About the Cover

The ”Salamat Sa’yo” logo is represented by a ripple to emphasize the impact of

paying the correct amount of tax no matter how small it is. A tiny drop of water
(the tax paid) into a body of water will create a ripple that will turn into a wave as
other droplets touch the water surface. The payment of correct taxes will make
ripples into waves in terms of contribution to nation-building.

“SALAMAT SA’YO” also acknowledges the efforts of the men and women of BIR
for their competence, professionalism and contribution to the collection efforts
of the tax agency. The work of every employee from the top to the bottom counts
in such efforts.”
 I. Message of the Secretary of Finance

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II. Message of the Commissioner of Internal Revenue

III. Management Committee (MANCOM)

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IV. 2018 Strategy Road Map

V. Mandate and Strategic Statements

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VI. BIR Collection Performance
Overall Collection Performance
Collection by Implementing Office
Collection by Major Tax Type

T VII. Major Accomplishments

Attain Collection Target
Improve Taxpayers’ Satisfaction and Compliance
Strengthen Good Governance (Effective Management

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and Integrity of Tax Personnel and Collection)

VIII. Regional Highlights

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IX. Resource Management
Personnel Complement
Cost of Operations
Statement of Financial Position

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X. Tax Statistics

XI. Officials
Assistant Commissioners
Regional Directors

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Congratulations to the Bureau of Internal Revenue (BIR) for turning
in another solid year of performance.

Through 2018, the Bureau’s collection reached 1.96 trillion pesos or

10.21 percent higher than the 2017 collections. This year, even if the
goals are set higher, I am confident the Bureau will achieve a higher
attainment rate.

The impressive collection effort of the agency is due to one thing:

perseverance. The Bureau continued with its various programs
without letup. Marked gains were made in broadening the tax
base as well as in expanding the use of digital technologies for its
transactions. This has made tax payments more convenient for
our clients. As we refine our skills in using new technologies, tax
collection will be immensely more efficient.

I look forward to another year working with the professionals of the

BIR. In 2018, we exceeded the benchmark tax effort for the region. In
the coming period, I am sure, we can set the standard of excellence
in the service we render the nation.

2018 Annual Report 1

Governance is perhaps the most demanding aspect of a nation’s
sovereignty, and of the many elements that make up the task of
governing a state, tax administration is arguably one of the most
challenging.

Our efforts to generate revenues for the Government have resulted

in landmark successes that are a testament to the dedication of the
revenue services and the collaborative spirit of the taxpaying public.

The Bureau’s 2018 revenue performance marked the attainment

of 96.04% of its revenue target, and enabled it to reach a tax effort
ratio of 11.26%. These achievements mark not only a singular
accomplishment on the part of the revenue service, but more
importantly a triumph of the effectiveness of the programs adopted
in improving the tax system.

We in the Bureau look forward, therefore, to another year of

collaborative endeavours with the taxpaying public as we pursue
various programs to further enhance revenue collection and
improve tax administration for our country’s sustained economic
development.

Maraming salamat, at mabuhay ang Pilipinas!

 Management Committee

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4
 2018 STRATEGY ROAD MAP

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 MANDATE

The Bureau of Internal Revenue shall be under the supervision and control of the Department

of Finance and its powers and duties shall comprehend the assessment and collection of all

national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures,

penalties, and fines connected therewith, including the execution of judgments in all cases

decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau shall

give effect to and administer the supervisory and police powers conferred to it by this Code

Strategic Statements
or other laws. (Sec. 2 of the National Internal Revenue Code of 1997, as amended)

STRATEGIC STATEMENTS

Mission
We collect taxes through just enforcement of tax laws for nation building and the
upliftment of the lives of Filipinos.

Vision
The Bureau of Internal Revenue is an institution of service excellence and integrity.

Guiding Principle
“Service Excellence with Integrity and Professionalism”

Values
God-fearing Accountability Innovativeness
Integrity Competency Transparency
Patriotism

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 OVERALL COLLECTION
PERFORMANCE

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 The Bureau of Internal Revenue’s overall
collection performance for CY 2018 reached
P1.96 Trillion, an achievement that enabled it
to attain 96.04% of its revenue target of P2.04
Trillion. Compared to the previous year’s
revenues, the Bureau posted a positive double-
digit growth rate of 10.21%, which translated
into a year-on-year increase of P181.84 Billion.

The favorable performance over previous year

is an affirmation of the contributions of the
Bureau’s priority programs (enhancement of
voluntary compliance among taxpayers, Run
After Tax Evaders (RATE) and “Oplan Kandado)
to the improvement of its operations and the
delivery of its services. The BIR also continued
its comprehensive awareness campaign to
educate taxpayers, implementation of various
e-Services for ease of filing and payment of taxes,
streamlining of its processes and reduction of
documentary requirements, among others.

FIGURE 1. CY 2018 Actual Collection

versus Goal versus CY 2017 Collection

The Philippine economy (Gross Domestic

Product) reached P17.42 Trillion, equivalent to
a double-digit growth of 10.23%, resulting to a
tax effort ratio (tax to GDP) of 11.26%. The BIR’s
collection grew at an average rate of 9.81%,
faster than the average nominal GDP growth
rate of 8.50%.

FIGURE 2. BIR Collection,

Gross Domestic Product and Tax Effort,
CY 2009-2018

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 The Bureau accounted for 76.07% of the
P2.57 Trillion National Government Tax
Revenue and has consistently been the major
contributor of revenues for the government.
The remaining 23.12% and 0.81% were
collected by the Bureau of Customs, and
Other Offices, respectively.

FIGURE 3. BIR Share in National

Government Tax Revenues, CY 2018

Bulk of BIR collection came from voluntary

payments of taxpayers with 97.53%. Revenues
from Preliminary/Final Assessments and
Delinquent Accounts apportioned 2.13% and
0.34%, respectively.

FIGURE 4. Percent Distribution of Collection

by Manner of Payment, CY 2018

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 COLLECTION BY IMPLEMENTING OFFICE

Large Taxpayers Service collected more

than half or 67.56% of the total tax
revenues, followed by Revenue Region
(RR) 8 – Makati City, RR 7 – Quezon City
and RR 6 – City of Manila, which, doled out
9.94%, 7.45%, and 2.31% shares to total
tax, respectively. The remaining 12.74%
of the aggregate tax collection came from
the rest of the Revenue Regions.

FIGURE 5. Percent Distribution of Collection

by Implementing Office, CY 2018

The contribution of the LTS to total

collection for all tax types ranged
from P90.23B for Percentage Taxes to
P614.25B for Income Taxes. Regional
Offices had their highest collection of
P385.78B on Income Taxes and lowest
collection of P0.71B on Excise Taxes.
Collections from Non-BIR Operations
accounted for P36.74B and P9.04B
of Income Taxes and Other Taxes,
respectively.

FIGURE 6. Distribution of
Collection by Implementing
Office Per Tax Type, CY 2018

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 COLLECTION BY MAJOR TAX TYPE

Posting P1.04T or 52.77% share of the

total internal revenue collections, Taxes
on Net Income and Profit or IT was the
highest source of revenue for CY 2018.

Value-Added Tax (VAT) and Excise Taxes

(ET) also had significant contributions
to revenues, at 18.25% and 14.81%,
respectively. The remaining tax types
contributed 14.17% to total collections.

FIGURE 7. Distribution of Collection

by Major Tax Type, CY 2018

CY 2018 collection from Income Taxes,

Percentage Taxes and Other Taxes
surpassed CY 2017 performance
posting corresponding growth rates
ranging from 0.68% and 62.82% and
exceeded their assigned revenue
targets with 1.05%, 16.74% and 7.82%,
respectively.

Collections from IT, ET, OT and

PT surpassed previous year’s
collection performance

FIGURE 8. Comparative BIR

Collections and Goals by
Major Tax Types, CY 2017 – 2018

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TAXES ON NET INCOME AND PROFIT / INCOME TAXES
A total of P1,035.65 Billion taxes on Income were • Dividend declaration and payments to citizens,
collected in CY 2018, which was higher by 0.68% non-resident corporations (NRCs) and non-
from the P1,028.64 Billion collections in the same resident foreign corporations (NRFCs);
period of 2017. The attainment level of the January
to December 2018 revenue exceeded the target IT • Increase in level of deposits and OFW personal
of P1,024.93 Billion with 101.05%. The slight upbeat and cash remittances;
in the collection performance for IT was attributable
to several factors which include: • The onset of the holiday season resulted to
increased remittances from pure business,
• Increased remittances on withholding tax on mixed income earners and non-resident citizens;
compensation attributed to the rise in salaries
and bonuses of government employees under • Increase in deposits, loan transactions and
the third tranche of the salary adjustments policy premium payments; and
per Executive Order 201, S. 2016, the creation
and filling-up of positions, continuous hiring • Sustained growth in bookings and project
of companies and effect of increase in the completion across all residential brands.
minimum wage rate;

VALUE-ADDED TAX
Total Value-Added Tax (VAT) collections for CY 2018 inter-island shipping vessel (due to decrease in
amounted to P358.17 Billion and reached 82.17% of volume of passengers);
its target revenue. This can be attributed to:
• High headline inflation rate at 5.2% this period
• Non-recurring transaction brought about by the compared to last year’s 2.9%;
settlement of tax deficiency during the previous
year by a major tobacco industry, none this year; • Weakness of the peso against the US dollar
from P50.40 last year compared to P52.66 this
• Substantial increase in input tax credit reducing year attributable to improving economy of the
VAT payments from sugar and trading industries; United States; and

• Decline in sales/revenues of goods and • Decreased remittances from withholding on

services from land-based cargo transport (due VAT and services rendered from government
to suspension of operations), aircraft cargo public contractors.
transport (due to lower consumer demand) and

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 PERCENTAGE TAXES
CY 2018 collections from Percentage Taxes (PT) including Franchise Taxes, surpassed the previous year’s
figures by 48.87% and attained 116.74% of its P97.68 Billion target. This positive performance was due to
the following:

• Increase collections from withholding tax on business per RA1051;

• Higher income from gaming operation by a major corporation; and

• Higher revenues of insurance companies resulting from increasing awareness of Filipinos on the
importance of life insurance packaged with investment-linked products.

EXCISE TAXES OTHER TAXES

The increase in excise tax rates imposed on various Total Other Taxes collections of P164.17 Billion
products under Republic Act No. 10963 (TRAIN reached 107.82% of its target revenue (P152.26
Law) to wit: tobacco, minerals, sugar and alcohol; Billion) and up by 62.82% compared to the January
strong demand from auto consumers of the latest to December 2017 collection (P100.83 Billion). The
models of automobiles introduces in the market; positive performance can be associated to the
and collection from non-recurring transaction following reasons:
(advanced purchase of strip stamps by an importer
of alcoholic beverages) contributed to the double- • Increased Documentary Stamp Tax (DST) rates
digit 38.72% growth of the Excise Tax collection from as a provision of TRAIN Law in various industries
the 2017 figure of P209.49 Billion to P290.61 Billion (banks/financial intermediaries, power, real
in 2018. The actual ET collection attained 87.32% of estate, tobacco, utilities, alcohol, insurance and
its corresponding P332.80 Billion goal which, can be other services);
attributed to the following:
• Due to issuance of original shares of stocks
• High importation costs of petroleum firms due last August 2018 for P21M by a major tobacco
to the increased prices of oil in the world market; company;

• Decreased demand of petroleum products due • Increased collection from donor’s taxes by 42%
to additional excise tax rates under the TRAIN this period compared to last; and
Law;
• Increase in collection of other miscellaneous
• Ceased manufacturing activities of a major taxes at 139.59%.
tobacco company;

• Importation of diesel and LPG grew significantly;

• Increased operational costs of mining companies

resulting from the peso depreciation; and

• For excise tax on sweetened beverages, there

was a reported shift from the use of high-
fructose corn syrup (HFCS), which is taxed at
P12 per liter, to ordinary sugar at P6 per liter.

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MAJOR ACCOMPLISHMENTS
ATTAIN COLLECTION TARGET

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 Run After Tax Evaders Program Oplan Kandado Program
The Run After Tax Evaders (RATE) Program aims The Oplan Kandado Program strengthens the
to review all pending cases with the Court of Tax Bureau’s imposition of prescribed administrative
Appeals and the Department of Justice (DOJ) and sanctions by suspending the business operations
strengthen the program by improving the quality of and temporarily closing of business establishments
cases being filed. Over the years, RATE has proven for non-compliance with essential requirements of
to be an effective tool for the Bureau to generate Value-Added Tax (VAT).
the maximum deterrent effect, enhance voluntary
compliance, and help in upholding the confidence The Bureau generated collection for the year
of the public in the tax system. amounting to P799.471 Million and closed 233
business establishments nationwide.
A total of one hundred ninety-seven (197) RATE
cases were filed with the Department of Justice, with
estimated tax liabilities of P15.02 Billion.

Implementation of Republic Act No. 10963 -

Comprehensive Tax Reform Package I [(CTRP) - the TRAIN Law]

In the implementation of the Republic Act 10963 The proposed RR on excise tax for cosmetic
(TRAIN Law), the Revenue Issuances as of December procedures was revised to incorporate the
31, 2018 are as follows: comments from the Department of Finance (DOF)
and re-submitted to the said department, while
the issuance for the modified procedure on the
Number as of frequency of evaluating the zonal valuation of real
Revenue Issuances properties is still for finalization by the Assessment
December 31, 2018
Service which shall coordinate with the Bureau of
Revenue Regulation (RR) 19 Local Government Finance (BLGF) on the Philippine
Revenue Memorandum 26 Valuation Standards. On the development of a
Circular (RMC) system for eReceipting/eInvoicing and eSales
Revenue Memorandum 11 reporting as provided under Sec. 73 and 74 of the
Order (RMO) TRAIN Law (Sec. 273 and 273-A of NIRC, as amended),
the members of the concerned TRAIN Committee led
Operations Memorandum 7
by the relevant Officers of the DOF have discussed
(OM)
with the Korea International Cooperation Agency
Tax Advisories 25 (KOICA) Implementation Survey Team the system
TOTAL 88 requirements and their possible grant for phase 1
system development (pilot), DOF and BIR are both
waiting for the final report of the said KOICA team.

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On the returns/forms, additional five (5) returns/
forms (1700, 1701A, 1702RT, 1702EX and 1707)
CRM/POS
are already available for downloading and use by Post Evaluation Program
the taxpayers. The Donor’s Tax Returns (1800 and
1801, respectively) are already approved by the One of the priority activities conducted by the LTS
Commissioner, but the corresponding revenue for CY 2018 was the Cash Register Machine (CRM)/
issuance directing their use is still being routed; Point of Sales Machine (POS) Post Evaluation.
while the other returns/forms still remain for routing Following the policies, guidelines and procedures
and final review. in the implementation of the Post Evaluation of
CRM/POS machines and other Sales Receipting
The total number of participants for the TRAIN System Software, including the extraction of data
briefings remains the same as that of last month from eSales Journal and Z-Reading as set forth
which is 185,557. under Revenue Memorandum Order (RMO) No. 15-
2018, vigorous and comprehensive CRM/POS Post
Finally, it is informed that the second TRAIN Evaluations were conducted by all audit divisions
Committee formed in preparation for the next of the LTS involving twenty-two (22) large taxpayers
package of the TRAIN which deals with Tax Amnesty (including all its branches), simultaneously with
are already planning and formulating the required other enforcement activities such as surveillance,
regulations and other pertinent issuances, including inventory stocktaking and audit/investigation.
the design of the returns, payment/endorsement
forms, and other forms to be used by taxpayers The LTS collected P120 Million deficiency taxes
who will avail of the said amnesty. from this undertaking. The activity resulted into the
discovery of missing machines, inactive and used
of POS/Special Purpose Machines (SPM) contrary
Project 2307 to the machine’s registration. Thus, Revenue
Memorandum Circular (RMC) No. 72-2018 was
issued in order to implement procedure in the
Beginning the first months of CY 2018, the Large
cancellation or withdrawal of machines as part of
Taxpayers Service (LTS) launched “Project 2307”
data base clean-up.
as part of its revenue enhancement program
and activities to shore up revenue collection by
enhancing large taxpayers’ voluntary compliance.
The project aims to validate whether the creditable
withholding taxes (CWTs) claimed by the large Expedite Updating of the
taxpayers in their respective Income Tax Returns
(ITRs) are properly supported by the corresponding
Schedule of Zonal Values
CWTs (BIR form No. 2307) as required under Section
The objective of this program is to update/revise the
2.58.3 (b) of Revenue Regulations (RR) No. 2-98 as
existing schedule of Zonal Valuations to reflect the
amended. The claimed Creditable Income Tax for
current real property valuation, taking into account
the four (4) quarters of taxable year are matched
the most recent actual sales/ transfer/ exchanges of
with the submitted scanned copies of BIR Form
properties. Revenue Memorandum Circular (RMC)
2307, and any discrepancy found (unsupported
No. 13-2018 was issued to clarify certain issues
Tax Credits) are required to be paid, including
and avoid any confusions as to the approval and/
surcharge, interest and compromise penalty as well
or signature of such documents. The authority to
as the payment of applicable administrative penalty
approve and/or sign Certificates of Zonal Values of
for the non-submission of reportorial requirements
Real Properties shall rest with the Assistant Revenue
such as Summary Alphalist of Withholding Taxes
District Officer, and not with the Revenue District
(SAWT), Scanned Copies of BIR Form No. 2307 and
Officer.
Notarized Certification.

The Phase 1 of the project generated a collection

of P120.95 Million for the LTS. The Project 2307
which was piloted by the LTS will be implemented
nationwide in 2019.

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 The zonal valuation of the following twenty (20) Internal Revenue Stamps
RDOs were revised and made effective:
Integrated System
RDO 8 RDO 9
Baguio City La Trinidad, Benguet
for Tobacco Products
RDO 21A RDO 23B The Internal Revenue Stamps Integrated System
North Pampanga South Nueva Ecija (IRSIS) is a web-based application that manages
the on-line ordering, distribution and real-time
RDO 25B RDO 33
monitoring in the production of internal revenue
Sta. Maria, Bulacan Intramuros-Ermita-
stamps and the payment of excise taxes thereof.
Malate
RDO 37 RDO 43 For the year 2018, a total of 4.86 Billion stamps were
San Jose, Pasig ordered which generated P159.34 Billion excise tax
Occidental Mindoro collection.
RDO 51 RDO 52
Pasay City Parañaque
RDO 58 RDO 59
Batangas City Lipa City Fuel Marking Program on
RDO 63 RDO 80 Petroleum Products
Calapan, Mandaue City
Oriental Mindoro The Philippine government introduced a mandatory
RDO 81 RDO 83 fuel marking and field-testing program under
Cebu City North Talisay, Cebu Section 148 (A) of the National Internal Revenue
Code (NIRC), as amended by the TRAIN Law. The
RDO 99 RDO 103
marking of petroleum products is mandatory within
Malaybalay, Bukidnon Butuan City
five (5) years from the effectivity of the Train Law on
RDO 105 RDO 106 January 1, 2018.
Surigao City Tandag, Surigao del Sur
The Fuel Marking Program is intended to minimize
smuggling, deter misdeclaration, establish a national
monitoring and field testing system and adopt a
Broadening the Taxpayer Base transparent Standard Operating Procedure for fuel
marking and field-testing in the country.
The Bureau aims to broaden the tax base through
a 5% increase of active registered taxpayers’ With the successful procurement for the services of
registration by registering unregistered taxpayers’ the Joint Venture of SICPA-SA and SGS Philippines,
businesses, through the conduct of the Tax Inc. (the winning bidder for the Fuel Marking
Compliance Verification Drives (TCVD) nationwide System), the government is ready to implement its
and Third Party Information (e.g. government- fuel marking and testing program starting 2019 to
regulated agencies). In line with this, the prescribed plug leakages in VAT collection from fuel products.
guidelines and procedures in the conduct of TCVD
was revised by removing the requirement for the Pursuant to the requirement of the Terms of
tax mapping team to issue a “Reminder Letter” to Reference (TOR), the Joint Venture has submitted
all business establishments being tax mapped, the proposed Master Plan to the Bureau of Customs
pursuant to Revenue Memorandum Order (RMO) (BOC) and the BIR as the contracted end-users
No. 22-2018. for the program. The Master Plan submitted is
considered a “living document” subject to continuing
For CY 2018, the Bureau was able to collect P352.505 amendments to address the evolving requirements
Million and visited a total of 211,037 business of the BIR and the BOC.
establishments nationwide, corresponding to
10.55% increase in number of registered business
taxpayers compared to CY 2017.

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 It started as a project in 2013 that involves the
Destruction of Seized deployment of Seizure Agents and staff in the
Mighty Cigarettes Collection Division of Regional Offices located in
Metro Manila who were then called as the Arrears
For the year 2018, the LTS led by ACIR Teresita M. Management Team (AMT), primarily tasked to locate
Dizon spearheaded the destruction through burning delinquent taxpayers and undertake collection
of 119,707,940 packs of seized Mighty cigarettes. enforcement activities through streamlined
The burnt cigarettes had an aggregate excise tax procedures and policies culled from international
value estimated at P9 Billion, part of the P30 Billion best practices.
tax (including other taxes and increments) which
was by far the biggest single tax collection made by With the improvement seen in the arrears
the BIR. management, its implementation was expanded
to other Regional Offices nationwide. As such, in
The said cigarettes were seized in separate 2018, Revenue Administrative Order creating the
operations in San Simon, Pampanga, San Ildefonso, Arrears Management Section was submitted to
Bulacan, Tacloban City and General Santos City after the Department of Finance for approval. Pending
it was discovered that the stamp affixed were fake its approval, the CAM was made operational in
or spurious which was an indication that the excise all Revenue Regions and has generated a total
taxes due thereon were not paid. collection of P7.60 Billion from tax arrears.

VAT Audit Program Forfeited Assets Management

The program aims to increase revenue collection This project is an approach in managing the
and enhance voluntary compliance by focusing on disposition of seized/forfeited assets, and properties,
risk-based audit of VAT liabilities, and to broaden that were seized/forfeited from taxpayers under the
the tax base by identifying buyers and suppliers of jurisdiction of the four (4) Metro Manila Regions,
goods and services subject to VAT. RR Nos. 4-San Fernando, Pampanga, RR No. 9A -
CaBaMiRo and RR No. 9B – LaQueMar.
The Phase I of this program has been
institutionalized in the Large Taxpayers Service and Pursuant to Revenue Administrative Order (RAO)
in the Assessment Divisions of the four (4) Metro No. 6-2017 dated September 27. 2017,
Manila Revenue Regional Offices which contributed Forfeited Assets Management Unit (FAMU)
to deficiency collections of P1.320 Billion and P3.184 under the Collection Service, was created
Billion respectively for the year 2018. to implement the programs, guidelines and
procedures on the centralized management
and disposal of seized and forfeited properties.

The FAMU has successfully identified sixty-nine (69)

Enhanced Implementation seized properties ready for disposal through public
of Centralized Arrears auction. However, in order to be consistent with the
provisions of Section 209 and 213 of the National
Management in Internal Revenue Code and in order not to delay
the Regional Offices the summary remedies for collection of taxes, the
conduct of auction sale of seized properties was
The Centralized Arrears Management (CAM) was transferred to the Arrears Management Section
conceptualized in recognition of the increasing (AMS) of the Regional Collection Divisions of the four
Accounts Receivables/Delinquent Accounts (ARs/ (4) Metro Manila Regions, RR Nos. 4-San Fernando,
DAs) of the Bureau, which introduced a structure Pampanga, RR No. 9A - CaBaMiRo and RR No. 9B –
of timely, appropriate, and cost effective collection LaQueMar per Operations Memorandum Order No.
enforcement actions and interventions in the 2018-09-03, dated September 18, 2018.
management of tax arrears.
Likewise, it evaluated and recommended to the
Department of Finance (DOF) the disposal of

18
 three (3) absolutely forfeited properties through
negotiated sales. Two (2) of these properties have
Tax Treaties
been approved by the DOF.
Double Taxation Agreements (DTAs) is a bilateral
instrument that aims to promote cross-border
Out of eighty-five (85) titles of ownership of forfeited
investments by allocating taxing rights between two
real properties, nineteen (19) titles of ownership
(2) contracting states to eliminate or mitigate the
were consolidated and transferred under the name
effects of double taxation on income.
of the Republic of the Philippines.
The Senate of the Philippines expressed its
concurrence in the ratification of DTAs between the
Philippines, the United Mexican States, the Kingdom
Electronic Letter of Authority of Thailand, and the Democratic Socialist Republic
Monitoring System of Sri Lanka on February 19, 2018. Said DTAs,
however, became effective only on January 1, 2019.
At present, the Philippines already has forty-three
The Electronic Letter of Authority Monitoring System
(43) effective tax treaties.
(eLAMS) is a web-based application designed to
provide the BIR a means to automate the issuance
Likewise, the Philippines commenced its tax treaty
and monitoring of electronic Letters of Authority
negotiation with Cambodia on June 26-29, 2018 in
(eLAs), including control of workload, across all
Manila. The second round of negotiation has yet to
concerned BIR offices from the time of issuance
be decided by the two (2) countries.
until the termination/closure of cases.

For 2018, the Bureau generated a collection

amounting to P19,782.49 Million from 43,069 eLAs
issued. Third Party
Information Program
• Improved Dissemination of Pre-processed
Exchange of Information Third Party Information
The Exchange of information (EOI) Program and
RMO No. 6-2017 prescribes the revised
International Tax Cooperation are badges of
guidelines and procedures in the extraction,
tax transparency and continuing effort of tax
dissemination and reporting of utilization of
administrators to combat cross-border tax fraud
preprocessed Third Party Information. The
and evasion.
pre-processed data are extracted weekly by
the Business Intelligence Division based on the
For 2018, the Philippine Delegation to the 29th Peer
issued electronic Letter of Authority extracted
Review Group (PRG) Meeting, headed by Finance
in eLAMS and transmitted to Audit Information,
Undersecretary Antonette C. Tionko, successfully
Tax Exemption and Incentives Division for
defended the country’s compliance with the
dissemination to concerned investigating offices
internationally-agreed standard on Exchange of
via email or registered mail.
Information on Request (EOIR) during the Second
Round of EOIR Peer Review, which was held on June
For CY 2018, a total of 46,689 pre-processed
11-14, 2018 in Vaduz, Liechtenstein. Through the
data were deployed.
joint efforts of all the members of the Delegation,
the Philippines remains Largely Compliant with the
• Deployed Discrepancy Notices
enhanced EOIR standard, thus making the country
at par with some of the most developed countries.
Discrepancy Notices (DNs) is a result of
The BIR was represented by OIC-ACIR Larry M.
the matching process of the Summary List
Barcelo and OIC-Assistant Chief Robbie M. Bañaga.
of Sales and Summary List of Purchases,
Importation and Alphabetical Lists of Income
Tax Payments Subject to Withholding Taxes.

19
 Operations Memorandum No. 2018-05-03 dated
February 20, 2018 was issued to provide guidelines
Enhanced
and procedures in handling Discrepancy Notices. Procurement Process
The DNs were deployed to concerned investigating
The enhanced procurement process aims to promote
offices through the Regional Directors for validation transparency in the procurement process and give equal
of the discrepancies and recommend for the issuance opportunities for private parties to participate in the
of Electronic Letter of Authority (eLA) on all validated public bidding.
DNs.
Public Biddings and other Alternative Methods of
Procurement for various IT and Non-IT projects were
DNs deployed in calendar year 2018 to the Office of
conducted, to wit:
the Regional Directors are as follows:

- Taxable Years 2015 and 2016 on June 13, 2018 Types and Methods of
Total Amount
- Taxable Year 2016 (2nd Batch) on September 5, 2018 Pocurement
1. Public Bidding
For CY 2018, a total collection of P1.919 Million on DNs
without eLA based on the Letter Notice Monitoring 1.1 Good (Including MYOA) 524,567,807.17
System data. 1.2 Infrastructure Projects 13,937,591.96
1.3 Consulting Services 4,800,000.00

• Deployed Match Data on Taxpayers’ Returns

Sub-Total 543,305,399.13
Compliance
2. Alternative Modes
The matched data on taxpayers’ returns compliance (Goods and Services)
is a result of the matching process of the identified
2.1 Direct Contracting 58,106,313.84
returns and information forms filed by taxpayers 2.2 Shopping 781,153.00
versus the Bureau’s database. 2.3 Repeat Order 1,852,956.73
2.4 Negotiated Procurement
The matched data were deployed to concerned 2 Failed Bid 1,136,940.00
investigating offices through the Regional Offices for Small Value Procurement 82,882,893.07
Agency to Agency - CUS 60,903,905.83
validation and collection of deficiency taxes:
Agency to Agency - RGP 128,186,690.00
Agency to Agency - Others 2,569,500.00
- Under or non-remittance of Withholding Taxes Media Services 6,343,771.20
(WT) Lease of Real Property 5,844,000.00
Others 82,584,802.99
- Non-VAT taxpayers [Percentage Tax(PT)] that
reached the Value-Added Tax threshold(PT to VT) Sub-Total (Alternative Methods) 431,195,926.66

- Unmatched quarterly Input Tax Carry Over (ITCO) GRAND TOTAL 974,501,325.79
declared in current VAT returnas compared with
the previous quarter return

For CY 2018, PT to VT and ITCO generated a total

collection of P7.661 Million based on reports
submitted by the investigating offices.

20
The Procurement Division conducted various seminars to wit:
No. Date of Conduct Venue Participants Topic
Officials and Employees of Training Workshop on the Use
1 August 7, 2018 Castle Peak Hotel, Cebu City
RR Nos. 1-19 of the 2017 APCPI System
2016 Revised IRR of RA 9184
Officials and Employees of
and Latest GPPB Issuances
2 August 16, 2018 2nd Floor, Multi-Purpose Hall RR No. 9B-LaQueMar, San
on Philippine Government
Pablo City
Procurement
BIR Officials and
employees from the
National Office and RR Briefing with Suppliers,
3 October 12, 2018 11th Floor, BIR National Office
Nos. 1-20 and various Contractors and Consultants
suppliers, contractors and
consultants
Auditorium, Ground Floor, BIR Officials and employees Procurement Planning
4 November 16, 2018
National Training Center from National Office Workshop
Ms. Nelly S. Ibo, Chief,
Procurement Division Confirmation Exercise
(Head, BAC Secretariat) of Agency Procurement
5 November 23, 2018 Mandaluyong City / Pasig City
and Ms. Marilyn B. Orapa, Compliance and Performance
Member, Indicators Results for 2017
BAC Secretariat

Percentage of Distribution

IMPROVE TAXPAYERS’ SATISFACTION

AND COMPLIANCE

eBIRForms System/Facility
The use of eBIRForms system/facility in the filing of except barangays and cooperatives registered
requisite tax returns is mandatory for accredited with National Electrification Administration and
tax agents/practitioners and all its client taxpayers, Local Water Utilities Administration. Its package
accredited printers of principal and supplementary was enhanced to improve its functionality making
receipts/invoices, One Time Transactions taxpayers it easier for taxpayers to download, prepare tax
who are classified as real estate dealers/developers returns and submit online.
(those who are considered as habitually engaged
in the sale of real property and regular taxpayers For 2018, a total of 15,379,060 tax returns were filed
already covered by eBIRForms), taxpayers filing through eBIRForms, an increase of 2.3% compared
“no payment return”, Government Owned and to CY 2017.
Controlled Corporations, Local Government Units

21
Additional Options/Facilities for Processing of Tax Credit/
Payment of Taxes Refund (TCR) Claims
The project provides taxpayers with additional options This program monitors the processing of claims
or facilities to pay taxes through the use of credit/debit/ for TCR filed with the Divisions under the Large
prepaid cards and mobile phones through ePayment Taxpayers Service (LTS), VAT Credit Audit Division
channels of AABs. (VCAD) in the National Office and Revenue District
Offices (RDOs) of the Revenue Regions.
While additional options/facilities in the payment
of taxes are already in place in 2018, namely: use of For CY 2018, the BIR processed 1,551 TCR claims
credit/debit/prepaid/ATM cards and mobile phones amounting to P28.053 Billion, of which 517 TCR
through ePayment channels of some Authorized Agent claims were approved for issuance of tax credit
Banks (AABs), the Bureau is continuously considering certificates (TCCs)/tax refund. The approved
proposals being made by the other AABs in the claims consist of 103 claims for TCCs and 414
acceptance of tax payments using their respective claims for tax refund with a total amount of
electronic payment facilities. In 2018, testing on the P3.896 Billion and P8.486 Billion, respectively.
compliance of Union Bank, UCPB and PNB with the
Bureau’s technical requirements has been started. Out of the 517 approved claims, 297 comprise
VAT credit/refund claims, of which 80 TCCs in
For 2018, a total of 272,857 transactions through the amount of P2.210 Billion were issued by the
Gcash/credit/debit/ATM card payment resulted BIR and a total of 217 claims for P4.749 Billion
to P610.683 Million tax payment collection. were approved for issuance of VAT refund. The
BIR also recommended to the Bureau of Customs
the issuance of VAT TCC/Refund on importation
Amount of
Payment No. of in the amount of P4.298 Billion.
Collections
Channel Transactions (In Million Pesos)
GCASH 104,783 208.461 Public Awareness Campaign
Credit Card 2,317 14.037 For 2018, the tax campaign theme and logo,
Debit / ATM Card 165,757 388.185 video and jingle “SALAMAT SA’YO” was officially
launched on February 9, 2018 at the Philippine
International Convention Center (PICC). The
TOTAL 272,857 610.683 theme and logo was also unveiled on February
12, 2018 during the flag-raising ceremony at the
Expansion of ISO Certification BIR National Office. It was replicated at the same
time in all BIR offices wearing the prescribed
to Other Districts official blue polo shirt.

For 2018, the following BIR offices obtain the ISO 9001- The 2018 theme and logo was designed by
2015 Quality Management System (QMS) Certification multi-awarded, international designer Kenneth
for the Business Registration Process – Primary and Cobonpue. The theme “SALAMAT SA’YO” is a
Secondary, in compliance with Executive Order No. deviation from the usual slant of asking the
605, s.2007, to wit: taxpayers to pay their correct taxes on time – also
a first in the tax campaign run of the tax agency.
Revenue Region No.7 - Quezon City It acknowledges the contribution of taxpayers in
• RDO 28 – Novaliches the 2017 actual tax collection of P1.779 Trillion
• RDO 38 – North Quezon City where the BIR posted the highest growth rate
• RDO 39 – South Quezon City and tax effort ratio in the last five (5) years.
• RDO 40 – Cubao, Quezon City
• RDO 41 – Mandaluyong City The logo is represented by a ripple to emphasize
• RDO 42 – San Juan City the impact of paying the correct amount of tax
• RDO 43 – Pasig City no matter how small it is. A tiny drop of water
• RDO 45 – Marikina City (the tax paid) into a body of water will create a
• RDO 46 – Cainta/Taytay ripple that will turn into a wave as other droplets
touch the water surface. The payment of correct
Revenue Region No. 9A – CaBaMiRo taxes will make ripples into waves in terms of
• RDO 54B – Kawit, West Cavite contribution to nation-building.
• RDO 58 – Batangas City

22
 “SALAMAT SA’YO” also acknowledges the efforts of and Processing (RFP), Collection, Remittance
the men and women of BIR for their competence, Reconciliation (CRR), Taxpayer Accounting
professionalism and contribution to the collection System (TAS), Taxpayers Compliance System
efforts of the tax agency. The work of every (TCS), Audit System, Case Management
employee from the top to bottom counts in such System (CMS) and Tax Credit and Refund (TCR)
efforts. intended to enhance/improve the BIR core Tax
Administration System, by providing a single,
Three (3) music videos were also produced namely, web-based automated solution.
“The BIR Ripple” and two (2) versions of “Salamat
Sa’Yo” song which was interpreted by the well The implementation of eTIS at the pilot sites is
renown singer and composer Lito Camo and a one of the stages in system development life
shorter version by John Barnard Borja and Kenneth cycle where the issues are identified and fixed
Cobonpue. within the warranty period. The enhancement
of modules and development of additional
functionalities are included in the Functional
Phase of the Optimization of eTIS-1 and Limited
Enhancements Projects and are divided into
Electronic Services Releases as follows:

• Electronic Tax Software Providers • Release 1: System Administration (SysAd)

Certifications System TRS
• Release 2: TAS, CRR, RFP
The eTSPCert System is an online facility for • Release 3: CMS, TCS, TCR, Audit & TAS
Tax Software Providers (TSPs) for processing
of application for certification of third party In 2018, the high level process flows for all
solution for the electronic tax return filing and/ modules were approved and signed off. In
or payment. addition, eTIS was rebranded/renamed Internal
Revenue Integrated System (IRIS).
TSP is an individual or organization whose
business is to render electronic tax filing • Enhancement of Electronic Certificate
services to taxpayer-clients by offering third- Authorizing Registration (eCAR) System
party solutions, that is, an electronic tax return (formerly Online System for Transfer Tax
filing and/or payment solution that will generate Transactions (OST3))
the tax returns required and specified by BIR.
The eCAR System is being used by the district
The system was developed in partnership with offices to facilitate the generation of CAR by
the United States Agency for International encoding the details of validated and approved
Development (USAID) through its E-PESO Project transactions. There is an electronic linkage
to fulfill the Bureau’s desire to give taxpayers a between the Bureau and the Land Registration
seamless, end to end automated and electronic Authority (LRA). It will enable the LRA-Registry
tax filing and payment experience. of Deeds (RD) to verify the authenticity of
documents presented to support land transfer.
The system was launched on December 6, 2018
spearheaded by Deputy Commissioner Lanee The front-end processes like submission of
Cui-David together with Mr. Jeffrey Lahrer documentary requirements by taxpayers,
of USAID, supported by around 120 officials checking of completeness of requirements,
and representatives from the national and preparation and approval of computation sheet
regional offices, TSPs and representatives from by RDO are still being done manually. In order
Authorized Agent Banks. to provide an end-to-end solution in eCAR, an
enhancement to the system is necessary to fully
• Electronic Tax Information Systems automate the procedural requirements of One-
Time Transactions (ONETT) and to have the
The Electronic Tax Information System (eTIS) facility to shift from online to offline in case of
is an undertaking which aims to optimize the intermittent connection.
initial eTIS modules developed; Taxpayers
Registration System (TRS), Returns Filing Based on system generated reports, a total of
701,661 eCARs were issued for the year 2018.

23
• Electronic Registration System

The Electronic Registration System (eREG) Insurance Companies and Stockbrokers

is a web application system to various and Procuring Government Agencies with
taxpayer registration services, such as respect to withholding of Value-Added Tax
Taxpayer Identification Number (TIN) (VAT) and Percentage Tax.
issuance for EO 98, Employee, Single
Proprietor and Professional taxpayers, For 2018, a total of 5.137 Million tax returns
payment of registration fee and issuance of filed using eFPS, 5.97% increased compared
Certificate of Registration. to last year.

Statistics of eREG Issued TINs for CY 2018 • Enhancement on Electronic Official

as follows: Registry Book for Tobacco Products

The Electronic Official Registry Book (eORB)

Taxpayer Type Count
is a system wherein the tobacco industry
Single Proprietor 11,302 will be able to submit electronically ORBs of
daily transactions of receipts and removals
Professional 3,024
of regulated raw materials, goods-in-
Local Employee 1,008,457 process, and finished products to BIR. It
(thru Employer) will also monitor submissions to uncover
discrepancies on declarations. This system
EO 98 (thru government 63
will generate ORB forms, submission
agencies/BIR district office)
compliance report, discrepancy reports,
and collection reports.

• Electronic Filing and Payment System The Project user proposes to expand the
development of the system through BIR-in-
The Electronic Filing and Payment System house developer and in coordination with
(eFPS) is a system that makes the filing of tax Information Systems Group (ISG).
returns and payment of taxes convenient for
taxpayers through a much faster processing • Electronic Authority to Release
and immediate confirmation of tax returns Imported Goods
filed and paid. Through the eFPS, taxpayers
are allowed to avail of the paperless tax The Electronic Authority to Release Imported
filing experience and made to pay their Goods (eATRIG) System provides an online
taxes online through the convenience of application for eATRIG using the National
an internet-banking service via debit from Single Window (NSW) System of the Bureau
their enrolled bank-account. of Customs. An eATRIG shall be issued by
the BIR to all importation of articles subject
The use of eFPS was made mandatory to excise tax. No application for eATRIG
to large taxpayers, Taxpayer Account shall be processed if the importer-applicant
Management Program (TAMP) taxpayers, and/or broker-representative is/are not
those required to secure the BIR-ICC and BIR duly registered taxpayers of the BIR.
BCC, National Government Agencies (NGAs),
Licensed Local Contractors, Enterprises The Bureau processed and issued 27,996
enjoying Fiscal Incentives, Top 20,000 ATRIGs through the NSW facility, which
Private Corporations, Top 5,000 Individual generated an excise tax collection of
Taxpayers, Corporations with paid-up P101.205 Billion.
Capital Stock of P10 Million and above,
Corporations with complete Computerized
Accounting System, Government Bidders,

24
 • Enhancements of Electronic Simplification of Tax Forms
Accreditation & Registration System and
Electronic Sales System Due to the passing/approval of the Comprehensive
Tax Reform Package I (CTRP) [the TRAIN Law -
The implementation of Electronic Republic Act (RA) No. 10963], the following are the
Accreditation & Registration (eAccReg) forms identified to be affected by said RA and the
System has resulted to an increase status of its revision:
in taxpayer compliance on business
registration and increase in revenue
collection. Taxpayers and suppliers can BIR Forms Status
now monitor progress of their application 1. 2551 Q Circularized through RMC No.
for Accreditation and permit-to-use online, 26-2018; already posted in the
be notified of the status through email, and BIR website; available in Offline
view reported sales per machine. BIR users eBIRForms Package v.7.2 per
can view their pending tasks and monitor RMC No. 93-2018
reported sales per specific TIN and machine.
2. 1601-E Replaced by 1601-EQ
On the other hand, Electronic Sales (eSales) 3. 1601-F Replaced by 1601-FQ
System is the process of reporting the
4. 1602 Replaced by 1602Q
gross monthly sales of taxpayers engaged
in business using Cash Register Machine 5. 1603 Changed to 1603Q; Circularized
(CRM) / Point of Sales (POS) Machine and through RMC No. 27-2018; already
Other Sales Machine (OSM) or any other posted in BIR website; available in
similar devices through different channels. Offline eBIRForms package v7.2
per RMC No. 93-2018
For the year 2018, shown below are the 6. 1701Q Circularized through RMC No. 32-
data on eAccReg and eSales System: 2018; already posted in the BIR
website and available in Offline
No. of eBIRForms Package v7.2
Details
Permits 7. 2000 Circularized through RMC No. 93-
eAccReg of CRM/POS and 2018; already posted in the BIR
other Business Machines website
8. 1707
No. of supplier with 30
9. 1800
approved Certificate of Revised and being routed for
Accreditation 10. 1801 approval by the MANCOM
Active POS 47,365 11. 2000-OT
Final Permit 39,114 12. 2552
Special Purpose Machines 8,251
Permits 13. 1700 Revised and finalized by the team
No. of Cancelled POS 6,159 concerned offices for MANCOM
approval
14. 1701
• Electronic Tax Remittance Advice 15. 2200-AN Revised and being finalized by the
16. 2200-M team concerned
This system is a subsystem of the eFPS which
allows the National Government Agencies 17. 2200-P
(NGAs) to file their withholding tax returns 18. 2551M Decommissioned/discontinued
online and pay through an automated from use due to the provision of
generation of the Tax Remittance Advice. the TRAIN Law

A total of 6,053 NGAs are using the eTRA

System for CY 2018.

25
New forms were also created, to wit:

BIR Form No. Form Title Status

1. 2200-S Excise Tax Return for Sweetened Circularized and posted in the BIR website
Beverages through an Operations Memorandum made
by the Large Taxpayers Service
2. 0619-E Monthly Remittance Form for Creditable Circularized through RMC No. 73-2018;
Income Taxes Withheld (Expanded) already posted in the BIR website and
3. 0619-F Monthly Remittance Form for Creditable available in Offline eBIRForms Package v7.1
Income Taxes Withheld and eFPS
4. 1601-EQ Quarterly Remittance Returns of Creditable Circularized through RMC No. 27-2018;
Income Taxes Withheld (Expanded) already posted in the BIR Website and
5. 1601-FQ Quarterly Remittance Returns of Creditable available in Offline eBIRForms Package v7.1
Income Taxes Withheld and eFPS
6. 1602Q Quarterly Remittance Return of Final Taxes Circularized though RMC No. 27-2018;
Withheld on Interest Paid on Deposits and already posted in the BIR Website and
Deposits Substitutes/Trusts/Etc. available in Offline eBIRForms Package v7.2
per RMC No. 93-2018
7. 2200-C Excise Tax Return for Cosmetic Procedures Suggested Form awaiting for the approval
of Revenue Regulations on cosmetic
procedures
8. 1701A Annual Income Tax Return [Individuals Has been finalized and routing to concerned
Earning Income PURELY from Business/ offices/MANCOM approval
Profession (Those under the graduated
income tax rates with OSD as mode of
deductions or those who opted to avail of
the 8% flat income tax rate)]

Establishment of eLounge in District Offices

The eLounge facilities were established to provide taxpayers with a venue where they can access and
use the BIR eServices. The taxpayer service efficiency of the Bureau has greatly improved through the
utilization of this facility. Also, the maximum utilization of the eLounge helped in the immediate recognition
of collections and data/information that goes into the database as soon as the transaction is done.

As of December 2018, one hundred fifteen (115) eLounge facilities are already established and
operationalized nationwide.

Centralization of Document Processing

in the Regional Offices
The Document Processing Divisions (DPDs) monitors the centralization of document processing in the
Regional Office, formulates and implements the policies, guidelines, processes and procedures that would
promote efficiency and effectiveness of its functions.

The DPDs are categorized into two levels: i) Level 1 – tax returns are processed and encoded manually; and
ii) Level 2 – returns are scanned prior to encoding.

The DPDs were established and made operational in twenty (20) RRs, sixteen (16) of which are under Level
1 and four (4) DPDs are under Level 2.

A DPD-ISG Forum was conducted on May 2018 and November 2018 which discussed and resolved issues in
the Returns Processing System and other related functions. On November 2018, the revised DPD plantilla
was approved by the DBM.

26
 Strict implementation of the streamlined processes and reduced
number of documentary requirements
The Bureau issued various issuances that will streamline the requirements and processing time of all applications.

Particular Baseline Actual Accomplishments

Primary and Secondary Revenue Memorandum Circular RMC No. 93-2016 dated September
Registration for newly (RMC) No. 39-2015 dated 2, 2016; RMC No. 137-2016 dated
Registered Business December 11, 2014 December 28, 2016; RMC No. 30-2018
Taxpayers
dated May 3, 2018 and RMO No. 19-
2018 dated April 25, 2018 re: Implement
the “Single Window” in the registration
of new business registrant in order to
improve taxpayer’s satisfaction and
address delay in the processing of
Certificate of Registration (COR) and
Authority to Print (ATP)
Documentary Requirements
1. Registration of Business 13 documents – Individual 4 documents – Individual
Taxpayers 9 documents – Non-Individual 5 documents – Non-Individual
(Individual/Non-Individual)

2. Registration of branch 9 documents 4 documents

3. Secondary Registration for 5 documents 4 documents

Authority to Print (ATP)

4. Number of steps or processes 6 to 7 Steps 3 Steps

for registration of new
business taxpayers

5. Taxpayer Identification TIN is mandatory prior to CTE can be processed even w/o TIN
Number (TIN) of Cooperative processing of Certificate of Tax but TIN compliance is mandatory w/in
Members Exemption (CTE) 6 months from the issuance of CTE, per
RMC No. 102-2016

6. TIN issued to owners of No TIN issued by DTI 30,665 TINs issued thru DTI-PBR
small and medium domestic (September 2016 to September 2018)
businesses applying for
registration at the
Department of Trade and
Industry (DTI)

One-Time Transaction (ONETT)

and Electronic Certificate
Authorizing Registration (eCAR)

1. Validity period 1 Year 3 Years

2. Reduction of signatories 3 Officers 1 Officer (RDO or ARDO)

of eCAR

3. Reduction of Signatories 5 Officers 3 Officers

of the Computation Sheet

27
 Particular Baseline Actual Accomplishments

4. Authorized Signatories RDO or ARDO RDO/ARDO [according to threshold or

Chief Assessment Section (CAS), in the
absence of both]
5. Electronic Linkage with LRA Not available Automated verification of eCAR

6. Coverage of taxpayers Mandatory Use of Electronic Bureau Taxpayers who are filing BIR Form
required to file returns of Internal Revenue Forms (eBIR No. 1706, 1707, 1800, 1801 and 2000-
through Electronic Bureau of Forms) in Filing of All Tax Returns OT (for BIR Form No. 1706 only) are
Internal Revenue Forms by Non-Electronic Filing and excluded in the mandatory coverage
(eBIR Forms) Payment System (Non-eFPS) Filers from using the eBIR Forms
Particularly Accredited Tax Agents/
Practitioners, Accredited Printers
of Principal and Supplementary
Receipts/Invoices, and One-Time
Transaction (ONETT) Taxpayer

7. Mandatory Documentary Certified true copy of the original Certified true copy of the original CAR
Requirement for Issuance CAR (copy of the Registry of Deeds) shall no longer be required
of eCAR pertaining to the transfer of
property prior to the issuance of
OCT/TCT/CCT which is the subject
of the current sale/transfer, or
certification issued by the Registry
of Deeds.

8. Mandatory Documentary The original and duplicate copies The original and duplicate copy of
Requirements for Reissuance of the manually issued CAR that manually issued CAR and proof of tax
of Certificate Authorizing are still outstanding and not payment shall no longer be required
Registration (CAR) presented to the Registry of Deeds
and expired CAR.

Proof of tax payments previously

made such as photocopy of
Officials Receipt issued to the
taxpayer or Collections and Bank
Reconciliation System payment
verification print out.

9. Countersigning of eCAR CAR shall be authenticated/ eCAR shall no longer be authenticated/

countersigned by the RDO/Head, countersigned by the RDO/Head,
ONETT Team having physical ONETT Team having physical
jurisdiction over the property/ies jurisdiction over the property/ies

10. Creation of Fast Lane for Fast lane which will cater to Revenue Memorandum Circular
all ONETT involving simple individual or corporation filing No. 43-2018 dated May 18, 2018: In
transactions Capital Gains Tax or Donor’s Tax compliance with the provision of
with only one (1) Deed of Sale/ Republic Act No. 9485, otherwise
Exchange/Donation involving only known as the “Anti Red Tape Act of
one (1) to three (3) properties only 2007” (ARTA)
– eCAR to be released in three (3)
working days upon submission
of complete documentary
requirements.

28
 Particular Baseline Actual Accomplishments

11.Processing Time of One-Time To classify One-Time Transactions Revenue Memorandum Circular No.
Transactions for the (ONETT) particularly on sale/ 48-2018 dated May 30, 2018:
Issuance of Electronic exchange/donation and its In compliance with the provision of
Certificate Authorizing corresponding processing time for Republic Act No. 11032, otherwise
Registration (eCAR) eCAR issuance known as the “Ease of Doing Business
and Efficient Government Service
Delivery Act of 2018 ”

Issuance of Tax Clearance

1. Issuance of Tax Clearance Series of requirements and long Processing and release upon
for E.O. 98 process of validation w/out specific submission of complete documents
timeline shall be w/in 2 working days

2. Issuance of Tax Clearance Centralized issuance in ARMD Decentralized issuance in the regional
for Bidding Purposes offices

Tax Exemption
1. Three (3) years Applies to all Non-Stock, Non-Profit Removed the requirements for
entities. The renewal is mandatory renewal/ revalidation of Tax Exemption
before the expiration date Rulings for Non-stock, Non-profit
Educational Institution in line with the
Constitutional Provision

2. Processing tax exemption RMO No. 20-2013 RMO No. 44-2016

of Non-Stock, Non-Profit
Educational Institutions No. of requirements: 11 No. of requirements: 6
7 Steps (processing office) 4 Steps (processing office)

3. Issuance of Certificate of RMC No. 42-01, RR No. 11-97 RMO No. 12-2017
Tax Exemption (CTE) and No. of requirements: 6 No. of requirements: 5
electronic Certificate 5 Steps (processing office) 1 Step (Office of the Commissioner)
Authorizing Registration
(eCAR) of Socialized Housing (Approval of eCAR is within five (5)
Projects of the National working days from the date of submission
Government pursuant to of CTE and no other documents shall be
Republic Act (R.A.) No. 7279, required from the landowner/ taxpayer
otherwise known as the requesting for eCAR)
“Urban Development and
Housing Act of 1992”
(MOA with NHA and HUDCC)

4. Issuance of Certificate RMC No. 42-01, RR No. 11-97 RMO 65- 2016
of Tax Exemption (CTE) and
electronic Certificate No. of requirements: 6 No. of requirements: 4
Authorizing Registration
(eCAR) relative to the Capital 5 Steps (Revenue District office) 1 Step (Office of the Commissioner)
Gains Tax Exemption for
Land Transfer to Home
Owner’s’ Association (MOA (Filing of the Application for CTE directly
with Socialized Housing with the office of the Commissioner.
Finance Corp. (SHFC))
Documents will come from NHA instead
from the Taxpayer/Applicant.)

29
 Particular Baseline Actual Accomplishments

MOA with the Department None Signed MOA was circularized thru
of Trade and Industry to RMC No. 133-2016. TIN issuance thru
improve the registration of sole 2 Steps (processing office) DTI was stopped due to the Philippine
Business Registry (PBR) System being
proprietors and partnerships enhanced.
under the jurisdiction of DTI by
facilitating TIN issuance.

Procedure for Claiming Tax Treaty RMO No. 72-2010 RMO No. 8-2017
Benefits for Dividend, Interest and
Royalties Tax Treaty Relief Applications Preferential treaty rates for dividends,
(TTRA) should be filed mandatorily interests, and royalties shall be
with the International Tax Affairs applied and used outright by the
Division to avail the tax treaty withholding agents upon submission
relief under effective Philippine tax of a Certificate of Residence for
treaties where a BIR Ruling will be Tax Treaty Relief (CORTT) Form by
issued. the non-resident income earner but
subject to future compliance check.

No. requirements: 5 documents No. of requirement: 1 CORTT Form

Receiving Office: 1 Receiving Office: 2

STRENGTHEN GOOD GOVERNANCE

(EFFECTIVE MANAGEMENT AND INTEGRITY
OF TAX PERSONNEL AND COLLECTION)

Action on Administrative No. of

Particulars Administrative
Cases against Erring Revenue Cases
Officials and Employees Formal Charges Served
(With/Without Preventive 22
The Bureau is closely monitoring the actions Suspension Order)
taken on the cases of revenue officers who failed
Approved BIR Decisions/
the test of integrity, competency, and efficiency Resolutions transmitted to DOF/
in the performance of their audit functions and BOPIR for Confirmation (Dismissal 73
consequently, shall impose the appropriate from the Service)
sanctions. The Bureau conducted a nationwide Approved BIR Decisions –
revalidation to verify the replies of the Revenue Implemented 15
Officers to the formal charges issued against them.
Motion for Reconsideration for
review and approval of IAS/DCIR- 6
To further strengthen the disciplinary arm, the LG/CIR
Internal Affairs Service was specifically ordered to
expedite resolution of administrative complaints Decision forwarded to the offices
IAS/DCIR-LG/CIR for review and 114
against erring personnel, to wit: approval

OMB/CSC/CA/SC Orders, Decisions, 39

Resolutions Implemented

30
 Data Privacy Act Civil Service Commission
Republic Act 10173 was enacted for the purpose
Program to Institutionalize
of protecting the privacy of individuals while Meritocracy and Excellence
ensuring free flow of information to promote
innovation and growth; and regulating the
in Human Resource
collection, recording, organization, storage, Management
update or modification, retrieval, consultation,
use, consolidation, blocking, erasure or
(CSC PRIME-HRM)
destruction of personal data.
The BIR National Office was conferred the
Bronze Award on July 20, 2018 in Davao
The National Privacy Commission spearheaded
City, Philippines, pursuant to CSC Resolution
the aggressive implementation of the provisions
No. 1701681 dated December 28, 2017,
of Republic Act 10173 thru its Implementing
for having managed and implemented its
Rules and Regulations. Taking cue, BIR similarly
human resource management systems
embarked on complying with the law, starting
according to documented processes, thereby
off with initiating changes on how BIR handles
achieving a process-defined Human Resource
and secures personal data on a daily/routine
Management (HRM) in the four (4) core HRM
basis.
systems under the Program to Institutionalize
Meritocracy and Excellence in Human
The BIR Data Privacy Committee created under
Resource Management (PRIME-HRM). The
Revenue Special Order (RSO) No. 281-2017 and
Level 2 Accreditation Status grants the BIR the
395-2017 was reconstituted thru RSO No. 1129-
authority to take final actions on appointments.
2018 (dated September 2, 2018). The Deputy
The assessment of the CSC aims to elevate the
Commissioner of the Information Systems
public sector human resource management
Group remain as the BIR Data Protection
to a level of excellence through the process of
Officer (DPO). Similarly, the Chief of Staff
assessment, assistance and recognition.
for Administrative Concerns – Office of the
Commissioner and the Regional Directors were
assigned as Compliance Officers for Privacy
(COP) and the Revenue District Officers as
Assistant COP. In addition, various teams were Human Resource
created to facilitate conformity with the Five
(5) Pillars of Data Privacy Accountability and
Information System/
Compliance. Comprehensive Human
Initial efforts to drum up data privacy awareness
Resource Information
covered – Privacy Notices posted in the BIR System
Website and reflected in attendance sheets;
Privacy Notice on Visitors Logbook; Security The establishment of a modern, fully automated
Notice on use of CCTV; Signage Board for BIR Human Resource Information System (HRIS)
Visitors Logbook; Use of Top Sheet for Security will allow better utilization and management
Classified Documents; Conduct of IT Security of BIR staff. It supports the requirements of
and Data Privacy Compliance Check/Audit; the Civil Service Commission (CSC) Program
Privacy Impact Assessment of highly sensitive to Institutionalize Meritocracy and Excellence
BIR systems; Data Privacy Act Briefing conduct in Human Resource Management (PRIME-
in various BIR offices; and Development/ HRM) and provide the revenuers with fast and
formulation of standards, guidelines and easy access to comprehensive and integrated
procedures for information security and human resource data.
physical security, among others.

31
On September 19, 2018, the Human Resource Below is the statistics of the Bureau’s
Management Information System (HRMIS) recruitment and promotion:
TEAM went to Provincial Information
Management Office (PIMO), Provincial Details No. of Applicants
Government of Agusan del Sur (PGAS), for a
Walkthrough Meeting on HRIS. PGAS shall Recruitment:
provide the software package through the
issuance of a Memorandum of Agreement Target vacant
for free of charge. PGAS shall render the 1,548
positions
consultancy and technical expertise required
for a period of two years and eventually will
Number of Signed
share the source code for the sole purpose of Appointments 1,584
modification and enhancement purposes. (Original)

On October 1, 2018, the HRMIS Team went Number of hired

to Department of Science and Technology- 1,318
personnel
Central Office (DOST-CO) for a Consultation
Meeting regarding HRIS. DOST-CO can
Promotion:
share their HRMIS to BIR through a Service
Level Agreement for free of charge. Future
modification and customization will be done Target vacant items 871
for promotions
by the BIR Information Systems Group Team.

The HRMIS Team is continuously exploring for Number of Signed

Appointments 1,641
a complete software package from internal (Promotion)
and external stakeholders that will provide
human resource management with efficient
tools and updated technology.

Training and Development

Expedite Recruitment of Various trainings, seminars and workshop
were conducted for CY 2018, to maintain the
Personnel and Promotion full potentials and capabilities of the BIR’s
of Qualified Employees workforce and improve competence and
professionalism of the human resource.
This year, the Bureau has a total of 1,584 signed
appointments for recruitment garnering an
average of 102.33% which is beyond the actual
target of 1,548. As a result, the Bureau hired
1,318 new staff for all offices/units. Also, there
are 1,641 promoted employees.

32
 Regular Trainings Conducted for CY 2018

No. of
Training Courses Participants
Conduct/s

Orientation

Personnel Orientation Course 4 139

Basic Tax Administration Course 4 119

Technical

General Course for Revenue Officers 3 115

Audit Procedures and Techniques Course 9 340

Seizure Agents Course 2 65

Presentation Skills Development Workshop 1 29

Management and Leadership

Basic Management Course 7 203

Middle Managers Course 3 99

Advanced Management Course 4 123

Public Financial Management Course 2 60

Others

Learning New Craft 4 82

Pre-Retirement Seminar 1 15

33
 ICT/ICT-Related Trainings
Conducted for CY 2018

Number of Actual Number of

Training Courses
Conduct/s Participants
Accounts Receivable Management System 19 582
ACL with Basic Scripting for Revenue Officers (Assessment) 6 143
Audit of Electronic Sales Journal using ACL 10 228
Collection Course-Error Handler Course 9 271
Data Privacy Briefing 69 2,218
Document Processing Course-Error Handlers Course 1 30
eTIS1-Case Management System (CMS) End Users Training 3 97
(Full CMS and Reports)
Information Security Awareness Briefing 8 280
Regional Computer Assisted Audit Tools and Techniques Training 7 193
Enhanced Electronic Letter of Authority Management System 1 60
Data Mart Technical Training 2 187

List of Foreign Scholarships/Trainings/Seminars Attended

by BIR Officials and Employees for CY 2018

Date of Travel
(Per Travel
Course Title / Purpose Host Country/Venue
Authority issued by
DOF)
Study Tour on e-Invoicing and e-Sales January 7-11, 2018 Seoul, South Korea
Consultation Meeting on Tobacco Tax Modelling and Policy February 12-15, 2018 Bangkok, Thailand
Recommendation for Ministry of Economy and Finance, Cambodia
and Ministry of Planning and Finance, Myanmar

Workshop on Tax Policy for Domestic Resource Mobilization and February 20-23, 2018 Tokyo, Japan
Seminar on Property Tax Reform

Inland Revenue Board of Malaysia (IRBM) – Organization for March 12-16, 2018 Malaysia
Economic Cooperation and Development (OECD): Negotiation of
Tax Treaties

IRBM-International Bureau for Fiscal Documentation (IBFD): March 19-23, 2018 Malaysia
Permanent Establishment

Oil and Fuel Theft Conference April 18-19, 2018 Geneva, Switzerland

International Consortium on Governmental Financial May 13-18, 2018 Miami, Florida, USA
Management 32nd Annual International Training Conference

Economic and Social Council Special Meeting on International May 18, 2018 New York, USA
Cooperation in Tax Matters

34
 Date of Travel
(Per Travel
Course Title / Purpose Host Country/Venue
Authority issued by
DOF)

Conference on Capacity Building concerning Taxation May 30-31, 2018 Stockholm, Sweden

Meeting with the Officials of Her Majesty’s Revenue and Customs June 4-5, 2018 London, United
Kingdom
Exchange of Information Training (New Zealand and Singapore) June 4-8, 2018 Singapore

The 29th Peer Review Group Meeting of the Global Forum on June 11-14, 2018 Vaduz, Liechtenstein
Transparency and Exchange of Information for Tax Purposes

Transfer Pricing: Policy and Practice June 11-15, 2018 North Carolina, USA

Tobacco Taxation Technical Workshop July 4-6, 2018 Geneva, Switzerland

Visit the server in London to witness the actual generation of the July 7 – 14, 2018 London, United
electronic journal and the submission of other documents needed Kingdom
to complete the post evaluation of Point of Sale (POS) machines

Consultation Meeting on Tobacco Tax Modelling and Policy July 10-11, 2018 Bangkok, Thailand
Recommendation for the 2018 Tobacco Tax Reform in LAO PDR

Tax Administration: Small and Medium Enterprises, Enhancing July 16-20, 2018 Ankara, Turkey
Compliance
IRBM-OECD: Introduction to the Application and Negotiation of August 13-17, 2018 Malaysia
Tax Treaties

Comparative Tax Policy and Administration Executive Education August 13-24, 2018 Massachusetts, USA
Program

Master of Laws (LL.M) August 16, 2018 – Massachusetts, USA

May 31, 2019
Masters of Arts in Economics August 24, 2018 – International
August 2, 2020 University of Japan,
Japan
36th Cambridge International Symposium on Economic Crime August 29, 2018 – Cambridge, United
September 9, 2018 Kingdom
On-site Visit of Vanuatu for the Second Round Peer Review September 3-7, 2018 Vanuatu

International Seminar on Taxation (General) September 4, 2018 – Japan

October 6, 2018
Master’s Degree Program in Public Finance (Tax Course) September 4, 2018 – Japan
September 1, 2019
Expanded Study Group on Asian Tax Administration and Research September 5-6, 2018 Yangzchou, China
(SGATAR) Taskforce Meeting
SAS Mini Conference on Taxation entitled “Advanced Analytics for October 9-10, 2018 Singapore
Tax Revenue Management Knowledge Sharing Session”

Exchange of Information as a Tool to Combat Offshore Tax October 15-19, 2018 Budapest, Hungary
Evasion

35
 Date of Travel
(Per Travel
Course Title / Purpose Host Country/Venue
Authority issued by
DOF)
International Standards of Accounting and Reporting Annual October 22, 2018 Palais des Nations,
Workshop Geneva, Switzerland
Executive Experience at Oracle Open World 2018 October 22-25, 2018 San Francisco,
California, USA
International Seminar on Taxation (Advanced) November 4-30, 2018 Japan

Workshop for the Shadow Economy Community of Interest November 7-9, 2018 Sydney, Australia

48th Annual SGATAR Meeting November 13-15, China

2018

Gender and Development (GAD) A.Gender and Development (GAD)

Training Programs
The Magna Carta of Women (Republic Act No. 9710)
defines Gender and Development (GAD) Program as the For GAD Focal Point System (GFPS) Members
development perspective and process that is participatory
and empowering, equitable, sustainable, free from 1. Capacity Development of the GFPS in the
violence, respectful of human rights, supportive of self- Revenue Regions on the Proper Attribution of
determination and actualization of human potentials. Programs, Activities, and Projects (PAPs)
It seeks to achieve gender equality as a fundamental
value that should be reflected in development choices Dr. Rowena S. Navera, member of the National Gender
and contends that women are active agents of and Development Resource Pool of the Philippine
development, not just passive recipients of development. Commission on Women, together with ACIR Lucita
P. Oandasan, Ms. Marivic B. Villena (Chief of Budget
GAD focuses on Gender Mainstreaming or a strategy for: Division) and Ms. Benilda M. Caraig (Chief of Training
Management Division) conducted the 2nd level of the
• Making women’s as well as men’s concerns and Capacity Development of the GFPS in the regional
experiences an integral dimension of the design, offices. The capacity development aims to develop
implementation, monitoring, and evaluation of the competencies of the GFPS members on how to
policies, programs and projects in all social, political, properly attribute the cost of programs, projects, and
civil, and economic spheres so that women and men activities of the BIR thru the use of gender analysis
benefit equally. tool, Harmonized Gender and Development Guidelines
(HGDG) and to elicit suggestions/ideas/thoughts on
• Assessing the implications for women and men of the HGDG Checklist for Taxation/Finance Sector.
any planned action, including legislation, policies or
programs in all areas and at all levels. The GAD team conducted workshops to upgrade the
skills of the GFPS members from the following regions:
In compliance and in accordance with the above
directives, the Bureau established the GAD Focal Point • RR No. 15 - Zamboanga City - August 7-9, 2018
System (GFPS) that will accelerate gender mainstreaming • RR No. 11 - Iloilo City - August 29-31, 2018
within the agency. • RR No. 12 - Bacolod City - September 4-6, 2018
• RR No. 13 - Cebu City - September 18-20, 2018
• RR No. 14 - Eastern Visayas Region - October 10-11, 2018
For 2018, the GFPS members strengthened their skills set • RR No. 16 - Cagayan De Oro City - October 23-24, 2018
through a series of capacity development programs. • RR No. 18 - Koronadal City - November 6-7, 2018
• RR No. 17 - Butuan City - November 19-20, 2018
• RR No. 19 - Davao City - November 27-28, 2018
• RR No. 5 - Caloocan City - December 4-5, 2018
• RR No. 7 - Quezon City - December 6-7, 2018

2. GAD Assembly

GFPS members from the National and Regional

Offices attended the 4th National BIR GFPS Assembly:
Finalization of the 5-Year GAD Agenda sponsored

36
 by RR No. 9A-CaBaMiRo from January 30 to of the GAD programs namely: Ms. Aurora T.
February 1, 2018 at The Bayleaf Cavite. The 5-year GAD Alberto, OIC-RD Lorna S. Tobias, DCIR Celia C.
Agenda was discussed by Ms. Benilda M. Caraig together King, Dr. Rowena S. Navera, and Department
with selected BIR GFPS members and this was approved of Education Secretary Leonor M. Briones.
by Ms. Nharleen S. Millar and Mr. Raymond Maso, both
from Technical Services and Regional Coordination In the afternoon, short lectures on “Gender and the
Division of the Philippine Commission on Women. 2030 Agenda for Sustainable Development of the
Philippines” by Dr. Theresita Atienza, Dean of the
3. Launching of the 5-Year GAD Agenda National Defense College of the Philippines and “GAD
Budgeting Focusing on Attribution” by Dr. Rowena
The Bureau of Internal Revenue held its 5th National S. Navera, member of the National GAD Resource
BIR GAD Focal Point System Assembly: Launching of the Pool of the Philippine Commission on Women and
5-Year GAD Agenda for CY 2019-2023 on June 8, 2018 Vice President for Administration and Finance,
at the Marble Hall, Ayuntamiento Bldg., Intramuros, Philippine State College of Aeronautics were delivered.
Manila.
Said event was attended by guests/invitees from
Commissioner Caesar R. Dulay, in his opening selected government agencies i.e. Director Alvin P.
remarks, praised the BIR for its GAD accomplishments. Diaz from Department of Finance (DOF), Assistant
Commissioner Dulay and DCIR Celia C. King led the Commissioner Lourdes M. Castillo from Commission
ribbon-cutting ceremony of the GAD Exhibit which on Audit (COA), officials from agencies under DOF,
featured the GAD accomplishments of the Regional GFPS members from the National and Regional Offices,
Offices and the undertakings of the National Office and officials under the Resource Management Group.
from 2008 to 2018.
4. GST++
The 5-year GAD Agenda was presented by DCIR King
which involves formulating clear-cut strategic directions To provide GFPS members with a deeper understanding
and structuring well-defined responsibilities and action. about GAD, they attended the GST++ conducted
GAD’s Client-Focused Activities includes amending of by Dr. Rowena S. Navera on July 11-12, 2018.
BIR laws, rules and regulations on VAT, mainstreaming
gender issues in all tax laws, and establishment of Tax 5. Workshop on the Preparation of Sex Disaggregated
Clinic to further improve assistance and enforcement Data and Attribution of Programs, Projects and
process. Organization focused activities include Activities
issuance of policy statements and guidelines in
mainstreaming GAD programs and projects in the BIR Twenty-six (26) GFPS members from the National
such as strict use of gender-fair language in all forms Office attended the workshop on October 2-4,
of communication, equal opportunity principle in all 2018 conducted by Dr. Rowena S. Navera and
core HR systems, having a Committee on Decorum and Ms. Benilda M. Caraig who is a new member of
Investigation and improving its process of handling of the National Gender and Development Resource
sexual harassment and VAWC cases, establishing GAD Pool of the Philippine Commission on Women.
Key Performance Indicators (KPIs), and full attribution
of 5-100% of the GAD Budget, and prepare revenue 6. Integration of GAD Perspective in Programs,
issuances that are gender sensitive and compliant Activities and Projects of the BIR
with international standards or agreements. To do
all these, the BIR GFPS should be reinforced and be Ms. Maria Cecilia A. Cifra, GFPS Secretariat, gave a short
able to institutionalize a GAD Database where gender lecture on the topic “Integration of GAD Perspective
information can be shared among stakeholders. in Programs, Activities and Projects of the BIR”
during the Briefing with Service Providers, Suppliers,
Other highlights of the events were the launching of Contractors and Consultants on October 12, 2018.
the BIR-GAD Strategic Framework which includes
Vision, Mission and Strategic Directions. BIR-GAD For Employees
theme song entitled “This World for Us All” composed
by OIC-Regional Director Lorna S. Tobias and 1. Gender Sensitivity Training (GST)
interpreted by the all-male shadow play group El
Gamma Penumbra thru the video presentation. Also, A total of four hundred eighty (480) employees
winners for the BIR GAD Logo Design and Tagline attended the GST. All GST conducts were facilitated
Writing Contest were announced. Winning entries and conducted by Dr. Rowena S. Navera and Ret. Col.
are now officially used in all GAD communications. Luis Marciano P. Navera, both accredited members
of the National GAD Resource Pool by the Philippine
Special Awards were given to the women who made Commission on Women.
significant contributions to the implementation

37
2. GST for Families 6. SHEconomics

BIR employees consisting of fifteen (15) pairs of Training to financially empower

married couples, siblings and parent-child from employees especially women entitled
the National Office attended the pilot conduct of “SHEconomics: Insurance Literacy and
the GST for Families on April 20, 2018 at Room 3, Microinsurance Awareness” was conducted
BIR National Training Center. by Atty. Juan Paulo P. Roxas and Ms.
Ma. Lourdes Ramos from Insurance
3. GST for Men Commission on December 20-21, 2018.

A total of twenty-four (24) male employees B. Regular GAD Activities

attended the GST for Men on October 16, 2018
conducted by Ret. Col. Luis Marciano P. Navera National Women’s Month Celebration
at the 10th Floor BIR Training Room.
1. One hundred seventy-nine (179) employees
4. GST for LGBTs from the National Office attended the
Orientation on Anti-Sexual Harassment
Twenty-nine (29) employees from the National with Film Showing held on March 22 and
Office and Metro Manila regions attended 23 conducted by Ms. Estrelita B. Turingan,
the GST for LGBT which was conducted by Dr. Psychologist I from the Department of Social
Rowena S. Navera on August 3, 2018. Welfare and Development – NCR and Ms.
Glenda C. Resurreccion, CEO and President of
5. Orientation on Breastfeeding Vis-à-vis Anastasia Film Productions. The film showing
Launching of the Lactation Station of “Owl Butterfly” focuses on childhood sexual
abuse while the seminar aims to educate
The BIR National Office GFPS thru Training employees about sexual harassment, forms of
Management Division (TMD) launched the abuse, and actions to be taken when faced with
BIR Lactation Station located inside the BIR such situations.
Canteen (Room 105, Ground Floor, BIR-NOB) on
August 6 followed by a Breastfeeding Seminar. 2. The National Office launched the BIR GAD Logo
Commissioner Caesar R. Dulay led the ribbon Design and Tagline Writing Contest. Thirteen
cutting ceremony, together with DCIR Celia (13) logo designs and eight (8) tagline entries
C. King. Also present were other MANCOMM were submitted from the different revenue
members namely DCIR Lanee Cui-David, DCIR regions. The GAD logo design of Mr. Japhet
Arnel Guballa, and DCIR Marissa Cabreros, ACIR Gasga from the Public Information and
Margaret Mary Lauron, HREA Marivic Galban, Education Division and Mr. Einnor Lester De
TMD Chief Benilda Caraig, TDD Chief Menchie Villa from the Personnel Division of the National
Fresco and National Office GFPS members. The Office won the GAD logo design contest while
resource speakers during the Breastfeeding the “You and I Count” entry by Ms. Leilanie
Seminar were Maria Ines “Nanay Ines” Avellana- Claridad from the Assessment Division of RR
Fernandez, Executive Director of Arugaan who No. 7 – Quezon City was chosen as the official
has been involved in pioneering breastfeeding GAD tagline. All entries together with the GAD
movement in the Philippines since 1981, and Dr. accomplishments of the National and Regional
Anthony Calibo, Medical Specialist, Children’s Offices were displayed in the National Office
Health Development Division, Department of lobby.
Health. The topics discussed were Essentials of
Breastfeeding and Unang Yakap: Encouraging 3. Two (2) GAD Focal Point System members
Breastfeeding from the Start. Pregnant, from the National Office attended the
breastfeeding and revenue personnel on “Women Inspiring Women Forum” and
reproductive age who support breastfeeding “Women Empowerment” conducted by DOF
attended the seminar. on March 26, 2018 at the Bureau of Treasury,
Ayuntamiento Bldg., Intramuros, Manila.
Memorandum re: Policies and Guidelines on
the use of the Lactation Station in the National 4. Two (2) GFPS from the National
Office dated June 28, 2018 was issued. Office attended the GAD-FPS Assembly
conducted by the DOF on March 27, 2018.

38
 5. Four (4) GFPS members watched the films last August 14, 2018. The Bureau of Internal
“Boses” and “Ang Kababaihan ng Malolos” on Revenue, represented by Ms. Benilda M.
March 20, 2018 at Bureau of Customs, Port Caraig, Chief of the Training Management
Area, Manila sponsored by DOF. Division and a member of the Technical
Working Group of the BIR GFPS, was one
18-Day Campaign to End Violence Against of the agencies invited to attend the event.
Women and Children Among the highlights of the event were the
1. Anti-sexual harassment video entitled “the re-launching of the GADtimpala for National
Unspoken Words” and other related videos from Government Agencies which aims to award
the Philippine Commission on Women were the most deserving organizations for their
shown in the lobby of the BIR National Office outstanding performance and achievements
in gender mainstreaming, awarding of the
2. One Hundred Twenty (120) employees winners of the National Women’s Month Photo
attended the Orientation on Anti-Sexual and Poster-Making Contest 2018 and the
Harassment and its Corresponding Sanctions Milestone Accomplishments of Magna Carta of
conducted by Atty. Ritchie Parenas and Atty. Women in 9 years.
Vlademir Villacorta from the Civil Service
Commission on November 26-29, 2018. 4. Two (2) GFPS members attended the “Gender
Sensitivity Training” sponsored by the DOF and
3. Issued Memorandum signed by DCIR Celia Bureau of the Treasury on July 26-27, 2018.
C. King dated November 27, 2018 re: Wearing
of Orange T-Shirt in Observance of the 18-day 5. Two (2) GFPS members attended the “Gender
Campaign to End Violence Against Women and Mainstreaming” sponsored by the DOF and
Children (VAWC). Bureau of Customs on August 14-15, 2018.

4. Reproduced and distributed Information, 6. Two (2) GFPS members attended the
Education and Communication materials “Gender Analysis” sponsored by the DOF and
recommended by the Philippine Commission Insurance Commission on October 17-18, 2018.
on Women.
7. Ms. Benilda M. Caraig, conducted the
a. Bag tags – 200 pcs “Orientation-Workshops on the Formulation
b. Foldable Fans – 200 pcs. of the GAD Plan and Budget and GAD
c. Polo shirts – 150 pcs. Accomplishment Report” to the Government
d. Primer on RA 10906 Anti-mail Order Procurement Policy Board on December 28,
Spouse Act of 2016 – 605 pcs. 2019.
e. The Upload: Cyber Issues Gender and
Development Issue 1 – 605 pcs. Comprehensive Drug-Free
C. Invitations from Other Government Workplace Program
Agencies
In compliance with RA No. 9165, otherwise known as
1. Two (2) GFPS members attended the launching the Comprehensive Dangerous Drug Act of 2002, the
of the “Gender Recognition in the Philippines: A Bureau, through the Training Management Division
Legal and Policy Review” in UP Balay Kalinaw, UP (TMD), conducted the following activities to promote
Diliman, Quezon City on June 21, 2018 upon the the Comprehensive Drug-Free Workplace Program:
invitation of the Commission on Human Rights.
1. Orientation Seminar on the Comprehensive
2. Three (3) GFPS members attended the Drug-Free Workplace Program – Two
“Gender and Development Orientation/Re- hundred twelve (212) employees attended the
orientation” conducted by DOF on June 25, seminar through a series of conducts in 2018.
2018 held in Landbank Plaza, Malate, Manila. This seminar is a one-day orientation program
3. The Philippine Commission on Women that aims to orient and increase awareness of
celebrated the 9th Anniversary of the Magna all BIR employees on salient provisions and
Carta of Women with the theme “MCW at penalties of RA No. 9165 and the Civil Service
9: Make Change Work for Women” at the rules and regulations pursuant to Article V
Philippine International Convention Center Section 47 of RA No. 9165; current trends

39
 and patterns of drug and substance abuse; The BIR awarded one hundred eighty-two (182)
national anti-drug strategies; drug prevention and officials and employees nationwide through formal
health promotion approaches in the workplace; awarding ceremonies in the National Office and the
and harmful effects of drug abuse, treatment and 20 Regional Offices, led by the Personnel Division/
rehabilitation, and drug testing procedures. Administrative and Human Resource Management
Divisions. The BIR Allegiance Awardees received their
2. Random Drug Testing – A total of 2,813 Plaques of Appreciation and special tokens. The
employees from the regional offices underwent following are the number of awardees per office:
random drug testing on various dates of 2018.
Number of BIR Allegiance Awardees
3. Seminar Workshop on Systematic Training for for CY 2018
Effective Parenting – Fifty (50) employees
attended the seminar conducted on October 29-
30, 2018. This seminar aims to provide personnel No. of
Office
especially who are parents to appreciate their role Awardees
in drug abuse prevention and control; find ways to National Office 31
improve their relationship with their children, to RR 1 – Calasiao, Pangasinan 5
detect and refer drug dependents to the correct
authorities for appropriate care and action; and to RR 2 – Cordillera Administrative 3
train a core group of parents as anti-drug advocates Region (CAR)
by providing additional knowledge and necessary RR 3 – Tuguegarao, Cagayan 11
parenting skills who in turn will re-echo the same to
fellow parents and develop social action program RR 4 – San Fernando, Pampanga 3
on drug abuse prevention. RR 5 – Caloocan City 10

4. BIR Sports Festival 2018 - For the implementation RR 6 – City of Manila 12

of the General Well-Being Program, the Bureau RR 7 – Quezon City 15
held a sports festival in celebration of the 114th BIR
RR 8 – Makati City 10
Anniversary. The event included different games.
A parade of colors was participated by selected RR 9A – CaBaMiRo 7
officials and employees from the National Office
RR 9B – LaQueMar 1
and the Regional and Revenue District Offices.
RR 10 – Legazpi City 2
RR 11 – Iloilo City 12
RR 12 – Bacolod City 21
Conduct of the Nationwide BIR
RR 13 – Cebu City 11
Allegiance Awarding Ceremony
RR 14 – Eastern Visayas Region 8
In connection with the continuous implementation RR 15 – Zamboanga City 3
of the BIR’s People Wellness Program for revenue
officials and employees, the 2018 BIR Allegiance RR 16 – Cagayan de Oro City 5
Awarding Ceremonies were conducted nationwide, RR 17 – Butuan City 0
with the objective of recognizing revenue officials and
employees who have been with the BIR as permanent RR 18 – Koronadal City 7
employees for thirty (30) years as of December 31, RR 19 – Davao City 5
2017, and who have exemplified loyalty to the BIR
giving their selfless and continuous public service. TOTAL 182

40
 REGIONAL HIGHLIGHTS

41
 Revenue Region 1
Calasiao, Pangasinan

Capitalizing in the active Arrears Management Team, the Revenue Region posted
a substantial increase in collection from delinquent accounts in the amount
P129-Million which is 140% over last year’s collection. This accomplishment has
made the Region more inspired and driven as it commits an undaunting pursuit
against delinquent taxpayers.

Revenue Region 2
Cordillera Administrative Region
To augment foregone collection due to the formation of TRAIN Law, Task Forces
were created through the issuance of Regional Revenue Special Order Nos. 72-
2018 and 76-2018. The Task Forces shall perform, execute and implement plans,
programs and strategies of the Region as regards to Vegetable and Cutflowers
Domestic Carriers and Keepers of Garages. The said task forces were assigned
to gather and evaluate data; validate/reconcile the data with the Bureau’s
records; conduct tax compliance verification and tax information dissemination
drive; conduct audit/investigation, if warranted; assess and collect internal
revenue tax liabilities and recommend to Management other actions deemed
necessary. This initiative has resulted to the discovery of two hundred fifty-
six (256) unregisted individuals. Sixty-five (65) dockets of these unregistered
entities were forwarded to the Legal Division for possible filing of criminal case.
On the other hand, the registration data update of the transportation industry
has revealed that there are 6,518 and 2,734 registered taxpayers in RDO No.
8-Baguio and RDO No. 9-La Trinidad, Benguet, respectively.

Revenue Region 3
Tuguegarao City, Cagayan

DCIR Arnel SD. Guballa with RD Thelma S. Milabao, ARD Lorna B. Binarao, Atty.
Cornelio Chito M. Dela Peña of Legal Division, RDO Vivian V. Tarectecan of RDO
No.13, RDO Miguel B. Morada Jr. of RDO No. 15, witnessed the destruction of
smuggled luxury cars in Port Irene CEZA, Sta. Ana, Cagayan. Said destruction
was spearheaded by President Rodrigo Roa-Duterte last March 14, 2018. Also
present were Defense Secretary Maj. Gen. Delfin N. Lorenzana and Governor
Manuel Mamba of the province of Cagayan.

42
 Revenue Region 4
San Fernando, Pampanga

The Region started the first quarter of 2018 with the inauguration and transfer
of its Regional Office and Pampanga District Offices (RDO No. 21A and 21B) last
March 19 which was then followed by two (2) other District Offices (inauguration
and transfer) namely RDO No. 22 – Baler, Aurora and RDO No. 17A-Tarlac on
May 25 and September 10, respectively.

Another highlight of the year is the recommendation of the Region’s five (5)
District Offices for ISO Certification by 2019. A meeting was conducted with CSC
III Director Nelson G. Sarmiento last December 3 for an update on the RR No.
4’s PRIME HRM status of validation, which was recommended for the Bronze
Level Award awaiting the CSC final validation.

Revenue Region 5
Caloocan City
A massive tax education campaign in taxpayer’s service was conducted and this
has greatly contributed to the attainment of the Region/District collection goal.
The assistance activities included the following: Taxpayer Identification Number
(TIN), Certificate of Registration (COR), Secondary Registration for Authority to
Print (ATP), Books of Accounts, One-Time Transactions (ONETT), Clearances/
Certifications, Alphalist, Officer of the Day (OD), Special Lane, and conduct of
briefings to new registrants, and dialogues/briefings on various topics and
tax updates to taxpayers/practitioners/local government units. These efforts
further enhanced awareness to various stakeholders and subsequently,
promote voluntary compliance.

Revenue Region 6
City of Manila
There remained a P25 Billion collectible from National Government Agencies
(NGAs) with deficiency tax assessments. Said amount includes the tax
assessments of three (3) NGAs worth P7.486 Billion covered by Final Decision on
Disputed Assessments (FDDA) for payment via Special Allotment Release Order,
which Regional Director Aguila, until the last days of 2018, have been pushing for
its collection, specifically: The Bureau of Customs under the jurisdiction of RDO
No. 33-Intramuros with a whopping P5.354 Billion worth of tax assessments
for 2015 taxable year alone. Another one is from Department of Health under
RDO No. 31-Sta. Cruz with P2 Billion tax liabilities covering taxable year 2012
for Income, VAT, Expanded Withholding and Withholding on Government
Money Payments taxes; and from Professional Regulation Commission under
the jurisdiction of RDO No. 32-Quiapo with a P132.030 Million tax liabilities for
various taxable years. Two (2) of these Agencies signified their intention to
pay up but for lack of time, collection via SARO did not materialize. The other
Agency, on the other hand, is still requesting for reconsideration but is likely
to be denied due to the issuance of FDDA. This would have helped the Region
achieve its goal if collections were made within the year.

Another big ticket project being undertaken is the Withholding Tax on eTRA
wherein RDO Nos. 32-Quiapo and RDO 31-Sta. Cruz have collected large amount
totaling to P897 Million from just two (2) taxpayers.

43
 Revenue Region 7
Quezon City

The Region filed one hundred (100) RATE cases with the Department of Justice
(DOJ). This is 833% higher than the twelve (12) cases required to be filed by RID
offices under the projected goal for CY 2018.
The filing of RATE cases has brought increased awareness of the law and at
the same time, instilled fear to erring taxpayers who refused to adhere to the
rule of law. As a result, an increase in number of applications for compromise
settlement were received and this has generated a collection of P27,506,650.42,
more or less.

Revenue Region 8
Makati City

During the July 2, 2018 Flag Raising Ceremony, Regional Director Glen A.
Geraldino proudly presented to the revenuers the Certificate of Appreciation
awarded to Revenue Region No. 8-Makati for having surpassed its Collection
Goal for Calendar Year 2017. The award was handed by Commissioner of
Internal Revenue Caesar R. Dulay and Deputy Commissioner, Operations Group
Atty. Arnel SD. Guballa during the Command Conference heldlast June 28, 2018
at Seda Vertis North, Quezon City. RD Geraldino commented that the award
is the result of team work and perserverance of all the Revenuers of RR No. 8,
who in one way or another contributed to the attainment of the assigned goal
for 2017. He congratulated the hardworking men and women of RRNo. 8 and
qouted “Hardwork beats talent when talent fails to work hard.”

Revenue Region 9A
CaBaMiRo

As the Region gained its momentum, it embarked on several activities to further

professionalize the work-force and improve its operations. On January 30-
February 1, 2018, the Region hosted the 4th GAD-GFPS National Assembly and
the Finalization of the GAD 5-Year Agenda at The Bayleaf, General Trias, Cavite.

To fittingly close the CY 2018, the Region bravely undertook the ISO 9001:2015
Certification activities and was conferred by TUV Rheinland last December 2018.
RDO No. 54B-West Cavite and RDO No. 59-West Batangas underwent series of
ISO awareness and technical trainings and workshops together with the Regional
IQA Team members. The two (2) District Offices and concerned Division Offices,
were subjected to Stage 1 and 2 assessment levels, Management Reviews,
internal and external audit on the registration process and completeness of
documentary records.

44
 Revenue Region 9B
LaQueMar
The Region, on its 2nd year of existence and having the objective of bolstering
public trust through ethical and accountable public service and performing
and discharging duties with the highest degree of professionalism, was able
to saturate100% of personnel Region-wide to undergo the Values Orientation
Workshop (VOW) and Public Service Ethics and Accountability (PSEA) Seminar
before the end of the year, in cooperation with the Civil Service Commission.

The efforts to increase the number of BIR personnel was achieved through
the conduct of massive recruitment activities, which resulted to 138%
accomplishment of its target. Likewise, deserving BIR employees wereincluded
in the List of Promotable were all promoted, with an additional 19% more than
the target set by the National Office.

Revenue Region 10
Legazpi City
Regional Director Gerry O. Dumayas has issued several Mission Orders
authorizing Revenue Officers to conduct surveillance, either overtly or covertly, to
big establishments within the Bicol Region to monitor the taxpayer’s operations.
It is one of the measures of determining whether taxpayers have understated
their taxable sales by more than 30 percent, willfully refused to issue receipts/
invoices or issuing unregistered receipts, and if they failed to register.

In a bid to increase collection of taxes, the Director has instructed all Revenue
District Officers to intensify tax campaign in their respective areas of jurisdiction
to broaden the tax base and bring to surface those taxpayers who belong to the
underground economy

Revenue Region 11
Iloilo City

The Region initiated the conduct of the following projects to augment the
collection: “OPLAN “HUKAY “OPLAN “DIKIT”, “OPLAN Quarry Operations “, “Oplan
Seafood Basket and Sugar Planters”, and “Oplan Professionals”.
These projects were conceptualized to capture the untapped sectors that can
be the Region’s source of collections. Third Party-Information (TPI) Letters were
also sent to various government agencies such as Local Government Units and
MARINA to secure list of possible individuals/corporations engaging in business
operations.

45
 Revenue Region 12
Bacolod City
Regional Director Aynie E. Mandajoyan-Dizon and Revenue District Officers
conducted a series of tax dialogues and meetings with various taxpayers per
industry (e.g. Quarry Operators,Lending Investors and Finance Companies,
Gasoline Dealers, Contractors of private and public projects, Construction
and Hardware Dealers, Real Estate Lessors, Hotel and Restaurant Owners,
Withholding Agents, NGAs and LGUs) and BIR Partners Philippine Institute of
Certified Public Accountants, Bacolod Filipino-Chinese Chamber of Commerce
and Industry Inc., Metro Bacolod Chamber of Commerce and Industry Inc.,
Association of Certified Public Accountants in Public Practice, Regional Governor
of Philippine Chamber of Commerce and Industry Region 7 Chapter, appealing
for their support and cooperation by increasing their voluntary tax payments
and compliance. This has greatly contributed to the revenue collection of the
Region.

Revenue Region 13
Cebu City
One of the highlights of the Region’s activities for the year 2018 was the
implementation of RMO 3-2009, which sets the guidelines in the conduct of
surveillance and stock-taking activities, and implements the administrative
sanction and temporary closure of business. The Region collected a total of
P466,348,742.61 from surveillance and temporary closure of several business
establishments and warehouses under the Region’s jurisdiction, which is 58.33%
of the total amount collected from Oplan Kandado surveillance and evaluation
of CRM-POS/Z-reading covered by Mission Orders, were conducted against
business establishments with low compliance.

Revenue Region 14
Eastern Visayas Region
Regional Director Ma. Gracia B. Javier, in coordination with the National Bureau
of Investigation Region 8, have confiscated cigarettes with fake BIR stamps at
two (2) identified warehouses located in Tacloban City and with 1,215 master
cases of confiscated various brands cigarettes bearing fake/counterfeit strip
stamps. During the conduct of the verification and investigation last October
4-5, 2018 and October 8-9, 2018, the Special Task Force apprehended several
packs of cigarettes which were found to be affixed with fake/counterfeited strip
stamps, by using the taggant reading machine.

On November 7-8, 2018, another joint operation was conducted by RD Javier

and NBI Region 8, headed by Regional Director Atty. Dante A. Gierran, against a
warehouse and an apartment in Ormoc City where they successfully confiscated
cigarettes bearing fake stamps worth P60 Million. They seized 2,026 master
cases equivalent to 1,013,000 packs. These raids were a follow-up of the raid
conducted last October 4, 2018 in Tacloban City. The Special Task Force was
composed of Atty. Neil U. Cordero, Chief RID, Atty. Rowena F. Goc-ong, Asst.
Chief, RID, Mr. Cecilio D. Refuerzo, EXTA Supervisor, Atty. Nancy P. Senado, Atty.
Rafaelita Plaza, Legal Division and other staff from RID and EXTA.

As a result of investigation and verification, they have found to have a prima

facie evidence that the taxpayers violated Section 263 and 265 of the NIRC, in
relation to Revenue Regulation (RR) No. 17-2012, RR No. 7-2014 and Revenue
Memorandum Order No. 7-2015.
46
 Revenue Region 15
Zamboanga City
As part of the Program on Awards and Incentives for Service Excellence (PRAISE),
the Regional PRAISE Committee, headed by Assistant Regional Director Edith
C. Yap, initiated the process of recognizing the hard work and exemplary work
ethics of deserving employees who greatly contributed to the success of the
Region’s various programs and activities.

After due deliberation, the following distinctions were given: Model Employee
Award, Innovator Award, Early Bird Award, Perfect in Flag Ceremony Award,
GAD Speaker Award and Distinguished Service Award. A Goal Achiever Award
was also given to RDO No. 96-Bongao, Tawi-Tawi, headed by RDO Rogelio C.
Dizon, for the praise-worthy feat of having achieved its Annual Collection Goal
for the taxable year 2018, as early as the month of August, and collecting an
excess of 53.38% of its assigned goal by the end of the year. The Awards Night
was conducted, simultaneously with the Christmas Party of the Region last
December 21, 2018.

Revenue Region 16
Cagayan De Oro City
The Region, headed by Regional Director Hermeno A. Palamine, unveiled the
Bureau’s annual tax campaign theme and logo “Salamat Sa Yo” to boost tax
collections last February 13, 2018 at the RR No. 16 Regional Office Building in
Bulua, Cagayan de Oro City. RD Palamine shared to the employees, taxpayers
and media present, that the focus of the campaign theme is recognizing the
contributions of taxpayers in nation-building. He also emphasized that the tax
campaign logo symbolizes a ripple effect which means that no matter how
small the contribution is, as long as it is correct, it will go a long way. He also
reminded all taxpayers to file their ITRs early to avoid the last-minute hassle
and possible penalties for late filing.

Revenue Region 17
Butuan City
Through the initiative of Regional Director Jose Eric C. Furia and Asst. Regional
Director Dolores R. Baygan, a Briefing on Risk Reduction and Disaster
Preparedness was conducted at Luciana Convention Center, Butuan City last
December 14, 2018.
The briefing aims to raise awareness on the importance of risk reduction
and disaster preparedness for unforeseen emergencies including impending
weather disturbances and other fortuitous events. It was in coordination of the
Office of the Civil Defense (NDRRMC) and the Caraga Center for Geo-Informatics.

47
 Revenue Region 18
Koronadal City
The Region identified the construction of its own Training Center Building, RDO
No. 109 Building and RDO No. 111 Building as a priority project. The Project
Contractor, R.G. SALANATIN CONSTRUCTION, INC., was given Notices to Proceed
with the three building constructions effective January 18, 2018.
The three-storey Training Center Building was completed on November 30, 2018,
while the construction of RDO No. 109 and RDO No. 111 is due for completion at
the end of the first semester of 2019. As of December 31, 2018, RDO No. 111 is
82.41% complete while RDO No. 109 is 72.65% complete.

Revenue Region 19
Davao City

Fifty-three (53) Revenuers of RR No. 19-Davao City, selected at random by CSC-

Region XI, were interviewed by CSC assessors during the PRIME-HRM On-Site
Interview and Assessment in May 2018. Through the concerted efforts of all
offices within the Region and the diligence of the key personnel who painstakingly
prepared for it, the Region successfully passed the assessment.

The CSC evaluators announced during the Exit Conference that RR No. 19 has
been found to have met Maturity Level 2 (Advanced) in PRIME-HRM as it garnered
100% mark in the four systems: Recruitment, Selection & Placement; Performance
Management System; Rewards & Recognition; and Learning & Development.

48
 RESOURCE MANAGEMENT

49
 PERSONNEL COMPLEMENT

Report on Personnel Complement

(As of December 31, 2018)
(By Functional Group)

Group National Office Regional Office Dummy Unit Total

Management Group 167 403 4 574

Assessment Group 339 3,095 1 3,435

Collection Group 198 2,664 2,862

Document Processing Group 83 325 408

Excise Group 207 207

Taxpayer Assistance Group 72 456 528

Compliance Group 27 27

Information Technology Group 180 8 188

Legal Group 85 226 1 312

Administrative Group 838 1,991 15 2,844

TOTAL 2,169 9,195 21 11,385

50
 COST OF OPERATIONS

Total expenditures for CY 2018 amounted to P8.398 Cost to collect for every P100 revenue stood at P0.43
Billion compared to last year’s P10.157 Billion. vis-à-vis the Bureau’s collection of P1,959.882 Billion
The main bulk of the operations cost came from during the year. The said cost is lower by P0.14 than
Personnel Services which comprised 62% of the last year’s cost to collect.
total obligations.

Breakdown of BIR Expenditures for CY 2018

(In Billion Pesos)

Particular Amount % Distribution

Personnel Services 5.225 62%

Maintenance and Other 2.743 33%

Operating Expenses

Financial Expenses .122 1%

Capital Outlay .308 4%

TOTAL 8.398 100%

NOTE: Actual Collection is based on Quarterly Report of Revenue and Other

Receipts ( FAR 5) as of December 31, 2018 by Revenue Accounting Division

Building Program
For 2018, three (3) Revenue District Offices • RDO 3 - San Fernando, La Union - A fund of
submitted the appropriate budget proposal for the P48.45 Million for the construction of 5-storey
acquisition of a building, to wit: building to be implemented on 2019. Building
plans has been prepared and finalized by the
• RDO 53A - Las Piñas - Submitted the request Building Committee for the bidding process to
for funds to Budget Division with complete be undertaken by the Regional BAC; and
documents relative to the proposed purchase
of land; • RDO 56 - Calamba City - A fund of P5.28 Million
has been approved for the acquisition of land.

51
STATEMENT OF FINANCIAL POSITION

52
53
54
55
TAX STATISTICS

56
 Table 1
BIR COLLECTIONS, GDP and TAX EFFORT
CY 2001-2018

(As of December 31, 2018)

BIR COLLECTIONS GDP AT CURRENT PRICES

TAX EFFORT
YEAR
GROWTH GROWTH (%)
AMOUNT AMOUNT
RATES (%) RATES (%)
2018 1,962,643 10.21 17,422,819 10.23 11.26
2017 1,780,803 13.01 15,806,359 9.16 11.27
2016 1,575,784 9.31 14,479,945 8.69 10.88
2015 1,441,572 8.00 13,322,041 5.35 10.82
2014 1,334,762 9.71 12,645,271 9.59 10.56
2013 1,216,661 15.01 11,538,410 9.25 10.54
2012 1,057,916 14.47 10,561,089 8.78 10.02
2011 924,146 12.34 9,708,332 7.83 9.52
2010 822,624 9.64 9,003,480 12.18 9.14
2009 750,288 (3.63) 8,026,143 3.95 9.35
2008 778,581 9.11 7,720,903 12.02 10.08
2007 713,596 9.32 6,892,721 9.91 10.35
2006 652,733 20.28 6,271,157 10.45 10.41
2005 542,697 15.92 5,677,750 10.88 9.56
2004 468,177 9.90 5,120,435 12.58 9.14
2003 426,010 7.97 4,548,102 8.33 9.37
2002 394,549 1.51 4,198,345 7.96 9.40
2001 388,679 7.73 3,888,801 8.60 9.99

Average 9.99 9.21 10.09

Note: Tax Effort is the ratio of BIR collection to Gross Domestic Product at Current Prices (GDPcu)

Source of GDPcu data: National Accounts of the Philippines (NAP), PSA

57
 Table 2
BIR SHARE IN NATIONAL GOVERNMENT TAX REVENUES
CY 2001-2018

(As of December 31, 2018)

BIR's SHARE OTHER AGENCIES’

NATIONAL IN NATIONAL SHARE IN
YEAR GOVERNMENT BIR COLLECTIONS GOVERNMENT NATIONAL
TAX REVENUES TAX REVENUES GOVERNMENT TAX
(%) REVENUE (%)

2018 2,565,812 1,951,850 76.07 23.93

2017 2,250,678 1,772,321 78.75 21.25
2016 1,980,390 1,567,214 79.14 20.86
2015 1,815,475 1,433,302 78.95 21.05
2014 1,720,116 1,334,762 77.60 22.40
2013 1,535,698 1,216,661 79.23 20.77
2012 1,361,081 1,057,916 77.73 22.27
2011 1,202,066 924,146 76.88 23.12
2010 1,093,643 822,624 75.22 24.78
2009 981,631 750,288 76.43 23.57
2008 1,049,189 778,581 74.21 25.79
2007 932,937 713,596 76.49 23.51
2006 859,857 652,733 75.91 24.09
2005 705,615 542,697 76.91 23.09
2004 604,964 468,177 77.39 22.61
2003 550,468 426,010 77.39 22.61
2002 507,637 394,549 77.72 22.28
2001 493,608 388,679 78.74 21.26

Note: CY 2015 - 2018 collection is net of tax refund

Source of National Government Tax Revenues: Cash Operations Report, BTr

58
 Table 3
VOLUME OF REMOVALS ON SELECTED EXCISABLE PRODUCTS
CY 2018
(As of December 31, 2018)
UNIT OF
EXCISABLE PRODUCTS VOLUME
MEASURE
I. TAXABLE REMOVALS
A. TOBACCO PRODUCTS
1. Cigarettes - local packs 3,788.16
- Imported packs 282.29
2. Cigars pieces 0.85
3. Inspection Fees
a) Cigarettes sticks 101,822.77
b) Cigars pieces 5.28
c) Other Tobacco Products kilos 80.41
B. ALCOHOL PRODUCTS
1. Distilled Spirits/Compounded liquors proof liters 457.52
2. Wines gauge liters 1.99
3. Fermented Liquors gauge liters 2,041.19
C. PETROLEUM PRODUCTS
1. From Own Production
a) Subject to Excise Tax
i. Domestic Consumption
Gasoline liters 3,186.67
Jet A-1 Fuel liters 224.93
Fuel Oil liters 621.83
Diesel liters 5,209.15
Kerosene liters 61.16
Bitumin kgs 9.05
LPG kgs 522.82
ii. Export
1) Export under product replenishment scheme
Gasoline (PRDM) liters 346.91
Naptha (PRDM) liters 254.84
Jet A-1 Fuel (PRDM) liters 935.56
Diesel (PRDM) liters 125.35
Fuel Oil (PRDM) liters 163.87
2) Export not under product replenishment scheme
Naptha liters 181.28
LPG/Propylene kgs 249.08
b) Not Subject to Excise Tax
i. Zero excise tax rate
1) Naptha liters 86.21
2) LPG/PROPYLENE liters 321.57

59
 UNIT OF
EXCISABLE PRODUCTS VOLUME
MEASURE
3) REFINERY FUEL & LOSS/(GAIN) liters 856.13
4) Refinery Fuel Gas (Own Use) liters 102.59
5) Refinery Fuel LPG (Own Use) kgs 3.06
ii. Deliveries to Tax Exempt
REF. FUEL & LOSS/(GAIN) liters (911.09)
NAPTHA kgs 23.84
CME liters 37.71
iii. Subject to VAT
Sulphur kgs 11.62
2. From Tax Paid Stocks
a) Bitumin kgs 28.83
b) Gasoline liters 16.74
c) Kerosene liters 3.98
d) Diesel liters 112.41
e) Propylene liters 3.96
f) IFO liters 143.31
g) Jet A-1 Fuel liters 160.02
h) LPG liters 6.67
i) Biothane liters 34.37
j) Asphalts kgs 68.31
D. MISCELLANEOUS PRODUCTS
1. Automobiles units 0.08
2. Non-Essentials units 25.58
E. SWEETENED BEVERAGES liters 4,419.55
II. EXPORT REMOVALS (RR No. 3-2008)
A. TOBACCO PRODUCTS
1. Cigarettes packs 1,388.50
2. Cigars pieces 4.43
B. ALCOHOL PRODUCTS
1. Compounded proof liters 1.26
2. Wines gauge liters 0.02
3. Fermented gauge liters 4.23
C. PETROLEUM PRODUCTS
1. Jet A-1 Fuel liters 935.56
2. Naptha liters 254.84
3. Gasoline liters 346.91
4. Fuel Oil liters 163.87
5. Diesel liters 125.35
D. NON - ESSENTIALS units 2.76
E. SWEETENED BEVERAGES liters 2.13

Source of Data on Volume of Removals: LT Performance Monitoring and Programs Division, LTS

60
 Table 4
COMPARATIVE INTERNAL REVENUE COLLECTIONS AND GOALS BY TAX TYPE
CY 2018 AND CY 2017
(As of December 31, 2018)
CY 2018 GOAL COLLECTION
CY 2017
TAX CLASSIFICATION ATTAINMENT GROWTH RATE
COLLECTION GOAL COLLECTION
(%) (%)
GRAND TOTAL 1,962,642.51 2,043,562.00 1,780,802.84 96.04 10.21
I. TAXES ON NET INCOME 1,035,649.89 1,024,934.88 1,028,640.32 101.05 0.68
AND PROFIT
1. Company, corporate 592,080.23 702,666.92 588,491.21 84.26 0.61
enterprise
a) Corporate Income Tax 302,984.17 296,778.42 257,636.09 102.09 17.60
b) Withholding at Source 289,096.07 405,888.50 330,855.12 71.23 (12.62)
2. Individual 386,369.54 261,458.95 390,851.09 147.77 (1.15)
a) Individual Income Tax 19,364.81 11,703.17 17,613.37 165.47 9.94
b) Withholding on Wages 231,036.21 196,280.46 317,739.10 117.71 (27.29)
c) Capital Gains Tax 22,582.14 25,229.73 20,839.26 89.51 8.36
d) Withholding at Source 113,386.39 28,245.59 34,659.36 401.43 227.15
3. Others 57,200.12 60,809.00 49,298.02 94.07 16.03
a) Bank Deposits 20,456.97 20,752.00 17,600.85 98.58 16.23
b) Tax on Government 36,743.15 40,057.00 31,697.17 91.73 15.92
Securities
II. EXCISE TAXES 290,612.27 332,804.00 209,492.61 87.32 38.72
1. Alcoholic Products 68,809.11 60,452.00 61,049.92 113.82 12.71
2. Tobacco Products 136,005.45 143,151.00 125,910.35 95.01 8.02
3. Petroleum Products 39,002.44 68,918.00 15,511.62 56.59 151.44
4. Miscellaneous Products 41,877.28 54,384.00 4,769.84 77.00 777.96
5. Mining/Mineral 4,917.99 5,899.00 2,250.88 83.37 118.49
Products
III. VALUE-ADDED TAX 358,168.63 435,877.00 365,235.33 82.17 (1.93)
IV. PERCENTAGE TAXES 114,037.67 97,686.00 76,601.06 116.74 48.87
1. Banks/Financial 30,793.80 37,377.00 31,871.32 82.39 (3.38)
Institutions
2. Insurance Premiums 2,292.79 1,655.00 1,599.64 138.54 43.33
3. Amusements 471.99 567.00 547.17 83.24 (13.74)
4. Other Percentage 80,226.74 57,626.00 42,017.49 139.22 90.94
5. Taxes on use of goods 252.36 461.00 565.44 54.74 (55.37)
or permission to perform
activities (Franchise Tax)
V. OTHER TAXES 164,174.05 152,260.12 100,833.53 107.82 62.82
1. Tax on Property 7,155.40 4,611.85 7,467.31 155.15 (4.18)
2. Documentary Stamp 139,168.18 132,865.59 85,915.93 104.74 61.98
Tax
3. Travel Tax - - -
4. Miscellaneous 17,850.47 14,782.68 7,450.28 120.75 139.59

Notes:

1. Goal based Notes: on Medium Term Revenue Program (MTRP) dated October 16, 2018
2. CY 2018 collections included Tax Refund amounting to P10,793 M
3. Collection by tax type is based on the 1209 reports submitted by the RDOs as of March 13, 2019

61
 Table 5
COMPARATIVE INTERNAL REVENUE COLLECTIONS AND GOALS IMPLEMENTING OFFICE
CY 2018 AND CY 2017
(As of December 31, 2018)

RANK BASED ON
CY 2018 Goal Collection
IMPLEMENTING CY 2017
Attainment Growth
OFFICE Collection (%) Collection Goal
Rate (%) Collection
Collection GOAL Growth Attainment

GRAND TOTAL 1,962,642.51 2,043,562.00 1,780,802.84 96.04 10.21

I. BIR OPERATIONS 1,916,695.62 1,994,573.00 1,744,082.26 96.10 9.90
A. LARGE TAXPAYERS 1,294,920.60 1,254,796.85 1,105,423.00 103.20 17.14 1 1 1
SERVICE
B. REVENUE REGIONS 621,775.02 739,776.15 638,659.26 84.05 (2.64)
1 - Calasiao, 12,477.28 6,682.42 14,688.62 74.79 (15.05) 11 11 12
Pangasinan
2 - Cordillera Adm 5,202.10 7,016.66 6,708.77 74.14 (22.46) 20 14 13
Region
3 - Tuguegarao, City 8,283.24 11,215.34 9,958.75 73.86 (16.82) 15 12 14
4 - City of San 28,340.45 34,055.02 31,452.26 83.22 (9.89) 6 10 6
Fernando,
Pampanga
5 - Caloocan City 26,464.98 30,975.98 26,294.84 85.44 0.65 8 4 4
6 - City of Manila 44,320.87 52,209.17 46,583.63 84.89 (4.86) 4 6 5
7 - Quezon City 142,795.72 171,681.39 143,521.48 83.17 (0.51) 3 5 7
8 - Makati City 190,425.20 203,835.68 171,259.05 93.42 11.19 2 2 2
9A - CaBaMiRo 33,907.35 42,714.80 35,656.42 79.38 (4.91) 5 7 9
9B - LaQueMar 25,771.18 32,917.77 27,352.15 78.29 (5.78) 9 8 10
10 - Legaspi City 7,700.24 10,941.90 10,801.30 70.37 (28.71) 16 20 18
11 - Iloilo City 9,443.75 13,658.07 12,303.83 69.14 (23.25) 13 15 20
12 - Bacolod City 9,308.88 13,224.33 11,197.05 70.39 (16.86) 14 13 17
13 - Cebu City 28,064.14 32,044.54 27,604.65 87.58 1.66 7 3 3
14 - Eastern Visayas 6,222.31 9,501.25 9,067.41 65.49 (31.38) 18 21 21
Region
15 - Zamboanga 5,264.97 7,471.16 7,287.71 70.47 (27.76) 19 19 16
City
16 - Cagayan de 9,652.46 12,866.17 13,035.04 75.02 (25.95) 12 17 11
Oro City
17 - Butuan City 4,302.73 5,931.50 5,950.18 72.54 (27.69) 21 18 15
18 - Koronadal City 7,213.62 0,392.45 9,720.45 69.41 (25.79) 17 16 19
19 - Davao City 16,613.54 20,440.58 18,215.69 81.28 (8.80) 10 9 8
II. NON-BIR
OPERATIONS 45,784.93 48,989.00 36,641.42 93.46 24.95

Notes:
1. Goal based on Medium Term Revenue Program (MTRP) dated October 16, 2018
2. CY 2017 included collections from taxpayers delisted in CY 2018
3. CY 2018 collection based on BTr-BIR RAD as of March 4, 2019

62
 Table 6
COLLECTION BY MANNER OF PAYMENT BY IMPLEMENTING OFFICE
CY 2018
(As of December 31, 2018)

IMPLEMENTING OFFICE VOLUNTARY PRELIMINARY/ DELINQUENT TOTAL

PAYMENTS FINAL ACCOUNTS COLLECTIONS
ASSESSMENTS

PERCENT DISTRIBUTION (%) 97.53 2.13 0.34 100.00

GRAND TOTAL 1,914,218.30 41,781.75 6,642.46 1,962,642.51
I. BIR OPERATIONS 1,868,271.41 41,781.75 6,642.46 1,916,695.62
A. LARGE TAXPAYERS SERVICE 1,268,423.04 23,622.84 2,874.72 1,294,920.60
B. REVENUE REGIONS 599,848.37 18,158.91 3,767.74 621,775.02
1 - Calasiao, Pangasinan 11,370.71 978.58 127.99 12,477.28
2 - Cordillera Adm. Region 5,059.61 136.33 6.16 5,202.10
3 - Tuguegarao, City 7,675.56 599.23 8.45 8,283.24
4 - City of San Fernando, 26,517.67 1,740.54 82.23 28,340.45
Pampanga
5 - Caloocan City 24,038.70 1,945.84 480.44 26,464.98
6 - City of Manila 43,088.74 1,224.73 7.41 44,320.87
7 - Quezon City 138,752.27 2,306.63 1,736.82 142,795.72
8 - Makati City 186,573.34 3,460.78 391.08 190,425.20
9A - CaBaMiRo 33,127.33 590.02 190.01 33,907.35
9B - LaQueMar 24,923.51 778.07 69.60 25,771.18
10 - Legaspi City 7,593.58 98.84 7.82 7,700.24
11 - Iloilo City 9,213.79 228.63 1.33 9,443.75
12 - Bacolod City 8,837.11 441.50 30.27 9,308.88
13 - Cebu City 26,801.64 938.45 324.04 28,064.14
14 - Eastern Visayas Region 5,459.11 712.37 50.82 6,222.31
15 - Zamboanga City 5,001.07 263.30 0.60 5,264.97
16 -Cagayan de Oro City 9,170.35 412.08 70.03 9,652.46
17 - Butuan City 3,974.53 304.13 24.07 4,302.73
18 - Koronadal City 6,902.58 296.20 14.84 7,213.62
19 - Davao City 15,767.17 702.66 143.71 16,613.54
II. NON-BIR OPERATIONS 45,784.93 - - 45,784.93
III. NON-TAX REVENUES 161.96 161.96

‘Rundate:
April 2, 2019

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 Table 7
PERCENTAGE INCREASE IN THE NUMBER OF REGISTERED TAXPAYERS
(As of December 31, 2018)
INCREASE/(DECREASE)
AS OF DECEMBER AS OF DECEMBER
PARTICULARS
2018 2017 Number Percent (%)

Corporate Taxpayers 1,047,818 932,937 114,881 12.31%

Taxable 794,203 692,435 101,768 14.70%
Head Office 497,074 469,270 27,804 5.92%
Branch 297,129 223,165 73,964 33.14%
Exempt 239,343 227,645 11,698 5.14%
Head Office 214,379 206,686 7,693 3.72%
Branch 24,964 20,959 4,005 19.11%
Non-Resident Foreign Corporations 14,272 12,857 1,415 11.01%
Head Office 14,215 12,816 1,399 10.92%
Branch 57 41 16 39.02%
Individual Taxpayers 20,793,432 19,260,058 1,533,374 7.96%

Compensation Income Earners 17,445,162 16,271,375 1,173,787 7.21%

Head Office 17,445,162 16,271,375 1,173,787 7.21
Branch 0 0 0
Professionals 593,115 400,622 192,493 48.05%
Head Office 546,804 358,890 187,914 52.36%
Branch 46,311 41,732 4,579 10.97%
Single Proprietorship 2,695,041 2,530,154 164,887 6.52%
Head Office 2,289,633 2,163,583 126,050 5.83%
Branch 405,408 366,571 38,837 10.59%
OFW/Non-Resident Citizen 60,114 57,907 2,207 3.81%
Head Office 60,114 57,907 2,207 3.81%
Branch 0 0 0
Estate 52,052 47,328 4,724 9.98%
Head Office 52,052 47,328 4,724 9.98%
Branch 0 0 0
Trust 4,065 3,771 294 7.80%
Head Office 4,046 3,750 296 7.89%
Branch 19 21 -2 -9.52%
Marginal Income Earners 203,719 194,912 8,807 4.52%
Head Office 202,955 194,695 8,260 4.24%
Branch 764 217 547 252.07%
One Time Taxpayer (ONETT) 4,816,472 4,396,556 419,916 9.55%
Head Office 4,816,472 4,396,556 419,916 9.55%
Branch 0 0 0
Others (Executive Order No. 98) 9,234,660 7,883,613 1,351,047 17.14%
Head Office 9,234,660 7,883,613 1,351,047 17.14%
Branch 0 0 0

Total of Head Offices 35,377,566 32,066,469 3,311,097 10.33%

Total of Branches 774,652 652,706 121,946 18.68%
GRAND TOTAL 36,152,218 32,719,175 3,433,043 10.49%

Inactive Taxpayers
Source Document: TAS Report No. 007 Report on Registration by Taxpayer Type from RDO
Head Office Branch Total
Note: There are 2,431,392 total number of inactive taxpayers extracted by ISG for validation of
Individual 1,729,543 221,943 1,951,486 RDO as of October 9, 2018

Non-Individual 372,630 107,276 479,906

TOTAL 2,102,173 329,219 2,431,392

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