Prescribing the Policies, Guidelines and Procedure on the Adoption of Mobile Payment (M-Payment) as an Additional Mode of Payment of Certain Internal Revenue Taxes

July 26, 2005 REVENUE MEMORANDUM ORDER NO. 20-05 SUBJECT : Prescribing the Policies, Guidelines and Procedure on the Adoption of Mobile Payment (M-Payment) as an Additional Mode of Payment of Certain Internal Revenue Taxes TO : All Internal Revenue Officers, BIR Authorized Agent Banks (AABs) and Others Concerned SECTION 1 . Objectives . 1. To prescribe the policies, guidelines and procedures in the implementation of M-Payment System as an additional mode of payment; 2. To partially address the present issues and problems in the collection of internal revenue taxes through the BIR Authorized Agent Banks (AABs); 3. To reduce the burden and difficulties experienced by individual and corporate taxpayers in the payment of selected taxes; 4. To make available to taxpayers an additional venue for the filing and payment of taxes in selected areas. SECTION 2 . Coverage . This Order will initially cover the filing of the tax types as indicated in the table hereunder: Form Form Description Tax Kind of Tax Taxpayer Type Type Classification 1700 Annual Income Tax IT Compensation Individual Return 1701 Annual Income Tax IT Self Employed, Individual Return Individuals 2000 Documentary Stamp Tax DS Loans, original Individual Declaration/Return issue of shares of stocks 0605 Payment Form IT 2nd Installment of Individual Income Tax RF Business Individual/Corporate Registration Fee 0613 Payment Form Under FP TCVD Fines & Individual/Corporate Tax Compliance Penalties Verification Drive/Tax Mapping SECTION 3 . Policies and Guidelines . 1. The Telecommunications Company (TelCo) shall act as taxpayer's agent; CEcaTH 2. The Authorized Agent Bank (AAB) shall remain the BIR's collecting agent; 3. The TelCo, the AAB and the BIR shall undertake a shared responsibility approach in the dissemination of this additional mode of payment; 4. The TelCo in coordination with the concerned Revenue District Offices (RDOs), shall set-up Kiosks in BIR-designated areas during the income tax filing season to facilitate tax payment; 5. Payment of internal revenue taxes through this system shall cover the amount not exceeding P10,000; 6. Taxpayer who shall avail of the M-Payment System shall register with TelCo; 7. Taxpayers who would like to avail of this mode of payment shall file their returns with the designated BIR Kiosk or the RDOs except for the renewal of registration fee wherein the fully accomplished registration fee form may be down loaded from the system; 8. Revenue District Offices (RDOs) will be allowed to view list of M-Payment transactions under their jurisdiction; 9. M-Payment System is available to taxpayers 24 hours a day, 7 days a week; 10. Filing of tax returns is available during the income tax filing season in BIR-designated M-Payment Kiosks during BIR Office hours or as declared by the BIR. However, outside of the income tax filing season, filing of tax returns can be done in the respective RDOs; 11. Collection reporting and data transmission of payments through M-Payment facility shall be made in accordance with existing procedures on collection through AABs; 12. Taxpayers may print the Payment Confirmation Receipt from the BIR website at www.bir.gov.ph the day after M-Payment transaction has been made; 13. Imposition of penalties to Taxpayers-Payment Subscriber for late filing and payment shall be in accordance with the existing procedures; 14. The TelCo shall provide the AAB with the daily report of all M-Payment not later than 11:00 p.m. of the same day; 15. Imposition of penalties for late transmission, procedural errors, late reporting and remittance shall be in accordance with existing rules and regulations. SECTION 4 . Procedures . A. Filing and Payment Through M-Payment Facility. Taxpayers M-Payment Subscriber Shall : 1. On the initial implementation, send the following text message to the TelCo: STcAIa PAYBIR <amount> <MPIN> <Tax Type> <Tax Form> <Return Period> <Tax Identification Number> <Taxpayer Branch Code> <Revenue District Office Code> <Registered Name> Where: Amount the exact tax amount to be paid MPIN the 4-digit mobile personal identification number Form Type indicate the Tax Return Form No. used when filing your tax (refer to table in Section 2 for valid values) Tax Type indicate the type of tax being paid (refer to table in Section 2 for valid values) Return Period must be in the format MMDDYY e.g. 033105 (March 31, 2005) TIN 9-Digit Taxpayer's Identification Number Taxpayer Branch Code 3-digit taxpayer's branch code; last 3-digit of your 12-digit TIN Revenue District Office Code 3-digit code for Revenue District Office from 001 to 115 BIR Registered Name Taxpayer's registered name or business name Example: PAYBIR 5OO 1234 IT 1700 032805 123456789 000 039 JUAN B. DE LA CRUZ The Taxpayer M-Payment Subscriber may be offered another system that may be adopted by the BIR, the TelCo may also prescribe to its subscriber-taxpayers a menu-driven SMS facility for payment of the taxes, provided that the TIN, Branch Code, RDO Code, Registered Name, Form Type, Tax Type, Return Period and Amount are captured in the SMS . 2. Right after texting, receive a confirmation message which serves as an acknowledgment receipt from TelCo with corresponding transaction reference number; 3. File the return in BIR Kiosk or the RDOs when the tax payment requires so; 4. Write the transaction reference number, date and amount of payment on the returns before filing the same; 5. Receive the stamped copy of the return from the BIR Representative/RDO Personnel; 6. Proceed to the BIR website at www.bir.gov.ph and click on the PAYBIR link to view and print the Online Payment Confirmation Form for each transaction, one day after the transaction has been made. THE REVENUE DISTRICT OFFICE (RDO) The Revenue District Officer shall : 1. Assign a personnel to man the designated M-Payment filing centers during the income tax filing season. The Collection Section-Revenue District Office shall : 1. Receive the tax returns of their respective taxpayers outside of the income tax filing season; IcaHCS 2. Acknowledge receipt of returns using the required stamp; 3. Sort out and forward the out-of-district returns to their respective RDOs; 4. Process the tax returns in accordance with existing procedures; 5. Reconcile the returns with the Batch Control Sheets from the Authorized Agent Banks and the BIR website; 6. View the details of a specific transaction, including the corresponding BCS Number, through the CBR inquiry after the transaction is uploaded to the ITS; 7. Encode the received M-Payment tax returns after viewing the corresponding transactions in the CBR screens; 8. Submit reports on procedural errors and late transmission to Collection Programs Division (CPD), in accordance with existing procedures. B. Reporting and Remittance of Collections via M-Payment Mode by AAB. The Authorized Agent Bank (AAB) shall : 1. Generate a separate Batch Control Sheet (BCS) from the Summary of Transactions received from TelCo for transmittal to the respective RDCs. The AAB Head Office shall generate hard copies of the BCS reports and transmit to respective AAB Branch offices where RDOs may pick up the said reports; 2. Utilize a BCS control number format specific to M-Payment transactions so as to distinguish from payments made through other modes; 3. Remit collections through M-Payments as part of its daily collections and in accordance with existing procedures; 4. Through its Head Office, include the M-Payment collection in the Consolidated Report of Daily Collection (CRDC) for submission to Revenue Accounting Division (RAD) in accordance with existing collection procedures. The Information System Development Service (ISDS) shall : 1. Maintain the system that will ensure the effective uploading of M-Payment Transactions to the ITS. The Revenue Data Center shall : 1. Be responsible for uploading the BCS files to the ITS using the upload modules in the RDC servers. SECTION 5 . Repealing Clause . The provisions of existing issuance/orders inconsistent hereto are hereby repealed. SECTION 6 . Effectivity Clause . This Order shall take effect immediately. HTaSEA (SGD.) JOSE MARIO C. BUAG OIC, Commissioner of Internal Revenue