CY 2024 BIR Collection Goal Allocation, by Implementing Office Based on Medium-Term Revenue Program (MTRP) Dated December 15, 2023

March 13, 2024 REVENUE MEMORANDUM ORDER NO. 11-2024 TO : All Revenue Officials and Employees Concerned SUBJECT : CY 2024 BIR Collection Goal Allocation, By Implementing Office Based on Medium-Term Revenue Program (MTRP) Dated December 15, 2023 I. BACKGROUND The Department of Finance (DOF) has set the Bureau of Internal Revenue's CY 2024 overall collection goal at P3,055.169 Billion. This collection goal, which is based on the CY 2024 Medium-Term Revenue Program (MTRP) dated December 15, 2023, is higher than the CY 2023 actual collection by P538.182 Billion, or 21.38%. ATICcS II. OBJECTIVE This Order is being issued to establish the following: 1. The policies, methodology and guidelines used in the allocation of the CY 2024 Collection Goal; and 2. The resulting distribution of the collection goal to the Large Taxpayers Service (LTS) and Revenue Regions (RRs), including Revenue District Offices (RDOs). III. DEFINITION OF TERMS A. Collections from Non-BIR Operations include Final Withholding Tax (under Income Taxes) and Documentary Stamp Tax collections derived from transactions on Government Securities. B. Collections from BIR Operations composed of Income Taxes, Value-Added Tax, Excise Taxes, Percentage Taxes, and Other Taxes generated from transactions not classified as "Non-BIR Operations." C. Implementing Offices (IOs) refer to the collecting offices of the BIR, i.e. , LTS, RRs and RDOs. IV. GENERAL POLICIES AND GUIDELINES The following policies and guidelines were observed relative to the data requirements and goal allocation methodology used in the computation of the final goal of implementing offices: A. Data Used: 1. CY 2023 Actual Collection from Revenue Accounting Division (RAD), as reconciled with the Bureau of the Treasury (BTr), as of February 20, 2024. 2. Data considered as refinements to CY 2023 Collections: ETHIDa a. Non-Recurring transactions from January to December 2023, which include those that qualified within the threshold prescribed under RA No. 9335 (Lateral Attrition Act) and other special non-recurring transactions which account for at least 4% of CY 2023 total annual collection of the RDOs (Source: RRs/RDOs Reports submitted as of March 12, 2024); b. Collections from Registration Fees from January to December 2023 (Source: BIR Form No. 1209 Reports, updated as of March 11, 2024); c. Collections from identified Transferred-in/out Taxpayers, e.g. , affected by Supreme Court Ruling or significant business movement (Source: RDO Reports); and d. Collections from Excise Taxes (Source: BIR Form No. 1209 Reports, updated as of March 11, 2024). 3. Other Data Considered: a. CY 2024 Macroeconomic Assumptions and Indicators (Source: MTRP as of December 15, 2023); b. CY 2023 Collection Goal, by Major Tax Type (Source: MTRP as of December 15, 2023); and c. Data on Tax on T-bills (Government Securities) as of December 15, 2023, MTRP and estimated corresponding DST. B. Goal Allocation Methodology 1. The CY 2024 Goal for BIR Operations was allocated to all IOs, as follows: 1.1 Goal Allocation, by IO: a. The Refined CY 2023 Collections was derived from the Actual CY 2023 Collections by: a.1. Netting-out collections from Non-Recurring Transactions, Registration Fees and Excise Taxes; and a.2. Adding/deducting to concerned RDOs collections from Transferred-in/out Taxpayers in CY 2023. TIADCc b. The CY 2024 targets for certain items prescribed under MTRP (dated December 15, 2023) were allocated as follows: b.1 Goal on Excise Taxes amounting to P324.559 Billion was directly allocated to LTS: EXCISE TAXES AMOUNT (In Million Pesos) Total 324,559 Alcohol Products 116,506 Tobacco Products 152,404 Mining 10,887 Automobiles 5,798 Tobacco Inspection Fee 9 Miscellaneous 143 Sweetened Beverages 36,469 Cosmetic Procedures 9 Single-use Plastics 2,334 b.2 Goal on Excise Tax on Mining amounting to P1.636 Billion was allocated to Revenue Regions using ratio and proportion based on CY 2023 Actual Collection from Mining. c. The Actual CY 2024 Collection Goals of Implementing Offices for the rest of the taxes were computed by growing their respective refined CY 2023 collection by a uniform growth rate of 23.44%. This growth rate is equivalent to the percentage increase in the Total CY 2024 BIR Operations Goal net of the abovementioned prescribed targets for certain taxes vs. Total CY 2023 BIR Refined Collection. d. The Final CY 2024 Goal by IO was computed by adding-up the respective computed figures in items b and c above. cSEDTC 1.2 Goal Allocation, by Major Tax Type and Month: The Final CY 2024 Goals of IOs (Table 5A) were distributed monthly, by major tax type, based on the following: a. The total CY 2024 target allocated to IOs per tax type was aligned with the program in MTRP; and b. The monthly distribution of goal was based on the Refined CY 2023 Monthly Collections. 2. The CY 2024 Goal for Non-BIR Operations amounts to P88.014 Billion and consists of the following: a. FWT on Government Securities which was allocated based on the monthly trend provided by BTr; and b. DST on Government Securities which was sourced from the monthly program provided by BTr. C. Attachments The following tables are attached for the reference of all concerned revenue officials and personnel: Table 1 Macroeconomic Indicators and Assumptions, CY 2024 Table 2 Monthly Collection Goal Allocation, By Major Tax Type, CY 2024 Table 3 Total Collection Goal Allocation, By Implementing Office, CY 2024 Table 4 Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2024 Table 5A Monthly Total Collection Goal Allocation, By Implementing Office, CY 2024 Table 5B Monthly Collection Goal Allocation for Income Taxes, By Implementing Office, CY 2024 Table 5C Monthly Collection Goal Allocation for Excise Taxes, By Implementing Office, CY 2024 Table 5D Monthly Collection Goal Allocation for Value-Added Tax, By Implementing Office, CY 2024 Table 5E Monthly Collection Goal Allocation for Percentage Taxes, By Implementing Office, CY 2024 Table 5F Monthly Collection Goal Allocation for Other Taxes, By Implementing Office, CY 2024 D. Other Requirements 1. The LTS shall allocate its collection goal among its Divisions, and prepare the corresponding memorandum within five (5) working days upon the issuance of this Order; and 2. The Deputy Commissioner for Operations Group and the Assistant Commissioner of LTS shall provide the Deputy Commissioner for Resource Management Group the individual goal allocation of the concerned personnel assigned in the implementing units under their respective jurisdictions, within ten (10) working days upon the issuance of this Order. AIDSTE For purposes of performance in relation to the Attrition Act of 2005 (RA No. 9335), the revenue target of the BIR as published in the Budget of Expenditures and Sources of Financing (BESF) for FY 2024 shall prevail. V. EFFECTIVITY This Order shall take effect immediately. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue ATTACHMENTS TABLE 1 Macroeconomic Indicators & Assumptions CY 2024 MACROECONOMIC INDICATORS CY 2024 Nominal GDP (PHP million) 27,346,245 Nominal GDP Growth Rate (%) 11.55 Real GDP (PHP million) 22,469,297 Real GDP Growth Rate (%) 6.64 Inflation Rate (%) 3.00 Treasury Bill Rates for 364-day (%) 6.00 Source: Medium-Term Revenue Program (DBCC Approved December 15, 2023) TABLE 2 Monthly Collection Goal Allocation, By Major Tax Type, CY 2024 TABLE 3 Total Collection Goal Allocation, By Implementing Office, CY 2024 TABLE 4 Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2024 TABLE 5A Monthly Total Collection Goal Allocation, By Implementing Office, CY 2024 TABLE 5B Monthly Collection Goal Allocation for Income Taxes, By Implementing Office, CY 2024 TABLE 5C Monthly Collection Goal Allocation for Excise Taxes, By Implementing Office, CY 2024 TABLE 5D Monthly Collection Goal Allocation for Value-Added Tax, By Implementing Office, CY 2024 TABLE 5E Monthly Collection Goal Allocation for Percentage Taxes, By Implementing Office, CY 2024 TABLE 5F Monthly Collection Goal Allocation for Other Taxes, By Implementing Office, CY 2024