RMO No. 12-2018 — Prescribes the BIR Operational Key Performance Indicators for CY 2018 Digest | Full Text | Annex A | Annex B | Annex C | Annex D

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City February 13, 2018 REVENUE MEMORANDUM ORDER 12-2018 SUBJECT : BIR Operational Key Performance Indicators for CY 2018 All Internal Revenue Officials and Employees TO : I. OBJECTIVES This Order is issued to: 1. Prescribe the BIR Operational Key Performance Indicators (KPIs) for Revenue Regions (RRs), Revenue District Offices (RDOs), Regional Divisions (RDs), and Large Taxpayers Service (LTS). 2. Align the BIR Operational KPIs with CY 2018 BIR Priority Programs prescribed in RMC No. 6-2018 and the relevant Operational KPIs specified in RMO No. 20-2017; and 3. Prescribe the policies, guidelines and procedures in the monitoring, preparation and submission of Accomplishment Reports as well as the preparation of Evaluation and Summary Reports on Operational KPIs. II. POLICIES The following policies and guidelines shall be observed: 1. The details of the Operational KPIs such as the KPI weights, formula, definition of KPI, KPI targets, implementing and monitoring offices are prescribed in Annex A of this revenue issuance. 2. The Operational KPIs shall be monitored, reviewed and evaluated by the concerned Assistant Commissioners (ACIRs) as Measures Owners (MOs), which is referred as the "Monitoring Office" in the Matrix (Annex A), to determine the performance of implementing offices against its goals/targets. 3. There shall be nineteen (19) Operational KPIs. 1

4. The LTS shall include the following offices as "Implementing Office" for a particular KPI: No. KPI Implementing Office (s) LT National Office Audit Div. (LTNOADs), LT 1 Collection Performance Divisions Cebu and Davao (LTDs), Excise LT Field Operations Div. (ELTFOD) 2 Collection Growth LTNOADs, LTDs Cebu and Davao, ELTFOD 5 Audit Effort LTNOADs, LTDs Cebu and Davao, LT VAT Audit Unit 6 Audit Efficiency (LTVATAU) LTNOADs, LTDs Cebu and Davao, LTVATAU 7 Collection of Arrears LTDs Cebu and Davao, LT Collection Enforcement Div. (LTCED) 8 Reduction in number of Stop- LTDs Cebu and Davao, LT Document Processing & Filer cases Quality Assurance Div. (LTDPQAD), LTCED, Excise LT Regulatory Div. (ELTRD), LT Assistance Div. 9 Payment Compliance by Tax (LTAD) Types LTNOADs, LTDs Cebu and Davao, LTDPQAD 5. The KPIs under the Support Functions shall only apply to the RRs. 6. The score for each KPI shall be computed as: Applicable KPI Formula x KPI Weight Score = -------------------------------- Applicable KPI Target 7. The overall rating shall be computed as: Total Score Overall Rating = -------------------------------------------- x 100% Total Applicable KPI Weights 8. In the event that the actual accomplishment exceeds the KPI target, the score to be given shall be the maximum assigned KPI weight. 9. Figures to be used in all computations required in this Order shall be rounded off to the nearest two (2) decimal places. 10. The Operational KPIs shall be adopted as the standard measures in the Office Performance Commitment and Review (OPCR) Form, as well as in the Office Index of Success Indicators of the RRs, RDs, RDOs, LTS, LTNOADs, LTDs Cebu and Davao, ELTFOD, LTVATAU, LTCED, LTDPQAD, ELTRD and LTAD in relation to the Strategic Performance Management System (SPMS). 2

11. The accomplishment report and evaluation report shall be prepared every 1st semester (January to June) and annual based on the cumulative accomplishment covering January to December. 12. Any issues relative to the Operational KPIs, including the implementation, monitoring, evaluation and reporting of accomplishments, among others, shall be the responsibility of the concerned MOs. 13. The Operational KPIs prescribed under this Order shall be adopted in the succeeding years until there shall be amendments/revisions to be recommended by the MOs. III. GUIDELINES AND PROCEDURES A. The following are the guidelines and procedures in the preparation and submission of accomplishment and evaluation reports. 1. RDOs/Regional Divisions, LTNOADs/ LTDs Cebu and Davao/ ELTFOD/LTVATAU/LTCED/ LTDPQAD/ELTRD/LTAD shall: 1.1 Prepare the semestral/annual Accomplishment Report for each applicable Operational KPI using the prescribed format; and 1.2 Ensure accuracy of data prior to submission of the Accomplishment Report to the Regional Director and ACIR-LTS. 2. Regional Director and ACIR-LTS shall: 2.1 Consolidate the Accomplishment Reports per KPI; and 2.2 Validate the accuracy and completeness of data prior to submission of the Accomplishment Report to concerned Measure Owner. 3. The Measure Owner shall: 3.1 Monitor the timely submission of Accomplishment Report by all Regional Directors and ACIR-LTS; 3.2 Prepare the semestral (January to June)/annual (January to December) Evaluation Report for each KPI. The Evaluation Report shall detail the i) score per KPI of RRs, RDOs, RDs LTS and its implementing offices; and ii) ranking of offices; 3.3 Ensure the completeness and accuracy of the Accomplishment Report received from RRs and LTS; and 3.4 Submit the Evaluation Report per KPI to the ACIR-Planning and Management Service, Attention: Planning and Programming Division (PPD). 4. Planning and Management Service/PPD shall: 4.1 Monitor the compliance of concerned ACIR/MO relative to the submission of KPI Performance Evaluation Report; 4.2 Consolidate the Office KPI Performance Report per RR and LTS; 4.3 Prepare a Summary Report on the result of the rating of KPIs; and 4.4 Submit the Office KPI Performance Report to MANCOM. 3

B. The Accomplishment and Evaluation Reports shall be prepared and submitted in accordance with the following schedules: REPORT SUBMITTED BY SUBMITTED TO DUE DATE Accomplishment Report per Chiefs, Regional Regional Director Semestral Report: Not later than Operational KPI Division and RDOs concerned the 25th day of the month following (Annex B) the end of the Semester Chiefs, LT Assistant Consolidated National Office Commissioner, Annual Report: Not later than the Accomplishment Divisions and LTS 25 th day of the month after the Report on KPI LTDs Cebu and end of the year (Annex C) Davao MO concerned Regional (ACIRs) Semestral Report: Not later than Evaluation Report Directors and the 30th day of the month following on KPI ACIR-LTS the end of the Semester (Annex D) Measure Owners ACIR-PMS Annual Report: Not later than the (ACIRs) Attention: Chief, 30th day of the month after the end PPD of the year Semestral Report: Not later than the 15th day of the second month following the end of the Semester Consolidated ACIR-PMS MANCOM Annual Report: Not later than the Evaluation Report Thru: PPD 15th day of the second month on KPIs following the end of the year Semestral Report: Not later than the end of the second month following the end of the semester. Annual Report: Not later than the end of the second month of the following year. IV. REPEALING CLAUSE This Order supersedes Revenue Memorandum Order Nos. 36-2014, 3-2015, 11-2016 and all other issuances or portions thereof inconsistent herewith. V. EFFECTIVITY This Order takes effect immediately until there shall be amendments/revisions recommended. (Original Signed) CAESAR R. DULAY Commissioner of Internal Revenue B-1 4