RMO No. 15-2023 — Prescribes the CY 2023 BIR collection goal allocation, by implementing office based on Medium-Term Revenue Program (MTRP) Digest | Full Text | Annexes

t BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City girEAU OF ImTeRAi RFVENUE Y RECOKLO APR 2'5 2023 nym

April 11, 2023

REVENUE MEMORANDUM ORDER NO. 15- 2023

TO: All Revenue Officials and Employees Concerned

SUBJECT: CY 2023 BIR Collection Goal Ailocation, By Implementing Office Based

on Medium-Term Revenue Program (MTRP) dated December 5, 2022

BACKGROUND

CY 2023 Medium-Term Revenue Program (MTRP) dated December 5, 2022, is higher than the CY 2022 actual collection by P256.596 Billion, or 10.95%. overall collection goal at P2,599.127 Billion. This collection goal, which is. based on the The Department of Finance (DOF) has set the Bureau of Internal Revenue's CY 2023

H. OBJECTIVE

This Order is being issued to establish the following:

1. The policies, methodology and guidelines used in the allocation of the CY 2023 The resulting distribution of the collection goal to the Large Taxpayers Service (LTS) and Revenue Regions (RRs), including Revenue District Offices (RDOs). Collection Goal; and

H. DEFINITION OF TERMS

A. Collections from Non-BIR Operations' - include Final Withholding Tax (under Income Taxes) and Documentary Stamp Tax collections derived .from transactions on Government Securities.

B. Collections from BIR Operations -- composed of Income Taxes, Value-Added Tax. Excise Taxes, Percentage Taxes, and Other Taxes generated from transactions not classified as "Non-BIR Operations".

C. Implementing Offices (IOs) -- refer to the collecting offices of the BIR, i.e., LTS. RRs and RDOs.

IY. GENERAL POLICIES AND GUIDELINES

and goal allocation methodology used in the computation of the final goal of implementing offices: The following policies and guidelines were observed relative to the data requirements

A. Data Used:

1 CY 2022 Actual Collection from Revenue Accounting Division (RAD) as reconciled with the Bureau of the Treasury (BTr), as of March 14, 2023.

2.Data considered as refinements to CY 2022 Collections:

a. Non-Recurring transactions from January to December 2022, which

Lateral Attrition Act and collections from e-Sabong which will be March 31, 2023); include those that qualified within the threshold prescribed under the discontinued in CY 2023 (Source: RRs/RDOs Reports submitted as of

b. Collections from Estate Tax Amnesty from January to December 2022

January 26, 2023); (Source: Assessment Performance Monitoring Division Report as of

C Monthly collections from enlisted/delisted Large Taxpayers (Sources:

2023); and ISDOS, ISG, as extracted from ITS-CBR as of February 9, 2023 and LT Document Processing and Quality Assurance Division as of March 7.

d Collections from Excise Taxes (Source: BIR Form No. 1209 Reports

updated as of March 16, 2023).

3.Other Data Considered:

CY 2023 Macroeconomic Assumptions and Indicators (Source: MTRP);

b. CY 2023 Collection Goal, by Major Tax Type (Source: MTRP); and

C. CY 2023 Monthly Program of DST on GS and Monthly Trend of FWT on

GS based on BTr as ofDecember 16, 2022.

B. Goal Allocation Methodology

1.The CY 2023 Goal for BIR Operations was allocated to all IOs, as follows:

1.1 Goal Allocation, by IO: a.The Refined CY 2022 Collections was derived from the Actual CY 2022 Collections by:

a.1. Netting-out collections from Non-Recurring Transactions, Estate Tax Amnesty and Excise Taxes; RIREAU OF INTCRAAI RFVENUE

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a.2. Adding to LTS and deducting from concerned IOs collections from taxpayers to be enlisted to LTS in CY 2023; and a.3. Deducting from LTS and adding to concerned IOs the collections from Large Taxpayers to be delisted in CY 2023. b. The CY 2023 targets for certain items prescribed under MTRP

(dated December 5, 2023) were allocated as follows: b.1 Goal on Excise Taxes amounting to P351.609 Billion was directly allocated to LTS:

R + .Excise Taxes W ++ W {In Billion Pesos). Amount

Total 351.609

Alcohol Products 113.730 Tobacco Products 185.678 Mining 10.183 Automobiles 5.431 Tobacco Inspection Fee 0.011 Miscellaneous 0.119 Sweetened Beverages 36.453 Cosmetic Procedures 0.004

b.2 Goal on Excise Tax on Mining amounting to P1.267 Billion was CY 2022 Actual Collection from Mining. allocated to Revenue Regions using ratio and proportion based on

b.3 Goal on Tax Administration in the amount of P4.039 Billion was

allocated to all IOs using ratio and proportion based on the Refined CY 2022 Collection on Income Taxes, VAT and Percentage Taxes.

The Actual CY 2023 Collection Goais of Implementing Offices for the is equivalent to the percentage increase in the Total CY 2023 BIR taxes vs. Total CY 2022 BIR Refined Collection. rest of the taxes were computed by growing their respective refined Operations Goal net of the abovementioned prescribed targets for certain CY 2022 collection by a uniform growth rate of 11.43%. This growth rate

d. The Final CY 2023 Goal by IO was computed by adding-up the respective computed figures in items b and c above.

1.2 Goal Allocation, by Major Tax Type and Month:

by major tax type, based on the following: The Final CY 2023 Goals of IOs (Table 5A) were distributed monthly

a The total CY 2023 target allocated to IOs per tax type was aligned with the

program in MTRP; and RIREAU OF INTEP iT RFVENUE

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b. The monthly distribution of goal was based on the Refined CY 2022

Monthly Collections with adjustment in monthly collections due to the change in the payment deadlines of the Quarterly Corporate Income Tax (BIR Form 1702Q) and Quarterly filing of VAT returns.

2. The CY 2023 Goal for Non-BIR Operations amounts to P69.283 Billion and consists of the following:

a. FWT on Government Securities which was allocated based on the monthly

trend provided by BTr; and

b. DST on Government Securities which was sourced from the monthly program provided by BTr.

C. Attachments

officials and personnel: The following tables are attached for the reference of all concerned revenue

Table 1 Macroeconomic Indicators and Assumptions, CY 2023

Table '2 Monthly Collection Goal Allocation, By Major Tax Type, CY 2023

Table.3 : Total Collection Goal Allocation, By Implementing Office, CY 2023

Table 4 Table 5A Monthly Total Collection Goal Allocation, By Implementing Office, Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2023 CY 2023

Table:5B Monthly Collection Goal Allocation For Income Taxes, By Implementing Office, CY 2023

Table 5C Monthly Collection Goal Allocation For Excise Taxes, By Implementing Office, CY 2023

Table 5D Monthly Collection Goal Allocation For Value-Added Tax, By Implementing Office, CY 2023

Table 5E Monthly Collection Goal Allocation For Percentage Taxes. By Implementing Office, CY 2023

Table 5F Monthly Collection Goal Allocation For Other Taxes, By Inplementing Office, CY 2023

D. Other Requirements

1. The LTS shall allocate its collection goal among its Divisions, and prepare the corresponding memorandum within five (5) working days upon the issuance of this Order; and giireAu OF inItePNaI qeveNUE

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2. The Deputy Commissioner for Operations Group and the Assistant Commissioner of LTS shall provide the Deputy Commissioner for Resource ten (10) working days upon the issuance of this Order. Management Group the individual goal allocation of the concerned personnel assigned in the implementing units under their respective jurisdictions, within

For purposes of performance in relation to the Attrition Act of 2005 (RA No. 9335) the revenue target of the BIR as published in the Budget of Expenditures and Sources of Financing (BESF) for FY 2023 shall prevaill

N EFFECTIVITY

This Order shall take effect immediately.

Co issioner of Internal Revenue 006639

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