RMO No. 66-2010 — Adjusts the allocation of the CY 2010 BIR collection goal by implementing office Digest | Full Text | Annexes

TO REPUBLIC OF THE PHILIPPINES SUBJECT DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City July 27, 2010 REVENUE MEMORANDUM ORDER NO. 66-2010 : Deputy Commissioner for Operations Assistant Commissioners, Head Revenue Executive Assistants Regional Directors, Revenue District Officers, Division Chiefs and Other Officers Concerned : Adjustments to RMO No. 31-2010 on the Allocation of the CY 2010 BIR Collection Goal by Implementing Office I. Objective The purpose of this Memorandum is to adjust the collection goals per RMO 31-2010 affected by the revision in the assigned collection goal of the Bureau for CY 2010. II. CY 2010 Overall Collection Goal The revised overall CY 2010 collection goal of the Bureau as provided by the Department of Finance (DOF) is P 860,441 million. This is 14.68% higher than CY 2009 actual collection of P 750,288 million. Out of the P 860,441 million, P 819,598 million is for BIR Operations and P 40,843 million is for Non-BIR Operations based on the Medium-Term Revenue Program (MTRP) run date July 7, 2010. The breakdown of the goal, by major tax type, is as follows: COLLECTION GOAL BY MAJOR TAX TYPE, CY 2010 BIR OPERATIONS AND NON-BIR OPERATIONS (In Million Pesos) BIR OPERATIONS NON-BIR OPERATIONS TAX CLASSIFICATION TOTAL EXISTING NEW TOTAL TOTAL MEASURES MEASURES I. INCOME TAXES II. EXCISE TAXES P 860,441 809,588 10,010.00 819,598.00 40,843 III. VALUE-ADDED TAX IV. PERCENTAGE TAXES 492,076 517,006 (59,983) 457,023.00 35,053 V. OTHER TAXES 62,425 52,748 9,677 62,425.00 212,447 157,422 55,025 212,447.00 46,739 49,180 (2,441) 46,739.00 46,754 33,232 7,732 40,964.00 5,790

III. Data Used The following data were used in the computation of the revised final goal allocation: A. CY 2010 goal allocation by implementing unit per RMO No. 31-2010 submitted by implementing offices, as of July 22, 2010; B. Data Considered as Refinements for CY 2010 Goal Allocation per RMO No. 31-2010: Special Taxes: Goals on Tax on Government Securities, Travel Tax, Stock Transactions, Excise Taxes and MALAMPAYA based on MTRP, dated December 14, 2009; C. Economic assumptions/indicators and revised goal by tax type in the MTRP, dated July 7, 2010 from the DOF (Annex A); D. Revised CY 2010 Excise Taxes monthly allocation by product as provided by the LTS (Excise group), dated July 15, 2010; E. Amended CY 2009 Regular Corporate Income Tax Collections from MALAMPAYA per LTS-Excise report, as of July 21, 2010; F. CY 2009 Monthly collections of stock transactions tax by implementing office per BIR Form No. 1209 report, as of March 18, 2010; and G. CY 2009 Monthly collections of LTS by tax type and implementing unit per BIR Form No. 1209 report, as of March 18, 2010. IV. Adjustments in the Goal Allocation Methodology All data necessary for this goal allocation utilized statistics available as of July 22, 2010. The revised CY 2010 goal will be based on the methodology below. A. General Methodology 1. The revised BIR goal was divided into BIR Operations and Non-BIR Operations (Annex B). The goals on stock transactions tax and travel tax which were previously part of the goals on Non-BIR Operations per RMO No. 31 � 2010 shall now be included in the assigned goal for BIR Operations. 2. CY 2010 goals of implementing offices per RMO No. 31 � 2010 were refined by using the data enumerated in Section III.B. (Annex C). 3. The revised preliminary total goal on BIR Operations (Annex C-1) was pro-rated to all implementing offices using the CY 2010 refined goal per RMO No. 31-2010. The revised CY 2010 total goal by implementing office is shown in Annex C-2.

B. Goal Allocation by Major Tax Type and Month 1. CY 2010 total monthly goal was based on the refined average monthly share of collection, CYs 2006 � 2009. The refinements that were taken out from the actual collections for trending purposes include collections from excise taxes, tax on treasury bills/government securities, MALAMPAYA, selected 2009 SARO and travel tax. 2. CY 2010 revised total goal by major tax type was based on the MTRP run date July 7, 2010 as provided by DOF (Annex A). 3. Revised allocation for Excise Taxes by period was provided by the LT-Excise Group, Field Operations Division 4. CY 2010 allocation for Stock Transactions was based on actual CY 2009 collections by implementing office as reported in BIR Form 1209 as of March 18, 2010. 5. For the remaining tax types, Income Taxes, VAT, Percentages Taxes (exclusive of stock transactions) and Other Taxes, goal allocation were based on CY 2009 actual collections. C. Goal Allocation by Implementing Offices/Revenue District Office/ Implementing Unit The revised CY 2010 goal by implementing office was allocated by period and major tax type using ratio and proportion method applied on the CY 2010 goal allocation by Revenue District Office (RDO) per RMO 31-2010 as provided by the Regional Offices. For the Large Taxpayers Service (LTS), the total goal allocation per implementing group was based on the simulation done by Statistics Division following the methodology prescribed in RMO No. 31-2010. This was further allocated by period and major tax type using ratio and proportion method applied to the CY 2009 actual collections as reported in the BIR Form No. 1209 report. The revised breakdown by implementing office/RDO/implementing unit, period and tax type are presented in Annexes D, D-1 to D-6.

V. List of Annexes Annex A Revised Macroeconomic Assumptions Annex B and Collection Goal By Major Tax Type, CY 2010 Annex C Revised Monthly Collection Goal By Major Tax Type, BIR Operations Annex C-1 and Non-BIR Operations, CY 2010 Annex C-2 Refined Goal by Implementing Office (Per RMO No. 31 -2010), CY 2010 Annex D Annex D-1 Computation of the Breakdown of Revised Preliminary Total Goal on BIR Annex D-2 Operations, CY 2010 Annex D-3 Revised Collection Goal Allocation By Implementing Office, CY 2010 Annex D-4 Annex D-5 Revised Total Collection Goal Allocation By Implementing Office and Major Tax Annex D-6 Type, CY 2010 Revised Monthly Total Collection Goal Allocation By Implementing Office, CY 2010 Revised Monthly Collection Goal For Income Taxes By Implementing Office, CY 2010 Revised Monthly Collection Goal Allocation For Excise Taxes By Implementing Office, CY 2010 Revised Monthly Collection Goal Allocation For Value-Added Tax By Implementing Office, CY 2010 Revised Monthly Collection Goal Allocation For Percentage Taxes By Implementing Office, CY 2010 Revised Monthly Collection Goal Allocation For Other Taxes By Implementing Office, CY 2010 VI. Repealing Clause This Revenue Memorandum Order revises RMO 31-2010 and all other issuances inconsistent herewith. VII. Effectivity This Order takes effect immediately. (Original Signed) (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue b-3/jct FMM NMA LSVR NJT CLQS LMV JCT