RMC No. 1-2024 — Erroneous inclusion of penalties by NGAs in electronic Tax Remittance Advice

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City January q, 2024

REVENUE MEMORANDUM CIRCULAR NO. (-2024

SUBJECT Erroneous Inclusion of Penalties by NGAs in electronic Tax Remittance

Advice

TO : All Concerned NGAs, Revenue Officials, Employees and Others Concerned

and use the eFPS in their filing of their applicable tax returns. It was further clarified that the eTRA pay taxes through the Electronic Filing and Payment System (eFPS) to include National Government clarifying the use of Electronic Tax Remittance Advice (eTRA) System and mandated NGAs to enroll System shall cover only the payment of withholding taxes and, therefore, does not cover other internal revenue taxes and penalties. However, it has been observed that certain NGAs, in their generation of payment of withholding taxes. Agencies (NGAs). On July 22, 2014, Revenue Memorandum Circular (RMC) No. 57-2014 was issued Tax Remittance Advice (TRA) from the eTRA System, include penalties incurred for late filing and Revenue Regulations (RR) No. 1-2013 expanded the coverage of taxpayers required to file and

while the corresponding penalties, if any, shall be paid in cash thru the Authorized Agent Banks (AABs) or any payment facilities prescribed by this Bureau. payment of penalties. The payment of the basic withholding tax shall be made through the eTRA System Accordingly, all NGAs are hereby directed to discontinue the practice of using eTRA for

the employee thereof responsible for the withholding and remittance of the tax shall be personally liable No. 8-2003 identified Heads of Offices and Chief Accountants or other persons holding similar agencies, political subdivisions or instrumentalities, or a government-owned and controlled corporation. positions officially designated as such by the head of office as equally liable in the settlement of the said penalties. Code of 1997, as amended, prescribe that, if the withholding agent is the Government or any of its for the additions to the tax prescribed therein. As a supplement, Revenue Memorandum Order (RMO) Please be informed that the provisions of Section 247, Title X of the National Internal Revenue

to strictly monitor the NGAs' compliance in the rernittance of their withholding taxes with the Remittance and Reconciliation (IRIS-CRR) of penalties paid by NGAs thru eTRA. As such, payment of penalties using eTRA shall not be recognized as part of the RDO's eTRA collection until the said penalties has been collected and paid in cash thru the A.ABs or any payment facilities available in this Bureau. corresponding penalties incurred, if any, due to late filing and payment on the part of the NGAs. Likewise, the said RDOs shall undertake the reversal/correction in the Integrated Tax System Collection and Bank Reconciliation (ITS-CBR)/ Internal Revenue Integrated System -- Collection The Revenue District Offices and concerned revenue offices of the Bureau are hereby directed

this Circular as wide a publicity as possible. All concerned revenue officials, employees and others concerned are hereby enjoined to give

J-5 BUREATI OF INtERNAL REVENUE G:30 AW JAN 09 7174 IY b Comnissioner of Internal Revenue ROMEO UMAGUI. JR

JIVISION