BUREAU

OF INTERNAL
REVENUE
RECORDSM(;'f, DMSION
f REPUBLIC OF THE PHILIPPINES
DEPARTMENTOF FINANCE
BUREAU OF INTERNAL REVENUE J~'~)~ ~
R E C E I/V E.:1;
Quezon City January 23, 2013

REVENUE REGULATIONS NO. (- !fO/~

SUBJECT Further Expands the Coverage of Taxpayers Required to File Tax

Returns and Pay Taxes Through the Electronic Filing and Payment
System (eFPS) to Include National Government Agencies (NGAs)
Mandatorily Required to Use the Electronic Tax Remittance Advice
( eTRA)

TO All Internal Revenue Officers and Others Concerned

BACKGROUND. The eFPS was first introduced in 2001 in line with the government's
policy of providing fast and convenient manner of transacting with government offices. The
Bureau of Internal Revenue(BrR), as one of the governmentagencies with a very important role
in nation building as it is mandatedto collect revenues for use of the government, conceptualized
the eFPS to make the filing of tax returns and the payment of taxes convenient for the taxpayers.

With the eFPS, taxpayers can avail of a paperlesstax filing experienceand can also pay
their taxes online through the convenience of an internet-banking service via debit facility from
their enrolled bank account. In addition, since eFPS is available on the internet, taxpayers can
file and pay for their taxes anytime and anywhere as long as he or she is using a computer with
an internet connection.

The eFPS is open to all taxpayers who wish to make use of the system. It was initially
introduced to the taxpayers under the Large Taxpayers Service. However, the BIR has seenthe
need to identify taxpayers who will be mandated to use the system; hence, the following
taxpayers are, at present, already mandatedto make useof the eFPS:

Large Taxpayers duly notified by the BIR;

Top 20,000 Private Corporations duly notified by the BIR;
3 Top 5,000 Individual Taxpayers duly notified by the BIR;
4 Taxpayers who wish to enter into contract with governmentoffices;
5 Corporations with paid-up capital stock ofTen ivlillion Pesos;
6. PEZA-registered entities and those located within Special Economic Zones;
and
7 Government Offices, in so far as remittance of withheld VAT and businesstax
is concerned.
'W
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 Now that Electronic Tax Remittance Advice (eTRA) System, a sub-systemof the eFPS
has been deve1oped, the base of taxpayers mandated to use eFPS is expanded to include aU
National Government Agencies (NGAs) since the latter make use of the TRA in settlement of
their withholding tax liabilities arising from the use of funds being releasedby the Departmentof
Budget and Management (DBM).

This scheme of remitting taxes withheld through TRAs started with the issuanceof the
Joint Circular No. 1-2000 (JC 1-2000) signed by the Secretariesof the Department of Finance
(OaF) and the OBM and the Chairman of the Commission on Audit (COA), in lieu of the other
modes of withholding tax remittance such as cash remittances, the Modified Disbursement
System (MDS) Checks and Authority to Debit the Account of the Agency (ADA). Under the
existing procedures, all NGAs are securing blankTRA forms from the SIR, accomplishing and
attaching the same to the appropriate withholding tax returns, and submitting the same manually
to the concerned Revenue District Office (ROO). With eTRA System, NGAs need not go to the
BIR to secure the blank TRA forms/and to manually file the tax returns. In lieu of these manual
procedures, the NGAs can accessthe eFPS, file the tax return electronically and accomplish the
eTRA on-line, provided the prescribedenrollment to the eFPShas alreadycomplied with.,

With eTRA System, transparency and efficiency in revenue collection reporting and
reconciliations will be enhanced as all concerned parties can view and record on real time the
remittances made by the NGAs.

Section 1. SCOPE. Pursuantto the provisions of Section 244 of the National Internal
Revenue Code of 1997 (Tax Code), in relation to Section 27 of Republic Act No. 8792,
otherwise known as the "Electronic Commerce Act", these Regulations are hereby promulgated
to regulate the electronic filing of Tax Remittance Advice (TRA) of National Government
Agencies (NGAs), through the existing eFPSof the Bureau.

Section 2. DEFINITION OF TERMS. For purposes of these Regulations, the terms

herein provided are defined as follows:

2.1 Electronic Tax Remittance Advice (eTRA) System -the process of remitting
taxes withheld by NGAs through the internet using the eFPS facility of the SIR, in lieu of the
manual filing of Tax Remittance Advice.

2.2 Electronic Filing and Payment System (eFPS) -refers to the systemdeveloped
and maintained by the SIR for electronically filing tax returns, including attachments, if any, and
paying taxes due thereon, specifically through the internet.

2.4 e-filing -means the process of electronically filing tax returns, including
attachments, if any, specifically through the internet.

2.5 e-payment -means the process of electronically paying a tax liability through the
internet banking facilities of AABs.

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 2.6 Authorized Agent Bank (AAB)- refers to any bank as certified by the Bangko
Sentral ng Pilipinas (BSP) which has satisfied the criteria on accreditation and is actually
accredited to collect internal revenuetaxes,

2.7 Tax Remittance Advice (TRA) -a serially-numbered document prescribed by

the OBM that should be used by the NGAs in the remittance ofrwithheld taxes on funds coming
from OBM. This form is being distributed by the BIR to be accomplished by the NGAs. The
same shall be duly certified by the Chief Accountant and approved by the Head of the concerned
NGA or his duly authorized representative, and attachedto every withholding tax return filed as
payment for taxes withheld. This shall be the basis for the BIR and the Bureau of Treasury (BTr)
to record the tax collection in their respective books of accounts.

2.8 Electronic Tax Remittance Advice (eTRA)- a TRA which is accomplishedon-

line via the BIR's eFPS facility.

2.9 National Government Agencies (NGAs) -refers to governmentagencieswhose

main fund/budget comes from the DBM basedon the yearly budget allotment as provided under
the General Appropriations Act.

2.10 Agency Code -it is an alphanumeric code provided by the DBM for each and
every national government agency.

2.11 Department Code -refers to the department's unique identification provided by

the DBM to all departments of government (e.g., Department of Education, Department of
Finance, etc.) expressed in numeric form.

2.12 Return- refers to the tax returns required to be filed by the NGAs which include,
but not limited to, the following:

Tax Return Descriotion

I BIR Form 1601-C I Monthly Remittance Return of Income Taxe~_Withhela onComoensation
BIR Form 1601-E Monthly Remittance Return of Creditable Income Taxes Withheld
(Expanded)[Except for transactionsinvolving onerous transfer of real property
c lassifted as ordinary asset1
I BIR Form 1601~ I Monthly Remittance Retlllm afFinal Incam~Taxes WithhelQ
BIR Form 1603 Quarterly Remittance Return of Final Income Taxes Withheld on Fringe_Benefits
Paid to Employees Other than Rank ang_file
BIR Form 1600 Monthly Remittance Return of Value-Added Tax and Other Percen~e Taxes
Withheld
BIR Form 1702 Annual Income Tax Return for Corporations, Partnerships and Other Non-
lndividual Taxpayers --
BIR Form 1702Q Quarterly Income Tax Return for Corporations, Partnerships and Other Non-
Individual Taxpayers
I BIR Form 2550M I Monthly Value-Added Tax Declaration
I BJR Form 25500 Quarterly Value-Added Tax Return
I. BIR Form 255IM 'Monthly Percenta2:e T_~ ~eturn
---
BIR Form 2000 Documentary Stamp Tax DeclaratiOOIRetum

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RECORDSMGT. DMSION
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JAH 2,) 2013

RECEIVE"
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 Section 3. ISSUANCE OF A NOTIFICATION LETTER. The Bureau of Internal
Revenue (BIR) shall issue a Notification Letter (Annex "A") to all National Government
Agencies, including their branches and extension offices located nationwide which have their
own disbursement functions, to inform them that they are mandatedto use the eFPS in filing the
required returns and in paying the taxes due thereon.

Section 4. RESPONSIBILITY OF THE NATIONAL GOVERNMENT AGENCY'S

HEAD OFFICE. The Head Office of the concernedNGA shall be responsible in providing the
SIR with the list of all its branches/field or extensionoffices located nationwide which have their
own
codesdisbursement
and taxpayer functions, withnumbers
identific~tion information as to their respective. business addresses,agency
(TINs).

Section 5. ENROLLMENT FOR SYSTEM USAGE. All NGAs notified thru the
Notification Letter stated under Section 3 hereof shall enroll in the eTRA system by enrolling
first with the BIR's eFPS facility in accordancewith the detailed procedures provided under
Annex "B" hereof. As part of the enrollment procedures,NGAs shall be required to submit to
the Revenue District Office where they are registered the names of two (2) authorized officers
designated to file the required tax returns pursuantto Section 52 (A) of the Tax Code (e.g., Head
of Office and Chief Accountant/DisbursementOfficer).

In addition, NGA shall also enroll with any authorized agent bank (AAB) where it
intends to pay through the bank debit system, in cases of remittance of withheld taxes on funds
not coming from the DBM or the payment of internal revenuetaxes thru cash and not thru TRA.

Section 6. RETURNS COVERED BY ENROLLMENT. NGAs mandated to file

electronically thru the issuanceof the Notification Letter shall file their tax returns e1'!umerated
under Section 2.12 hereof via the eFPS, whether or not payment shall make use of eTRA.

Section 7. TIME OF FILING OF RETURN AND PAYMENT OF TAX DUE. The

due dates for filing of tax returns are as follows:

Page4
RECORDSMGT. DIVISION
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~ j~ 2.3 2013.ttw~
 I in which-the withholding was made.
SIR Form 1600 or before the 1dl1 day of the month followIng the month
-
in which
-
withholding was made.
BIR Form 1702 On or before the 1Sinday of the fourth month -fOllowing the
close of the taxable year (calendar or fiscal)
BIR Form 1702Q Within sixty (60) calendardays following the close of each
of the first three (3) quarters of the taxable year (calendar or
fiscal year)
I BIR Form 255OM IOn orbefore the 20LrI dayafter the clOse of the month -

BIR Form 2550Q On or before the 251f1day after the close of the taxable
quarter
I BIR Form
-
2551M .before the 201n-gay after th~ close of the month
SIR Form 2000 On or before the 5th day after the close of the month-when
the transaction subjectto DST occur.

The staggered filing of returns allowed for withholding agents/taxpayersenrolled in the

eFPS facility of the Bureau shall not apply in the case of NGAs. All tax returns must be
electronically filed (e-filed) following due dates prescribed in the table under this Section.
Paymentof the tax due must also be made on the sameday the return is e-filed by accomplishing
on-line the Tax Remittance Advice (TRA).

The use of eTRA as payment is limited only to the NGAs' tax liabilities arising from the
use of funds coming from the DBM. NGAs' tax liabilities arising from the use of funds other
than those coming from DBM based on the NGA's Annual Budget as approved under the
General Appropriation Act (GAA) must be paid using cashthrough the bank debit system of the
AAB where the NGA shall enrol for this purpose. A separatetax return must be accomplished
for these tax liabilities since a particular fund is required to have a separatebranch code.

In the absenceofa separatebranch code of the fund, the NGA shall securethe same from
the concerned Revenue District Office following existing procedures in registration.

Section 8. MANDATORY CONDUCT OF BRIEFING AND ATTENDANCE OF

NOTIFIED NGA. The concernedRevenue District Office shall conduct the mandatory briefing
to the concerned NGAs on the eTRA System. Notified NGAs are required to attend the said
briefing on eTRA, which is a pre-requisiteto enrollment in the eFPS.

Section 9. MANNER OF RECORDING TAX COLLECTIONS BY THE BUREAU

OF TREASURY. The BIR, through its Information Systems Group, shall generate report of
NGAs' remitted withheld taxes using TRA based on cut-off dates to be defined under a separate
revenue issuance. The report generatedshall be submitted by the Bureau's RevenueAccounting
Division to the Bureau of Treasury (BTr) and shall be used by the latter in recording and
crediting the same as BIR' s tax collections.

Section 10. TRANSITORY PROVISION. For the pilot roll-out of the eTRA, the
Withholding Tax Division shall conduct the eTRA briefing with the selectedNGAs. All NGAs
which will not be given Notification Letter as stated under Section 3 hereof shall continue to file

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 their tax returns manually by accomplishing the appropriate tax returns and attachingthereto the
corresponding TRAs before having these documentsreceived by the ROOs where the NGAs are
registered. RODs shall processthese tax returns and report the collections thru TRAs following
existing procedures.

Section 11. REPEALING CLAUSE. The provisions of any revenue regulations,

memoranda or circulars or any other issuances inconsistent herewith are hereby repealed,
modified or amended accordingly.

Section 12. EFFECTIVITY. These regulations shall take effect after fifteen (
15) days
following the publication in the Official Gazette or in a newspaperof generalcirculation.

CESA'R V. '

Secretary of Finance

RecommendingApproval:

KIMS.
of Internal Revenue
011, 1!t
J-2

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 ANNEX"A"

NOTIFICA TION LETTER

Notice is hereby given to -~ (nameofNGA) , of

Office Address and
with Taxpayer Identification No. (TIN) .' that effective
(Date) , you shall start filing your tax returns via the BIR's Efectronic Filing and
Payment System (eFPS), pursuantto the provisions of RevenueRegulationsNo. .

This requirement is in line with the implementation of the Electronic Tax Remittance
Advice (eTRA) System of the Bureau of Internal Revenue (BIR), whereby, instead of
accomplishing the blank TRA distributed by the BIR and attaching the sameto the withholding
tax returns, the TRA can now be accomplished on-line via the eFPS. As such, there is no need
for the NGA to secure blank TRA forms from the BIR and have the TRA stamped received by
the Revenue District Office (ROO) as attachmentto the withholding tax returns.

In relation thereto, you are directed to attend the eTRA briefing to be conducted at
(place) on (date and time) and thereafter enroll with the BIR-eFPS. Should
you have tax payments to be made in cash, other than thru TRA, you are likewise required to
enroll with any authorized agent bank (AAB) where you intend to pay thru the bank debit
system.

Failure to comply with the aforementioned directive shall be subject to applicable

penalties provided under the Tax Code.

Commissionerof Internal Revenue