Prescribing the Policies and Procedures to Implement Revenue Regulations No. 10-97 Amending Revenue Regulations No. 1-87, in Relation to Executive Order No. 651, Re: Designation of Government Officials as Withholding Agents

December 10, 1997 REVENUE MEMORANDUM ORDER NO. 14-98 SUBJECT : Prescribing the Policies and Procedures to Implement Revenue Regulations No. 10-97 Amending Revenue Regulations No. 1-87, in Relation to Executive Order No. 651, Re: Designation of Government Officials as Withholding Agents TO : All Internal Revenue Officers, Concerned Government Officials and Others Concerned I. OBJECTIVES: This Order is issued to: 1. Promulgate the policies and procedures to implement Revenue Regulations No. 10-97 amending certain provisions of Revenue Regulations No. 1-87, prescribing the responsibility of government officials as designated withholding agents. 2. Ensure the efficient compliance and timely remittance of withholding taxes by government agencies. 3. Prescribe a uniform form letter to be used by all government agencies and instrumentalities in the submission of names of officials designated as withholding agents to the Commissioner of Internal Revenue. II. GENERAL POLICIES: 1. All Heads of Offices (officials holding the highest position) and Chief Accountants in departments, bureaus, agencies, instrumentalities, government owned or controlled corporations (GOCCs) and other government offices, the Provincial Treasurers and Governors in provinces, the City Treasurers and Mayors in cities, the Municipal Treasurers and Mayors in municipalities, the Barangay Treasurers and Barangay Captains in barangays together with their respective Chief Accountants, are personally charged with the duty to withhold and remit taxes on compensation, expanded and final withholding taxes, as well as government money payments on value-added taxes, and other percentage taxes including franchise taxes. 2. These officials are equally liable to the penalties prescribed in Chapter I Title X of the National Internal Revenue Code, as amended. 3. The responsibility and liability of the respective officials pursuant to and under the aforesaid regulations as implemented by this Memorandum shall not be delegated to subordinate officials or employees. 4. The names of the incumbents of such positions shall be submitted by the office concerned to the Commissioner of Internal Revenue, ATTN: The Revenue District Officer, within thirty (30) days from receipt of such notification. Any change of such incumbents shall be reported and the names of the replacements submitted within ten (10) days from date of change or replacement. 5. The Revenue District Officers shall be responsible for the dissemination and effective implementation of the aforesaid regulations. III. PROCEDURES REVENUE DISTRICT OFFICERS 1. Prepare and maintain a separate ledger card or record book for all Government Agencies under their respective jurisdiction, (using the attached format ANNEX "A"), segregating National Government Agencies, GOCCs and other government offices from Local Government Units. 2. Post in the ledger card the monthly remittances made by government offices and indicate the names of incumbent officials. 3. Notify each government office of the provision of these Regulations requiring the submission of the names of incumbents to such position to the Commissioner of Internal Revenue within thirty (30) days after receipt of notification using the attached form letter (Annex "B and B-1"). 4. Personally deliver call-up letters to those officials who failed to comply with this RMO. 5. Submit a list of all government offices together with the names of responsible officials charged with the duty to deduct and withhold taxes to the Chief, Withholding Agents Monitoring Division, Collection Service, on or before the fifteenth (15th) day of the following month from receipt of the letter from government offices, using the attached format. (Annex "C") WITHHOLDING AGENTS MONITORING DIVISION 1. Receive the list of government offices with the names of responsible officials from the Revenue District Offices. 2. Send call-up letters to monitor compliance of RDOs who failed to comply with this requirement. 3. Set up and maintain database for all government agencies with the names of incumbent officials designated as withholding agents. IV. REPEALING CLAUSE The provision of existing Revenue Memorandum Orders and other issuances inconsistent with this Order are hereby amended, modified or repealed accordingly. V. EFFECTIVITY This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A ANNEX B _________________ (Date) ____________________ ____________________ ____________________ Sir/Madam : In view of Revenue Regulations Nos. 6-96 and 10-97 (copy attached), amending Revenue Regulations No. 1-87, implementing Executive Order No. 651, where the Heads of Offices, Mayors and Governors were also designated as withholding agents together with the Chief Accountants, Treasurers and Barangay Captains, you are requested to update and enrol these responsible officials using the attached format (Annex B-1) with the Revenue District Officer where the government office is located, thirty (30) days from receipt of this letter. Any change or update of such incumbents should be reported to the aforesaid office and the name/s of replacements submitted within ten (10) days from such change or replacement. You early compliance will be greatly appreciated. Very truly yours, For the Commissioner of Internal Revenue By: _______________________ Revenue District Officer ANNEX B-1 ANNEX C