Procedures in the Implementation of an Automated Database for Documentary Stamps Metering Machine with Encryption

October 16, 1998 REVENUE MEMORANDUM ORDER NO. 83-98 SUBJECT : Procedures in the Implementation of an Automated Database for Documentary Stamps Metering Machine with Encryption TO : All Documentary Stamps Metering Machines Users, Revenue Personnel and Others Concerned I. OBJECTIVES This Order is issued to: Establish guidelines and procedures in the registration of new model of metering machines for remote loading/reloading of documentary stamps tax. Prescribe the procedures for the remote loading/reloading of documentary stamps through new model of metering machines with encryption. Create an automated database of taxpayers using documentary stamps tax through the new metering machine with encryption. II. POLICIES In order to achieve the above objectives, the following policies shall be observed: 1. Those authorized to use documentary stamps metering machines shall use the new metering machine with encryption. Once they use the same, they will be required to apply for registration through the supplier by filling-up the Application Form for permit to use the documentary stamps metering machines with encryption. 2. Payment of DST must be made by filling-up Documentary Stamps Tax Declaration (BIR Form 2000) in paying the desired amount to an Authorized Agent Bank (AAB) where the taxpayer is enrolled before loading/reloading documentary stamps tax to the new metering machine with encryption. 3. Purchase and affixture of documentary stamps through constructive stamping on taxable documents/transactions or receipts system will no longer be authorized. III. GUIDELINES/PROCEDURES A. LOCAL SUPPLIER shall 1. Supply the metering machine with encryption purchased by DST user for registration with BIR. 2. Apply for permit to operate the purchased metering machine on behalf of the user. 3. Deliver and install the purchased metering machine with encryption to the user upon approval of the permit to operate. 4. Submit the duly accomplished Application Form through the Collection Programs Division for processing. B. USER/TAXPAYER shall 1. Apply for permit to operate DST metering machine through the supplier. cdll 2. Pay the desired amount of DST to Authorized Agent Banks (AABs) using Documentary Stamps Tax Declaration (BIR Form 2000) before loading/reloading to the new metering machine with encryption. 3. Present the duly validated Documentary Stamps Tax Declaration (BIR Form 2000) to the System Administrator, DST Data Centre (CPD) for remote loading/reloading of documentary stamps tax. 4. Submit Information Return for Documentary Stamp Taxes Paid (BIR Form 2002) within ten (10) days following the close of the month covered by the aforementioned return to the Revenue District Office concerned for monitoring, control and reconciliation purposes. C. COLLECTION PROGRAMS DIVISION shall 1. Receive the application for permit to use documentary stamps tax on the new metering machine with encryption in four (4) copies together with the purchase invoice from the user or his authorized representative for issuance of permit number. 2. Process the accomplished application form for automated documentary stamps tax metering machine with encryption submitted by the user or his authorized representative. 3. Submit the processed application form for permit to operate the new metering machine with encryption to the Assistant Commissioner, Collection Service for approval. 4. Issue permit number to DST user or his authorized representative. D. COLLECTION SERVICE shall 1. Approve the application for permit to use documentary stamps tax of the new metering machine with encryption processed and recommended for approval by the Office of the Collection Programs Division (CPD). 2. Transmit the approved application for permit to operate the new metering machine with encryption to the DST Data Centre. dctai E. DOCUMENTARY STAMPS TAX METERED MACHINE DATA CENTRE (CPD) shall 1. Receive the approved application for permit to operate the new metering machine with encryption in four (4) copies for the following: Original copy - Taxpayer Duplicate - System Administrator (CPD) Triplicate - Resident COA Auditor Quadruplicate - RDO Concerned 2. Verify on line the serial number of the metering machine with encryption purchased for authenticity. 3. Encode the approved application with the assigned permit number, account number, RDO code and other information of the user and/or taxpayer. 4. Establish a complete record on line per account number, permit number (first two (2) digit represents the Revenue Region number), RDO code and meter serial number in the database of BIR TIER 3 Server. 5. Receive from the user the duly validated BIR Form No. 2000 and Official Receipt/Acknowledgment Receipt issued by Authorized Agent Banks (AABs) before loading/reloading of documentary stamps tax. F. LARGE TAXPAYERS shall HEAD OFFICE shall 1. The Head Office concerned shall pay through direct debit the requested amount of the branches and file the validated BIR Form 2000 to the Office of the Large Taxpayers Division of the BIR National Office. 2. The Head Office concerned shall provide the System Administrator (DST Data Centre) a copy of the validated BIR Form 2000 received by the Office of the Large Taxpayers Division before loading/reloading of documentary stamps tax to the new-metering machines with encryption. BRANCHES shall 1. Request to purchase documentary stamps tax of Large Taxpayers branches shall be course through their Head Office. 2. Submit monthly Information Return for Documentary Stamp Taxes Paid (BIR Form 2002) to the Collection Division of the Revenue Region concerned for monitoring and reconciliation with the Batch Control Sheets (A) submitted by the Authorized Agent Banks (AABs). G. REVENUE DISTRICT OFFICER shall 1. Monitor users/taxpayers using the documentary stamps tax metering machine with encryption within their respective jurisdiction through the monthly DST collection report provided by DST Data Centre. 2. Reconcile monthly DST collection report provided by DST Data Centre with the Batch Control Sheets (A) submitted by Authorized Agent Banks (AABs). IV. REPORTING REQUIREMENTS SYSTEM ADMINISTRATOR (CPD) shall 1. Generate weekly/monthly DST collection report and submit to Collection Service for monitoring purposes using the prescribed forms. Transactions from Monday to Friday (weekly) shall be submitted every Monday of the following week. Submission of monthly collection report should be on the fifth of the following month. 2. Provides copy of monthly DST collection report per Revenue District Office to the Revenue Accounting Division (RAD) for the purpose of reconciling with BCS (A) reports submitted by Authorized Agent Banks (AABs). 3. Provides copy of monthly DST collection report the RDO concerned for monitoring the activities of registered DST users. IV. EFFECTIVITY This Order takes effect immediately. prcd (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue