RMO No. 44-2024 — Prescribing the revised guidelines for monitoring of Withholding Taxes remitted by National Government Agencies thru the Electronic Tax Remittance Advice System Digest | Full Text | Annex A1 | Annex B | Annex C | Annex D | Annex E | Annex F | Annex G | Annex H | Annex I

Bringing in Revenues BUREAU OF INTERNAL REVENUE O RUBEAL REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE VAA OEINTERNAI REVENII Quezon City IeNT 5VISION PILIPINAS BAGOnG

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REVENUE'MEMORANDUM ORDER NO. BY: X ADnntUNT OCT 1 5 2024 TME: *. 2:10 04 4 -20 24 1 5 OCT 2024

SUBJECT Prescribing the Revised}Guidelines for Monitoring of Withholding Taxes Remitted by National (Government Agencies thru the Electronic Tax

Remittance Advice Syster

TO :All Internal Revenue Officials and Others Concerned

I GUIDELINES

Electronic Filing and Payment System - Electronic Tax Remittance Advice (eFPS- eTRA) System shall be monitored[by all concerned revenue offices of this Bureau The withholding taxes remitted by(National Government Agencies (NGAs) thru the pursuant to the following guidelines?

A. Miscellaneous Operations Monitoring Division

1. Generate the Withholding Tax Collection Report ofNGAs thru eTRA in the eFPS every Monday and 1st day of the month following the month of collection.

2. Download the NGAs' Withholding Tax Collection Report from eFPS and the Filed Tax Returns of NGAs with Tax Dues without eTRA/Cash Payments thru eFPS uploaded by the Data Warehousing and System Operations Division {DWSOD) in the BIR Centrai Repository System.

3. Match the data on the generated reports from the eFPS and the reports uploaded by the DWSOD thru the BIR Central Repository System.

4 Validate the discrepancies found on the abovementioned reports in the eFPS Tax Return Inquiry.

5. Prepare the following reports jand transmit in both hard and soft copies, to the Revenue Accounting Division (RAD) and Withholding Agents Monitoring Section-Regional Collection Division (WAMS-RCD)/Large Taxpayer Docurment Processing and Quality Assurance Division (LTDPQAD), and in soft copy only to the Revenue District Office (RDO)/concerned Large Taxpayers offices every Wednesday and 3rd day of the month following the month of collection:

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Validated Withholding Tax Collection Report from National Government Agencies thru eTRA (Annex "A");

b. Summary of Withholding Tax Collection Report from National Government Agencies thru eTRA (Annex "A.1"); and

C. Report of Discrepancies on Withholding Tax Collection from National

Government Agencies thru eTRA (Annex "B").

6. Receivefrom Friday and sth day of the monith following the month of collection. Subsequently, reversed/cancelled/adj usted. Discrepancies on Withholding Tax Collection from National Government Adjustments Made to Erroneous Entries Committed by NGAs (Annex "E") every verify thru the Integrated Tax System-Collection and Bank Reconciliation (ITS- CBR)/Internal Revenue Integrated System-Collection, Remittance and Reconciliation Agencies thru eTRA (Annex "B") and the Consolidated Report on the WAMS-RCD/LTDPQADtheconsolidated (IRIS-CRR) if the erroneous entries Report of are

In case of failure to reverse/cancel/adjust the erroneous entries, prepare and compliance to the correction of the erroneous entries in the ITS-CBR/IRIS-CRR. transmit a memorandum to] the concerned RDO/LTS office requesting the

7. Prepare and transmit a supplemental Validated Withholding Tax Collection Report of National Government Agencies thru eTRA to RAD and WAMS- RCD/LTDPQAD on or before 6th day of the month.

8. Prepare a memorandum to Regional Director (RD)/Assistant Commissioner, Large Taxpayer Service (ACIR-LTS), Attention: RDO/LTS who failed to resolve the erroneous payments and discrepancies committed by NGAs and transmit the same to WAMS-RCD/LTDPQAD on or before the 2ou day of the month.

9. Prepare Consolidated Statistical Report of the RDOs' Performance on the Resolution of Erroneous Entries Committed by NGAs (Annex "F") and submit to month. the Assistant Commissioner, Collection Service (ACIR, CS) every 25th day of the

10. In case of failure by certain RDOs/concerned LTS offices to adjust or cancel the on the automatic adjustment of the erroneous entries in the said system(s), for approval of the ACIR, CS and forward the same to Systems Development Division (SDD)/Administrative Systems Division (ASD) validated erroneous entries in the ITS-CBR/IRIS-CRR, prepare a memorandum

11. Based on the memorandum of ACIR, CS on the automatic adjustment of the erroneous entries, log the correction of erroneous eTRA entries in the Bureau's CRR by SDD/ASD. Service Desk for processing of the appropriate adjustment in the ITS-CBR/IRIS- aNAI RFurtE

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12. Prepare the list of RDOs/concerned LTS offices that failed to perform the said adjustments in violation of this Order and submit to the Deputy Commissioner, Operations Group thru the ACIR, CS, for its appropriate action thereon.

13. Monitor the compliance of the NGAs in the enrollment and usage of the eTRA System:

a Receive the Status Report on the Enrollment and Usage of the eTRA System

(Annex "H") from WAMS-RCD/LTDPQAD every 7th day of the month;

b. Prepare memorandum on the observations on the use of eTRA System by NGAs and transmit to WAMS-RCD/LTDPQAD every 10th day of the month: and

c. Prepare Report on the Level of Compliance of the NGAs on the Enrollment and Usage of the eTRA System (Annex "I") and transmit the same to the ACIR. CS every 15th day of the month.

B. Revenue Accounting Division

1.Prepare the prescribed Journal Entry Voucher (JEV) for purposes of recording the Books (NOCB), based on the reconciled collections submitted by LTDPQAD. offices and the necessary adjustments, if any, in the National Office's Collection collection of withholding taxes of NGAs thru eTRAs by the concerned LTS

2. Prepare Weekly Collection Report based on Annexes "A" and "A.1" transmitted by MOMD and submit the same to the Bureau of Treasury (BTr) for recording in the BTr Collection Books.

3. Receive the supplemental Validated Withholding Tax Collection Report of National Government Agencies thru eTRA from MOMD for adjustment of the collection report for BTr and NOCB.

C. Regional Finance Division

1. Prepare the BIR JEV based on-the following reports submitted by WAMS-RCD, to record the said collection in the Regional Office's Collection Books:

a. Validated Withholding Tax Collection Report of NGAs thru eTRA following week; and (Annex "A") including the adjustments thereto every Thursday of the

b Supplemental Validated Withholding Tax Collection Report of NGAs thru

eTRA on or before sixth (6th) day of the month. uBay oF internat ReNenue RECU*

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D. Withholding Agents Monitoring Section, Regional Collection Division/ Large Taxpayers Document Processing and Quality Assurance Division

1. Consolidate and update the Master List of Registered NGAs submitted by the jurisdiction of the revenue region/LTDPQAD every 8th day of the month. Client Support Section (CSS) of the RDOs/concerned LTS offices under the

2. Monitor the enrollment and compliance of the NGAs on the use of eTRA System for payment of withholding taxes based on the Master List of Registered NGAs submitted by the CSS of the RDOs/concerned LTS offices.

3. Prepare a memorandum to the concerned RDOs/LTS offices for its appropriate action under the following cases:

a. Failure by the NGAs to enroll;

b. Failure by the concerned RDOs/LTS offices to immediately endorse to the National Office Data Center (NODC)/concerned Revenue Data Center (RDC) the NGA's application for activation of their access; and

c. Failure by the NGAs to use|the eFPS -- eTRA System in the filing and payment of withholding taxes.

4.Prepare the Status Report of the NGAs on the Enrollment and Usage of the eTRA System (Annex "H") and forward the same to the Chief, MOMD every 7th day of

the month.

5. Prepare and transmit the Annex "G" together with Annex "A.1" to RFD for preparation of JEV and recording in the Regional Office collection books of account

6. Forward Annex "B" to the ;concerned RDOs/LTS offices thru email every Thursday and 4th day of the month following the month of collection.

7. Verify the reported adjustments indicated in the Tax Remittance Advice Debit Memo (TRADM) submitted by the RDOs in the ITS CBR/IRIS-CRR.

8. Submit a memorandum repoit to the RD/ACIR, LTS for their approval and transmit the same to the concerned RDO/LTS offices thru email and personal delivery, based on the following findings:

a. Late or non-submission by the RDO/concermed LTS offices of the Accomplished Report of Adjustments to Erroneous Entries Committed by NGAs; and

b. Late or non-adjustment of the erroneous entries by the RDO/LTS offices in the ITS-CBR/IRIS-CRR. GOBIREAUOF INTSRNALR Nt OIVISNY VENU

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Prepare and transmit the following reports validated by the concerned RDOs/LTS offices to the"Chief, MOMD every Friday and 5th day of the month following the month of collection:

Consolidated Report of Discrepancies on Withholding Tax Collection from National Government Agencies thru eTRA (Annex "B"); and

b. Consolidated Report on Validated Adjustments on Erroneous Entries Committed by NGAs (Arinex "E").

E. Revenue District Offices / Large Taxpayers Service Offices

1. Secure an access in the eFPS--eTRA System for all authorized personnel of the regional and district offices/LTS offices for purposes of generating/monitoring Request (BIR Form No. 0043) for the revocation of their access. termination of authority to use the system, immediately submit eFPS Access the Withholding Tax Collection Report of NGAs thru eTRA. In case of

2. Register the new NGA/s in the BIR and enroll in the eFPS-eTRA System thru the Client Support Section (CSS):

2 Ensure that the taxpayer type "GOVTA" is selected in the Integrated Tax

NGA pursuant to Revenue[Memorandum Order (RMO) No. 19-2016; System-Registration System (ITS-REG) / Internal Revenue Integrated System-Taxpayer Registration System (IRIS-TRS) upon registration of the

b. Require all newly registered NGAs to submit a written application for enrollment to eFPS eTRA System, including the prescribed supporting offices shall ensure that the NGAs are furnished with their respective fund documents, and transmit the same to the NODC or RDC, as the case may be. for activation of access ofitheir authorized users. The concerned RDOs/LTS

.. P RURFaA OF INTERNa No. 30-2014: code(s) and have been granted an access to the eTRA System pursuant to RMO

Al}v.it OCT 1 5 2024 C. Maintain and update a Master List of Registered NGAs indicating their status

TM forward a copy thereof to WAMS-RCD/LTDPQAD for consolidation on or (enrolled, not enrolled, newly enrolled, transferred and ceased/closed) and before the 5th day of the month; and

REV* Conduct briefings/trainings on eFPS and eTRA System to the designated NGA users. Ensure that the participants are properly informed and familiarized on the said systems with the appropriate handouts for their references pursuant to Revenue Regulations No. 1-2013.

3. Perform the following actions based on the report (Annex "B") transmitted by

MOMD:

3.1. For eTRA and/or cash payment that is less than the tax due per filed tax return and tax returns with tax dues without eTRA/cash payment:

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3.1.1. Verify the discrepancies in the Integrated Tax System-Returns Processing System (ITS-RPS)/Internal Revenue Integrated System- Returns Filing and Processing System (IRIS-RFP) and ITS-CBR/ IRIS-CRR; and

3.1.2. Issue collection notices to NGAs for the full payment/deficiency of case maybe, However, penalties for late payment shall be paid in cash. basic withholding taxes to be paid using eTRA and/or in cash, as the

In cases where the NGA fails to settle the collection notice, the same shall be recommended by the RDO/LTS offices for the appropriate enforcement of legal and/or summary remedies.

3.2. For eTRA and/or cash payment that is greater than the tax due per filed tax

return:

Send a written notice to require a written explanation on the alleged NGA. In case of an erroneously filed return, require the NGA to file an overpayment within two (2) days upon receipt of the notice by the amended return.

If the NGA failed to submit a written explanation nor amend the previously filed return within the prescribed 2-day period, the procedures prescribed under the subsequent provisions for the adjustment of overpayment in the ITS-CBR/IRIS-CRR shall be immediately complied with.

Further, for clear cases of double/muitiple erroneous payments, the procedural requirements for the immediate adjustment thereof in the CBR/CRR shall likewise be observed. written explanation by the NGA shall no longer be necessary and the

4. Adjust the overpayment in the ITS-CBR/IRIS-CRR according to the following procedures:

BY: ALiS URI~ OCT 1 5 2024 F wRVALRFVF* f t 4.1. Prepare and accomplish five (5) copies of Tax Remittance Advice Debit Memo (TRADM) using the format in Annex "C" upon validation of the Revenue District Officer/Division Chief of LTS. on a per transaction basis. erroneous entries committed by NGAs to be approved by the concerned One (1) TRADM shall be issued for each erroneously generated eTRA

No 4.2. Assign a serial number upon the approval of the TRADM containing the following information

1.Revenue District Office Number, for TRADM issued by the concerned revenue district office and the term LTD for TRADM issued by the concerned LTS office;

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2 Calendar Year of approval of the TRADM; and

3. Control Number with eight (8) characters. For this purpose, a control book shall be maintained by the Revenue District Officer/Division Chief of concerned LTS Office for all approved TRADM containing the following information:

(a) Date of approval of the TRADM; (c) Name, TIN and address of the NGA; (f) Return period covered: (h) Form type covered (b) Serial number of the TRADM; (d) Amount of the TRADM: (e) TRA number and date of the TRA: (g) Tax type involved; and

Example: If the first TRA Debit Memo to be issued is approved by the Revenue District Officer No. 48 in 2021, the serial number shall be RD048-2021-00000001.

4.3. Adjust in the ITS-CBR/IRIS CRR the erroneous withholding tax according to the procedures prescribed in the Operations Manuals of the

payment in the ITSCBR/IRIS-CRR ought to be adjusted should be the same TRA number reflected in the TRADM. respective systemis within two (2) days after the approval of the TRADM. Ensure that the eTRA number containing the erroneous

conduct of a prior verification and a duly approved TRADM. Furthermore, amendment of the tax return beyond the tax deadline shall Except for clear cases of double/multiple erroneous entries, no adjustment in the ITS-CBR/IRIS-CRR shall be made without the

reflect the payment on the previously filed return. Any overpayment on CRR. the said withholding tax due shall be cancelled in the ITS-CBR/IRIS-

NAL RFVEHE 4.4. Distribute the copies of the approved TRADM together with the supporting documents to the following concerned revenue offices:

OCT 1 5 2024 e Quadruplicate Original Duplicate Triplicate _WAMS-RCD/LTDPQAD H RDO/LTS NGA for presentation to Department of Budget and Management (DBM) Division (MOMD) Miscellaneous Operations Monitoring

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to the concerned recipients within twenty-four (24) hours after its approval by the concerned head of office. The respective copies of the duly approved TRADM shall be transmitted

non- convertible to cash. Moreover, the duly approved TRADM shall be non-transferable and

4.5. For penalties paid using eTRA payment:

4.5.1 Prepare a]letter informing the NGA on the payment of penalties using eTRA is null and void and require the payment of the said penalties in cash using the BIR Form No. 0605 tand]

4.5.2 Prepare a TRADM and adjust the erroneously used eTRA

payment for penalties immediately regardless of no payment in cash has been made according to the provisions in item 4.1 to 4.4.

5. Accomplish the "Per RDO Verification" column and indicate "V" if valid or the same report. invalid, indicate a brief explanation under the "Justification" column provided in Collection from National Government Agencies thru eTRA (Annex "B"). If "INV" if invalid in the validated Report of Discrepancies on Withholding Tax

within three (3) days upon receipt of the Annex "B". Furthermore, prepare the Report on Adjustments Made to Erroneous Entries Subsequently, transmit bothAnnexes to the WAMS--RCD, together with the corresponding copies of the TRADM, copy furnished Regional Finance Division Committed by NGAs (Annex "D") based on the adjustments made in the ITS CBR/IRIS-CRR as a result of the verification of the erroneous eTRA payments

indicated in their Office Performance Commitment and Review (OPCR) form for Moreover, the Ievel of compliance on the verification of Annex "B" and reversal/cancellation of the erroneous entries in the ITS--CBRS/IRIS-CRR, as well as the submission of the prescribed reports shall, at all times, be included in the RDO's/concerned LTS offices' performance goals and measurement and each semester.

F. National Office Data Center/Reyenue Data Center and Security Management Division

Process access requests for the creation/revocation of access accounts pursuant to RMO No. 28-2020, and forward the same to the DWSOD for its implementation.

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G. Data Warehousing and System Operations Division

1. Implement the approved reguests for access or its revocation thereof in the eFPs

Division. and ITS and IRIS upon endorsement by NODC/RDC/Security Management

2. Receive from Taxpayer Ser'vice Systems Division (TSSD) the standard script for NGAs with Tax Dues without eTRA/Cash Payments thru eFPS. Withholding Tax Collection Report of NGAs thru eFPS and Filed Tax Returns of

3. Generate the following reports every Tuesday and 2hd day of the month following the month of collection and'upload to the BIR Central Repository System:

a.NGAs' Withholding Tax Collection Report from eFPS; and

b.Filed Tax Returns of NGAs 'with Tax Dues without eTRA/Cash Payments thru eFPS

H. Taxpayer Service Systems Division

1. Prepare the standard script for Withholding Tax Collection Report of National Government Agencies (NGAs) thru eFPS and Filed Tax Returns of NGAs with Tax Dues without eTRA/Cash Payments thru eFPS.

2. Turn-over the script to DWSOD for regular generation of the reports.

I. Systems Development Division/Administrative Systems Division

1. Adjust the validated erroneous entries committed by NGAs in the ITS- to modify/reverse/cancel in the said system based on the logged erroneous eTRA CBR/IRIS-CRR which the concerned RDOs/LTS offices have previously failed entries in the Bureau's Service Desk by MOMD.

2.In case of non-availability of the eFPS, the concerned Information Systems Group and Operations Group. shall issue a joint advisory duly approved by the Deputy Commissioners for ISG (ISG) office having functional jurisdiction over the reason of such unavailability

D IN owithhodfg'tax. NGA shall be liable for the appropriate penalties for late filing and payment of Subsequently, an advisory shall be issued informing the NGAs on the availability NGAs shall file the withholding tax returns through the said system and pay the corresponding tax due thereon|thru the eTRA system. Otherwise, the concerned of the eFPS. The said advisory'shall contain a requirement that within twenty-four (24) hours immediately after the issuance and posting at the BIR website, the

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I. REPEALING CLAUSE

are hereby amended, repealed or revoked accordingly. The provisions of RMO No. 30-2014 and other issuances which are inconsistent herewith

H.EFFECTVITY

This Order shall take effect immediately.

J-5 Comssioner of Internal Revenue ROMEOZ LUMAQUI, JR

114 TERNAI RFYENNIE I iS ON

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BY tkc_Z:0 2

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