Prescribing the procedures and guidelines implementing the Provisions of Section 319 (c) of the Tax Code providing for the share of cities, municipalities and Ministry of Education, Culture and Sports (MECS) from the collection of second/subsequent sales tax

August 12, 1986 REVENUE REGULATIONS NO. 21-86 SUBJECT : Prescribing the procedures and guidelines implementing the Provisions of Section 319 (c) of the Tax Code providing for the share of cities, municipalities and Ministry of Education, Culture and Sports (MECS) from the collection of second/subsequent sales tax. TO : All Officials Concerned of the Ministry of Finance, Ministry of the Budget, Bureau of Treasury, Bureau of Internal Revenue, Ministry of Education, Culture and Sports, Municipal and City Treasurers and Other Office Concerned OBJECTIVES : This regulation is issued to prescribe procedures and guidelines in the determination, release and availment of the (a) 5% share of cities municipalities on the total collections within their respective localities of the 3% tax on second sales for the month of November and December 1985 and of the 1-1/2% tax on subsequent sales starting January 1986; and (b) 5% share of the Ministry of Education, Culture and Sports (MECS) on the total collection of the same taxes mentioned in (a) above. The Bureau of Internal Revenue (BIR) shall compute the 5% shares of each city and municipality and the Ministry of Education, Culture and Sports (MECS) from collections on the 3% tax on second sales and the 1-1/2% tax on subsequent sales. The certification shall be based on the collections from these taxes less the amounts of dishonored checks and Tax Credit Memo availed of by the taxpayer. The corresponding certifications shall be issued to the Ministry of the Budget and Management (MBM), copy furnished the Bureau of the Treasury (BTR). The MBM shall advise the BTR on the share of each city and municipality and MECS on the basis of the certifications issued by the BIR. The BTR shall release the Treasury Warrants/checks to the City/Municipal Treasurers upon the advise of the MBM. The Ministry of Finance shall issue rules and regulations on matters concerning Treasury operations and deposit procedures as may be needed. Representatives of the Ministries of Finance and Budget and Management and the Bureau of Internal Revenue and Treasury shall be constituted into an inter-agency Committee to prepare the detailed procedures and guidelines to be followed in computing, releasing and availing the shares of the local governments and MECS. This Regulations shall take effect immediately. (SGD.) JAIME V. ONGPIN Minister of Finance Recommending Approval: (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue