Obligations Use of BIR Form XML Data Structure and BIR Collection Data Structure The file structure pertains to a list of data fields per BIR form and payment report. The downloaded file structure is for your personal, non-commercial use only. The downloaded software package is used for filling up of tax returns, and there is a facility for its electronic submission. It is designed with automatic population of selected taxpayer information and automatic mathematical computation of tax due based on encoded taxable amounts. AScHCD The Service ensures the preservation of data transmitted and includes safeguards against efforts to tamper with, manipulate, alter, or subvert the data. Tampering or any attempt to tamper the TSP tools, .xml files, and collection data structure will be dealt with in accordance with the applicable laws. You are responsible for using the TSP tools, .xml files, and collection data structure only on computers and telephone or other lines that you have permission to use, and you are responsible for all related charges, if applicable, such as cable, ISP, and telephone charges. You are strictly prohibited from modifying, copying, distributing, transmitting, displaying, performing, reproducing, publishing, licensing, creating derivative works, transferring or selling any information contained in the TSP tools, .xml files, and collection data structure, for a fee or otherwise. Updates of File Structure Format You are required to download updated file structure format when notified of new versions of the BIR tax returns. Enrollment Obligation In consideration of your use of the Service, you undertake to provide true, accurate, current and complete information about yourself or your organization as required by the BIR. You shall maintain and update the data to keep it true, accurate, current and complete. BIR reserves the right to terminate or suspend your account and to refuse current or future use of the service in case any information you provided is found to be untrue, inaccurate, obsolete or incomplete. HESIcT Security Obligation You undertake to use the Service in a manner that protects your privacy and the data/information you provide. Authorized users will be provided with an account username and password. You agree not to disclose your account password to anyone and you are fully responsible for all activities that occur under your account username. You are advised to use a strong password consisting of at least eight (8) characters, with numeric as well as alphabetic characters, and with a mix of upper and lower case alphabetic characters and at least one special character (for example, !,@,#). You agree to log-out or lock your computer if unattended to ensure that unauthorized users do not gain access to your account and the data you provided and were provided to you through the Service. You should ensure that you exit from your account at the end of every session. You are responsible for the protection of your computer where the TSP eCert System is accessed against viruses, worms or malwares. You shall immediately notify the BIR through email at [emailprotected] or call Customer Assistance Division at 981-7063; 7020; 7030 and 7040 for any unauthorized use of your password or account, or any other breach of security. AcICHD Legal Obligation The Service provides you various email notifications that may require response or confirmation relative to your use of the system. You must promptly respond to or confirm the email notifications when required. The certification issued by the BIR only attests that the output forms of the certified tax filing/payment solutions has the correct file structure and that the tax return resulting therefrom can be successfully transmitted, received, validated and viewed at the eBIRForms System. The correctness and integrity of data shall be the joint responsibility of the TSP/ATAs, and taxpayers who file the returns. The accuracy and truthfulness of the input data from the taxpayers and the generation of input files by the tax return preparation, filing, and payment software does not extinguish taxpayer liability for misrepresentation or inaccuracy. Payment Obligation It is your obligation to ensure that payment shall be received by the BIR and be cleared on the BIR account on or before the due dates. Disclaimer The BIR is certifying the TSP solutions for alternative mode of filing tax returns and/or payment of tax dues. The content of the website is provided in an "as is basis" and without any express or implied warranties. caITAC The BIR does not warrant that the Service will be uninterrupted; be free from inaccuracies, errors, viruses or other harmful components; operate in the configuration or with the hardware or software you use. The BIR is not liable or responsible for any damages, expenses, costs or loss of any kind (including, but not limited to, any direct, indirect, special, incidental, or consequential damages, financial losses, loss of profits, loss of any data or loss of any opportunity) caused as a result (directly or indirectly) of, or in connection with, your use of the Service (including the downloads and/or use of the services) or reliance on any information, materials, tools, provided in or available from this site. ANNEX D Sworn Statement of Software Ownership Template SWORN APPLICATION FOR THE CERTIFICATION OF ELECTRONIC TAX RETURN FILING AND/OR PAYMENT SOLUTIONS (To be accomplished by the Individual TSP and Authorized Representative of Non-Individual Taxpayer) I ______________________________ (Name of Individual Applicant or Authorized Representative) , ______________ (Nationality) , of legal age designated as _____________ (Position) of __________________________ (Registered Name of Company/Corporation) , with business address located at _________________________________, do hereby certify the following: 1. That, ___________________________________ (name of the Tax Software Provider-applicant) is engaged in, ___________________ (line of business) with Taxpayer Identification Number (TIN) _______________; 2. That, it is registered with BIR under Certificate of Registration No. _______________ issued at Revenue District Office No. _______________ on _______________; 3. That, the undersigned is the Authorized Officer of the aforesaid corporation/company to accomplish this sworn application for the [ ] Certification of Electronic Tax Return Preparation and Filing Solutions [ ] Certification of Electronic Tax Payment Solutions [ ] Certification of Electronic Tax Return Preparation, Filing and Payment Solutions 4. __________________________ (name of software solution) that the output of the solution shall conform to the conditions/specifications requirements set by the Bureau of Internal Revenue and the Data Pr ivacy Act of 2 012 in handling personal information; cDHAES 5. That, __________________________ <name of the tax software provider> has the proprietary rights to the ____________________________ <name of software solution> . 6. That, the ______________ (Name of Software) has the following essential features; (Attach additional sheet if necessary) I HEREBY DECLARE UNDER PENALTIES OF PERJURY THAT THE FOREGOING ATTESTATIONS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. TCAScE __________________________ Name and Signature of Affiant/Authorized Representative TIN: ____________________ SUBSCRIBED and sworn to before me, in the City/Municipality of ____________, this day of _____________, 20___ by __________________________ with Residence Certificate No. ________ issued at ______________ on, ______________ 20___. Notary Public Doc. No. Page No. Book No. Series of ANNEX E Non-Disclosure Agreement Template NON-DISCLOSURE AGREEMENT This confidentiality agreement is entered into on ______________ <date> , by and between the Bureau of Internal Revenue and ________________________________ <Company Name> with principal office at ________________________________ <Company Address> herein represented by ____________________________ <Name> which together with its subsidiaries and affiliates, shall individually and collectively be referred to hereinafter as the "Recipient." The Bureau of Internal Revenue and _____________________________ <Company Name> hereby agree as follows: ASEcHI 1. Recipient acknowledges that all related documentations, including but not limited to descriptions of and other information regarding the Certification of Electronic Tax Return Filing and/or Payment Solutions or any of its components, technical and on-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 Nati onal Internal Revenue Code (NI RC), as amended, as well as sensitive personal information under Republic A ct (RA) No. 10 173, or the Data Pr ivacy Act of 20 12, 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 User Acceptance Test for Certification of Electronic Tax Return, Filing and/or Payment Solutions . 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. cTDaEH 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 __________________________ <Name of Company> , 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 Certification of Electronic Tax Return Filing and/or Payment Solutions 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. ITAaHc 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. cSaATC <Name of Company> Bureau of Internal Revenue ______________________ <Name of Signatory> <Position> ____________________________ ANIAN R. SALAZAR ACIR, Information Systems Proj. Mgt. Service