Revising the Format and Procedures in the Preparation of the Monthly Report on Registration and Remittance of Withholding Taxes (BIR Form W-7) and Accomplishment Report on Pre-audited Withholding Tax Returns (BIR Form W-8), Pursuant to Revenue Memorandum Order 29-95

July 27, 1998 REVENUE MEMORANDUM ORDER NO. 72-98 SUBJECT : Revising the Format and Procedures in the Preparation of the Monthly Report on Registration and Remittance of Withholding Taxes (BIR Form W-7) and Accomplishment Report on Pre-audited Withholding Tax Returns (BIR Form W-8), Pursuant to Revenue Memorandum Order 29-95 TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES This Order is issued: 1) To prescribe the revised Monthly Report on Registration and Remittance of Withholding Taxes (BIR Form W-7) for the purpose of monitoring and presenting the Total Amount of Collection on taxes remitted (by payor) and Registration of Withholding Agents; 2) To prescribe the revised Accomplishment Report on Pre-Audited Withholding Tax Returns (BIR Form W-8); 3) To prescribe the revised BIR Form W-7 and W-8 to conform with the changes brought about by the Comprehensive Tax Reform Package (CTRP) or RA 8424 as well as the enhanced BIR Forms; 4) To make the revised BIR Form W-7 an effective tool for evaluating the behavior of collection on withholding taxes by income payment, to be used by management; and 5) To utilize the result of monitoring and evaluation of the changes in withholding tax collection to explain the BIR Collection performance as required by other government agencies. II. PROCEDURES A. REVENUE DISTRICT OFFICE 1. Regulatory Section shall accomplish the revised BIR Form W-7 (Annex A) registration data on Schedule A cols. A to E; 2. Document Processing Section shall prepare the monthly reports in triplicate copies distributed as follows: Original - Regional Director Duplicate - Withholding Agents Monitoring Division Triplicate - Revenue District Office A. Accomplish all schedules in BIR Form W-7 based on withholding tax returns (WTRs) received. a) Schedule A cols. F to J; b) Total Amount of Taxes Remitted (by payor) 1. Compensation - Schedule C 2. Expanded - Schedule D 3. Final - Schedule E 4. Real property - Schedule F (not subject to capital gains tax) 5. Top 5000 Corporations - Schedule G (per RR 12-94 as amended) 6. Fringed Benefit Tax - Schedule H (employees other than rank and file) B. Accomplish BIR Form W-B (Annex B) based on withholding tax returns and pre-audited withholding tax returns. 3. The RDO shall submit the accomplished BIR Form W-7 and W-8 not later than the tenth 10 th day of each month to the Regional Director. prLL B. REGIONAL DIRECTOR 1. Monitor the submission of reports on time by the RDOs 2. analyze and evaluate the drastic change in the collection of withholding taxes; and 3. prepare transmittal letter of all reports to be submitted to the Assistant Commissioner- Collection, Attention Withholding Agents Monitoring Division not later than the fifteenth (15 th ) day of each month. C. WITHHOLDING AGENTS MONITORING DIVISION 1. Administrative Unit a) Receives and records reports from the regional offices; b) encode data to the individual file of the RDO; and c) transmit reports to the Monitoring Section. 2. Monitoring Section a) Tabulate reports per individual folder of the RDOs; b) monitor compliance of reports and prepare call-up letter to RDOs with incomplete data and non-submission of reports; c) evaluate and analyze collection report on withholding tax; d) prepare call-up letters to RDOs with drastic change of collection; and e) prepare consolidated report for management decision making processes. LLpr 3. Chief/Assistant Chief a) Supervises the monitoring and evaluation of reports; and b) Initials call-up letters; D. ASSISTANT COMMISSIONER- COLLECTION a) Signs call-up letters; b) recommend necessary changes for the improvement of the withholding tax system; and c) submit a monthly report on collection of withholding taxes to top management for decision making processes. III. REPEALING CLAUSE The provision of existing Revenue Memorandum Orders and other issuances inconsistent with this Order are hereby amended, modified or repealed accordingly. IV. EFFECTIVITY This Order shall take effect to reports beginning August, 1998. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A MONTHLY REPORT ON REGISTRATION AND REMITTANCE OF WITHHOLDING TAXES ANNEX B ACCOMPLISHMENT REPORT ON PRE-AUDITED WITHHOLDING TAX RETURNS (WTRs)