1998 REVENUE MEMORANDUM ORDERS
DIGEST OF 1998 REVENUE MEMORANDUM ORDERS
MEMORANDUM ORDER No. 1-98 issued January 21, 1998 sets the revenue
target of the BIR for CY 1998, as well as prescribes the methodology to
determine the following: i) estimated CY 1997 collection and CY 1998 goal
of each region; ii) CY 1998 regional goal for each major type of tax;
and iii) monthly regional goal allocation for each type of tax. In relation
thereto, the Regional Directors are directed to submit to the Statistics
Division, not later than January 26, 1998, the distribution of regional
goals by Revenue District Office, by month and by type of taxes. The Regional
Directors are also directed to review and evaluate their collection performance
against their goals to determine the effect of the CTRP implementation.
MEMORANDUM ORDER No. 3-98 issued February 4, 1998 creates new categories
of Alphanumeric Tax Code (ATC) to facilitate the identification and monitoring
of certain revenue sources subject to final withholding, as required under
the Comprehensive Tax Reform Program and for Integrated Tax System purposes.
Said revenue sources are: a) foreign currency deposits both for resident-individual
and resident-corporate; b) fringe benefits paid to supervisors/managers
by the corporation; c) improperly accumulated earnings; d) royalties on
books, literary works and musical compositions; e) cash dividends; and
f) property dividends.
MEMORANDUM ORDER No. 4-98 issued February 5, 1998 indicates the authorized
signatories of checks, documents and papers on financial and administrative
matters, specifically Disbursement Vouchers, Purchase Orders, Job Orders,
contracts up to P50,000, Requisition and Issue Vouchers and other documents/papers
which are administrative in nature and related to revenue accounting functions.
The Chairmanship of the Pre-qualification, Bids and Awards Committee (PBAC),
which devolves upon the Assistant Commissioner, Financial and Administrative
Service under Revenue Special Order No. 1218-97, will now be exercised
by the Assistant Commissioner, Administrative Service.
MEMORANDUM ORDER No. 5-98 issued February 6, 1998 prescribes the policies
and procedures relative to the screening, selection and grant of scholarships
under the Masteral Degree in Tax Management Program of the University
of the Philippines in the Visayas, in accordance with the Civil Service
Commission's Memorandum Circular No. 13, series of 1992. The said Program
will be offered and implemented by the following UP Visayas units to serve
the corresponding Revenue Regions (RRs): a) UP Visayas College of Management
for RR No. 11, Iloilo City and RR No. 12, Bacolod City; b) UP Cebu College
for RR No. 13, Cebu City; and c) UP Tacloban College for RR No. 14, Tacloban
City. The obligations and responsibilities of the grantee and the counterpart
support of the Bureau are specified in the Order.
MEMORANDUM ORDER No. 6-98 issued February 10, 1998 prescribes the
policies and procedures for the internal recruitment of personnel (from
Division Chief level down to the lowest hiring position level) for the
Revenue Data Centers (RDCs). The RDC Internal Recruitment Committee will
establish the specific criteria for selection, testing, training and assignment
of revenue personnel in the RDC, as well as administer and implement the
policies and procedures for the same.
MEMORANDUM ORDER No. 7-98 issued February 11, 1998 prescribes the
implementation policies, guidelines and procedures to implement the Trainer
Assignment Program (TAP) for the mass rollout of the Integrated Tax System
(ITS). The following are specified in the Order: a) distribution of trainer
commitments; b) nomination and selection of ITS trainers; c) scheduling
of ITS trainers; d) travel logistics; e) trainer deferment; f) travel
liquidation; and g) ITS trainers honoraria.
MEMORANDUM ORDER No. 8-98 issued February 13, 1998 prescribes the
policies, guidelines and procedures to implement the Corporate Stock and
Documentary Stamp Tax (DST) Program. The filing of the Corporate Stock
DST Declaration and the DST Return (BIR Form No. 2000) are required to
be done by the following: a) all existing corporations when DST is still
due on the subscribed share issued by the corporation; b) all new corporations;
and c) all existing corporations with authorization for increased capital
stock when DST is due on subscriptions made after the authorization. A
surcharge equivalent to 25% of the amount due will be imposed in cases
of: a) failure to file the return and pay the tax due on or before the
prescribed deadline and b) failure to pay the full amount of tax shown
in the required tax return. In case of willful neglect to file the required
return within the period prescribed or in case a false or fraudulent return
is willfully made, the penalty to be imposed will be 50% of the total
MEMORANDUM ORDER No. 9-98 issued February 16, 1998 revises RMO No.
20-97 by prescribing additional policies, guidelines and procedures for
the grant and revocation of access to identified users. This will vary
based on the classification, as follows: a) Access to Inquire Function;
b) Access to Update Function; c) Access to Approve Function; d) Access
to View Function; and e) Access to View/Print Function. Regular access
will be granted only to personnel after completion of the appropriate
training relevant to ones functional role/designation. Temporary access
and special access may also be granted under scenarios specified in the
Order. The System Administrators of the ISOS and the Revenue Data Centers
shall monitor the use of access privileges based on audit trails, and
shall report any possible abuse or unauthorized entry into the ITS modules
to the Assistant Commissioner, ISOS or RDC Head.
MEMORANDUM ORDER No. 10-98 issued February 17, 1998 amends RMO No.
27-97 by prescribing the Codes Table for use in the implementation of
the Integrated Tax System (ITS) on the Zonal Valuation Codes of NOMIS.
The Order issued three (3) versions of the Zonal Valuation Codes Tables
for the following Revenue District Office (RDO) pilot sites, namely: a)
RDO 28 - Novaliches; b) RDO 30 - Binondo; c) RDO 32 - Quiapo/Sampaloc/San
Miguel; d) RDO 33 - Intramuros/Ermita/Malate; e) RDO 38 - North Quezon
City; f) RDO 39 - South Quezon City; g) RDO 40 - Cubao; h) RDO 52 - Parañaque;
i) RDO 81 - Cebu City (North); and RDO 82 - Cebu City (South). Version
3 is based on the most recent issuances of the Department of Finance.
MEMORANDUM ORDER No. 11-98 issued February 17, 1998 prescribes the
audit policies and procedures in the audit of 1996 and 1997 Value-Added
Tax returns. The following order of priority will be used in the audit:
a) returns with claims for VAT credit/refund; b) break-even VAT returns;
c) VAT returns with excess tax credit for any or all of the four quarters;
d) VAT returns with quarterly gross sales/receipts of P1,000,000 and above
for revenue districts in Metro Manila covered by Revenue Region Nos. 5,
6, 7 and 8 (Valenzuela, Manila, Quezon City and Makati), except Revenue
District Office Nos. 35 - Romblon, 36 - Puerto Princesa/Palawan and 37
- San Jose, Occidental Mindoro; and e) quarterly gross sales/receipts
of P500,000 and above for all other RDOs, including RDO Nos. 35, 36 and
37. VAT returns selected for audit by the investigating divisions under
the Enforcement Service and VAT returns of taxpayers who availed of the
Voluntary Assessment Program (VAP) under RMO No. 63-97, as amended, are
excluded from the coverage of the Order, except VAT returns of taxpayers
who availed of the VAP but whose availments were found to be substantially
MEMORANDUM ORDER No. 12-98 issued February 17, 1998 prescribes the
policies and procedures to implement the Audit Program for 1998 by specifying
the coverage (mandatory and other priorities) as well as the exceptions
to the Program. Letters of Authority (LA)/Audit Notices (AN) will be issued
to cover 1996 and 1997 internal revenue tax returns. One LA/AN will be
issued for each taxable year. All taxpayers selected for audit by the
Revenue District Offices must be submitted in a list, through the Regional
Director, to the Assistant Commissioner, Assessment Service, for approval
before issuance of LAs/ANs.
MEMORANDUM ORDER No. 13-98 issued February 18, 1998 prescribes the
additional policies and operational guidelines for the implementation
of the Taxpayer Record Update (TRU) for taxpayers earning pure compensation
income in non-Integrated Tax Systems (ITS) converted Revenue District
Offices. The Order specifies the procedures for the: a) conduct of TRU
Phase II briefings for employers; b) screening and validation of 1902
Forms; c) transmittal of 1902 Forms to the Information Systems Operations
Service; d) encoding of forms; and e) preparation of the weekly Status
MEMORANDUM ORDER No. 14-98 issued February 19, 1998 prescribes the
policies and guidelines to implement Revenue Regulations No. 10-97 which
designates the following government officials as withholding agents: a)
all heads of offices and the Chief Accountants in departments, bureaus,
agencies, instrumentalities, government-owned or -controlled corporations
(GOCCs) and other government offices; b) the Provincial Treasurers and
Governors in provinces; c) the City Treasurers and Mayors in cities; d)
the Municipal Treasurers and Mayors in municipalities; and e) the Barangay
Treasurers and Barangay Captains in barangays, together with their respective
Chief Accountants. Said government officials are personally charged with
the duty to withhold and remit taxes on compensation, expanded and final
withholding taxes, as well as government money payments on value-added
taxes and other percentage taxes, including franchise taxes. The names
of the incumbents to said positions shall be submitted by the office concerned
to the Commissioner of Internal Revenue, ATTN: The Revenue District Officer,
within 30 days from receipt of notification. Any change of incumbents
will have to be reported and the names of the replacements submitted within
10 days from date of change or replacement.
MEMORANDUM ORDER No. 15-98 issued February 24, 1998 prescribes the
policies and guidelines to institutionalize the Management Committee (MANCOM)
which will be composed of the Commissioner of Internal Revenue, as Chairman,
and the four (4) Deputy Commissioners of the Bureau's functional Groups,
as Members. The duties and functions of MANCOM as well as the manner of
conduct of their meetings are specified in the Order.
MEMORANDUM ORDER No. 16-98 issued February 24, 1998 prescribes the
policies and guidelines on the grant of honoraria sourced from Tax Computerization
Project funds. The grant of honoraria, which ceased effective January
1998, will continue for: a) all members of Implementation Assistance Teams
(IAT) created under various Revenue Special Orders (RSOs) and b) ITS trainors
with specific assignments under various RSOs.
MEMORANDUM ORDER No. 17-98 issued February 24, 1998 prescribes the
general policies in the allocation of audio-visual equipment which are
part of the BIR -Tax Computerization Project funded by World Bank Loan.
The allocation of said equipment will be based on the needs of the office
and the availability of the resources, as determined by MANCOM. The said
equipment will be allocated to the offices and cannot be brought by the
head of office upon transfer of assignment.
MEMORANDUM ORDER No. 18-98 issued February 25, 1998 prescribes the
guidelines and procedures in the institutionalization of all projects
under OPERATIONS, MOST and SPIRIT created under RMO No. 3-96. All functions
and activities performed by the different transformation projects on an
ad hoc basis will be transferred permanently to the appropriate Services
of the Bureau, and will be included in their respective Statement of Functions.
Transition will be for a period of one (1) month starting from February
25 up to March 25, 1998, except for systems which have not yet been fully
MEMORANDUM ORDER No. 19-98 issued March 3, 1998 prescribes the guidelines
and procedures in the retrieval and processing of tax returns for the
validation of taxpayers' information on the current return against taxpayer
information filed prior to rollout. The type of returns to be retrieved
in relation to the processing of Returns Processing System (RPS) Suspense
Accounts are specified in the Order.
MEMORANDUM ORDER No. 20-98 issued March 4, 1998 prescribes the policies
and procedures for monitoring and evaluating the performance of BIR offices
vis-à-vis the eight (8) BIR Institutional Performance Measures
(IPM). These IPMs are: (i) Tax Collected, (ii) Taxpayer Base Index, (iii)
Customer Satisfaction Index, (iv) Process Vitality Index, (v) Tax Cost
Index, (vi) Training Index, (vii) Employee Satisfaction Index and (viii)
Information Quality Index. All Revenue District Officers (RDOs) and Division
Chiefs are required to prepare their 1998 Performance Contract and 1998
Operational Plan based on the 1998 targets prescribed per IPM. In order
to monitor the accomplishment of BIR offices, Performance Report per applicable
IPM and Activity Report will also be prepared monthly. Evaluation of performance
will be done through the preparation by the Assistant Commissioners of
an Annual Performance Report per assigned IPM, which will be used as source
document by the Planning Division in the computation of the Overall Grade
of BIR offices.
MEMORANDUM ORDER No. 21-98 issued March 5, 1998 prescribes the interim
procedures in the handling and processing of the following 1998 tax returns
pending the rollout of the CTRP enhancements: a) Donor's Tax Return (1800);
b ) Estates Tax Return (1801); c) Documentary Stamps Tax Return (2000);
d) Capital Gains Tax Return (1706); e) Monthly Remittance Return of Income
Taxes Withheld (1601); and f) Quarterly Remittance Return of Final Income
Taxes Withheld (1602).
MEMORANDUM ORDER No. 22-98 issued March 6, 1998 prescribes the procedures
in the preparation and monitoring of report on the number of registered
taxpayers and stop-filers. Said report, which will be prepared by the
Revenue District Officers, are based on the Taxpayer Record Update (TRU)
data or the taxpayer ledger of the District Office.
MEMORANDUM ORDER No. 23-98 issued March 6, 1998 amends RMO No. 50-97
by clarifying the process for the validation of the Enhancement Deliverables
under the BIR Tax Computerization Project (TCP), as well as defining further
the roles and responsibilities of the concerned personnel. The procedures
for user validation, including the classification of issues into major/minor
are prescribed in attachment A of the Order.
MEMORANDUM ORDER No. 24-98 issued March 10, 1998 amends RMO No. 24-94
by defining the new composition of the Inspection and Acceptance Committee
in the National Office as follows: a) Chief, Fiscal Audit Division or
his duly authorized representative, as Chairman; and b) Chiefs of the
Procurement Division and General Service Division or their duly authorized
representatives, as members. The newly reconstituted committee will discharge
the same functions as that of the defunct committee created under RMO
MEMORANDUM ORDER No. 25-98 issued March 13, 1998 defines the policies
for the amendment/clarification of RMO No. 8-98 relative to the Corporate
Stock Documentary Stamp Tax (DST) Program. The deadline for the filing
of BIR Form Nos. 2000 and 2000-A by existing corporations for Documentary
Stamp Tax on subscribed shares of stock is extended until March 31, 1998.
All existing corporations that have already paid their DST on issuances
of subscribed shares of stock in full must file BIR Form No. 2000-A, together
with the evidences of payment, with the Revenue District Office where
the corporation is registered. In the event that none of the required
evidences of payment can be submitted, the corporations may still file
BIR Form 2000-A provided that a Sworn Statement attesting to the circumstances
that led to the absence of any evidence of payment of DST is attached.
MEMORANDUM ORDER No. 26-98 issued March 24, 1998 prescribes the policies
and procedures on the establishment of the inquiry handling facility for
the BIR Web Page which is accessible on both the Intranet and Internet.
The Taxpayer Assistance Service (TAS) will serve as the center for information
dissemination and taxpayer inquiries, and will be considered as the end-user
of the Web Page design developed by the Web Page Team. As such, TAS will
receive and respond to all queries coursed through the BIR Web Page. The
Legal Service will review all responses received over the Web Page referred
by the TAS, in terms of conformity with the provisions of Section 270
of the Tax Code regarding confidentiality of taxpayer information. The
Legal Service will provide TAS with the appropriate clearance for the
posting of any information on the Web Page not later than 5 working days
from receipt of responses/information referred by the TAS for review.
MEMORANDUM ORDER No. 27-98 issued March 25, 1998 prescribes the audit
policies and procedures of the 1998 Enforcement Audit Program which covers
1996 and 1997 Income, Value-Added Tax, Percentage, Withholding and other
tax returns and liabilities of the following sectors/industries: a) banks,
insurance and other financial intermediaries; b) international carriers;
c) telecommunication companies; d) pharmaceutical companies; e) top 1,500
large taxpayers as may be identified by the Large Taxpayers Division;
f) Board of Investments, Export Development Authority and Philippine Export
Zone Authority registered companies; g) exempt organizations pursuant
to Sec. 30 of the Tax Code; h) SBMA and CDC enterprises; i) oil companies;
j) breweries, distillers, rectifiers and compounders; k) cigarette manufacturers;
l) cases covered by confidential information filed by informers; and m)
tax fraud cases developed by the Tax Fraud Division and those elevated
to it by the Regional Offices. All cases falling under said classification
will be automatically excluded from the coverage of the 1998 Audit Program
by the Assessment Service for Revenue District Offices. Taxpayers covered
by the Enforcement Audit Program who availed of the Voluntary Assessment
Program will not be included unless the availment was found to be substantially
deficient by the Voluntary Assessment Program Committee.
MEMORANDUM ORDER No. 28-98 issued April 1, 1998 amends RMO No. 3-98
by amending the Alphanumeric Tax Codes (ATCs) on fringe benefits paid
to supervisors/managers by a corporation (from WC360 to WI360) and on
informer's rewards for persons instrumental in the discovery of violators
of the Tax Code/discovery and seizure of smuggled goods (from WI410 to
WC410 if reward is paid to a corporation and WI410 if reward is paid to
MEMORANDUM ORDER No. 29-98 issued April 2, 1998 specifies the scope
and schedule of the second set of CTRP enhancements which will be released
to all Revenue District Offices on March 31, 1998. Said enhancements have
a direct effect on BIR Forms 1601/1743W (Monthly Remittance of Income
Taxes Withheld) and concern the following: a) tax on fringe benefits and
royalties; b) tax on dividends paid to individuals; c) tax on non-resident
aliens; d) tax on informer's rewards; and e) changes in tax base for exemption
of prizes. The guidelines on the dissemination of information relative
to the enhancements are specified in the Order.
MEMORANDUM ORDER No. 30-98 issued April 7, 1998 amends RMO No. 43-94
relative to the security control measures in the Accountable Forms Division.
The vaults in the Division will be opened only in the presence of the
Chief, Accountable Forms Division, the Section Chief in charge of the
vault and the Head Revenue Executive Assistant of the Internal Affairs
Service or his duly authorized representative.
MEMORANDUM ORDER No. 31-98 issued April 8, 1998 amends RMO No. 21-84
by defining the new composition of the Committee on Disposal of Specialized
Accountable Forms in the Regional Offices. The Committee will now be composed
of the following: a) the Assistant Regional Director, as Chairman; and
b) Chiefs of the Finance Division and Administrative Division, as members.
The BIR Regional Auditor and the Chief, Accountable Forms Division will
be informed and requested to witness every disposal of obsolete, cancelled
or spoiled specialized accountable forms in the Regional Offices. The
Committee will proceed with the disposal of said accountable forms in
accordance with the existing COA rules and regulations, except in the
case of documentary stamps which will first undergo analysis by the BIR
Laboratory in the National Office.
MEMORANDUM ORDER No. 32-98 issued April 16, 1998 prescribes the guidelines
and procedures in the rollout of the Accountable Forms System (AFS) at
the AFS Pilot and Non-Pilot Sites, as well as provides the manual procedures
to be followed at the AFS Non-Pilot sites in handling request, allotment,
issuance, transfer of location, physical inventory, disposal and reconciliation
of accountable forms data.
MEMORANDUM ORDER No. 33-98 issued April 21, 1998 amends certain portions
of RMO No. 18-98 pertaining to the institutionalization of all projects
under OPERATIONS, MOST and SPIRIT. Since the Transformation Committee
(TRANSCOM) and the Management Committee (MANCOM) have the same composition,
the TRANSCOM will no longer hold its regular meeting every Wednesday.
Instead, issues concerning transformation projects which cannot be resolved
by a Group or those requiring interface with another Group(s) will be
included in the agenda for discussion in the MANCOM meeting every Monday.
REVENUE MEMORANDUM ORDER No. 34-98 issued April 27, 1998 prescribes the guidelines and procedures to standardize encoding of taxpayer data regarding the following: a) Taxpayer Identification Number (TIN); b) business/registered name; c) taxpayer name; and d) taxpayer's address. For uniformity and to eliminate errors that cause suspension of returns, standard abbreviations were prescribed in the Order.
REVENUE MEMORANDUM ORDER No. 35-98 issued April 29, 1998 prescribes the policies, guidelines and procedures on the issuance of clearance (whether for the National Office, Regional Office or Revenue Data Center) of retiring officials, as well as those who resign or are affected by transfer, or are otherwise separated from the service. All BIR personnel are required to submit clearance for the following scenarios: a) automatic/optional retirement; b) resignation; c) death; d) transfer to another government agency; e) transfer by Travel Order; f) maternity leave; and g) vacation leave of 30 calendar days or more. The signatories for the clearances are specified in the Order.
REVENUE MEMORANDUM ORDER No 36-98 issued April 29, 1998 amends RMO No. 17-98 relative to the allocation of audio-visual equipment made to the Public Information and Education Division of which, 13 would be transferred to the Policy and Planning Service for use by the Corporate Marketing Division in handling the media functions of the Bureau.
REVENUE MEMORANDUM ORDER No. 37-98 issued April 30, 1998 prescribes the guidelines and procedures in the processing of BIR monthly collection reports of computerized Revenue District Offices (RDOs) and the comparative year-to-date collection report of all RDOs which are required by the Department of Finance every 12th day and 22nd day of the month, respectively. Specified in the Order, are the policies and procedures on the: i) data/report template preparation to be accomplished by the Information Systems Development Service and Information Systems Operations Service; ii) data consolidation, report preparation and report template distribution to be accomplished by the Revenue Accounting Division; and iii) report preparation and transmittal to be accomplished by the RDOs.
REVENUE MEMORANDUM ORDER No. 38-98 issued May 4, 1998 amends RMO No. 11-98 by extending the period for the investigation of Value-Added Tax (VAT) returns from 30 to 60 days. In relation thereto, a Revenue Officer is required to finish a case and submit the report of investigation within 60 days from the date of issuance of the Letter of Authority.
MEMORANDUM ORDER No. 39-98 issued May 18, 1998 creates an Inspection
and Acceptance Committee (IAC) in every Revenue Data Center (RDC) to be
composed of the following: a) Head, Quality Assurance Department or his
duly authorized representative, as Chairman; and b) Head, Administrative
Department or his duly authorized representative and a representative
of the requisitioning unit, as members. Functions to be performed by the
IAC-RDC includes inspection and acceptance of all deliveries of the items
shown in the Purchase Order, Letter Order/Contract/Job Order initiated
at the RDC, among others.
MEMORANDUM ORDER No. 41-98 issued May 22, 1998 specifies that only
the Chief or Assistant Chief of the Division is authorized to sign the
Requisition and Issue Voucher (RIV-Gen. Form No. 3) in requesting for
accountable forms, which have to be duly approved by their respective
Assistant Commissioners (ACIR). Heads of Special Teams created for special
projects who will requisition Letters of Authority and other accountable
forms will submit an RIV signed by the ACIR/Deputy Commissioner directly
supervising their activities. Finance officers of the Department of Foreign
Affairs and Revenue Attaches requesting for Official Receipts (BIR Form
25.24) will sign the RIV which will be approved by the Chief, International
Tax Affairs Division.
REVENUE MEMORANDUM ORDER No. 43-98 issued May 28, 1998 establishes the SPIRIT Mass Rollout Manual as the reference document concerning guidelines and procedures pertaining to the mass rollout of the Integrated Tax System at different BIR offices. The Manual, which supersedes RMO Nos. 51-97 and 66-97, will be updated as may be necessary by the Information Planning and Quality Service-Quality Assurance Sector.
MEMORANDUM ORDER No. 44-98 issued June 1, 1998 prescribes the policies
and procedures relative to the security requirements of the BIR in the
technical computing environment. The Order provides the guidelines in
reporting and evaluating cases of security violations, the policies for
the imposition of sanctions for such cases and the areas from which security
violation(s) may arise. The penalties for infractions, classified as grave,
less grave and light offenses, are likewise specified in the Order.
MEMORANDUM ORDER No. 45-98 issued June 3, 1998 prescribes the policies,
guidelines and procedures on the availment of compromise and/or abatement
of tax liabilities for assessment notices issued on or before April 30,
1998. The Revenue Regional Approval Committee created under RMO No. 45-93,
with the Regional Director as its Chairman, is authorized to settle by
way of compromise delinquent accounts covering 1997 and prior taxable
years, the basic taxes of which DO NOT EXCEED FIVE HUNDRED THOUSAND PESOS
(P500,000). Provided, that the collection in each case will not be lower
than the minimum percentages prescribed in the Order, to wit: a) 50% of
the basic tax for assessment notices issued before January 1, 1997, including
assessment of P 5,000 and below and b) 100% of the basic tax for assessment
notices issued from January 1, 1997 to April 30, 1998 and for preliminary
assessment notices issued by Assessment Division of the Regional Office
on or before April 30, 1998.
MEMORANDUM ORDER No. 46-98 issued June 3, 1998 amends RMO No. 73-94
by revising the format and procedures in the preparation of the "Report
on Drastic Changes in Collection Performance" (BIR Form No. 1771).
The Revenue District Officer (RDO) shall accomplish the revised BIR Form
No. 1771 on a monthly basis and shall submit it not later than the tenth
working day of each month to the Regional Director. The Regional Director,
in turn, shall prepare the regional analysis of the drastic change in
collection of his/her region based on BIR Form No. 1771 submitted by the
RDOs, and shall submit the said report to the Statistics Division not
later than the 15th working day of each month.
MEMORANDUM ORDER No. 47-98 issued June 4, 1998 prescribes the policies
and guidelines in the use of the Taxpayer Record Update (TRU) Manual which
shall be the primary and official reference document for the implementation
of the TRU Program. Said Manual shall be used by the following offices,
namely: a) Taxpayer Assistance Service; b) All Regional Offices; c) all
Revenue District Office TRU Teams; and d) Information Systems Operations
Service (ISOS). The ISOS shall be primary responsible for uploading all
TRU Records into the Integrated Tax System database.
MEMORANDUM ORDER No. 48-98 issued June 10, 1998 integrates all common
procedural problems and solutions during pilot rollouts in order to facilitate
problem review and avoid repetitive process of logging same issues on
the Issue Management Log.
MEMORANDUM ORDER No. 49-98 issued June 16, 1998 prescribes the policies
and procedures on the Benefits Realization Review of Enhancements under
the BIR Tax Computerization Project (TCP) to validate if the enhancements
effectively meet the business requirements and expected benefits. Specified
in the Order are the roles and responsibilities of concerned BIR offices
under the Information Systems Group who will review the enhancements released
MEMORANDUM ORDER No. 50-98 issued June 16, 1998 implements the updated
Code of Conduct for BIR officers and employees which supersedes the Code
of Conduct for the Bureau's employees issued in 1987 through (RMO No.
16-87) as well as other issuances inconsistent therewith. The Code specifies,
among others, the rights of employees, grounds for disciplinary action,
offenses, penalties and liabilities and the grievance machinery.
MEMORANDUM ORDER No. 51-98 issued June 24, 1998 prescribes the additional
policies and guidelines on the grant of honoraria from TCP funds under
RMO No. 16-98. Personnel assigned/detailed at the Project Management Office
(PMO) will be entitled to TCP honoraria based on their respective PMO
responsibilities provided under Revenue Special Order (RSO) No. 1219-97
and other subsequent RSOs that may be issued. The honoraria rates, which
are in accordance with the National Compensation Circular No. 75 of the
Department of Budget and Management, are also specified in the Order.
MEMORANDUM ORDER No. 52-98 issued June 25, 1998 prescribes the policies
and procedures on the selection of winners for the 1998 Model Office Awards
in the National and Regional Offices of the BIR. The criteria for the
selection are: a) availability of pertinent information and guidelines
- 20%; b) cleanliness and orderliness - 20%; c) quality of service rendered
to clients - 20%; d) office lay-out - 20%; and e) centennial spirit -
20%. The judging period for the National and Regional Offices will take
place simultaneously between July 6 and 17, 1998 and the results of judging
will be submitted to the Secretariat, Attn: Chief of Statistics Division
not later than July 20, 1998.
MEMORANDUM ORDER No. 53-98 issued June 25, 1998 prescribes the documents
required for submission by a taxpayer upon audit of his tax liabilities
per type of tax, as well as the different mandatory audit reporting requirements
to be prepared, submitted and attached to a tax audit docket by a Revenue
MEMORANDUM ORDER No. 54-98 issued June 25, 1998 prescribes the registration
requirements to be submitted by taxpayers relative to: a) registration
of new taxpayer; b) registration of cash register machines; c) securing
authority to print receipts and invoices; d) stamping of receipts/invoices;
e) stamping of manual/bound books of accounts; and f) securing permit
to use loose-leaf/computerized books of accounts/invoices and receipts.
MEMORANDUM ORDER No. 55-98 issued June 25, 1998 identifies the various
reports required to be submitted to the Internal Affairs Service which
are necessary in the development, preparation and implementation of the
internal audit plan.
MEMORANDUM ORDER No. 56-98 issued June 25, 1998 amends RMO No. 22-98
relative to the preparation and monitoring of report on the number of
registered taxpayers and stop-filers. BIR Form No. 1936 (Performance Report
on Taxpayer Base Index) was amended to serve the requirements of the Taxpayer
Assistance Service in the computation of the Taxpayer Base Index and the
Policy and Planning Service in analyzing statistical information. Said
Form will now be prepared and submitted on a monthly basis by the Revenue
District Offices to specified BIR officials not later than the 4th day
of each month.
MEMORANDUM ORDER No. 57-98 issued June 25, 1998 prescribes the guidelines
and procedures to ensure the availability of BIR Forms during mass rollout
of the Integrated Tax System and Internal Administrative System. The functions
and responsibilities of concerned BIR offices relative to the BIR Forms
requirements during mass rollout are specified in the Order.
MEMORANDUM ORDER No. 58-98 issued June 29, 1998 prescribes the policies,
guidelines and contest mechanics for the Search for the 1998 BIR Tax Wizards.
The Search will be conducted through a Tax Quiz to be participated in
by revenue personnel with Salary Grade of 17 and below. Only contestants
nominated by their respective Regional Director/Deputy Commissioner are
qualified to join the Search on July 30, 1998. This will be conducted
in two (2) stages, namely the: 1) Elimination State and the 2) Final Stage.
MEMORANDUM ORDER No. 59-98 issued July 6, 1998 suspends the tax audit
of taxpayers until further notice from the Commissioner. The following
cases are not covered by the suspension: a) claim for refund of any internal
revenue tax; b) estate and donor's tax cases; c) sales, transfers or dispositions
of real property and shares of stock requiring the issuance of a tax clearance;
d) internal revenue tax case of a dissolving or reorganizing corporation
requiring a tax clearance; e) cases involving civil or criminal tax fraud
which fall under the supervision of the Tax Fraud Division, or the Special
Investigation Division; f) cases involving collection of delinquency internal
revenue taxes; g) policy cases as may be authorized by the Commissioner;
h) pre-audit of tax returns filed by taxpayers; and i) cases where the
government's right to assess any deficiency tax may possibly be barred
MEMORANDUM ORDER No. 60-98 issued July 6, 1998 prescribes the policies
and procedures for the conduct of the annual research for the Model Employee
at the National and Regional Office levels. To qualify for the Search,
rank and file employees with Salary Grade of 18 and below must be nominated
by their respective Office Heads/Division Chiefs/Revenue District Officers.
The criteria for the selection of winners for the said contest are: a)
punctuality and attendance - 20%; b) observance of office rules and regulations
- 20%; c) courtesy - 10%; d) employee relations - 20%; e) cost economic
measure - 20%; and f) simple living - 10%.
MEMORANDUM ORDER No. 61-98 issued July 8, 1998 prescribes the guidelines
and procedures for the conduct of joint and coordinated examination of
interrelated taxpayers covering all internal revenue taxes for taxable
year 1997 and uninvestigated prior years. An Audit Team will be created
to undertake the audit of large taxpayers and their related group of companies
that will be identified. All Letters of Authority and Assessment Notices
issued under the program will be signed by the Commissioner. However,
the Authority to Accept Payment may be signed by the Assistant Commissioner
for Enforcement Service. All investigations will be completed and reported
not later than six (6) months from the issuance of the Revenue Special
Order creating the Audit Team.
MEMORANDUM ORDER No. 62-98 issued July 13, 1998 prescribes the guidelines
in the submission of report of all availments of compromise settlements
pursuant to RMO No. 45-98. All Regional Directors will submit an inventory
of all availments of compromise settlement with the basic taxes not exceeding
P500,000. The report will contain the following information, among others:
names, TIN and addresses of taxpayers whose cases have been the subject
of compromise; total amount involved; amount compromised; percentage of
the basic tax and taxable years covered. Cases will be classified in the
report as: a) cases involving large taxpayers; b) cases with warrant of
distraints and levy; and c) cases pending in court except those involving
MEMORANDUM ORDER No. 63-98 issued July 13, 1998 prescribes the use
of BIR Form No. 1601 (formerly Form 1734 W) in the remittance of taxes
on fringe benefits in the computerized and non-computerized Revenue District
Offices. Said requirement will also apply to taxes on fringe benefits
which are paid or payable covering the second quarter of 1998.
MEMORANDUM ORDER No. 64-98 issued July 14, 1998 prescribes the guidelines
and instructions relative to the submission of inventories of pending
cases/dockets and other reports in relation to the suspension of audit/investigation
pursuant to RMO No. 59-98. Said reports will be prepared and submitted
by the concerned revenue official to the Assessment Service not later
than July 30, 1998.
REVENUE MEMORANDUM ORDER No. 65-98 issued August 18, 1998 prescribes the policies and guidelines on the use of the Security and Access Kit and the Security and Access Technical Handbook which will be the official reference documents on matters concerning ITS Security and Access. The contents of the Security and Access Kit will apply to all Bureau personnel requiring access to ITS or involved in the implementation of access to ITS. The Security and Access Technical Handbook, on the other hand, will be used by the System Administrator, Database Administrator, Information Planning and Quality Service and Internal Affairs Service.
REVENUE MEMORANDUM ORDER No. 66-98 issued August 25, 1998 prescribes the policies and procedures for the processing and monitoring of tax payments due from insurance companies. The Insurance Commission (IC) chose Land Bank of the Philippines (LBP-U.N. Branch) as the only bank where the insurance companies will file and pay their Value-Added Tax, Premium Tax, Withholding Tax, Documentary Stamp Tax and Income Tax, as provided for in the Memorandum of Agreement between the IC and the BIR. The Limited Bank Data Entry System will be used by the LBP in processing payments from insurance companies. Payment data from the LBP will then be transmitted to the Information Systems Operation Service (ISOS) Data Center through Electronic Data Transfer.
REVENUE MEMORANDUM ORDER No. 67-98 issued August 28, 1998 amends RMO No. 27-97 by clarifying the process in the maintenance of Codes Tables and defining further the roles and responsibilities of the following concerned BIR offices: a) Regional Office/Revenue District Office; b) Revenue Data Center; c) Help Desk - NO and RDC; d) Legal Service; e) Statistics Division; f) Collection Programs Division; g) Software Maintenance Division; and h) Systems Management Office.
MEMORANDUM ORDER No. 68-98 issued September 4, 1998 prescribes the
implementation of Oplan Accounts Receivable (AREC) as well as specifies
the composition, duties and functions of the Task Force created for that
purpose, namely: i) the National Office Collection Task Force (for accounts
receivable involving P1 Million and above) and ii) the Regional Collection
Task Force (for accounts receivable involving P100,000 but not more than
P1 Million for Regional Offices and P100,000 and below for the Revenue
MEMORANDUM ORDER No. 70-98 issued September 10, 1998 amends RMO No.
14-98 by identifying the government officials designated as withholding
agents in: i) National Government Offices and other instrumentalities;
ii) Local Government Units; and iii) offices with decentralized accounting
system. The identified officials are personally charged with the duty
to withhold and remit taxes on compensation, expanded and final withholding
taxes as well as government money payments on value-added taxes and other
percentage taxes, including franchise taxes.
MEMORANDUM ORDER No. 72-98 issued September 29, 1998 revises the format
and procedures in the preparation of the Monthly Report on Registration
and Remittance of Withholding Taxes (BIR Form W-7) and Accomplishment
Report on Pre-Audited Withholding Tax Returns (BIR Form W-8), pursuant
to RMO No. 29-95.
REVENUE MEMORANDUM ORDER No. 74-98 issued October 5, 1998 amends pertinent portions of RMO Nos. 69-98 and 54-97 relative to the issuance of Authority to Print (ATP) Sales Invoices and Receipts during systems non-availability and the issuance of Audit Notice/Letter of Authority. Manual procedures will be adopted in the generation of ATPs when the Registration System of the computerized Revenue District Offices (RDOs) (ITS or REG rolled out) is unavailable. In which case, the RDO will prepare and submit to the concerned Revenue Data Center Head a record on manually issued ATPs for the day. On the issuance of Audit Notice/Letter of Authority for Integrated Tax System (ITS) RDOs, said RDOs will be responsible for the preparation of list of taxpayers for audit as well as the creation of cases in the Case Monitoring System of the ITS, based on the Letter of Authority to be issued.
REVENUE MEMORANDUM ORDER No. 75-98 issued October 6, 1998 lifts the ban on the investigation of the top twenty (20) taxpayers in the Revenue District Offices. Each Revenue District Officer will identify the top twenty (20) income and VAT taxpayers in their respective districts and will submit the list to the Regional Director for approval and issuance of Letter of Authority (LA). The Regional Director may issue additional LAs (other than the top 20 taxpayers) only upon prior approval of the Commissioner, based on a written request and justification for the necessity of investigation submitted by the Regional Director. For monitoring purposes, the Regional Directors will submit to the Assessment Service a list of all LAs issued.
MEMORANDUM ORDER No. 76-98 issued October 8, 1998 designates officials
authorized to sign Warrants of Distraint and Levy/Garnishment (per defined
jurisdictional amounts), and the lifting of the Notice of the Tax Liens
and the cancellation of the Writ of Garnishment and Authority to Cancel
Assessment (ATCA). Officials designated in the Order are the following:
a) Commissioner of Internal Revenue; b) Deputy Commissioner of Internal
Revenue (Operations); c) Assistant Commissioner for Collection Service;
d) Regional Directors; e) Chiefs of the Collection Division and Assessment
Division in the Regional Offices; f) Chief of the Tax Fraud Division and
all other operating units tasked to investigate/audit in the National
Office; and g) the Revenue District Officers.
REVENUE MEMORANDUM ORDER No. 79-98 issued October 16, 1998 prescribes the policies and procedures for the monitoring of taxes arising from land transfers. An electronic linkage between the Bureau of Internal Revenue (BIR) and the Land Registration Authority (LRA), called the BIR-LRA Tax Verification System (BLTVS), will enable the LRA-Registry of Deeds (RD) to verify the authenticity of the documents presented to them to effect land transfers. This will enable the BIR to check that all such transfers have corresponding BIR clearances. The LRA-RD will not register any taxable instrument nor issue a Transfer Certificate of Title unless the Tax Clearance/Certificate Authorizing Registration presented by the taxpayer is verified with the BIR.
REVENUE MEMORANDUM ORDER No. 80-98 issued November 9, 1998 prescribes the policies and procedures on the transmittal and centralized processing of the Annual Information Return on Income Tax Withheld on Compensation, Expanded and Final Withholding Taxes (BIR Form No. 1743-IR or 1604) and the Monthly Remittance Return of Internal Revenue Taxes on Government Money Payments (BIR Form No. 750AV or 1600). The Order covers all unprocessed 1743IR/1604 and 750AV/1600 returns for calendar year 1997 and subsequent year(s) filed in Revenue District Offices of Metro Manila which are not yet covered by the Integrated Tax System (ITS), particularly the Tax Reconciliation System. Returns filed by large taxpayers will be processed by the Large Taxpayers Division.
REVENUE MEMORANDUM ORDER No. 81-98 issued November 12, 1998 prescribes the policies and guidelines on the use and maintenance of the BIR Internet Facilities by specifying the: a) authorized users; b) user accountabilities; and c) management, administration and maintenance. As an interim procedure, the internet facilities will be made available to the following users, through a proxy software using a third party Internet Service Provider: a) BIR Management (Commissioner, Deputy Commissioners, Assistant Commissioners, Regional Directors with network connection, Revenue Data Center Heads); b) inter-agency projects such as Finlink and those approved and identified by the Deputy Commissioner-Information Systems Group; c) BIR Division Chiefs of offices with required on-line activities with other government agencies; and d) BIR Division Chiefs of offices with constant research activities. Transmission of any material/document/information in violation of any existing policies of the Bureau of Internal Revenue, Department of Finance and the Philippine Government law is prohibited. This may result to the revocation of issued account plus the imposition of appropriate administrative sanctions depending on the degree of violation committed.
MEMORANDUM ORDER No. 82-98 issued November 17, 1998 prescribes the
policies, guidelines and procedures on the availment of the three-day
Centennial Leave by revenue officials and employees pursuant to Civil
Service Commission (CSC) Memorandum Circular No. 17, Series of 1998. All
regular revenue officers and employees, whether permanent, temporary or
co-terminus, may be granted the privilege of participating in various
centennial activities or visiting the Centennial Exposition on official
time for a maximum of three (3) days at anytime during the period June
6, 1998 to June 15, 1999, provided that they have already accumulated
at least five (5) days vacation leave to their credit. Employees who cannot
visit Expo Filipino at Clark Air Base, Pampanga because of time and distance
constraints can participate in various centennial activities or visit
historical places which are accessible to them; provided that they will
submit proofs of visit or participation such as entrance tickets, receipts
of purchase or souvenir pictures. Application for the Centennial Leave
should be filed in advance for action by proper authorities 5 days prior
to the effective date of such leave.
REVENUE MEMORANDUM ORDER No. 86-98 issued November 23, 1998 prescribes the policies relative to the payment of national internal revenue taxes in the form of Tax Credit Certificate (TCC), under certain conditions, pursuant to Section 204 of the Tax Code of 1999. A TCC validly issued under the provisions of the Tax Code beginning January 1, 1998 may be used by its grantee in the payment of his internal revenue taxes, except his withholding tax liability. TCCs issued pursuant to the provisions of any law other than the National Internal Revenue Code, such as TCCs issued pursuant to the Omnibus Investment Code and the Tariff and Customs Code, may only be used subject to the limitations of the law and regulations under which the same has been issued.
REVENUE MEMORANDUM ORDER No. 87-98 issued December 7, 1998 prescribes the policies and procedures for the preparation and submission of the 1999 Work Plan of Activities for the implementation of BIR Programs. The Order also prescribes and provides the details of the Programs of the Bureau by indicating the minimum target, the key activities with the corresponding performance indicators for 1999 as well as the office(s) to implement and monitor each key activity. There are 30 programs prescribed for implementation in 1999, namely: 1) Industry Audit Program; 2) Intelligence and Tax Fraud Program; 3) Excise Tax Audit Program; 4) Excise Tax Enhancement Program; 5) Self-Assessment Program; 6) Delinquent Accounts Program; 7) Selective Audit Program; 8) Office Audit Program; 9) Taxpayer Record Update Program; 10) Taxpayer Service Program; 11) Taxpayer Education and Information Program; 12) Forms Monitoring Program; 13) Rulings Preparation Program; 14) Protested Cases Program; 15) Internal Audit Program; 16) Personnel Integrity and Inquiry Program; 17) Cost Reduction Program; 18) Oplan Linis-Libro Program; 19) Recruitment Program; 20) Training and Formation Program; 21) Bank Information Monitoring Program; 22) ITS Roll-Out Program; 23) Returns and Payment Processing Enhancement Program; 24) Y2K Program; 25) Office Automation Program; 26) Reportorial Requirements Program; 27) Procedures Formulation and Monitoring Program; 28) Change Management Program; 29) Collection Enhancement Program; and 30) Support to Operations Program. The key activities prescribed per Program and the corresponding performance indicators will be the basis in the preparation of the 1999 Work Plan of Activities by BIR offices.
REVENUE MEMORANDUM ORDER No. 88-98 issued December 9, 1998 delegates the authority of approving Certification by Procurement Officer on the unavailability of suitable substitutes of exclusively manufactured or distributed supplies/materials/equipment as follows: a) up to P50,000 - Assistant Commissioner of the Financial and Administrative Service; b) from P50,001 to P2,000,000 - Deputy Commissioner of the Resource Management Group; and c) P2,000,001 and above - Commissioner of Internal Revenue.
MEMORANDUM ORDER No 89-98 issued December 9, 1998 amends pertinent
provisions relative to the raffle of sales invoices and receipts, "Humingi
ng Resibo, Manalo ng Libo-libo, Part 2" specifically Paragraph Nos.
II, III and IV of RMO No. 84-98. There will be 115 District Raffles and
19 Regional Raffles, both with scheduled draw date on January 30, 1999;
and 1 National Raffle to be held on April 10, 1999. For the District and
Regional Raffle draws, only sales invoices and receipts dropped at designated
drop boxes within the revenue regional jurisdiction where the issuing
taxpayer/business establishment is located will be considered valid entries.
REVENUE MEMORANDUM ORDER No. 91-98 issued December 11, 1998 suspends all field operations of the BIR relative to examinations and clarification of taxpayer's records and other transactions effective December 16, 1998 until January 11, 1999. However, the following are not covered by the suspension: a) no contact surveillance of all establishments; b) service of assessments, warrants and seizure notices of prescribing cases; c) processing of Capital Gains Tax returns prior to the issuance of Tax Clearance/Certificates Authorizing Registration; d) examination and/or verification of transfer taxes; and e) audit pursuant to RMO No. 27-98 on banks, insurance companies and other financial intermediaries.
MEMORANDUM ORDER No. 92-98 issued December 14, 1998 implements the
policies, guidelines and Integrated Tax System (ITS) transition procedures
for the implementation of Revenue Regulations No. 8-98. The filing of
BIR Form 1706 and payment of Capital Gains Tax from the sale of real property
for one-time transaction will be done at the Authorized Agent Bank (AAB)
or collection agent under the jurisdiction of the Revenue District Office
where the property is located. Taxpayer involving one-time transaction
with no previously issued Taxpayer Identification Number (TIN) will be
required to register following regular Registration System (REG) guidelines
(excluding attachments such as Capture Form - Form 1925, marriage contract
and the birth certificate of taxpayer's dependents) until such time that
the TIN issuance with minimum requirements is in place. The concerned
AABs will accept out-of-district returns for this type of transaction
REVENUE MEMORANDUM ORDER No. 96-98 issued December 18, 1998 delegates the authority to sign contractual appointments for the Information Systems Group to the designated Officer-in-Charge of the Information Systems Group.
REVENUE MEMORANDUM ORDER No. 97-98 issued December 21, 1998 extends up to June 30, 1999 RSO Nos. 673-98 and 697-98 relative to the conduct of joint and coordinated examination of interrelated taxpayers, and audit of banks, insurance companies and other financial intermediaries for taxable year 1997 and uninvestigated prior years.
REVENUE MEMORANDUM ORDER No. 98-98 issued December 23, 1998 prescribes the guidelines and procedures for the acceptance and payment of deliverables under the BIR-Development Academy of the Philippines (DAP) Change Management Assistance Program (CMAP). The Policy and Planning Service (PPS) will be the principal point of contact for CMAP. Thus, all communications, deliverables and invoices pertaining to BIR-DAP CMAP will be received for the BIR by PPS for appropriate action by offices concerned. Acceptance of deliverables will be completed by the BIR within 20 working days from receipt of deliverables by the PPS. A Product Acceptance Certificate, duly signed by the Commissioner, will be issued for every deliverable accepted which will be the basis of DAP for billing the deliverables. Payment of DAP deliverables will be made within 40 working days from receipt of complete billing documents from DAP.
REVENUE MEMORANDUM ORDER No. 99-98 issued December 29, 1998 prescribes the procedures for the filing of Excise Tax returns and payment of Excise Taxes on petroleum products, including the use of Reimbursement Certificates - Tax Debit Memo (RC-TDM) in the payment of said taxes. The basis for the Excise Taxes to paid will be daily removal of the petroleum products based on the Withdrawal Certificates (WCs) issued on or before 12:00 midnight of each day. Payments for Excise Taxes on petroleum products on the daily removal of oil companies will be done within the following banking day through the Direct Debit system charged against an account of the company with any of the Authorized Agent Bank (AAB) branches for Large Taxpayers. Petroleum products will be removed from the refinery or place of production, irrespective of destination, only upon the issuance of WC indicating therein the name and address of the consignee, the date of removal, quantity and description of the product removed, duly certified by the Revenue Officer on premise.