Amendment to Certain Provisions of Revenue Memorandum Order No. 17-99 dated February 22, 1999 and Clarifications on the Processing of Income Tax Returns with Second Installment and Refundable Returns

May 17, 1999 REVENUE MEMORANDUM ORDER NO. 52-99 SUBJECT : Amendment to Certain Provisions of Revenue Memorandum Order No. 17-99 dated February 22, 1999 and Clarifications on the Processing of Income Tax Returns with Second Installment and Refundable Returns TO : All Internal Revenue Officers and Employees Concerned I. OBJECTIVES This Order is issued to: A. Amend and/or clarify procedures for processing refundable 1700 tax returns as provided in RMO No. 17-99 and with claims for allowable deduction of P2,400 representing premium payments on Health and/or Hospitalization Insurance; and B. Set policies and guidelines for the processing of ITRs with second (2nd) installment and taxable returns where no payment was made at the time of filing. This shall apply for computerized and non-computerized Revenue District Offices (RDOs). II. GUIDELINES AND PROCEDURES For uniformity and in order to effectively implement the policies of this Order, the following are the additional procedures and amendment to RMO No. 17-99: A. Procedure under RMO No. 17-99, Section IV.A.2, number 6 is hereby repealed, i.e., there is no need to indicate the DLN since the TIN which serves as the DLN is already specified in the return. B. The procedures stated under Section IV.B Processing of Refundable 1700 tax returns shall apply to all RDOs whether computerized or not. Hence, Assessment Section of all RDOs shall perform the same functions in processing of refunds. C. All pre-audited refundable 1700s shall be forwarded to the Document Processing Division of the Information Systems Operations Service for processing. There shall be no processing of refundable 1700s at the RDCs. prLL D. All 2nd installment income tax returns of pilot RDOs 30-Binondo, 32-Quiapo-Sampaloc, 33-Intramuros, 39-South Quezon City and 81-North Cebu, excluding RDO 52-Paranaque, shall be forwarded to the respective Revenue Data Centers (RDCs) for processing. These documents shall be processed under ITS procedures per RMO No. 43-97 re: Prescribing the Use of the Operations Manual for the Integrated Tax System (ITS). E. All 2nd installment income tax returns of all other RDOs (including RDO 52-Paraaque) shall be processed in accordance with RMO No. 55-94 re: Modifying and Consolidating the Procedures in Receiving, Handling and Processing of all Tax Returns by the Collection and Documents Processing Sections of the Revenue District Office. F. The provision of RMO No. 17-99 under Section IV.B.1, A.iii is hereby amended as follows: Submit the list above to the Withholding Agents Monitoring Division for appropriate action, if the employers registered under Metro Manila RDOs . G. Claims for allowable deduction of two thousand four hundred pesos (P2,400) representing premium payments on Health and/or Hospitalization Insurance shall be considered as refundable provided that said amount was not reflected in the F2316 (Certificate of Income Tax Withheld on Compensation) issued by employers. Individual taxpayers are allowed to deduct from their gross taxable income the amount of premiums not to exceed P2,400 per family or two hundred pesos (P200) a month paid during the taxable year for health and/or hospitalization insurance taken by himself including his family. Likewise, the spouse claiming the additional exemptions for the qualified dependent shall be the same spouse to claim the deduction for premium payments. H. Tax returns received by the RDOs shall be segregated as follows: 1. Income Tax Returns without payment Original Copy - Administrative Division, Regional Office for storage Duplicate Copy - Administrative Unit, Revenue District Office for storage 2. 2nd Installment Tax Returns of Computerized RDOs Original Copy - Revenue Data Center for processing and printing of reminder letters Duplicate Copy - Administrative Unit, Revenue District Office for storage 3. 2nd Installment Tax Returns of Non-Computerized RDOs Original Copy - RDO for processing and issuance of reminder letters Duplicate Copy - Administrative Unit, Revenue District Office for storage III. REPEALING CLAUSE This Order amends pertinent portions of RMO No. 17-99 dated February 22, 1999. IV. EFFECTIVITY This order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue