Re-classification of Revenue District Offices

September 19, 2011 REVENUE MEMORANDUM ORDER NO. 035-11 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) per Revenue Memorandum Order No. 27-2009 and may serve as part of the input for staffing and other purposes. II. Data Used and Methodology 1. There shall be eight (8) classes of RDOs under the revised classification: A, B, C, D, E, F, G and H, determined using the following statistical formula: k = 1 + 3.322 log N where k = Number of classes N = total number of observations 2. The class indicator (CI) of each RDO was computed based on the following: a. 2011 RDO Goal Allocation; b. Average ratio of RDO collection to total BIR collection from 2006-2010; c. Weighted number of annual income tax returns filed per RDO over weighted number of total BIR tax returns filed in 2010 (BIR Form 1701-40%, BIR Form 1702-60%); d. Weighted number of registered taxpayers as of December, 2010 per RDO over weighted number of total registered taxpayers as of December 31, 2010 (Professionals & Single Proprietors (PSP)-40%, Corporations (CORP)-60%). 3. The working formula is as follows: CI = 35% (A) + 35% (B) + 15% (C) + 15% (D) where: A = RDO Goal Share = RDO Goal x 100% BIR Goal B = Average Ratio of Collection by RDO RDO coll 06 + RDO Coll 07 + RDO coll 08 + RDO coll 09 + RDO coll 10 Total BIR coll 06 Total BIR coll 07 Total BIR coll 08 Total BIR coll 09 Total BIR coll 10 B = X 100% 5 C = RDO (40% of 1701 returns + 60% of 1702 returns) x 100% BIR (40% of 1701 returns + 60% of 1702 returns) D = RDO (40% of PSP + 60% of CORP) x 100% BIR (40% of PSP + 60% of CORP) 4. The following table shows the distribution of RDOs by class: Distribution of Revenue Districts by Class Class Class Limits No. of RDOs A 1.32 and above 10 B 0.80-1.31 10 C 0.58-0.79 14 D 0.47-0.57 14 E 0.32-0.46 16 F 0.23-0.31 20 G 0.12-0.22 18 H 0.11 and below 26 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 HEASaC This order repeals all existing regulations that are inconsistent herewith. V. Effectivity This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Reclassification of Revenue District Offices (Based on Goals 2011, Average Ratio of Collection 2006-2010, Number of Annual Income Tax Returns Implementing Office Values CLASS A 1. 116. Large Taxpayers Service 25.57 2. 121. Excise Tax Service 17.41 3. 33. Intramuros-Ermita-Malate 2.61 4. 122. LTDO-Makati 2.56 5. 50. South Makati 2.13 6. 47. East Makati 1.76 7. 39. South Quezon City 1.66 8. 38. North Quezon City 1.63 9. 43A. East Pasig 1.42 10. 41. Mandaluyong 1.32 CLASS B 1. 40. Cubao 1.31 2. 123. LTDO-Cebu 1.08 3. 49. North Makati 1.07 4. 52. Paraaque 1.02 5. 44. Taguig-Pateros 0.98 6. 48. West Makati 0.93 7. 57. San Pedro, Laguna 0.87 8. 80. Mandaue City 0.82 9. 54A. Trece Martirez City, South 0.80 10. 51. Pasay City 0.80 CLASS C 1. 43B. West Pasig 0.78 2. 45. Marikina 0.76 3. 53B. Muntinlupa City 0.72 4. 132. East Davao City 0.70 5. 74. Iloilo City 0.70 6. 81. Cebu City 0.68 7. 32. Quiapo-Sampaloc-San Miguel 0.68 8. 98. Cagayan de Oro City 0.67 9. 113. West Davao City 0.65 10. 29. San Nicolas-Tondo 0.65 11. 31. Sta. Cruz 0.59 12. 54B. Rosario, North Cavite 0.58 13. 24. Valenzuela 0.58 14. 21B. South Pampanga 0.58 CLASS D 1. 27. Caloocan City 0.57 2. 77. Bacolod City 0.56 3. 56. Calamba, Laguna 0.55 4. 30. Binondo 0.54 5. 25A. Plaridel, Bulacan 0.53 6. 42. San Juan 0.52 7. 21A. North Pampanga 0.52 8. 28. Novaliches 0.51 9. 8. Baguio City 0.51 10. 3. San Fernando, La Union 0.48 11. 112. Tagum, Davao del Norte 0.47 12. 53A. Las Pias City 0.47 13. 46. Cainta-Taytay 0.47 14. 4. Calasiao, West Pangasinan 0.47 CLASS E 1. 58. Batangas City 0.43 2. 59. Lipa City 0.40 3. 34. Paco-Pandacan-Sta. Ana 0.40 4. 1. Laoag City 0.40 5. 82. Cebu City South 0.39 6. 26. Malabon-Navotas 0.38 7. 79. Dumaguete City 0.37 8. 60. Lucena City 0.37 9. 18. Olongapo City 0.37 10. 67. Legaspi City 0.36 11. 110. Gen. Santos City 0.35 12. 25B. Sta. Maria, Bulacan 0.35 13. 65. Naga City 0.34 14. 103. Butuan City 0.32 15. 84. Tagbilaran City 0.32 16. 23B. South Nueva Ecija 0.32 CLASS F 1. 108. Kidapawan, Northern Cotabato 0.31 2. 17A. Tarlac City, Tarlac 0.31 3. 13. Tuguegarao, Cagayan 0.31 4. 15. Naguilian, Isabela 0.30 5. 93A. Zamboanga City 0.29 6. 20. Balanga, Bataan 0.29 7. 9. La Trinidad, Benguet 0.28 8. 83. Talisay, Cebu 0.27 9. 64. Daet, Camarines Norte 0.27 10. 55. San Pablo City 0.27 11. 99. Malaybalay, Bukidnon 0.26 12. 2. Vigan, Ilocos Sur 0.26 13. 88. Tacloban City 0.25 14. 115. Digos, Davao del Sur 0.24 15. 111. Koronadal, Southern Cotabato 0.24 16. 101. Iligan City 0.24 17 100. Ozamis City 0.24 18. 36. Puerto Princesa 0.24 19. 6. Urdaneta, East Pangasinan 0.23 20. 5. Alaminos, West Pangasinan 0.23 CLASS G 1. 89. Ormoc City 0.20 2. 71. Kalibo, Aklan 0.19 3. 107. Cotabato City 0.18 4. 91. Dipolog City 0.18 5. 78. Binalbagan, Negros Occ. 0.18 6. 76. Victorias, Negros Occ. 0.17 7. 72. Roxaz City 0.17 8. 23A. North Nueva Ecija 0.17 9. 75. Zarraga, Iloilo 0.16 10. 63. Calapan, Or. Mindoro 0.16 11. 114. Mati, Davao Or. 0.15 12. 92. Pagadian City 0.15 13. 14. Bayombong, Nueva Vizcaya 0.14 14. 105. Surigao City 0.13 15. 104. Bayugan, Agusan del Sur 0.13 16. 68. Sorsogon, Sorsogon 0.12 17. 19. Subic Bay Free Port Zone 0.12 18. 17B. Paniqui, Tarlac 0.12 CLASS H 1. 90. Maasin, Southern Leyte 0.11 2. 87. Catbalogan, Western Samar 0.11 3. 73. San Jose, Antique 0.11 4. 66. Iriga City 0.11 5. 109. Tacurong, Sultan Kudarat 0.10 6. 106. Tandag, Surigao del Sur 0.10 7. 61. Gumaca, Quezon 0.10 8. 37. San Jose, Occ. Mindoro 0.10 9. 97. Gingoog City 0.08 10. 62. Boac, Marinduque 0.08 11. 86. Borongan, Eastern Samar 0.07 12. 70. Masbate, Masbate 0.07 13. 7. Bangued, Abra 0.07 14. 69. Virac, Catanduanes 0.06 15. 102. Marawi City 0.05 16. 93B. Zamboanga, Sibugay 0.05 17. 85. Catarman, Northern Samar 0.05 18. 35. Romblon 0.05 19. 22. Baler, Aurora 0.05 20. 12. Lagawe, Ifugao 0.05 21. 16. Cabarroquis, Quirino 0.04 22. 11. Tabuk, Kalinga-Apayao 0.04 23. 10. Bontoc, Mt. Province 0.04 24. 94. Isabela, Basilan 0.03 25. 96. Bongao, Tawi-tawi 0.01 26. 95. Jolo, Sulu 0.01 Class Indicator Class Number of RDOs 1.32 and above A 10 0.80 - 1.31 B 10 0.58 - 0.79 C 14 0.47 - 0.57 D 14 0.32 - 0.46 E 16 0.23 - 0.31 F 20 0.12 - 0.22 G 18 0.11 and below H 26 128 ====