Implementing Guidelines of the Memorandum of Agreement for Authorized Agent Banks/Authorized Government Depository Banks in the Collection and Remittance of National Internal Revenue Taxes/Customs Duties/Other National Collections under the Treasury Single Account (TSA) Framework

December 11, 2013 TREASURY CIRCULAR NO. 03-2013 IMPLEMENTING GUIDELINES OF THE MEMORANDUM OF AGREEMENT FOR AUTHORIZED AGENT BANKS/AUTHORIZED GOVERNMENT DEPOSITORY BANKS IN THE COLLECTION AND REMITTANCE OF NATIONAL INTERNAL REVENUE TAXES/CUSTOMS DUTIES/OTHER NATIONAL COLLECTIONS UNDER THE TREASURY SINGLE ACCOUNT (TSA) FRAMEWORK This Circular is issued to implement the Memorandum of Agreement for Authorized Agent Banks/Authorized Government Depository Banks in the Collection and Remittance of national internal revenue taxes/customs duties/other national collections under the Treasury Single Account (TSA) Framework. A. Background In accordance with Executive Order No. 55 (2011), the Bureau of Treasury (BTr) shall operate a Treasury Single Account (TSA) to receive remittance of collections of internal revenue taxes/customs duties from Bureau of Internal Revenue (BIR)/Bureau of Customs (BOC) authorized agent banks as well as other national collections of National Government Agencies from authorized government depository banks. The TSA, which shall be maintained at the Bangko Sentral ng Pilipinas (BSP), will align the government policy of greater financial management and control of its cash resources and allow the unification of the structure of government bank accounts to enable consolidation and optimum utilization of government cash resources. As part of the initiative to implement the TSA, the TSA Reporting and Monitoring System (TRAMS) was developed for the purpose of providing BTr with a consolidated view of its cash position through the acceptance of report from the authorized agent banks (AABs) and authorized government depository banks (AGDBs) via a secure file transfer protocol (FTP) site. Moreover, TRAMS will equip the Bureau of a valuable tool for a simplified and efficient electronic monitoring of collections and generate desired reports that are necessary for informed decision-making. The BTr, together with the BIR and BOC, executed an amendment/supplement agreement with AABs and AGDBs as part of the TSA Framework implementation. CAIHTE B. Objectives 1. To provide greater transparency in the Public Financial Management (PFM); 2. To gain greater clarity to national financing needs and the management of the public debt; 3. To increase fiscal savings (less transaction charges, more revenues); 4. To improve financial markets; 5. To provide more accurate accounting and improved reporting. C. Coverage These guidelines shall cover the policies and procedures in the remittance and reporting of collections of national internal revenue taxes/customs duties/national revenue collections to BTr received through all collection channels. D. General Guidelines 1. BTr Accounts with the AABs and AGDBs. a. The BTr will maintain the following accounts with the AABs: 1 account for "BIR" and 1 account for "BOC." b. The BTr will maintain the following accounts with the AGDBs: 1 account for "BIR-Others," 1 account for "BOC-Others" and 1 account for "NGA-Others." All these accounts with the AGDBs will be used for deposited collections made by National Government Agencies (NGAs), e.g. , LTO, DTI, etc. under the National Collection System. The other accounts for BIR and BOC will allow BTr to capture collections made by BIR/BOC Regional/National Collecting Officers. 2. Remittance of Collection (cash and checks) AABs/AGDBs shall remit all BIR/BOC/NGA collections net of adjustment(s), if any, to the account of the BTr with Bangko Sentral ng Pilipinas (the "BTr-Treasury Single Account" or "BTr-TSA") not later than 10:00 AM of the succeeding banking day from date of collection through the electronic facility provided by the BSP. Account Name: TOP RDDA BIC: BTRPHM1 Agency Trans. Description Code BIR 101 BIR Tax Collections 108 BIR Creditable Withholding Tax 109 BIR Own Tax Liabilities BIR NCO (new) BOC 72 PAS Advanced Import Duties 73 PAS Final Payment Import Duties 74 PAS Import Processing Fees 75 Non PAS Advance Import Duties 76 Non PAS Final Payment Import Duties 77 Non PAS Import Processing Fees 78 Export Documentary Staff Fees 79 Non Tax Collections (new) 86 Transfer of Fund from SGB to BTr-MDS BOC NCO (new) In case the remittance date is a non-banking day, remittance shall be made on the succeeding banking day. 3. Report of Collection a. AABs/AGDBs shall submit to BTr a collection report comprising all BIR/BOC/NGAs collections including adjustments, in Comma Separated Value (.csv) file format, through the Secured File Transfer Protocol (SFTP) folder of BTr-TRAMS not later than 2:00PM of the succeeding banking day from date of collection using the following naming convention: File naming convention: XXXXMMDDYYYYMMDDYYYYC.csv Where: XXXX Bank Identifier/TRAMS Bank Code MMDDYYYY Remittance/Report Date MMDDYYYY Transaction Date C Collection Identifier (Fixed Value) Please refer to Appendix A for the TRAMS Users Guide. The Collection Report shall include the adjustments made by the AAB/AGDB broken down as to (1) BIR, (2) BOC and (3) Other Collections (for AGDBs). b. In case the reporting date is a non-banking day, reporting of collections shall be made on the succeeding banking day. DETACa c. AAB/AGDB shall submit to BTr a certified correct report on the number of transactions using Form 1 (Annex A) which shall serve as basis for payment of the transaction fees within five (5) banking days at the end of each month. Submission of the report will be addressed to: Deputy Treasurer Christine L. Sanchez Attention: Director, Accounting Service Bureau of the Treasury Ayuntamiento Building Cabildo Street corner A. Soriano Avenue Intramuros, Manila Any adjustments on the actual number of validated BIR/BOC transactions shall be effected against the RDDA of the AAB or future payments to be made by BTr to the AABs in accordance with the debit/credit authority Form 2 (Annex B) . In cases of auto debit to the AAB RDDA, BTr-Asset Management Service (AMS) shall notify and submit corresponding debit advice to the AAB. The BTr-Accounting Service will transmit the certified correct report of the number of transactions to BIR and BOC within two (2) banking days from receipt from the AABs for validation purposes. 4. Adjustment/s of Collections (Cash/Check Remittance and Reporting) a. Adjustments shall be allowed on the following reasons: i. returned checks due to insufficient fund and/or technicalities; ii. over/under-remittance of collections. b. Adjustment on the collections due to insufficient fund/technicalities shall be effected against succeeding day's collection and shall be indicated in the Collection Report with reference to the collection date subject of adjustment, and to be submitted through the TRAMS. c. AAB/AGDB shall submit to BTr-Accounting Service the appropriate exception report/documentation following existing format Form 3A BIR Form 12.58 Returned Check (Annex C) and Form 3B BIR Schedule (Annex D) or Form 4 BOC Schedule (Annex E) or Form 5 NGA (Annex F) within five (5) banking days from collection date. The exception report shall be addressed to: Deputy Treasurer Christine L. Sanchez Attention: Director, Accounting Service Bureau of the Treasury Ayuntamiento Building Cabildo Street corner A. Soriano Avenue Intramuros, Manila In cases of returned check/s, the AAB/AGDB shall be allowed to submit the exception report within fifteen (15) days from collection date, duly stamped "Received" by the BIR/BOC/NGA concerned. d. Adjustments to be made beyond the allowed five (5) banking days from collection date shall have prior clearance from the BTr. The BTr shall acknowledge receipt of adjustment requests from banks and coordinate with the BIR/BOC/NGA concerned for immediate action and approval. 5. Penalties for Failure/Incorrect/Late Fund Remittance or Reporting a. In cases of failure of fund remittance/incorrect remittance/late remittance of BIR/BOC/NGA collections to the BTr-TSA with BSP, the AAB/AGDB shall be subject to the following: i. Pay to BTr interest on the amount of BIR/BOC/NGA collection which was not remitted/incorrectly remitted/late remitted, computed based on prevailing BSP overnight lending rate, compounded daily from date of collection until actual remittance; and ii. Administrative sanctions in accordance with its accreditation as BIR/BOC-Authorized Agent Bank or as Authorized Government Depository Bank. For subsequent violations, the AAB/AGDB shall pay to BTr interest on the erroneous amount of BIR/BOC/NGA collection, computed based on prevailing BSP overnight lending rate plus penalty equivalent to five percent (5%) of the amount of BIR/BOC NGA collections which was not remitted/incorrectly remitted/late remitted, compounded daily from date of collection until actual remittance, without prejudice to administrative, civil and criminal liabilities imposed under the Tax Code/Tariff and Customs Code and other laws, rules and regulations implemented by the BIR/BOC/BTr. Penalties will only be imposed if the adjustment/s made on the cash/check remittance cannot be substantiated by exception report/s to be submitted by the AAB/AGDB within the allowed period under Part D No. 4 (c) above. b. In cases of failure to submit collection report/incorrect collection report/late collection report for BIR/BOC/NGA collections to the BTr, the AAB/AGDB shall pay penalty to BTr equivalent to Two Hundred Pesos (PhP200.00) per day but not exceeding 25% of the amount of collection, until submission of the collection report for the particular value date of collection. aDSIHc E. Help Desk Single point of contact for AABs/AGDBs to provide immediate assistance in the remittance of collections and other concerns to BSP and in the submission of reports to TRAMS, call or email listed names/addresses below: Concern Contact Person Contact Number Email Address Accounting Nolito M. Umayam 663-2223 [emailprotected] Asset Management Maureen P. Barandon 527-2794 [emailprotected] IT John Rudolf Adriano 663-2268 [emailprotected] TRAMS-Technical Ronaldo R. Averion 525-0006 Ryan P. Carbonell [emailprotected] [emailprotected] Remittance of Remedios Macapinlac 400-7071; 400-7073; 400-7024; Collections Ma. Victoria Francisco 708-7694; 708-7697; 708-7540 Leticia Barroga [emailprotected] Ed Marquezez F. Effectivity/Implementation This Order shall take effect on January 2, 2014 and will strictly follow the attached timetable. (SGD.) ROSALIA V. DE LEON Treasurer of the Philippines