RMC No. 39-2015 — Circularizes the updated BIR Citizen's Charter as consolidated Digest | Full Text | Annex A

Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE Quezon City December 11, 2014 REVENUE MEMORANDUM CIRCULAR NO. 39-2015 SUBJECT: Updated BIR Citizen's Charter as Consolidated TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, quoted hereunder are the frontline services under the Revised BIR Citizen's Charter as of December 2014, to wit: Processing of Application for Taxpayer Identification Number (TIN) of Local Employee Who may Avail : Taxpayers receiving purely compensation income either by the employee or thru his employer Where to Avail : 1) RDO having jurisdiction over the place of office of the employer where such employee is expected to report for work. 2) For employees of large taxpayers and corporations included under the Taxpayer Account Management Program (TAMP), their employers shall be responsible to secure the employees' TIN through the use of e-REG System. 3) Employers, shall secure the TIN of their employees through e-REG System 4) Employee with concurrent multiple employment shall secure TIN at the RDO having jurisdiction over his principal/main Employer. What are the Documentary Requirements : > BIR Form 1902* > NSO Certified Birth Certificate of declared dependents, if any; > Waiver of husband on his right to claim additional exemptions, if wife will claim; > Marriage Contract, if applicable; If the husband wants to reacquire from his wife the privilege of claiming the additional exemption for the dependent children, he shall execute a cancellation of the previously executed waiver of the privilege to claim additional exemptions in favor of the wife, which Notice of Cancellation of Waiver of the Privilege of Claiming the Additional Exemptions shall be filed separately, together with the registration update form, with the RDOs having jurisdiction over the registration of the husband and of the wife. > NSO Certified Birth Certificate of the applicant; or > Birth Certificate with Civil Registry Number (for newly born dependents) 1

> Passport (in case of non-resident alien not engaged in trade or business). > Certification from the Office of Muslim Affairs (for Muslims without birth certificate) > Notarized Affidavit with at least two (2) witnesses (for applicant without birth certificate) For employers using eREG System, the above requirements shall be required from their employees Duration : 25 minutes*** How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit duly accomplished BIR Receive application form and verify NONE taxpayer's and employer's existence in 5 minutes Client Support the ITS*/TINVER* Officer Form, together with the required (CSO) documents Check completeness of supporting 5 minutes CSO documents Stamp received on the application and 5 minutes CSO assign Document Locator Number 7 minutes (DLN) Registration Officer Encode and generate TIN CSO 2 Receive TIN Release TIN - indicate in taxpayer's 3 minutes (releasing) receiving copy of BIR Form 1902 *See Annex "A" - Acronyms **Form is available FREE OF CHARGE ***Processing Time per Application Note: Processing of TIN shall be based on the completeness of the documents presented. 2

Processing of Application for Taxpayer Identification Number (TIN) for EO 98 / ONETT Who and Where to Avail : 1) Applicants under E. O. 98 - at any RDO provided the RDO shall use eREG System to generate the TIN, or RDO having jurisdiction over the residence address of the applicant. 2) Non-Resident Applicants - Office of the Commissioner of Internal Revenue through RDO No. 39, South Quezon City; 3) TP with ONETT (Donation) - RDO having jurisdiction over the residence of the donor; 4) TP with ONETT (ESTATE without proprietary activities) - RDO having jurisdiction over the residence of the decedent at the time of death; 5) TP with ONETT (Sale of Real Property) - RDO where the real property is located. 6) TP with ONETT (Sale of Shares of Stocks) - for shares of stock not traded in the Stock Exchange, RDO having jurisdiction over the address of the seller. In the case of listed shares, the venue shall be with the RDO having jurisdiction over the place where the particular Local Stock Exchange is located. What are the Documentary : > BIR Form 1904* Requirements > Individual 1) NSO Certified Birth Certificate of the applicant; 2) Marriage Contract, if the applicant is a married woman; 3) Certification from the Office of Muslim Affairs (for Muslims without birth certificate) 4) Notarized Affidavit with at least two (2) witnesses (for applicants without birth certificate) 5) Passport (in the case of Non-Resident Alien not Engaged in Trade or Business) Non-Individual >Document to support transaction of non-resident foreign corporation and the withholding agent (e.g. bank certification, invoice, contract, etc.) Additional requirements for transactions involving ONETT 1) Transfer of Properties by Succession (ESTATE) >Death Certificate of decedent; >Deed of Extrajudicial Settlement of the Estate/Judicial Settlement of the Estate 2) Transfers by Gratuitous Title (Donation) >Deed of Donation (to determine tax type to be registered); 3) Sale, Assignment, Mortgage, Purchase and/or Disposal of Shares of Stock and/ or Real Estate Properties (whichever is applicable) >Deed of Sale; >Deed of Assignment; >Mortgage Document 4) Claim of Winnings >Certification from Awarding Company/Person 5) Claim of Winnings involving Personal Properties Subject to Registration >Cash Invoice or Official Receipt for brand new vehicle or other personal /real properties subject to registration; 6) Sale of Second-hand Vehicle >Deed of Sale or Certificate of Registration (COR) with LTO Duration : 21 minutes** 3

How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit duly accomplished BIR Receive application form and verify NONE 5 minutes Client Support Officer Form, together with the required existence in the ITS/TINVER (CSO) documents Check completeness of supporting CSO documents 5 minutes Stamp received on the application and 5 minutes CSO assign DLN 3 minutes Registration Encode and generate TIN Officer 2 Receive TIN Release TIN - indicate in taxpayer's 3 minutes CSO receiving copy of BIR Form 1904 (releasing) *Form is available FREE OF CHARGE **Processing Time per Application Note: Processing of TIN shall be based on the completeness of the documents presented. 4

Processing of Application for TIN and Registration of Self-Employed Individuals, Estates and Trusts including their branches and facilities Who may Avail : Individuals engaged in trade or business or those in the practice of profession, Estates and Where to Avail Trusts with proprietary activities including their branches and facilities, if any : 1) RDO having jurisdiction over the place where the Head Office and branch is located, respectively 2) RDO having jurisdiction over the place of residence, in the case of those who conduct business transactions in a nomadic or roving manner, such as peddlers, mobile stores operators, privilege store owners and the like 3) Estate - RDO having jurisdiction over the domicile of the decedent at the time of death. In the case of a non-resident decedent, the estate shall be registered with the RDO where the executor or administrator is registered. Provided however, that in case of such executor or administrator is not registered, registration of the estate shall be made with the RDO having jurisdiction over the legal residence of the executor or administrator 4) Trust � RDO having jurisdiction over the registered address of the Trustee. Provided however, That in case of such Trustee is not registered, registration of the estate shall be made with the RDO having jurisdiction over the business address of the Trustee What are the Documentary : >BIR Form 1901* Requirements For single proprietors, mixed income earners > Photocopy of Mayor's Business Permit (or duly received Application for Mayor's Business Permit, if the former is still in process with the LGU) and /or PTR issued by the LGU; > NSO Certified Birth Certificate of the applicant; > Certification from the Office of Muslim Affairs (for Muslims without birth certificate) > Notarized Affidavit with at least two (2) witnesses (for applicants without birth certificate) > Other documents for submission only if applicable: a) Contract of Lease / Proof of Ownership; b) DTI Certificate of Registration of Business Name, if a business trade name shall be used; c) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered entity; d) Proof of Registration/Permit to Operate with Board of Investment (BOI)/Board of Investment for Autonomous Region for Muslim Mindanao (BOI-ARMM), Philippine Export Zone Authority (PEZA), Bases Conversion Development Authority (BCDA) and Subic Bay Metropolitan Authority (SBMA); e) Sworn Statement of Capital; f) Waiver of husband to claim additional exemption; g) Marriage Contract; and h) NSO Certified Birth Certificate of declared dependents. i) Birth Certificate with Civil Registry Number ( for newly born dependents) 5

j) Duly notarized authorization letter of the taxpayer, in case of representative or Engagement Letter or Certificate as an agent of the company k) For Licensed Professionals (e.g. Lawyers, Doctors, CPAs) 1 Occupational Tax Receipt (OTR)/Professional Tax Receipt (PTR) 2 Professional Regulatory Commission (PRC) / Integrated Bar of the Philippines (IBP) license For Non-Residents > In addition to the above applicable requirements, a Working Permit; For Franchise Holders/Franchisees > In addition to the above applicable requirements, a photocopy of the Franchise Agreement; For Trusts > In addition to the requirements enumerated under "a" to "h" above, a photocopy of the trust agreement; For Estate (under judicial settlement) > In addition to the requirements enumerated under "a" to "h" above, a photocopy of the Death Certificate of the deceased; and > Judicial Settlement; Duration : In the case of registration of Branch/Facility type: a) Copy of the Certificate of Registration (COR) of the Head Office for facility types to be used by the Head Office and COR of the branch for facility types to be used by a particular branch; b) Mayor's Business Permit or duly received Application for Mayor's Business Permit, if the former is still in process with the LGU; c) DTI Certificate of Registration of Business Name, if a business trade name shall be used, if applicable; and d) Contract of Lease / Proof of Ownership Documentary Requirements for new application of Authority to Print (ATP) > BIR form 1906* together with the following: - Job Order - Final & clear sample of Principal and Supplementary Receipts/Invoices - Printer's Certificate of Accreditation - Copy of COR of Printer Documentary Requirement for new Registration of Books Of Accounts - New sets of books of accounts 1 hour and 18 minutes** 6

How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Receive application form and verify Responsible existence in the ITS 5 minutes 1 Submit duly accomplished BIR Client Support Annual Registration Check completeness of supporting 5 minutes Form, together with the required documents Officer Fee (P500.00); documents (CSO) DST (P15.00) CSO Inform TP to submit requirements for ATP and books of accounts 2 Proceed to the Officer-of-the Day Interview TP to determine the 15 minutes OD (OD) applicable tax type, Philippine Standard Industrial Code (PSIC), Alphanumeric Tax Code (ATC), computes Documentary Stamp Tax (DST) for subscribed capital and contract of lease, if applicable and compute penalty for late registration, if applicable Stamp received on the application 5 minutes CSO and assign Document Locator Number (DLN) 3 Receive TIN Encode and generate TIN 7 minutes Registration Note: if TP was already issued TIN, 3 minutes Officer do not generate new TIN, update records of TP under issued TIN CSO (releasing) Release TIN - indicate in taxpayer's receiving copy of BIR Form 1901 4 Pay Annual Registration Fee (ARF) Receive proof of payment of ARF, 5 minutes CSO with authorized banks / collection and DST (if applicable), Application officers for ATP, Job Order, final and clear layout of invoice/receipts, new sets of Pay Documentary Stamp Tax books of accounts (DST) (loose DST / BIR Form 2000* for DST on Contract of Lease, etc) Present proofs of payment 5 Submit requirements for ATP and Process Authority to Print (ATP) 3 minutes Registration Unit Head registration of books of accounts Encode details of books for registration 2 minutes Registration in ITS Officer Generate Certificate of Registration 5 minutes Registration (COR)/ATP and forward to CSS 5 minutes Unit Head chief for review and initial Client Support Review and initial COR/ATP/Books Section of Accounts (CSS) Chief 6 Receive COR, ARN, ATP and Review and sign COR / ATP / Books 15 minutes ARDO/RDO of Accounts 3 minutes Release COR and Ask for Receipt CSO Books of Accounts Notice (ARN), ATP and Books of (releasing) Accounts *Form is available FREE OF CHARGE **Processing Time per Application 7

Processing of Application for TIN and Registration of Non-Individuals including their branches and facilities Who may Avail : Corporations, Partnerships, Cooperatives, Associations (whether taxable or non-taxable), GAIs, GOCC's, LGU's including its branches and facilities, if any Where to Avail : 1) RDO having jurisdiction over the place where the Head Office and branch is located, respectively 2) RDO having jurisdiction over the place of principal place of business/HO, in the case of branch with no fixed business location or branch with no fixed business location or branch of domestic Corporation located abroad 3) Government Agencies and Instrumentalities (GAIs), GOCCs, LGUs � RDO having jurisdiction over the place where the principal office is located What are the Documentary : > BIR Form 1903* Requirements For Corporations/Partnerships > Copy of SEC Registration and Articles of Incorporation/Articles of Partnerships, as the case may be; > Copy of Mayor's Business Permit or duly received Application for Mayor's Business Permit, if the former is still in process with the LGU. Other documents for submission only if applicable: a) Contract of Lease / Proof of Ownership; b) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered entity; d) Franchise Agreement; e) License to Do Business in the Philippines, in case of resident foreign corporation; f) Proof of Registration/Permit to Operate with BOI, SBMA, BCDA, PEZA For GAIs and LGUs > Copy of Unit or Agency's Charter For Cooperatives > Copy of Cooperative Development Authority (CDA) Certificate of Registration > Articles of Cooperation For Home Owner's Association > Copy of Certificate of Registration issued by Housing and Land Use Regulatory Board (HLURB) and Articles of Association In the case of registration of branch/facility type: a) Copy of the COR of the Head Office for facility types to be used by the Head Office and COR of the branch for facility types to be used by a particular branch; b) Mayor's Business Permit or duly received Application for Mayor's Business Permit, if the former is not yet available; and c) Contract of Lease / Proof of Ownership. 8

Duration : Documentary Requirements for new application of Authority to Print > BIR form 1906* together with the following: - Job Order - Final & clear sample of Principal & Supplementary Receipts/Invoices - Printer's Certificate of Accreditation - Copy of Certificate of Registration (COR) of Printer Documentary Requirement for new Registration of Books of Accounts - New sets of books of accounts 1 hour and 18 minutes** How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit duly accomplished BIR Receive application form and verify Annual existence in the Integrated Tax System 5 minutes Client Support Registration (ITS) Section Fee Form, together with the required (CSO) (P500.00); documents Check completeness of supporting 5 minutes CSO DST (P15.00) documents Inform TP to submit requirements for Authority to Print (ATP) and books of accounts 2 Proceed to the Officer-of-the Day Interview TP to determine the 15 minutes OD (OD) applicable tax type, Philippine Standard Industrial Code (PSIC), Alphanumeric Tax Code (ATC), compute Documentary Stamp Tax (DST) for subscribed capital and contract of lease, if applicable and computes penalty for late registration, if applicable Stamp received on the application and 5 minutes CSO assign Document Locator Number (DLN) Encode and generate TIN 7 minutes Registration Note: if TP was already issued TIN, do Officer not generate new TIN, update records of TP under issued TIN CSO (releasing) 3 Receive TIN Release TIN - indicate in taxpayer's 3 minutes receiving copy of Form 1903 CSO 4 Pay Annual Registration Fee (ARF) Receive proof of payment of ARF, and 5 minutes with authorized banks / collection DST (if applicable), Application for officers ATP, Job Order, final and clear layout of invoice/receipts, new sets of books of Pay Documentary Tax (DST) accounts (loose DST / BIR Form 2000* for DST on Contract of Lease, etc) Present proofs of payment 9

5 Submit requirements for ATP and Process Authority to Print (ATP) 3 minutes Registration Unit Head registration of books of accounts Registration Encode details of books for registration 2 minutes Officer in ITS Generate Certificate of Registration 5 minutes Registration (COR)/ATP and forward to CSS Chief 5 minutes Unit Head for review and initial Review and initial COR/ATP/Books of Accounts Review and sign COR / ATP / Books of 15 minutes Client Support Accounts Section (CSS) Chief RDO/ARDO 6 Receive COR, ARN, ATP and Release COR and Ask for Receipt 3 minutes CSO Notice (ARN), ATP and Books of (releasing) Books of Accounts Accounts *Form is available FREE OF CHARGE **Processing Time per Application NOTE: Processing of COR & ATP shall be based on the completeness of the documents presented. 10

Processing of Request for Certification of Certificate of Registration (COR) / Authority to Print (ATP) / TIN Card Who may Avail : All taxpayers requesting for Certification Where to Avail : Revenue District Office (RDO) where the taxpayer is registered What are the Documentary : > Letter of request bearing the letter head of the company Requirements > Authorization letter, (for non-Individuals, stating name and position of Company Officer signing the Authorization and/or for individuals other than person requesting for the certification) > Photocopy of ID of Representative and requesting taxpayer duly signed Duration : 16 minutes* How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit letter of request Receive letter of request and verify P 100.00 existence in the ITS 3 minutes Client Support Certification Officer Fee and Prepare certification documents as 5 minutes (CSO) 15.00 for doc. requested Stamp per Client Support document Sign Certification documents Section Release of Certification documents (CSS) Chief 2 Receive requested documents 5 minutes ARDO/RDO 3 minutes CSO (releasing) *Processing Time per Request 11

Processing of Application for Subsequent Registration of Manual Books of Accounts Who may Avail : All registered Business Taxpayers Where to Avail : Revenue District Office (RDO) where the taxpayer is registered When to Avail : Before use of new sets of books of accounts What are the Documentary : > BIR Form 1905* Requirements > New sets of books of accounts > Photocopy of the 1st page of previously registered books of accounts Duration : 22 minutes** How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Stamp registration details on books Direct taxpayer to stamp required NONE 2 minutes Client Service as instructed and complete details details on front page of each book for per book Officer (CSO) on books presented for registration registration 2 Submit application form for Receive and evaluate Update Form and 3 minutes CSO check books submitted for registration. registration of books Registration Officer Encode details of books for registration 5 minutes in ITS as indicated in Update Form Registration Officer Forward filled out books for signature 5 minutes of ARDO/RDO/CSS RDO/ARDO/ CSS Chief Sign books of accounts for registration 2 minutes per book 3 Receive signed books of accounts Release signed books of accounts and 5 minutes CSO (releasing) and copy of BIR Form 1905 stamped received copy of Update Form *Form is available FREE OF CHARGE **Processing Time per Application 12

Processing of Application for Subsequent Registration of Manual Books of Accounts (Loose-leaf) Who may Avail : All registered Business Taxpayers with Permit to Use Loose Leaf Books of Accounts Where to Avail : Revenue District Office (RDO) where the taxpayer is registered When to Avail : Within thirty (30) calendar days after the end of taxable year What are the Documentary : > BIR Form 1905* Requirements > Photocopy of Permit to Use Loose leaf Books > Certification or Sworn Statement (notarized) > Books to be registered which shall be permanently bound > Photocopy of the 1st page of previously registered loose-leaf Books of Accounts Duration : 24 minutes** How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Stamp registration details on books Direct taxpayer to stamp required NONE 2 minutes per Client Support as instructed and complete details details on front page of each book book Officer (CSO) on books presented for registration for registration 2 Submit application form for Receive and evaluate Update Form 5 minutes CSO and check books submitted for 5 minutes registration of books registration. Registration Officer Encode details of books for registration in ITS as indicated in Update Form Forward filled out books for 5 minutes Registration signature of ARDO/RDO/CSS Officer Sign loose-leaf books of accounts 2 minutes per RDO/ARDO/ book CSS Chief 3 Receive approved loose-leaf books Release signed loose-leaf books of 5 minutes CSO (releasing) of accounts accounts *Form is available FREE OF CHARGE **Processing Time per Application 13

Processing of Application for Subsequent Request for Authority to Print (ATP) Receipts/Invoices Who may Avail : All registered Business Taxpayers Where to Avail : Revenue District Office (RDO) where the Head Office is registered When to Avail : As necessary What are the Documentary : > BIR Form 1906* Requirements > Job Order > Final & clear sample of Principal and Supplementary Receipts/Invoices > Last booklet or photocopy of previous ATP > Permit to Use Loose-leaf, if applicable > Printer's Certificate of Accreditation > Copy of COR of Printer Duration: : 39 minutes** 39 minutes** : How to Avail of the Service Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit application form Receive application form with NONE documentary requirements. 3 minutes Client Support Officer Evaluate submitted documentary 5 minutes (CSO) requirements and assign DLN CSO Check TP Information from ITS 5 minutes Registration Unit (e.g. tax type, address , Trade Head Name, Printer information, etc.), modify if needed and Generate ATP Correspondence Forward ATP to CSS Chief for 3 minutes Registration Officer review and initial Review and initial 5 minutes Client Support Approve and sign ATP 15 minutes Section (CSS) Chief RDO/ARDO 2 Receive approved ATP Release approved ATP 3 minutes CSO (releasing) *Form is available FREE OF CHARGE **Processing Time per Application 14

Processing of One Time Transactions involving Sale of Real Property / Shares of Stocks Who may Avail : Taxpayers transferring ownership of real / personal properties arising from sale Where to Avail : For real property transactions - Revenue District Office (RDO) where the property is located; When to Avail For shares of stock � Revenue District Office where the seller is registered What are the : Capital Gains Tax (CGT) � Within 30 days after each sale or disposition of shares of stock or real Documentary properties Requirements Documentary Stamp Tax ( DST) � Within five (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred : BIR Form 1706* � Real Property BIR Form 1707* � Shares of Stocks BIR Form 2000- OT* For Real Property: Mandatory - TIN of Seller and buyer - Notarized Deed of Absolute Sale/Doc. of Transfer - Cert. True Copy of latest Tax Declaration (land & improvement) - Owner's Copy of TCT, CCT, OCT - Sworn Declaration of No Improvement by Transferee or Cert. of No Improvement issued by the Assessor's Office - OR/Deposit Slip and duly validated return as proof of payment Other applicable req.: - SPA if signing doc. is not the owner - Certification of Phil. Consulate if doc. is executed abroad - Location Plan / Vicinity map - such other document as may be required Additional Req. (for Antedated Sales) - Cert. True Copy of Deed of Sale / Assignment/Exchange issued by the Clerk of Court of City/Municipality or RTC or Office of the Exec. Judge of the City/Municipality where the Notary Public is registered or the Natl. Archives Office - such other requirements as may be required by law/rulings/regulations/ other issuances For Shares of Stocks: Mandatory - TIN of Seller - Notarized Deed of Absolute Sale/Document of Transfer - Photocopy of stock certificate - Proof of acquisition cost (i.e. Deed of Sale; FMV at the time of acquisition) - Official Receipt/Deposit Slip and duly validated return as proof of payment Other applicable req.: 1. For claiming expenses of sale Proof of claimed deductions such as official receipt and/or invoices 2. For unlisted stocks Audited Financial Statement of the issuing corporation nearest the transaction date 3. For listed shares, Price published in newspapers on the transaction date 4. Others - Certificate of Exemption/BIR Ruling issued by the Commissioner of Internal Revenue or his authorized representative, if tax exempt - Such other requirements as may be required by law/rulings/regulations/etc. 15

Duration : 360 minutes How to Avail of the Services: Taxpayer Activity Processing Person Fees Time Responsible Present the 1. Verifies TIN of Taxpayer (TP) with Taxpayer Service 30 minutes ONETT Team None documents per Section (TSS). Refer to TSS for registration, if no TIN 30 minutes Member and TP Checklist of Documentary 2. Accomplish CDR / Checks completeness and Service Sec. Requirements authenticity of documents (if incomplete, inform Staff (CDR) TP of lacking documents) ONETT Team 3. Receives documents from TP (for complete requirements) Member 4. Transmits CDR to Head, ONETT Team (only those 15 minutes ONETT Team with complete requirements) Member 10 minutes ONETT Team Member Receive approved 5. Approves CDR 15 minutes Head, CDR 10 minutes ONETT 6. Releases original copy of documents presented to BIR together with CDR indicating the requirements Team that have been complied with by the TP ONETT Team 7. If necessary, conduct ocular inspection per approval of Member the Head, ONETT Team but should be conducted w/in the 5-day period prior to the issuance of CAR. 1 1 day ONETT Team Member 8. Computes the Tax Due using the ONETT 30 minutes Computation Sheet (OCS) Note: This can be done only if all the documents ONETT Team per CDR have been submitted Member 9. Stamp "TIN VERIFIED" on the OCS if found to be 5 minutes ONETT Team in place or correct; Member 15 minutes 10. Signs and forwards together with CDR and complete ONETT Team documents to the Head, ONETT Team 30 minutes Member 10 minutes Receive approved 11. Receives, reviews, signs/approves the CDR and 30 minutes Head, OCS OCS; Return to ONETT Team Member per return ONETT Accomplish applicable tax 12. Release duplicate copy of approved OCS to the TP 2 hours Team returns 13. Provide TP with applicable tax returns and assist in ONETT Team File and pay tax accomplishing them Member due ( time frame 14. Require TP to pay the computed taxes at the ONETT Team nearest AAB Member ONETT Team Member 16

of payment will 15. Receive photocopy of proof of payments of taxes 5 minutes ONETT Team after verifying against TP's copy Member depend on the location of AAB) Submit proof of payment 16 . Record in the ONETT Logbook 10 minutes ONETT Team Member Receive Claim Slip 17. Issue Claim Slip (CS) to TP indicating therein the date of release of CAR. ONETT Team 10 minutes Member 18. Verify payment from Collection and Bank Reconciliation (CBR) 30 minutes Chief, & Batch Control Sheet (BCS) submitted by AABs 3 days Collection Note: Payment information are uploaded to the system overnight if paid before cut-off, Section otherwise, on the following day. (Per RMO 15-2003, 3 days from date of payment if data is not available in ITS) 19. Prepare Certificate Authorizing Registration (CAR) / Tax 20 minutes ONETT Support Clearance (TCL) and submit to the Head, ONETT Team Staff Head, 15 minutes ONETT Claim CAR/TCL 20.Sign/Approve CAR / TCL Team 10 minutes ONETT Team Member 21.Release CAR and TCL to TP upon presentation of CS TOTAL MINUTES / DAYS 5 days 2 *Form is available FREE OF CHARGE 1 Conduct of ocular inspection shall be required under the following instances: - When there is conflict of data as to existence of improvement in documents presented; and - Whenever the taxpayer invokes a special law (such as properties located in Areas for Priority Development) that will result in payment of a lesser tax 2 Five days � includes maximum days of uploading of payment into the system 17

Processing of One Time Transactions subject to Donor's Tax Who may Avail : Every person, whether natural or juridical, resident or non-resident, who transfers or causes to transfer property by gift, whether in trust or otherwise, whether the gift is direct or indirect and Where to Avail whether the property is real or personal, tangible or intangible. When to Avail : Revenue District Office (RDO) where the resident donor is domiciled at the time of donation, or if there is no legal residence in the Philippines, with RDO No. 39 - South QC. In the case of What are the gifts made by a non-resident alien, the return may be filed with RDO No. 39, or with the Documentary Philippine Embassy or Consulate in the country where donor is domiciled at the time of donation. Requirements : Within thirty (30) days after the date the gift (donation) is made. A separate return will be filed each gift (donation) made on the different dates during the year reflecting therein any previous gifts made during the same calendar year. If the gift (donation) involves conjugal/community property, each spouse will file separate returns corresponding to his/her respective share in the conjugal/community property. This rule will also apply in the case of co-ownership over the property. BIR Form 1800* : Mandatory: - TIN of all Donors - Notarized Deed of Donation - Certified true copy of the latest Tax Declaration issued by the Local Assessor's Office for land and improvement relevant to the date of transaction - Owner's Copy for presentation purposes only together with the photocopy for authentication: Transfer Certificate of Title (TCT), Condominium Certificate of Title (CCT), Original Certificate of Title(OCT) - Sworn Declaration of No Improvement issued by the Assessor's Office, if applicable - Proof that the donee is a qualified relative of the donor, if the donation is being taxed using the schedular rates (e.g. Birth Certificate, Marriage Contract, Baptismal Certificate, affidavit of a third party) - Official Receipt/Deposit Slip for this purpose and duly validated return as proof of payment Additional Requirements; if applicable 1. For Personal Properties - Proof of valuation of shares of stock a. For listed stocks - certification of the price index from the PSE/latest FMV published in the newspaper at the time of transaction b. For unlisted stocks - latest audited financial statements of the issuing corporation with computation with the computation of the book value per share - Certificate of Deposit/Investment/ Indebtedness/Stocks for donated cash or securities - Certificate of Registration of motor vehicle, if any 2. Others - Special Power of Attorney, if the signatory on the document is not the owner as appearing in the Title - Certificate of Exemption/BIR Ruling issued by the CIR or his authorized representative if tax exempt - Such other requirements as may be required by law/rulings/regulations/ other issuances 18

Duration : 360 minutes How to Avail of the Service: Taxpayer Activity Processing Person Fees Time Responsible Present the 1. Verifies TIN of Taxpayer (TP) with Taxpayer Service 30 minutes ONETT Team None documents per Section (TSS). Refer to TSS for registration, if no TIN 30 minutes Member and TP Checklist of Documentary 2. Accomplish CDR / Checks completeness and Service Sec. Requirements authenticity of documents (if incomplete, inform Staff (CDR) TP of lacking documents) ONETT Team Receive approved 3. Receives documents from TP (for complete Member CDR requirements) 15 minutes ONETT Team Receive approved 4. Transmits CDR to Head, ONETT Team (only those Member OCS with complete requirements) Accomplish 10 minutes ONETT Team applicable tax 5. Approves CDR Member returns 6. Releases original copy of documents presented to 15 minutes Head, BIR together with CDR indicating the requirements 10 minutes ONETT that have been complied with by the TP Team 7. If necessary, conduct ocular inspection per approval of ONETT Team the Head, ONETT Team but should be conducted w/in the 5-day period prior to the issuance of CAR. 1 Member 8. Computes the Tax Due using the ONETT 1 day Computation Sheet (OCS) Note: This can be done only if all the documents ONETT Team per CDR have been submitted Member 9. Stamp "TIN VERIFIED" on the OCS if found to be 30 minutes in place or correct ONETT Team 10. Signs and forwards together with CDR and complete Member documents to the Head, ONETT Team 5 minutes ONETT Team 11. Receives, reviews, signs/approves the CDR and Member OCS; Return to ONETT Team Member 15 minutes ONETT Team 12. Release duplicate copy of approved OCS to the TP 30 minutes Member 10 minutes 13. Provide TP with applicable tax returns and assist in 30 minutes Head, accomplishing them per return ONETT Team ONETT Team Member ONETT Team Member 19

File and pay tax 14. Require TP to pay the computed taxes at the 2 hours ONETT Team nearest AAB Member due ( time frame of payment will 15. Receive photocopy of proof of payments of taxes 5 minutes ONETT Team depend on the after verifying against TP's copy Member location of AAB) Submit proof of payment Receive Claim Slip 16. Record in the ONETT Logbook 10 minutes ONETT Team 10 minutes Member 17. Issue Claim Slip (CS) to TP indicating therein the date of release of CAR. ONETT Team Member 18. Verify payment from Collections and Bank Reconciliation (CBR) 30 minutes & Batch Control Sheet (BCS) submitted by AABs 3 days Chief, Note: Payment information are uploaded Collection to the system overnight if paid before cut-off, otherwise, on the following day. Section (Per RMO 15-2003, 3 days from date of payment if data is not available in ITS) Claim CAR/TCL 19. Prepare Certificate Authorizing Registration (CAR) / Tax 20 minutes ONETT Support Clearance (TCL) and submit to the Head, ONETT Team 15 minutes Staff 10 minutes Head, 20.Sign/Approve CAR/TCL 5 days 2 ONETT 21.Release CAR and TCL to TP upon presentation of Team of CS TOTAL MINUTES / DAYS ONETT Team Member *Form is available FREE OF CHARGE 1 Conduct of ocular inspection shall be required under the following instances: - When there is conflict of data as to existence of improvement in documents presented; and - Whenever the taxpayer invokes a special law (such as properties located in Areas for Priority Development) that will result in payment of a lesser tax 2 Five days � includes maximum days of uploading of payment into the system 20

Processing of Permit to Operate as a Manufacturer, Producer, Trader and / or Importer of Excisable Articles Who may avail : Taxpayers desiring to operate as manufacturer, producer Where to avail What are the Documentary and/or importer of excisable products Requirements : Excise Taxpayers Regulatory Division (Formerly Large Taxpayers Duration How to Avail of the Service Assistance Division II), National Office : 1. Request letter 2. Importer/manufacturer's surety bond (100,000.00 - initial) 3. SEC certificate of registration 4. Articles of Incorporation & By-laws 5. Mayor's permit 6. BIR certificate of registration (with latest registration fee [bir form 0605]) 7. Latest Income Tax Return 8. Plat & plan of the warehouse if manufacturer - blueprint 9. Certificate of registration from DTI in case of individual 10. Location map of the production/ assembly plant of the importer's or dealer's warehouse 11. Dealership agreement between manufacturer / assembler or importer and dealer, in the case of dealer 12. Others: (as applicable) : 153 minutes : TAXPAYER PROCEDURES PROCESSING PERSON Fees TIME RESPONSIBLE (IN MINUTE) File Application 1. Pre-screen application and supporting documents to Receiving Officer with the Excise determine the completeness of documentary requirements 10 submitted by taxpayers Taxpayers 2 Regulatory Division 2. Receive application and its attachments if in order, otherwise require lacking requirements from taxpayer BIR-National Office Building together with the required documents Computer 3. Record application in database 3 Operator 4. Assign a Document Locator Number (DLN), and a routing 3 slip to the application 2 5. Assign a Revenue Officer to the application for processing 6. Endorse application to the Section Chief for his notation 1 7. Affix initials on routing slip 8. Endorse application to the assigned Revenue Officer 3 Section Chief 9. Evaluate application documents whether the same requires 1 resolution of technical/factual data (for referral to Laboratory Unit) 15 21

Schedule ocular Revenue Officers inspection of premises Within the scheduled 10. Conduct ocular inspection of said Production Plant/Warehouse where said excisable articles will be ocular produced/placed inspection date as set by the TP - 1 day Submit additional 11. Require submission of additional documentary Within 5 days documentary requirements, if applicable requirements 12. Prepare Revenue Officer's Report 1 13. Prepare Permit 20 Submit Surety 14. Register Surety Bond Bond for 10 registration 15. Affix initials thereto and endorse same to Section Chief 5 16. Review Permit/Surety Bond based on the Section Chief/Excise recommendation of the Revenue Officer and supporting 15 Taxpayers Regulatory documents Division 17. Endorse same to Assistant Division Chief if found in order 2 Assistant Division 18. Review Permit, Surety Bond and supporting documents Chief/ETR 15 D 19. Affix initials and endorse same to the Division Chief if Division found in order 3 Chief/ETRD 20. Review Permit, Surety Bond and supporting documents 15 Revenue Officer/ETRD 21. Approve Permit if found in order 3 HREA LTS- 22. Endorse Permit and Surety Bond to HREA of LTS- 3 Excise Excise for final approval Revenue Officer/ETRD 23. Approve and signs Permit and Surety Bond for release to 15 Taxpayer 24. Transmit back Permit and Surety Bond for release to Taxpayer 3 25. Release Permit to Taxpayer 3 Total Minutes 153 NOTE: The processing time does not include conduct of ocular inspection and laboratory testing. The time is extended for the conduct of ocular inspection and laboratory testing, as well as, when there are more clients. 22

Processing of Authority to Release Imported Goods (ATRIG) Who may avail : Importers Of Articles Subject To Excise Taxes (Petroleum, Automobiles, Alcohol, Tobacco, Non-Essential Goods) Where to avail Importers Under The Jurisdiction Of Revenue Region Nos. 4,5,6,7,8 and 9 What are the Documentary Requirements : Excise Taxpayers Regulatory Division (Formerly Large Taxpayers Assistance Division II), National Office : BASIC REQUIREMENTS: Duly Notarized Application Form Bill of Lading Commercial Invoice Packing List Bureau of Customs (BOC) Import Entry & Internal Revenue Declaration ADDITIONAL REQUIREMENTS: I. AUTOMOBILE - A) FOR SALE Updated Manufacturer's/Importer's Sworn Statement Affidavit of Undertaking VIN List B) FOR PERSONAL USE B.1 BRAND NEW/USED CAR (returning residence) Affidavit of First & Last Importation BOC Car Evaluation System (Breakdown Computation of Duties & Taxes) Photocopy of Latest Income Tax Return Joint Undertaking (Broker & Importer) Certication from Bureau of Import Service BOC Indorsements VIN List Passport B.2 LOCAL PURCHASE/VOLUNTARY PAYMENT (USED CAR) BOC Indorsements BOC Car Evaluation System (Breakdown computation of duties & Taxes) Indorsement from DOF Certificate of Registration Official Receipt Latest Original Income Tax Return Company I.D. Passport Stencil of Chassis No. & Engine No. Informal Import Declaration & Entry Deed of Absolute Sale VIN List Photo/picture of the Vehicle 23

II. PETROLEUM Techical Information as to the Usage of Imported Products Certificate of Product Quality/Quantity Certificate of Material Source/Origin Certificate of Analysis Affidavit of Undertaking Material Safety Data Sheet DOE Indorsement Sample label/product, if necessary III. ALCOHOL Certificate of Product Quality/Quantity Certificate of Material Source/Origin Consular Certificate of Authentication from country of origin IV. TOBACCO/MINERAL PRODUCTS/POWER sea water duly Permit for Coal Importation Proof of Advance VAT Payment for Wheat Importation Certification that the Imported Salt is extracted from authenticated by the Phil. Embassy at the country of origin Duration : 124 minutes How to Avail of the Service : 24

PROCESSING TAXPAYER PROCEDURES TIME PERSON Fees (IN MINUTE) RESPONSIBLE File Application for ATRIG, 1. Pre-screen Application and supporting 10 Receiving P15 Doc. Officer Stamp together with the documentary documents to determine whether: requirements, for articles subject to Excise Tax. a) Importer is registered and with appropriate import permit b) Basic prescribed importation documents are complete 2. Receive Application 2 3. Endorse Application to Data Unit for recording 3 (Excise-registered taxpayers are 4. Record Application in Database also required to apply for ATRIG 3 Computer for importations related to their 5. Assign a Document Locator Number (DLN), an Office Operator, Data Unit business) Control Number (OCN) and attach Routing Slip to the 3 Section Application Chief 6. Assign a Revenue Officer to the Application for Revenue Officer processing 3 7. Endorse Application to the Section Chief for his notation 1 8. Affix initials on Routing Slip 2 9. Endorse Application to the assigned Revenue Officer 1 10. Receive assigned application 1 11. Evaluate application documents whether the 15 same requires any of the following: a. Conduct of ocular inspection b. Resolution of technical/factual issue (For referral to Laboratory Unit) c. Resolution of a legal issue (For referral to the Law Division) 12. Otherwise, compute the Excise Tax Due or grant the Tax 15 Exemption on the article, as the case may be 13. Assign and prepare/issue ATRIG Form No. 5 1918 14. Affix Initials thereto and endorse same to the 3 Section Chief 15. Review ATRIG based on the recommendation of the 5 Section Chief Revenue Officer and supporting documents 16. Endorse same to Assistant Division Chief if found in 3 order 25

17. Review ATRIG and supporting documents 5 Assistant Division 18. Affix initials and endorse same to the Division 3 Chief, Chief ETRD 19. Review ATRIG and supporting documents 3 20. Approve and sign ATRIG Division 21. Update status of application with approved ATRIG on database Chief, 22. Prepare transmittal letter to Bureau of Customs (BOC) for approved ATRIGs 3 ETRD 5 Computer Operator, 3 Data Unit 23. Affix initials and endorse transmittal letter 3 together with approved ATRIGs to Section Chief 24. Affix initials on transmittal letter of approved 3 ATRIGs and endorse same to Asst. Div. Chief Section Chief 25. Affix initials on transmittal letter of approved ATRIGs and endorse same to Div. Chief 3 26. Affix initials on transmittal letter of approved Assistant ATRIGs and endorse same to the HREA of LTS- Excise for final approval Division 27. Submit transmittal letter and ATRIGs to the Chief, Office of HREA- LTS-Excise 3 ETRD 28. Signs Transmittal Letter Division Chief, ETRD 2 5 Computer Operator, Data Unit HREA, LTS- Excise 29. Receive approved Transmittal Letter and 2 Computer ATRIGs from the Office of HREA, LTS - Excise Operator, Data Unit / Liaison Officer 30. Encode data on approved ATRIG in the e2m 2 Computer Customs System of Bureau of Customs (BOC) Operator, Data unit 31. Approve via electronic signature the encoded 3 Section data. Immediately thereafter, system generates Chief BOC License Number for the transaction 32. Write BOC License Number on the ATRIG 1 Computer Operator, 33. Deliver approved ATRIGs, together with the Every 2pm of Data Unit approved transmittal letter/s, to the Bureau of each working Liaison Customs (BOC) Officer day Total Minutes 12 Note: The processing time does not include conduct of ocular inspection and laborato4ry testing and for the resolution of legal issues, if there are any, in which case, processing time will be extended. It will be furthermextended, if there are more clients. 26 in ut es

Processing and Issuance of Tax Clearance (TCL ) for Bidding Purposes Who may avail : Taxpayers intending to join public bidding in government agencies Where to avail What are the Documentary : Collection Enforcement Division, National Office Requirements : 1. Receipt of payment of Certification Fee Duration How to Avail of the Service 2. 2 Documentary Stamps 3. Authorization Letter 4. Application Form for TCL 5. Proof of EFPS enrollment/filing/payment : 80 minutes : Applicant / Activity Processing Person Responsible Fees Taxpayer Time Receiving Clerk 1.Receive the duly notarized Application Form P100 Cert. Submit together with the required documents and check if 10 minutes Receiving Clerk Fee & P15 Application form tax clearance has been previously issued. per doc. with required 3 minutes stamp documents 2.Check completeness of documents presented by taxpayer, if not complete, request taxpayer to submit 3 minutes lacking documents. 3 minutes Receiving Clerk 3. Issue claim stub. 3 minutes Receiving Clerk 3 minutes Receiving Clerk 4. Record in the logbook. 3 minutes Verifier 5. Transmit application form together with all documents to Verifier. 5 minutes Verifier 6.Verify TIN of Taxpayer, If none yet, request Verifier taxpayer to apply/ register with Revenue District Office who has jurisdiction over his place of business. 7. Verify whether taxpayer is enrolled in Electronic Filing and Payment System (EFPS), if not, request taxpayer to enroll in the district office. 8. Verify whether taxpayer has delinquent account, if there is, inform taxpayer to settle first the liability before the Tax Clearance (TCL) will be issued. 9. Transmit to TCL Recorder, in case of no tax 3 minutes Verifier liability/ies 2 minutes 10. Assign TCL control number. 2 minutes TCL Recorder 10 minutes 11. Transmit to Processor. 20 minutes TCL Recorder 12. Encode and print TCL.(BIR Form 17.14B) Processor 13. Route the TCL for review and initials of the Verifier, Processor, verifiers, processors, Section Chief, and Assistant Chief Accounts Division Chief. Receivable Section, Presents claim 14. Approve and sign tax clearance. 5 minutes Asst. Div. Chief, stub and receive 5 minutes Chief TCL 15. Release the tax clearance to the taxpayer or his authorized representative. TCL Recorder/Releasing Officer TOTAL MINUTES 80 minutes Note : The 1 hour and 20 minutes processing time is for one or two clients being served at one time. The time is extended when there are more clients. 27

Processing and Issuance of Delinquency Verifications (for foreign corporations / individuals, not yet registered in the BIR) Who may avail : Foreign corporations / individuals not registered in the Philippines intending to Where to avail What are the Documentary join bidding in Philippine government agencies Requirements : Collection Enforcement Division, National Office Duration How to Avail of the Service : 1. Receipt of payment of Certification Fee 2. 2 Documentary Stamps 3. Authorization Letter 4. Application Form for TCL 5. Proof of EFPS enrollment/filing/payment : 66 minutes : Taxpayer Activity Processing Person Fees Time Responsible Submit 1 Receive the duly notarized Application Form P100 Cert. Application form together with the required documents and 2 minutes Receiving Clerk Fee & P15 per with required check if tax clearance has been previously doc. stamp documents issued. 2 Check completeness of documents presented 3 minutes Receiving Clerk by taxpayer, if not complete, request taxpayer to submit the lacking documents. 3 Record in the logbook. 3 minutes Receiving Clerk 3 minutes Receiving Clerk 4 Transmit application form together with all documents to Verifier. 3 minutes Verifier 5 Verify TIN of Taxpayer. If there is, a tax clearance certificate shall be issued not a delinquency verification following the procedures in the issuance of TCL for bidding purposes. 6 Verify whether taxpayer has delinquent 5 minutes Verifier account, if there is, inform taxpayer to settle first the liability before the Delinquency Verification (DV) will be issued. 7 Transmit to TCL Recorder, in case of no tax 3 minutes Verifier liability/ies. 2 minutes TCL Recorder 8 Assign TCL control number. 2 minutes TCL Recorder 9 Transmit to Processor. 10 minutes 10 Encode and print DV (BIR Form 17.14B) Processor 11 Route the DV for review and initials of the 20 minutes Verifier,Processor, verifiers, processors, Section Chief, and Chief A/R Section, Assistant Division Chief. Assist. Div. Chief 28

12 Approve and sign delinquency verification. 5 minutes Chief 13 Release the delinquency verification to the 5 minutes Releasing Clerk requesting division 66 minutes TOTAL MINUTES Note: The 1 hour and 6 minutes processing time is for one or two clients being served at one time. The time is extended when there are more clients. 29

Processing of Request for the Issuance of VAT Exemption Certificates (VEC) and or VAT Exemption ID Cards (VEIC) in favor of Embassies and its Personnel (covering purchase of goods and services) Who may avail : Any qualified Embassy, Qualified Embassy personnel and Where to avail Qualified Embassy personnel dependent (spouse) What are the Documentary Requirements : International Tax Affairs Division, National Office : 1. Note Verbale, from the concerned embassy requesting the issuance of or renewal of the embassy or embassy personnel/s' VEC/VEIC 2. Favorable DFA Indorsement on the application, indicating the name of the embassy and / or embassy personnel for whom the VEC / VEIC is requested to be issued citing basis 3. Copy of signed DFA Diplomatic I.D. 4. DFA list of countries giving VAT exemption on the purchase of vehicles (regularly submitted by the DFA to BIR) For renewals: 1. Same as 1-4 above 2. Surrender of copy of old VEC / VEIC NOTE: The renewal shall be filed not later than 2 months before the date of expiration of the previously issued VEC/VEIC. For Lost or Destroyed VEC/VEIC 1. Same as 1-4 above 2. Duly notarized affidavit of loss. Duration : 265 minutes 30

How to Avail of the Service : Taxpayer Activity Processing Person Fees Time Responsible Submits a request 1. Receive the request from the BIR Records Div. and log the Receiving Clerk None for the issuance request (RC) or renewal of VAT 5 minutes Exemption 2. Prepare and attach an Assignment Slip to the request and 10 minutes RC Certificates (VECs) transmits the same to the SC Sec. Chief (SC) and / or VAT 15 minutes Exemption ID 3. Initial review of the request and assign to CO 10 minutes Case Officer (CO) Cards (VEICs) in 4. Check and review the validity and completeness of the favor of 30 minutes CO Embassies and its documents. 30 minutes CO qualified personnel 5. Prepare letter and communicates with the DFA, Embassy 15 minutes 15 minutes SC Assistant to request further compliance 15 minutes Division Chief 6. Process VEC/VEIC (ADC) Division 7. Review and forward the same to the ADC, with comments, 30 minutes Chief (DC) CO, SC, as necessary. 15 minutes ADC, DC 8. Review the VEC/VEIC and forwards the same to the DC. 9. Review the VEC/VEIC and initials or gives instructions to 15 minutes RC redraft or finalize, as appropriate. 15 minutes RC-LS 10. Incorporate corrections, print and route to the SC, ADC 15 minutes HREA- and DC 15 minutes 11. Forwards the entire docket to the Legal Service (LS) LS 15 minutes TA- and logs the release of the docket. ACIR 12. Receive the VEC / VEIC, logs the same in the logbook and ACIR-LS forwards it to Head Revenue Executive Assistant � Legal RC Service (HREA-LS) 13. Review the VEC / VEIC and approve/initial the same and forward it to the ACIR's Technical Assistant (TA) for review 14. Review and forward the VEC/VEIC to the ACIR for signature 15. Sign/approve the ruling and return the same to International Tax Affairs Division (ITAD) 16. Log the receipt of the ruling, number the ruling and release the same to embassy personnel/duly authorized representative TOTAL MINUTES 265 mins Note: The processing time is for one or two clients being served at one time. The time will be extended if there are more clients and if there are other legal issues to be resolved. 31

Processing of Request for the Issuance of Ruling on Indirect Tax Exemption of Embassies and Embassy Personnel ( Purchase of Vehicles) Who may avail : Any qualified Embassy, Qualified Embassy personnel Where to avail : International Tax Affairs Division (ITAD), National Office What are the Documentary : Requirements 1. Note Verbale, from the concerned embassy, requesting for the issuance of a ruling, accompanied by copy of Pro Forma Invoice from car dealer, indicating Duration the amount of taxes to be exempted, amount of vehicle to be purchased, engine number, chassis number, vehicle model 2. Favorable DFA Indorsement on the application citing basis 3. Favorable DOF Indorsement on the application, including a categorical confirmation of ad valorem tax exemption, when necessary 4. DFA list of countries giving VAT exemption on the purchase of vehicles (regularly submitted by the DFA to BIR) : 480 minutes How to Avail of the Service : Taxpayer Activity Processing Person Fees Time Responsible Submit 1. Receive the request from the BIR Records Div. and log the Receiving Clerk None request for the request (RC) issuance of a 5 minutes ruling on 2. Prepare and attach an Assignment Slip to the request and 10 minutes RC Section indirect tax transmit the same to the SC 30 minutes Chief (SC) exemption of 45 minutes Embassies and 3. Initial review of the request and assign to CO 45 minutes Case Officer Embassy 60 minutes (CO) Personnel 4. Check and review the validity and completeness of the 30 minutes CO documents 30 minutes 30 minutes CO 5. Prepare letter and communicates with the DFA and Embassy 60 minutes to request further compliance 15 minutes SC 15 minutes Asst. Div.Chief 6. Process, evaluate, and draft the ruling 30 minutes 7. Review the draft ruling and forward the same to the Assistant 30 minutes (ADC) 30 minutes Division Division Chief (ADC), with comments, as necessary 15 minutes Chief (DC) 8. Review the ruling and forward the same to the DC CO, SC, ADC, 9. Review the ruling and initials the same or gives instructions to 480 mins DC redraft or finalize the same, as appropriate 10. Incorporate corrections and print the ruling and route to the RC RC- SC, ADC and DC for their initials LS 11. Forward the entire docket to the Legal Service (LS) and log HREA- the release of the docket LS 12. Receive the draft ruling/docket, log the same in the logbook TA-ACIR-LS, and forward it to Head Revenue Executive Assistant � Legal RC ACIR-LS Service (HREA-LS) 13. Review the draft ruling and approve/initial the same and forward it to the ACIR's Technical Assistant (TA) for review 14. Review and forward the docket to the ACIR for signature 15. Sign/approve the ruling and return the same to ITAD 16. Log the receipt of the ruling, number the ruling and release the same to the embassy personnel / duly authorized representative RC TOTAL MINUTES Note: The processing time covers only simple request for ruling. The time will be extended if the legal issue to be resolved requires further research and if there are more clients. 32

Processing and Issuance of Tax Credit Certificate (TCC) pursuant to Writ of Execution Issued by Court of Tax Appeal (CTA) Who may avail : Taxpayer who filed for tax credit / refund with the Court of Tax Appeal (with final decision) Where to avail : Appellate Division, National Office What are the Documentary : Requirements 1. Application letter 2. Writ of Execution 3. SEC Registration and Articles of Incorporation 4. Tax Clearance from Collection Enforcement Division (CED) 5. Certificate of Registration 6. Registration Update 7. Entry of Judgment 8. Copy of Final Decision of the CTA (Division), CTA EnBanc, Supreme Court Note: Required documents must be original or certified true copy Duration : 349 minutes How to Avail of the Service : Taxpayer Activity Processing Time Person Responsible Fees Submit application 1. Receive Application letter together with the 3 minutes Receiving clerk None letter with requirements, including Writ of Execution. complete 3 minutes Receiving clerk documentary 2. Log Application Letter 3 minutes Receiving clerk requirements, 3. Transmit to Division Chief for assignment of 5 minutes Division Chief including Writ of cases 15 minutes Case Officer- Execution. 4. Assign to case officer-Revenue Attorney Revenue Attorney 5.Prepare letter requesting docket from the Litigation Division/ Legal Division and/ or investigating office where the taxpayer is registered, and a certification of no pending similar claim for refund/ TCC involving the same tax and same taxable year. 6. Transmit letter to Asst. Div.Chief and Division 3 minutes Case Officer- Chief for review and initial/signature 20 minutes Revenue Attorney 7. Review and sign letter 120 minutes 3 minutes Asst.Division 8. Prepare draft memo recommending issuance of 30 minutes Chief and Division Tax Credit Certificate (TCC) 30 minutes Chief 9. Forward to Asst.Div.Chief for review 15 minutes Case Officer- 10. Review draft memo recommending issuance of Revenue Attorney TCC 11. Prepare final memo together with duly Case Officer- accomplished TCC Revenue Attorney 12. Review, initial and forward recommendation Asst.Division Chief Division Chief Case Officer- Revenue Attorney Asst.Division Chief 33

13. Review and approve recommendation 30 minutes Division Chief 14. Forward to Legal Service 3 minutes Receiving/releasing clerk, Appellate 15. Receive docket and transmit to Head Revenue 3 minutes Division Executive Assistant (HREA) 30 minutes Receiving clerk, 16. Review and initial of recommendation by HREA Legal Service and ACIR, then forward docket to the Deputy 30 minutes Commissioner, LIG. 3 minutes HREA and ACIR 17. Approve recommendation and sign TCC 10 minutes 18. Transmit docket to Appellate Division 5 minutes DCIR, LIG 349 minutes Receiving/releasing 19. Receive docket and enroll TCC in the BIR clerk, Legal Service Integrated Tax System (ITS) 20. Release TCC to taxpayer Staff TOTAL MINUTES Staff Receive TCC Note: Processing time does not include waiting period for the reply of other offices. Hence the 5 hours and 49 minutes will be extended depending on the submission of requirements by other offices, especially those in the Regional Offices. 34

Processing of Rulings on Tax consequences of Exchange of Real Properties to Correct Mistake ( with Established Precedents ) Who may avail : Any taxpayer or duly authorized representative Where to avail What are the Documentary : Law Division, National Office Requirements : 1. Original copy of the Duly Executed Deed of Exchange of Properties; Duration 2. Certified True Copy of the Deed of Sale by and Between the Parties to the How to Avail of the Service Deed of Exchange and their respective Original Sellers; 3. Transfer Certificates of Title to the Properties held by the Parties to the Exchange; 4. Sworn Statement of Party-in-Error; and 5.Latest Tax Declarations of the Properties. : 1120 minutes : Taxpayer Activity Processing Time Person Responsible Fees staff None 1 Receive request 3minutes Taxpayer file 2 Assign request 5minutes Division Chief letter-request 3 Evaluate request and prepare draft ruling 960 minutes Revenue Attorney with complete 4 Forward to Asst. Division Chief for review 3 minutes staff documentary and initial requirements 15 minutes Asst. Division Chief personally or 5 Review draft 15 minutes Division Chief by mail with 6 Review draft staff the Law 7 Forward draft to Legal Service for review 3 minutes Division 8 Review draft 15 minutes Head Revenue Executive 9 Review draft 15 minutes Assistant 10 Review draft 15 minutes Technical Assistant 11 Forward to Legal and Inspection Group for 3 minutes Assistant Commissioner review 15 minutes 15 minutes staff 12 Review draft Technical Assistant 13 Review draft Deputy Commissioner 14 Forward draft to Commissioner's Office 3 minutes staff 15 Review draft 15 minutes Technical Assistant 15 minutes Commissioner 16 Approve and sign final ruling 17 Release ruling to the taxpayer personally or by mail. 5 minutes staff TOTAL MINUTES 1120 mins Note: The processing time is for 1 or 2 clients requesting for ruling. The time will be extended if there are more clients. 35

Processing of Rulings on Tax Exemption of Senior Citizens under R.A. 4732 (with Established Precedents ) Who may avail : Any taxpayer or duly authorized representative Where to avail What are the Documentary : Law Division, National Office Requirements : 1. Letter request from the senior citizen stating, among others, that his annual Duration taxable income does not exceed the poverty level; How to Avail of the Service 2. Certified true copy of Birth Certificate or Baptismal Certificate, or in the Taxpayer absence thereof, a certificate from the National Statistics and Census Bureau or an affidavit by two (2) disinterested credible persons who know personally the senior citizen or OSCA ID card; 3. If he has a benefactor as defined in Section (2)f of Rev. Regs. No. 2-94, Certification as to the name, address, occupation, office or business address and TIN of his benefactor; 4. If employed, a copy of his withholding tax statement for the preceding taxable year; and 5. If self-employed (i.e., practice of profession, or in business as single proprietorship), a copy of his income tax return for the preceding taxable year together with the annual license or permit issued by the city or municipality where he has his principal place of business, supported by a copy of his declaration of sales or income. : 1120 minutes : Activity Processing Time Person Responsible Fees Taxpayer file 1 Receive request 3 minutes staff None letter- request 2 Assign request 5 minutes Division Chief with complete documentary 3 Evaluate request and prepare draft ruling 960 minutes Revenue Attorney 3 minutes staff requirements 4 Forward to Asst. Division Chief for review personally or and initial 15 minutes 15 minutes by mail with 5 Review draft Asst. Division Chief the Law 6 Review draft 3 minutes Division Chief Division 15 minutes 7 Forward draft to Legal Service for review staff 8 Review draft 15 minutes Head Revenue Executive 15 minutes 9 Review draft Assistant 10 Review draft 3 minutes Technical Assistant Assistant Commissioner 11 Forward to Legal and Inspection Group for review staff 12 Review draft 15 minutes Technical Assistant 13 Review draft 15 minutes Deputy Commissioner 14 Forward draft to Commissioner's Office 3 minutes staff 15 Review draft 15 minutes min Technuitceasl Assistant 16 Approve and sign final ruling 15 minutes Commissioner 17 Release ruling to the taxpayer personally 5 minutes 1120 mins staff or by mail. min utes TOTAL MINUTES Note: The processing time covers only simple request for ruling. The time will be extended if the legal issue to resolve requires further research, and if there are more clients. 36

Processing of Rulings on Tax Exemption of National Housing Authority and Private Sector Participating in Socialized Housing under R.A. 7279 (with Established Precedents ) Who may avail : Any taxpayer or duly authorized representative Where to avail What are the Documentary : Law Division, National Office Requirements : 1. Copy of the Deed of Sale; Duration 2. Copy of the corresponding Tax Declaration; How to Avail of the Service 3. Copy of the Transfer Certificate of Title; Taxpayer 4.Photocopy of the receipt of payment of the documentary stamp tax; 5. Sworn Statement of taxpayer that the acquired raw land shall be used for socialized housing project; 6. Approved HLURB Subdivision Preliminary and Location clearance of the Subdivision; 7. Certification from HLURB that taxpayer is engaged in socialized housing; 8. Certification from the HLURB that the sale of the socialized housing units to qualified beneficiaries shall in no case exceed the maximum amount of P400,000.00 price ceiling; : 1120 minutes : Person Responsible Activity Processing Time Fees Taxpayer file 1 Receive request 3 minutes staff None letter- request 5 minutes Division Chief with complete 2 Assign request 960 minutes Revenue Attorney documentary 3 Evaluate request and prepare draft ruling 3 minutes staff requirements 4 Forward to Asst. Division Chief for review personally or and initial 15 minutes Asst. Division Chief 15 minutes Division Chief by mail with 5 Review draft the Law 6 Review draft 3 minutes staff Division 15 minutes Head Revenue Executive 7 Forward draft to Legal Service for review 8 Review draft 15 minutes Assistant 15 minutes Technical Assistant 9 Review draft Assistant Commissioner 10 Review draft 3 minutes staff 11 Forward to Legal and Inspection Group for review 12 Review draft 15 minutes Technical Assistant 13 Review draft 15 minutes Deputy Commissioner 14 Forward draft to Commissioner's Office 15 Review draft 3 minutes staff 15 minutes Technical Assistant 16 Approve and sign final ruling 15 minutes 17 Release ruling to the taxpayer personally Commissioner 5 minutes staff or by mail. TOTAL MINUTES 1120 mins Note: The processing time covers only simple request for ruling. The time will be extended if the legal issue to resolve requires further research, and if there are more clients. 37

Processing of Application for Certificate of Exemption for Scholarship and Job/Livelihood Programs Who may avail : Persons with low income / no income who want to avail of Scholarship and Job/Livelihood Programs Where to avail : RDO having jurisdiction over the residence of the taxpayer or where the What are the Documentary taxpayer is registered Requirements : > Certification of Low Income / No Income signed by the Barangay Chairman of the place where the applicant resides > Duly notarized Affidavit of Low Income / No Income Duration : 35 minutes How to Avail of the Service: Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit Barangay Receive the required documents Chief, P 100.00 5 minutes Administrative Certification Certificate as to low income / Section Fee and P15.00 10 minutes DST per no income and duly notarized Chief, document 10 minutes Administrative affidavit Interview, and evaluate Section 5 minutes the income status of the 5 minutes Chief, Administrative taxpayer. Section Prepare certification ARDO Chief, 2 Receive requested Approve and sign certification Administrative Section Certification Document Release of Exemption Certification 38

Processing of Application for Contractor's Final Payment Release Certificate Who may Avail : Persons engaged in contract with the DPWH Where to Avail : 1) Audit Information, Tax Exemption and Incentives Division (AITEID), National Office for contractors whose principal place of business is registered under the jurisdiction of RDOs covered by Revenue Regions 5, 6, 7 and 8. 2) RDOs outside Metro Manila having jurisdiction over the principal place of business of the contractor. What are the Documentary : > Letter Request Requirements > BIR Form 0217* (Formerly BIR Form No. 2555) > Copy of contractor's Certificate of Registration issued by the BIR; > Contractor's Summary of Sales to Government; (Per Project) > Contractor's Summary of Value-Added Tax (VAT) withheld on Sales to Government; > Contractor's breakdown of Receipts or Collection; > DPWH's Summary of Remittance (E-MAP); > DPWHS's draft of final billing; > Certified true copy of the following: � DPWH Vouchers; � BIR From Nos. 2550M/2550Q filed with BIR by the contractor; � DPWH's Executive Summary; � DPWH's Original or Revised Contract; �DPWH's Certificate of Completion; � DPWH's Certificate of Final Inspection; � DPWH's Certificate of Acceptance; and � BIR Form Nos. 2307 and 2306 given by DPWH to the contractor; > Details of Project Cost Estimates, if any; > Notarized Sworn Declaration of the Contractor and Certification from DPWH that no payment yet has been made to other Contractor, if first and final payment of the DPWH; > Delinquency verification from the Collection Division of the concerned Revenue Region; And > Other documents/schedules as may be required. 39

Duration : 50 minutes** How to Avail of the Service : Step Taxpayer RDO Activity Processing Person Fees Time Responsible 1 Submit letter of request and duly Receive application request and P 100.00 5 minutes Collection Certification accomplished BIR Form No. 0217* required documents. Section Chief 40 minutes Fee and together with the required Officer of the P15.00 DST Day documents per Chief Document Verify existence in the ITS Assessment (Registration, Tax Payments) Section Review of the docket 60 minutes** RDO / ARDO Sign Certification Document / BIR 5 minutes Office of the Form No. 0217 5 minutes RDO/ARDO 2 Receive requested Certification Release of Certification Document / Document BIR Form No. 0217 *Form is available FREE OF CHARGE **Depending on the number and years of payments to be reviewed This RMC shall take effect immediately. All revenue officials, employees, and others concerned are enjoined to give this Revenue Memorandum Circular (RMC) a wide publicity as possible. (original signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue H-1 FVM _____ NMA _____ EBQ _____ MLDR _____ RTDLC _____ Page - 40 - of 40