Prescribes the Agency Performance Indicators and Targets for CY 2019-2023

May 15, 2019 REVENUE MEMORANDUM ORDER NO. 039-19 SUBJECT : Prescribes the Agency Performance Indicators and Targets for CY 2019-2023 TO : All Internal Revenue Officials and Employees I. BACKGROUND As a result of the conducts of Strategic Planning Sessions last November and December 2018, the Agency Performance Indicators and Targets as prescribed in Revenue Memorandum Circular No. 41-2014, have been revisited to determine the new set of Agency Indicators and Targets for CYs 2019 to 2023. These indicators and targets shall measure the outcomes and results relative to the implementation of the programs and activities prescribed in the BIR Strategic Plan 2019-2023. II. OBJECTIVE This Order is issued to provide the Agency Performance Indicators (high-level) and Targets for CYs 2019-2023 that shall measure the performance of the Bureau on its goals and objectives. III. POLICIES AND GUIDELINES The following policies shall be observed: 1. The performance indicators, which are comprehensive set of measures on an Agency Level, are defined in Annex A. 2. The progress of these performance indicators for each Strategic Objective shall be monitored annually vis--vis the targets set. 3. The set of Agency Performance Indicators and Targets, shall be updated and revised, as deemed necessary. IV. REPEALING CLAUSE All revenue issuances or portions thereof inconsistent herewith are hereby repealed, amended or modified accordingly. V. EFFECTIVITY This Order shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Agency Performance Indicators and Targets (CY 2019, 2020, 2021, 2022 and 2023) Perspective Strategic Objectives Performance Measures Formula Performance Target CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 Revenue Attain Collection Target and Sustained Collection Growth Collection Performance Current years Actual Collection x 100 Current year's Agency Goal +/-2% of the DBCC assigned goal +/-2% of the DBCC assigned goal +/-2% of the DBCC assigned goal +/-2% of the DBCC assigned goal +/-2% of the DBCC assigned goal Collection Growth Current year's Actual Collection Previous year's Actual Collection x 100 Previous year's Actual Collection 10% 10% 10% 10% 10% Taxpayer Improve Taxpayer Satisfaction and Compliance Increase in number of active business registrants Total Number of current active business registrants Total number of previous year's active business registrants x 100 Total number of previous year's active business registrant 5% 5% 5% 5% 5% Process Improve Assistance, Compliance and Enforcement Process Audit Effort: Deficiency tax collections from audit of cases/enforcement activities covered by eLAs/TVNs/ DNs/TCVDs as a percentage of assigned collection goal For RRs: Collection from Audit/Enforcement (eLAs/TVNs/DNs/TCVDs) x 100 Assigned Collection Goal* 3% of assigned collection goal* 3% of assigned collection goal* 3% of assigned collection goal* 3% of assigned collection goal* 3% of assigned collection goal* For LTS: Collection from Audit/Enforcement (eLAs, DNS) x 100 Assigned Collection Goal* (*Net of voluntary compliance collections form withholding tax on compensation income, TRA of NGAs, withholding taxes of LGUs, SARO and Taxes on ONETT) Process Improve Assistance, Compliance and Enforcement Process Audit Efficiency: Number of Reported Cases with eLAs as a percentage of eLAs handled Number for reported cases covered by eLAs transmitted by the investigating office and acknowledged by the reviewing office x 100 Total number of cases covered by eLAs handled by the investigating office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office Reduction of Tax Arrears 2019 Arrears Collected/Cancelled Thru ATCA 2018 Arrears Collected/Cancelled Thru ATCA x 100 2018 Arrears Collected/Cancelled Thru ATCA 7% of increase in Arrears collected/cancelled thru ATCA over previous year 7% of increase in Arrears collected/cancelled thru ATCA over previous year 7% of increase in Arrears collected/cancelled thru ATCA over previous year 7% of increase in Arrears collected/cancelled thru ATCA over previous year 7% of increase in Arrears collected/cancelled thru ATCA over previous year Organization Strengthen Good Governance Percent of administrative cases acted upon Number of administrative cases acted upon x 100 Total number of administrative cases filed 80% of the total number of administrative cases filed were acted upon 80% of the total number of administrative cases filed were acted upon 80% of the total number of administrative cases filed were acted upon 80% of the total number of administrative cases filed were acted upon 80% of the total number of administrative cases filed were acted upon Optimize Management of Resources Budget Utilization Rate Obligation BUR: Total Obligations x 100 Total Budget 100% budget utilized 100% budget utilized 100% budget utilized 100% budget utilized 100% budget utilized Disbursement BUR: Total Disbursements x 100 Total Obligations Not yet Due and Demandable Obligations 100% budget obligations paid 100% budget obligations paid 100% budget obligations paid 100% budget obligations paid 100% budget obligations paid