RMO No. 2-2020 — Allocates the CY 2020 BIR collection goal by implementing office Digest | Full Text | Annexes

BUREAU OF INTERNALREVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNALREVENUE NTYYYT JAN 1g 2J20 JZDP.M UMa

Quezon City RECORDS MGT.DIVISION gS

January 15, 2020

REVENUE MEMORANDUMORDER NO.2-2020

TO: All Revenue Officials and Employees Concerned

SUBJECT: CY 2020 BIR Collection Goal Allocation, By Implementing Office

I BACKGROUND

collection goal at P2.576 Trillion.This is inclusive of P0.090 Trillion additional revenues The Department of Finance (DOF) has set the Bureau's CY 2020 overall

from the Tax Reform Acceleration and Inclusion (TRAIN Act. The collection goal which is based on the FY 2020 Budget of Expenditures and Sources of Financing (BESF) dated July,2019 is higher than the previous year's goal based on BESF by P 0.245 Trillion or 10.53%.

I OBJECTIVES

This Order is being issued to establish the following:

1. The policies, methodology and guidelines used for the allocation of the

CY 2020 Collection Goal; and,

2 The collection goals of the Large Taxpayers Service (LTS) and Revenue Regions (RRs), including the Revenue District Offices (RDOs).

H DEFINITION OF TERMS

A. Collections from Non-BIR Operations -: Final Withholding Tax and Documentary Stamp Tax collection from government securities transactions

B.Collections from BIR Operations composed of Income TaxesValue-Added

Tax,Excise Taxes, Percentage Taxes, and Other Taxes generated from transactions not classified as Non-BIR Operation

C.Implementing Offices (IOs) -LTS,RRs and RDOs

D. Non-Recurring Transaction -refers to single transaction that accounts for at least ten percent (10%of a particular Region's/LTS total collections for a

specific month (Attrition Act of 2005)

N. GENERAL POLICIES AND GUIDELINES

reguirements and goal allocation methodology used in the computation of the final goal The following policies and guidelines were observed in determining the data

for lOs:

A.Data Used

The CY 2019 collection

a Actual collections for the period January -October 2019, based on the Consolidated Monthly Statistical Report of Revenue CollectionsBIR Form No.1209) as of November 20,2019.The Transactions and Enlisted/Delisted Taxpayers. CY 2019 Actual collection is net of collection from Non-Recurring

b. Collection Goal for the month of November - December 2019 as per RMO 18-2019

2 Other Considerations:

C Economic assumptions / indicators provided in the BESF FY 2020 please refer to Table 1

d. Collection Goals, by major tax type, culled from the BESF FY 2020;

e The CY 2020 program on the volume of issuance of government securities and their corresponding taxes (FWT from BESF.

based on the monthly program from the Bureau of the Treasury Documentary Stamp Tax (DST) goal for Non-BIR Operations as of December 2019.

f Collections from Enlisted/Delisted Taxpayers were extracted by

the ISG from the ITS-CBR as of December 2019

g Adjusted 2019 monthly collections due to the change in the Form 1702Q). payment deadlines of the Quarterly Corporate Income Tax (BIR

B. Goal Allocation Methodology

The CY 2020 Goal allocation for BIR Operations was determined using the following factors to all IOs.

1 Goal Allocation by IO

a Growth Rate on BIR Operations

GUREAUOF TNTERNAL REVENUE NYNTYND JAN 1 5 2020 240PM Growth Rate 1A3 Non-BIR Operations Goal CY 2020 Goal less CY 2019 BIR Operations Coilections Paqe 2 of 38 BIR Operations Collections CY 2019 X 100%

{2.576T-0.081 T]-2.136 T} 2.136 T X 100%

16.79%

b. Goal by Implementing Office

CY 2020 Goal = CY 2019 Collection x 116.79%

2. Goal Allocation by Major Tax Type and Month

Table 5A) was based on the following The monthly distribution of CY 2020 Goals of iOs by major tax type

a. The total CY 2020 target allocated to IOs per tax type was aligned with the estimates specified in the BESF dated July 2019;and

b. The monthly distribution of goal was based on the CY 2019 Monthly Collection trend

C.Attachments

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

Table 1 Macroeconomic Assumptions and Collection Goal By Major Tax Type,CY 2020 Table 2 Monthly BIR Collection Goal By Major Tax Type,CY 2020

Table 3 2020 Total Collection Goal Allocation By Implementing Office,CY

Table 4 Major Tax Type,CY 2020 Total Collection Goal Allocation By Implementing Office and

Table 5A Table 5B Monthly Collection Goal For Income Taxes By Implementing Monthly Total Collection Goal by Implementing Office,CY 2020 Office, CY.2020

Table 5C Implementing OfficeCY 2020 Monthly Collection Goal Allocation For Excise Taxes By

Table 5D Monthly Collection Goal Allocation For Value-Added Tax By Implementing Office,CY 2020

Table 5E Monthly Collection Goal Allocation For Percentage Taxes By Implementing OfficeCY 2020

Table 5F By Implementing Office, CY 2020 Monthly Collection Goal Allocation For Other Taxes

Paqe 3 of 38 BUREAUOFINTERNAL REVENUE RECORDS MGT.DIVISION UG NNIYYN JAN 16.2020 COPM MMa

D. Other Requirements

The Deputy Commissioner for Operations Group and the Assistant Commissioner of LTs shall provide the Deputy Commissioner for Resource Management Group the individual goal allocation of the concerned personnel assigned in the implementing units under their respective jurisdictions.

V.EFFECTIVITY

This Order takes effect immediately

Meec

Commissioner of Internal Revenue CAESAR R.DULAY

032153

B-3/gaff RMO CY2020 Goal BUREAU OFINTERNALREVENUE

NTYYYTNY

2.4D PM JAN 15 2020 Wtar VS C RECORDS MGT.DIVISION

Paae 4 of 38