Amending RMO No. 15-2023, Prescribing the Revised Allocation of the CY 2023 BIR Collection Goal, by Implementing Office

July 20, 2023 REVENUE MEMORANDUM ORDER NO. 27-2023 TO : All Revenue Officials and Employees Concerned SUBJECT : Amending RM O No. 15-20 23, Prescribing the Revised Allocation of the CY 2023 BIR Collection Goal, by Implementing Office I. BACKGROUND: This has reference to the revised BIR collection target for CY 2023 which was approved by the Development Budget Coordination Committee (DBCC) last June 9, 2023. The Bureau's CY 2023 Revised Revenue Target was increased to P2,639,174 Million and is higher by P40,047 Million or 1.54% from the previous goal of P2,599,127 Million and P303,500 Million or 12.99% from CY 2022 collection of P2,335,674 Million. The revised breakdown by tax type was based on the Medium-Term Revenue Program (MTRP) received on June 19, 2023. CAIHTE II. OBJECTIVE: This Order is being issued to amend Revenue Memorandum Order (RMO) No. 15-2023 dated April 11, 2023. III. AMENDMENT: Certain provisions of Sec. IV on General Policies and Guidelines of RMO No. 15-2023, are hereby amended as follows: A. Data Used 1. CY 2022 Actual Collection from Revenue Accounting Division (RAD), as reconciled with the Bureau of the Treasury (BTr), as of March 14, 2023. 2. Data considered as refinements to CY 2022 Collection from Operations: a. Non-recurring transactions from January to December 2022, which include those that qualified within the threshold prescribed under RA No. 9335 (Lateral Attrition Act), collections from e-Sabong which will be discontinued in CY 2023 and other special non-recurring transactions which account for at least 4% of CY 2022 total annual collection of the RDOs (Source: RRs/RDOs Reports submitted as of July 20, 2023); b. Collections from Estate Tax Amnesty from January to December 2022 (Source: Assessment Performance Monitoring Division Report as of January 26, 2023); aScITE c. Updated monthly collections from enlisted Large Taxpayers (Source: ISDOS/ISG, as extracted from ITS-CBR as of June 19, 2023). However, these exclude collections from Capital Gains Tax as well as Creditable Withholding Taxes on the Sale of Real Property and the corresponding Documentary Stamp Taxes, which shall remain with the RDO having jurisdiction of where the property is located; d. Updated monthly collections from delisted Large Taxpayers (Source: ISDOS/ISG, as extracted from ITS-CBR as of May 16, 2023); and e. Collections from Excise Taxes, as adjusted for collections from excise taxpayers enlisted to LTS (Source: BIR Form No. 1209 Reports updated as of March 16, 2023). 3. Other Data Considered: a. CY 2023 Macroeconomic Assumptions and Indicators (Source: MTRP as of June 9, 2023); b. CY 2023 Collection Goal, by Major Tax Type (Source: MTRP as of June 9, 2023); and c. Updated data on Tax on T-bills (Government Securities) as of June 9, 2023, MTRP and estimated corresponding DST. B. Goal Allocation, By Implementing Office Given the abovementioned goal, by tax type and monthly distribution, this Order prescribes the Revised Allocation of the CY 2023 BIR Collection Goal, by Implementing Office, considering the following: 1. Above collection goal is composed of the Goal from BIR Operations of P2,539,476 Million and P99,698 Million from Non-BIR Operations; 2. Monthly Allocation for the January to December 2023 were based on the monthly trend of CY 2023 Goal Allocation per RMO No. 15-2023; 3. After determining the CY 2023 goals for special taxes, the goal for the remaining taxes was derived by applying a uniform 13.18% growth rate, equivalent to the percentage increase of CY 2023 Goal Net of Special Taxes vs. CY 2022 Refined Collections; DETACa 4. The total goal per IO is the sum of goal from BIR Operations, net of special taxes and the allocated goal for Special Taxes; and 5. The following tables are attached for the reference of all concerned revenue officials and personnel: Table 1 Revised Macroeconomic Indicators and Assumptions, CY 2023 Table 2 Revised Monthly Collection Goal Allocation, By Major Tax Type, CY 2023 Table 3 Revised Total Collection Goal Allocation, By Implementing Office, CY 2023 Table 4 Revised Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2023 Table 5A Revised Monthly Total Collection Goal Allocation, By Implementing Office, CY 2023 Table 5B Revised Monthly Collection Goal Allocation for Income Taxes, By Implementing Office, CY 2023 Table 5C Revised Monthly Collection Goal Allocation for Excise Taxes, By Implementing Office, CY 2023 Table 5D Revised Monthly Collection Goal Allocation for Value-Added Tax, By Implementing Office, CY 2023 Table 5E Revised Monthly Collection Goal Allocation for Percentage Taxes, By Implementing Office, CY 2023 Table 5F Revised Monthly Collection Goal Allocation for Other Taxes, By Implementing Office, CY 2023 C. Other Requirements: 1. The Large Taxpayers Service (LTS) shall allocate its collection goal among its Divisions, and prepare the corresponding memorandum within two (2) 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 two (2) weeks upon the issuance of this Order. 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 2023 shall prevail. HEITAD IV. REPEALING CLAUSE: This Order supersedes pertinent portions of RMO No. 15-2023 inconsistent herewith. V. EFFECTIVITY: This Order shall take effect immediately. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue ATTACHMENT TABLE 1 Revised Macroeconomic Indicators & Assumptions CY 2023 MACROECONOMIC INDICATORS CY 2023 Nominal GDP (PHP million) 24,522,123 Real GDP Growth Rate (%) 6.5 Inflation Rate (%) 6.0 Exchange Rate (PHP/USD) 55.5 Treasury Bill Rates for 364-day (%) 5.8 Source: Medium-Term Revenue Program (DBCC Approved June 9, 2023) TABLE 2 Revised Monthly Collection Goal Allocation, By Major Tax Type, CY 2023 (In Thousand Pesos) TABLE 3 Revised Total Collection Goal Allocation, By Implementing Office, CY 2023 (In Thousand Pesos) IMPLEMENTING OFFICE CY 2023 GOAL NET OF SPECIAL TAXES EXCISE TAXES FWT ON GOVERNMENT SECURITIES DST ON GOVERNMENT SECURITIES TOTAL GOAL GRAND TOTAL 2,203,383,000 336,093,000 81,071,000 18,627,000 2,639,174,000 I. BIR OPERATIONS 2,203,383,000 336,093,000 - - 2,539,476,000 A. LARGE TAXPAYERS SERVICE 1,264,921,777 335,039,991 - - 1,599,961,768 B. REVENUE REGIONS 938,461,223 1,053,009 - - 939,514,232 1 CALASIAO 20,974,892 35,369 - - 21,010,261 2 CORDILLERA ADMINISTRATIVE REGION 11,432,267 10,960 - - 11,443,227 3 TUGUEGARAO CITY 13,340,071 27,059 - - 13,367,130 4 CITY OF SAN FERNANDO, PAMPANGA 50,783,697 259,549 - - 51,043,246 5 CALOOCAN CITY 35,693,237 3,947 - - 35,697,184 6 CITY OF MANILA 62,012,278 236 - - 62,012,514 7A 93,609,020 1,421 - - 93,610,441 7B 97,614,782 32,953 - - 97,647,735 8A 133,418,650 878 - - 133,419,528 8B 137,712,226 176,148 - - 137,888,374 9A 55,443,888 22,052 - - 55,465,940 9B 41,110,703 1,441 - - 41,112,144 10 LEGAZPI CITY 18,469,719 32,211 - - 18,501,930 11 ILOILO CITY 16,627,999 19,802 - - 16,647,801 12 BACOLOD CITY 14,796,968 15,872 - - 14,812,840 13 CEBU CITY 41,914,337 29,252 - - 41,943,589 14 EASTERN VISAYAS REGION 13,329,663 147,938 - - 13,477,601 15 ZAMBOANGA CITY 10,421,685 53,778 - - 10,475,463 16 CAGAYAN DE ORO CITY 18,611,296 44,310 - - 18,655,606 17 BUTUAN CITY 10,090,892 50,783 - - 10,141,675 18 KORONADAL CITY 14,956,044 11,047 - - 14,967,091 19 DAVAO CITY 26,096,909 76,003 - - 26,172,912 II. NON-BIR OPERATIONS - - 81,071,000 18,627,000 99,698,000 TABLE 4 Revised Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2023 (In Thousand Pesos) IMPLEMENTING OFFICE TOTAL GOAL INCOME TAXES VALUE-ADDED TAX EXCISE TAXES PERCENTAGE TAXES OTHER TAXES GRAND TOTAL 2,639,174,000 1,397,523,000 538,131,000 336,093,000 124,646,000 242,781,000 I. BIR OPERATIONS 2,539,476,000 1,316,452,000 538,131,000 336,093,000 124,646,000 224,154,000 A. LARGE TAXPAYERS SERVICE 1,599,961,768 743,276,941 289,404,077 335,039,991 87,517,901 144,722,858 B. REVENUE REGIONS 939,514,232 573,175,059 248,726,923 1,053,009 37,128,099 79,431,142 1 CALASIAO 21,010,261 11,606,374 6,510,303 35,369 680,120 2,176,095 2 CORDILLERA ADMINISTRATIVE REGION 11,443,227 5,814,941 4,550,344 10,960 432,792 634,190 3 TUGUEGARAO CITY 13,367,130 7,703,439 4,083,701 27,059 607,263 945,668 4 CITY OF SAN FERNANDO, PAMPANGA 51,043,246 32,341,080 11,824,424 259,549 2,774,346 3,843,847 5 CALOOCAN CITY 35,697,184 16,726,037 11,972,234 3,947 911,083 4,083,883 6 CITY OF MANILA 62,012,514 38,022,184 17,421,382 236 2,602,094 3,966,618 7A QUEZON CITY 93,610,441 58,292,971 21,020,850 1,421 6,611,681 7,683,518 7B EAST NATIONAL CAPITAL REGION 97,647,735 58,522,896 27,048,902 32,953 3,505,305 8,537,679 8A MAKATI CITY 133,419,528 82,561,089 37,820,207 878 4,220,969 8,816,385 8B SOUTH NATIONAL CAPITAL REGION 137,888,374 94,434,561 26,093,192 176,148 7,006,326 10,178,147 9A CABAMIRO (Cavite-Batangas-Oriental Mindoro-Occidental Mindoro-Romblon) 55,465,940 34,815,644 10,946,190 22,052 1,651,874 8,030,180 9B LAQUEMAR (Laguna-Quezon-Marinduque) 41,112,144 26,208,004 9,794,075 1,441 1,673,034 3,435,590 10 LEGAZPI CITY 18,501,930 9,780,415 6,762,204 32,211 715,274 1,211,826 11 ILOILO CITY 16,647,801 9,730,482 4,983,012 19,802 316,564 1,597,941 12 BACOLOD CITY 14,812,840 8,783,020 4,091,820 15,872 503,095 1,419,033 13 CEBU CITY 41,943,589 25,288,510 11,281,396 29,252 1,288,072 4,056,359 14 EASTERN VISAYAS REGION 13,477,601 7,264,209 4,907,361 147,938 232,410 925,683 15 ZAMBOANGA CITY 10,475,463 5,974,560 3,506,078 53,778 216,051 724,976 16 CAGAYAN DE ORO CITY 18,655,606 9,713,447 6,266,822 44,310 323,656 2,307,371 17 BUTUAN CITY 10,141,675 5,034,507 3,750,260 50,783 171,160 1,134,965 18 KORONADAL CITY 14,967,091 8,093,442 5,138,793 11,047 301,628 1,422,181 19 DAVAO CITY 26,172,912 14,463,227 8,953,373 76,003 383,302 2,297,007 II. NON-BIR OPERATIONS 99,698,000 81,071,000 - - - 18,627,000 TABLE 5A Revised Monthly Total Collection Goal Allocation, By Implementing Office, CY 2023 (In Thousand Pesos) TABLE 5B Revised Monthly Collection Goal Allocation for Income Taxes, By Implementing Office, CY 2023 (In Thousand Pesos) TABLE 5C Revised Monthly Collection Goal Allocation for Excise Taxes, By Implementing Office, CY 2023 (In Thousand Pesos) TABLE 5D Revised Monthly Collection Goal Allocation for Value-Added Tax, By Implementing Office, CY 2023 (In Thousand Pesos) TABLE 5E Revised Monthly Collection Goal Allocation for Percentage Taxes, By Implementing Office, CY 2023 (In Thousand Pesos) TABLE 5F Revised Monthly Collection Goal Allocation for Other Taxes, By Implementing Office, CY 2023 (In Thousand Pesos)