RMC No. 57-2014 — Clarifies the provisions of RR No. 1-2013 on the use of Electronic Tax Remittance Advice Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City July 15, 2014 REVENUE MEMORANDUM CIRCULAR NO. 57-2014 SUBJECT : Clarifying the Provisions of Revenue Regulations No. 1-2013 on the Use of Electronic Tax Remittance Advice TO : All Internal Revenue Officials, Employees, National Government Agencies and Others Concerned BACKGROUND It has been observed that certain National Government Agencies (NGAs), with the advice of some officials and employees of Revenue District Offices of the Bureau of Internal Revenue (BIR), are utilizing manual forms of Tax Remittance Advice (TRA) for the payment of internal revenue taxes, other than withholding taxes, in violation of Joint Circular No. 1-2000 and No. 1- 2000A issued by the Department of Finance and Department of Budget and Management, as implemented by Revenue Regulations (RR) No. 1-2013. The above practice by these certain NGAs defeats the objectives for the issuance of the said joint circular and further distorts the revenue collection system of the BIR. CLARIFICATION It is hereby clarified and, therefore, reiterated that under the provisions of RR No. 1-2013, all NGAs are mandated to enroll with and use the Electronic Filing and Payment System (eFPS) in their filing of their applicable tax returns within the prescribed periods, as follows: I. Regular Tax Returns Filed by NGAs BIR Form Description Due Date for Filing and Payment of No. Monthly Remittance Return the Tax Due 1601-C Income Taxes Withheld Compensation On or before the 10th day following 1601-E Monthly Remittance Return of the month in which withholding was on made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year. of On or before the 10th day following

1601-F Creditable Income Taxes Withheld the month in which withholding was 1603 (Expanded)[Except for transactions made, except for taxes withheld for 1600 involving onerous transfer of real the month of December of each year, property classified as ordinary asset] which shall be filed on or before January 15 of the succeeding year. Monthly Remittance Return of Final On or before the 10th day following Income Taxes Withheld the month in which withholding was made, except for taxes withheld for Quarterly Remittance Return of Final the month of December of each year, Income Taxes Withheld on Fringe which shall be filed on or before Benefits Paid to Employees Other January 15 of the succeeding year. than Rank and File On or before the 10th day of the Monthly Remittance Return of month following the quarter in which Value-Added Tax and Other the withholding was made. Percentage Taxes Withheld On or before the 10th day of the month following the month in which withholding was made. II. Tax Returns Filed by NGAs Exercising Proprietary Functions For all NGAs which are exercising proprietary functions, the tax returns enumerated below shall likewise be filed within the corresponding indicated periods using the Bureau's eFPS facility. However, the taxes due thereon shall be paid through the bank debit system of the eFPS' Authorized Agent Banks (AABs) where the NGA should be duly enrolled, and NOT through the eTRA System, considering that the tax returns below are not available in the eTRA System for the payment of the taxes due thereon. BIR Form Description Due Date for Filing and Payment of No. the Tax Due Thereon 1702 Annual Income Tax Return for Corporations, Partnerships and On or before the 15th day of the fourth 1702Q Other Non-Individual Taxpayers month following the close of the Annual Income Tax Return for taxable year (calendar or fiscal) 2550M Corporations, Partnerships and 2550Q Other Non-Individual Taxpayers Within sixty (60) calendar days 2551M following the close of each of the first 2000 Monthly Value-Added Tax three (3) quarters of the taxable year Declaration (calendar or fiscal year) Quarterly Value-Added Tax On or before the 20th day after the Return close of the month On or before the 25th day after the Monthly Percentage Tax Return close of the taxable quarter On or before the 20th day after the Documentary Stamp Tax Return close of the month On or before the 5th day after the close of the month when the transaction subject to DST occur.

Based on the foregoing clarifications, it should be observed in above Table No. 1 under the "Regular Tax Returns Filed by NGAs" that the eTRA System covers only the payment of withholding taxes through the eTRA generated therefrom and, therefore, does not cover other internal revenue taxes. Moreover, considering that the eTRA System is mandated to be used as the platform for the payment of the withholding taxes, it is deemed understood that manual forms of TRA are no longer needed and, therefore, prohibited to be used by NGAs, unless the use of manual TRA forms are expressly allowed by written issuance or advisory issued by the Commissioner of Internal Revenue under certain exceptional circumstances. All concerned revenue officials, employees and others concerned are hereby enjoined to give this Circular as wide a publicity as possible. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue J-5