Re-classification of Revenue District Offices

July 10, 2009 REVENUE MEMORANDUM ORDER NO. 027-09 TO : All Internal Revenue Officials and Others Concerned SUBJECT : Re-classification of Revenue District Offices I. Objective This Order is issued to update the classification of Revenue District Offices (RDOs) to serve as reference in their Key Performance Indicators (KPI) for compliance in the performance contracts. cHaCAS II. Data Used and Methodology 1. It was predetermined that there shall be four (4) classes of RDOs under the revised classification as agreed by MANCOM and implementing offices: A, B, C, D. 2. The class indicator (CI) of each RDO was computed based on the following: a. 2007 RDO Goal Allocation; b. Average ratio of RDO collection to total BIR collection from 2004-2007; c. Weighted number of annual income tax returns filed in 2007 by RDO: BIR Form 1701 30%, BIR Form 1702 70%; d. Weighted number of registered taxpayers as of December, 2007 by RDO: Professionals & Single Proprietors (PSP) 30%, Corporations (CORP) 70%. 3. The working formula is as follows: CI = 35% (A) + 35% (B) + 15% (C) + 15% (D) where: RDO Goal07 A = RDO Goal Share = x 100% BIR Goal07 B = Average Ratio of Collection by RDO RDO coll04 RDO coll05 RDO coll06 RDO coll07 + + + Total BIR coll04 Total BIR coll05 Total BIR coll06 Total BIR coll07 B = x 100% 4 RDO (30% of 1701 returns + 70% of 1702 returns) C = x 100% BIR (30% of 1701 returns + 70% of 1702 returns) RDO (30% of PSP + 70% of CORP) D = x 100% BIR (30% of PSP + 70% of CORP) 4. Quartile values were derived from the distribution of the different CIs to divide the RDOs into four (4) classes. These values, denoted by Q 1 , Q 2 , and Q 3 , are such that 25% of the CI distributions fall below Q 1 , 50% fall below Q 2 , and 75% fall below Q 3 . From the distribution of CIs of RDOs, the following quartile values are: HCITDc Q 1 = 0.20 Q 2 = 0.45 Q 3 = 0.87 5. The derived values for Q 1 , Q 2 and Q 3 were used as the class limits of the four groups of RDOs. The following table shows the distribution of RDOs by class: DISTRIBUTION OF REVENUE DISTRICTS BY CLASS Class Class Limits No. of RDOs A 0.87 and above 21 B 0.45-0.86 27 C 0.20-0.44 36 D 0.19 and below 44 TOTAL 128 === The list of RDOs under the reclassification scheme is shown in Annex A. III. Updating of Revenue District Office Classification RDO classification shall be updated every two (2) years. IV. Repealing Clause This order repeals all existing regulations that are inconsistent herewith. V. Effectivity This Order takes effect immediately. cCTIaS (SGD.) SIXTO S. ESQUIVIAS IV Commissioner of Internal Revenue ANNEX A Reclassification of Revenue District Offices (Based on Goals 2007, Average Ratio of Collection 2004-2007, Number of Annual Income Tax Returns Filed and Registered Taxpayers 2007) IMPLEMENTING OFFICE Values CLASS A 1. 116 Large Taxpayers Service 24.12 2. 121 Excise Tax Service 14.67 3. 33 Intramuros-Ermita-Malate 3.59 4. 122 LTDO-Makati 2.45 5. 50 South Makati 2.40 6. 43A East Pasig 2.33 7. 39 South Quezon City 2.27 8. 47 East Makati 2.03 9. 40 Cubao, Quezon City 1.44 10. 52 Paraaque 1.33 11. 41 Mandaluyong 1.23 12. 38 North Quezon City 1.18 13. 57 San Pedro, Laguna 1.17 14. 49 North Makati 1.11 15. 123 LTDO-Cebu 1.10 16. 54 A Trece Martires City, South Cavite 1.04 17. 113B East Davao City 0.99 18. 48 West Makati 0.97 19. 44 Taguig-Pateros 0.96 20. 51 Pasay City 0.94 21. 53B Muntinlupa 0.90 CLASS B 1. 27 Caloocan City 0.86 2. 46 Cainta-Taytay 0.86 3. 81 Cebu City 0.86 4. 74 Iloilo City 0.84 5. 80 Mandawe City 0.82 6. 56 Calamba, Laguna 0.80 7. 45 Marikina 0.77 8. 31 Sta. Cruz 0.72 9. 98 Cagayan de Oro City 0.68 10. 29 San Nicolas-Tondo 0.66 11. 32 Quiapo, Samp, San Miguel 0.66 12. 24 Valenzuela, Metro Manila 0.61 13. 43B West Pasig 0.58 14. 60 Lucena City 0.58 15. 28 Novaliches 0.56 16. 112 Tagum, Davao Del Norte 0.56 17. 42 San Juan 0.54 18. 8 Baguio City 0.51 19. 54 B Rosario, North Cavite 0.51 20. 25 A Plaridel, Bulacan 0.50 21. 25 B Marilao, Bulacan 0.50 22. 1 Laoag City 0.47 23. 30 Binondo 0.47 24. 58 Batangas City 0.47 25. 59 Lipa City 0.47 26. 77 Bacolod City 0.46 27. 26 Malabon-Navotas 0.45 CLASS C 1. 21A North Pampanga 0.44 2. 3 San Fernando, La Union 0.42 3. 21B South Pampanga 0.41 4. 34 Paco-Pandacan-Sta. Ana 0.41 5. 4 Calasiao, Pangasinan 0.39 6. 89 Ormoc City 0.39 7. 82 Cebu City South 0.37 8. 79 Dumaguete City 0.35 9. 110 General Santos City 0.34 10. 18 Olongapo City 0.32 11. 88 Tacloban City 0.32 12. 17A Tarlac City, Tarlac 0.31 13. 23B South Nueva Ecija 0.31 14. 53 A Las Pias 0.31 15. 15 Ilagan, Isabela 0.30 16. 20 Balanga, Bataan 0.29 17. 55 San Pablo City 0.29 18. 65 Naga City 0.29 19. 67 Legaspi City 0.29 20. 83 Talisay, Cebu 0.29 21. 103 Butuan City 0.29 22. 2 Vigan, Ilocos Sur 0.26 23. 13 Tuguegarao, Cagayan 0.26 24. 84 Tagbilaran City 0.26 25. 93A Zamboanga City 0.26 26. 5 Alaminos, Pangasinan 0.25 27. 36 Puerto Princesa 0.24 28. 101 Iligan City 0.24 29. 99 Malaybalay, Bukidnon 0.23 30. 72 Roxas City 0.22 31. 75 Barotac Nuevo, Iloilo 0.21 32. 100 Ozamis City 0.21 33. 113A West Davao City 0.21 34. 6 Urdaneta, Pangasinan 0.20 35. 111 Koronadal, S. Cotabato 0.20 36. 115 Digos, Davao del Sur 0.20 CLASS D 1. 76 Victorias, Negros Occ. 0.19 2. 71 Kalibo, Aklan 0.18 3. 108 Kidapawan, North Cotabato 0.18 4. 64 Daet, Camarines Norte 0.17 5. 91 Dipolog City 0.17 6. 107 Cotabato City 0.17 7. 19 Subic Free Port Zone 0.16 8. 63 Calapan, Oriental Mindoro 0.16 9. 78 Binalbagan, Negros Occ. 0.16 10. 9 La Trinidad, Benguet 0.15 11. 92 Pagadian City 0.15 12. 104 Bayugan, Agusan del Sur 0.15 13. 114 Mati, Davao Oriental 0.14 14. 23A North Nueva Ecija 0.13 15. 105 Surigao City 0.12 16. 106 Tandag, Surigao del Sur 0.12 17. 14 Bayombong, N. Vizcaya 0.11 18. 87 Catbalogan, Samar 0.11 19. 90 Maasin, Southern Leyte 0.11 20. 17B Paniqui, Tarlac 0.10 21. 86 Borongan, East Samar 0.10 22. 109 Tacurong, Sultan Kudarat 0.10 23. 37 San Jose, Occ. Mindoro 0.09 24. 62 Boac, Marinduque 0.09 25. 66 Iriga City, Camarines Sur 0.09 26. 97 Gingoog City 0.09 27. 68 Sorsogon, Sorsogon 0.08 28. 70 Masbate, Masbate 0.08 29. 73 San Jose, Antique 0.08 30. 61 Gumaca, Quezon 0.07 31. 7 Bangued, Abra 0.06 32. 85 Catarman, Northern Samar 0.06 33. 93B Zamboanga Sibugay 0.06 34. 94 Isabela, Basilan 0.05 35. 11 Tabuk, Kalinga-Apayao 0.04 36. 12 Lagawe, Ifugao 0.04 37. 22 Baler, Quezon 0.04 38. 35 Romblon, Romblon 0.04 39. 69 Virac, Catanduanes 0.04 40. 102 Marawi City 0.04 41. 10 Bontoc, Mt. Province 0.03 42. 16 Cabarroguis, Quirino 0.03 43. 95 Jolo, Sulu 0.01 44. 96 Bongao, Tawi-tawi 0.01 Class Indicator Class Number of RDOs 0.87 and above A 21 0.45-0.86 B 27 0.20-0.44 C 36 0.19 and below D 44 128 === Rundate: July 13, 2009 ANNEX B Data Used for the Reclassification of RDOs Share Weighted % Distribution REVENUE REGIONS/ Number of of Registered Class DISTRICTS Corporations Registered TPs Indicator Class TPs (m) = (n)= (o) = (n)/Total (p) = (b)(35%) + (k) x 70% (l) + (m) BIR weighted no. (c)(35%) + of Registered (i)(15%) + (o)(15%) TPs GRAND TOTAL 342,357 758,468 100.00 ====== ====== ===== 1 CALASIAO, PANGASINAN 8,229 34,807 4.59 1.99 1-Laoag City 1,013 9,755 1.29 0.47 B 2-Vigan, Ilocos Sur 1,682 5,026 0.66 0.26 C 3-San Fernando, La Union 1,117 4,340 0.57 0.42 C 4-Calasiao, Pangasinan 2,008 7,060 0.93 0.39 C 5-Alaminos, Pangasinan 963 3,945 0.52 0.25 C 6-Urdaneta, Pangasinan 1,446 4,681 0.62 0.20 C 2 CORDILLERA, ADMIN. REGION 4,176 13,493 1.78 0.83 7-Bangued, Abra 448 1,345 0.18 0.06 D 8-Baguio City 2,232 7,138 0.94 0.51 B 9-La Trinidad, Benguet 612 2,781 0.37 0.15 D 10-Bontoc, Mt. Province 330 517 0.07 0.03 D 11-Tabuk, Kalinga-Apayao 223 812 0.11 0.04 D 12-Lagawe, Ifugao 291 901 0.12 0.04 D 3 TUGUEGARAO, CAGAYAN 3,800 12,930 1.70 0.71 13-Tuguegarao, Cagayan 1,030 4,224 0.56 0.26 C 14-Bayombong, N. Vizcaya 669 3,026 0.40 0.11 D 15-Ilagan, Isabela 1,891 5,027 0.66 0.30 C 16-Cabarroguis, Quirino 211 653 0.09 0.03 D 4 SAN FERNANDO, PAMPANGA 16,190 46,914 6.19 2.51 17A-Tarlac City, Tarlac 1,766 4,665 0.62 0.31 C 17B-Paniqui, Tarlac 832 2,214 0.29 0.10 D 18-Olongapo City 1,336 6,467 0.85 0.32 C 19-Subic Free Port Zone 791 862 0.11 0.16 D 20-Balanga, Bataan 1,497 5,687 0.75 0.29 C 21A-North Pampanga 4,542 9,531 1.26 0.44 C 21B-South Pampanga 2,155 7,355 0.97 0.41 C 22-Baler, Quezon 320 845 0.11 0.04 D 23A-North Nueva Ecija 841 2,647 0.35 0.13 D 23B-South Nueva Ecija 2,109 6,640 0.88 0.31 C 5 VALENZUELA, METRO MANILA 17,711 43,059 5.68 2.92 24-Valenzuela, Metro Manila 3,092 7,355 0.97 0.61 B 25A-Plaridel, Bulacan 2,655 7,275 0.96 0.50 B 25B-Marilao, Bulacan 3,882 10,637 1.40 0.50 B 26-Malabon-Navotas 2,799 6,411 0.85 0.45 B 27-Caloocan City 5,284 11,381 1.50 0.86 B 6 MANILA 44,939 83,610 11.02 6.87 29-San Nicolas-Tondo 3,848 9,654 1.27 0.66 B 30-Binondo 6,580 9,597 1.27 0.47 B 31-Sta. Cruz 13,278 25,175 3.32 0.72 B 32-Quiapo, Samp, San Miguel 5,322 12,679 1.67 0.66 B 33-Intramuros-Ermita-Malate 10,651 15,037 1.98 3.59 A 34-Paco-Pandacan-Sta. Ana 2,962 5,439 0.72 0.41 C 35-Romblon, Romblon 221 486 0.06 0.04 D 36-Puerto Princesa 1,401 3,800 0.50 0.24 C 37-San Jose, Occ. Mindoro 676 1,743 0.23 0.09 D 7 QUEZON CITY 81,485 145,860 19.23 11.77 28-Novaliches 4,722 9,946 1.31 0.56 B 38-North Quezon City 10,582 18,176 2.40 1.18 A 39-South Quezon City 13,839 21,962 2.90 2.27 A 40-Cubao, Quezon City 8,951 15,091 1.99 1.44 A 41-Mandaluyong 8,847 13,836 1.82 1.23 A 42-San Juan 4,500 7,532 0.99 0.54 B 43A-East Pasig 10,489 15,922 2.10 2.33 A 43B-West Pasig 2,622 3.981 0.52 0.58 B 45-Marikina 5,774 13,254 1.75 0.77 B 46-Cainta-Taytay 11,159 26,161 3.45 0.86 B 8 MAKATI 53,297 89,939 11.86 10.96 44-Taguig Pateros 3,171 5,987 0.79 0.96 A 47-East Makati 7,507 11,336 1.49 2.03 A 48-West Makati 4,148 5,821 0.77 0.97 A 49-North Makati 6,969 9,953 1.31 1.12 A 50-South Makati 8,292 14,188 1.87 2.40 A 51-Pasay City 5,279 10,567 1.39 0.94 A 52-Paraaque 9,262 16,890 2.23 1.33 A 53A-Las Pias 2,550 4,470 0.59 0.31 C 53B-Muntinlupa 6,120 10,728 1.41 0.90 A 9 SAN PABLO CITY 26,610 66,986 8.83 5.65 54A-Trece Martires City, South Cavite 4,513 11,343 1.50 1.04 A 54B-Rosario, North Cavite 3,742 9,405 1.24 0.51 B 55-San Pablo City 1,668 4,070 0.54 0.29 C 56-Calamba, Laguna 2,638 6,970 0.92 0.80 B 57-San Pedro, Laguna 4,723 10,668 1.41 1.17 A 58-Batangas City 2,246 5,948 0.78 0.47 B 59-Lipa City 2,370 6,318 0.83 0.47 B 60-Lucena City 1,973 5,055 0.67 0.58 B 61-Gumaca, Quezon 950 2,005 0.26 0.07 D 62-Boac, Marinduque 391 1,727 0.23 0.09 D 63-Calapan, Oriental Mindoro 1,398 3,478 0.46 0.16 D 10 LEGASPI CITY 6,270 17,054 2.25 1.05 64-Daet, Camarines Norte 737 1,824 0.24 0.17 D 65-Naga City 1,889 4,871 0.64 0.29 C 66-Iriga City, Camarines Sur 545 2,003 0.26 0.09 D 67-Legaspi City 1,444 4,189 0.55 0.29 C 68-Sorsogon, Sorsogon 794 1,865 0.25 0.08 D 69-Virac, Catanduanes 361 777 0.10 0.04 D 70-Masbate, Masbate 499 1,525 0.20 0.08 D 11 ILOILO CITY 9,249 27,039 3.56 1.54 71-Kalibo, Aklan 707 2,218 0.29 0.18 D 72-Roxas City 1,557 5,874 0.77 0.22 C 73-San Jose, Antique 725 1,519 0.20 0.08 D 74-Iloilo City 4,988 12,317 1.62 0.84 B 75-Barotac Nuevo, Iloilo 1,273 5,110 0.67 0.21 C 12 BACOLOD CITY 6,758 18,744 2.47 1.16 76-Victorias, Negros Occ. 925 3,141 0.41 0.19 D 77-Bacolod City 3,177 7,215 0.95 0.46 B 78-Binalbagan, Negros Occ. 1,117 3,468 0.46 0.16 D 79-Dumaguete City 1,539 4,921 0.65 0.35 C 13 CEBU CITY 19,722 40,025 5.28 2.59 80-Mandawe City 6,390 13,034 1.72 0.82 B 81-Cebu City 7,447 13,129 1.73 0.86 B 82-Cebu City South 1,943 4,406 0.58 0.37 C 83-Talisay, Cebu 1,969 4,928 0.65 0.29 C 84-Tagbilaran City 1,973 4,529 0.60 0.26 C 14 TACLOBAN CITY 6,393 17,899 2.36 1.08 85-Catarman, Northern Samar 533 797 0.11 0.06 D 86-Borongan, East Samar 475 1,675 0.22 0.10 D 87-Catbalogan, Samar 1,061 2,564 0.34 0.11 D 88-Tacloban City 2,113 5,747 0.76 0.32 C 89-Ormoc City 1,495 5,132 0.68 0.39 C 90-Maasin, Southern Leyte 715 1,985 0.26 0.11 D 15 ZAMBOANGA CITY 3,898 12,717 1.68 0.72 91-Dipolog City 1,232 3,600 0.47 0.17 D 92-Pagadian City 1,009 3,029 0.40 0.15 D 93A-Zamboanga City 1,102 3,487 0.46 0.26 C 93B-Zambonga Sibugay 121 384 0.05 0.06 D 94-Isabela, Basilan 145 1,710 0.23 0.05 D 95-Jolo, Sulu 288 330 0.04 0.01 D 96-Bongao, Tawi-tawi - 177 0.02 0.01 D 16 CAGAYAN DE ORO CITY 10,480 27,411 3.61 1.50 97-Gingoog City 401 977 0.13 0.09 D 98-Cagayan de Oro City 4,730 12,423 1.64 0.68 B 99-Malaybalay, Bukidnon 1,672 4,866 0.64 0.23 C 100-Ozamis City 1,469 3,650 0.48 0.21 C 101-Iligan City 1,570 4,448 0.59 0.24 C 102-Marawi City 639 1,047 0.14 0.04 D 17 BUTUAN CITY 4,899 13,039 1.72 0.68 103-Butuan City 1,836 5,768 0.76 0.29 C 104-Bayugan, Agusan del Sur 977 2,631 0.35 0.15 D 105-Surigao City 1,166 2,702 0.36 0.12 D 106-Tandag, Surigao del Sur 921 1,938 0.26 0.12 D 18 COTABATO CITY 6,509 14,916 1.97 0.99 107-Cotabato City 1,488 2,697 0.36 0.17 D 108-Kidapawan, North Cotabato 1,266 2,887 0.38 0.18 D 109-Tacurong, Sultan Kudarat 739 1,898 0.25 0.10 D 110-General Santos City 2,034 4,848 0.64 0.34 C 111-Koronadal, S. Cotabato 982 2,586 0.34 0.20 C 19 DAVAO CITY 11,745 31,037 4.09 2.10 112-Tagum, Davao Del Norte 2,645 7,209 0.95 0.56 B 113A-West Davao City 1,400 3,312 0.44 0.21 C 113B-East Davao City 5,302 12,548 1.65 0.99 A 114-Mati, Davao Oriental 828 3,407 0.45 0.14 D 115-Digos, Davao del Sur 1,570 4,560 0.60 0.20 C LTS 991 991 0.13 42.37 116-Large Taxpayers Service 476 476 0.06 24.12 A 121-Excise Tax Service 179 179 0.02 14.67 A 122-LTDO-Makati 181 181 0.02 2.45 A 123-LTDO-Cebu 155 155 0.02 1.11 A Source: BIR Form 1770