RMO No. 35-2011 — Re-classifies the Revenue District Offices (RDOs) Digest | Full Text | Annex A

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City September 19, 2011 REVENUE MEMORANDUM ORDER NO. 35-2011 TO : All Internal Revenue Officials and Others Concerned SUBJECT : Re-classification of Revenue District Offices I. OBJECTIVE This Order is issued to update the classification of Revenue District Offices (RDOs) per Revenue Memorandum Order No. 27 � 2009 and may serve as part of the input for staffing and other purposes. II. DATA USED AND METHODOLOGY 1. There shall be eight (8) classes of RDOs under the revised classification: A, B, C, D, E, F, G and H, determined using the following statistical formula: k = 1 + 3.322 logN where k = Number of classes N = total number of observations 2. The class indicator (CI) of each RDO was computed based on the following: a. 2011 RDO Goal Allocation; b. Average ratio of RDO collection to total BIR collection from 2006 � 2010; c. Weighted number of annual income tax returns filed per RDO over weighted number of total BIR tax returns filed in 2010 (BIR Form 1701-40%, BIR Form 1702-60%); d. Weighted number of registered taxpayers as of December, 2010 per RDO over weighted number of total registered taxpayers as of December 31, 2010 (Professionals & Single Proprietors (PSP)-40%, Corporations (CORP)-60%). 3. The working formula is as follows: CI = 35 % (A) + 35% (B) + 15% (C) + 15% (D) where : A = RDO Goal Share = RDO Goal x 100% BIR Goal B = Average Ratio of Collection by RDO RDO coll06 + RDO coll07 + RDO coll08 + RDO coll09 + RDO coll10 Total BIR coll06 Total BIR coll07 Total BIR coll08 Total BIR coll09 Total BIR coll10 B = X 100% ---------------------------------------------------------------------------------------------------------------------------------------------------

5 C = RDO (40% of 1701 returns + 60% of 1702 returns) x 100% BIR (40% of 1701 returns + 60% of 1702 returns) D = RDO (40% of PSP + 60% of CORP) x 100% BIR (40% of PSP + 60% of CORP) 4. The following table shows the distribution of RDOs by class: DISTRIBUTION OF REVENUE DISTRICTS BY CLASS Class Class Limits No. of RDOs A 1.32 and above 10 B 10 C 0.80 � 1.31 14 D 0.58 � 0.79 14 E 0.47 � 0.57 16 F 0.32 � 0.46 20 G 0.23 � 0.31 18 H 0.12 � 0.22 26 0.11 and below 128 TOTAL The list of RDOs under the reclassification scheme is shown in Annex A. III. UPDATING OF REVENUE DISTRICT OFFICE CLASSIFICATION RDO classification shall be updated every two (2) years. IV. REPEALING CLAUSE This order repeals all existing regulations that are inconsistent herewith. V. EFFECTIVITY This Order takes effect immediately. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue B-3/gdf DPDV _____ NMA _____ EBQ _____ CGP _____ CQS _____ LMV _____