1) National government agencies, government owned and controlled corporations, and local government units engaged in proprietary functions must apply for an Authority to Print receipts and invoices through the online system. 2) Government officials designated as withholding agents, such as agency heads, treasurers, and accountants, are responsible for registering the agency as a withholding agent, withholding and remitting taxes correctly and on time, and filing required tax returns and reports. 3) Failure to comply with withholding and remittance requirements can result in penalties such as surcharges, fines, and imprisonment for responsible officials.

1. BIR Updates Applicable to Gov’t.
Agencies/Offices/GOCCs
/LGUs
Republic of the Philippines
Department of Finance
BUREAU OF INTERNAL REVENUE
REVENUE REGION 2
Cordillera Administrative Region
Atty. Eduardo T. Bajador
Regional Director
February 7, 2013

2. RR 18-2012
October 22, 2012
Regulations in the Processing of Authority to Print
(ATP) Official Receipts, Sales Invoices, and Other
Commercial Invoices using the On-line ATP System
and Providing for the Additional Requirements in the
Printing Thereof

3. RR 18-2012
October 22, 2012
Highlights:
When a public corporation or a local government unit acts in its
proprietary character, it is regarded as having the rights and obligations of
a private corporation. (Government Proprietary Function)
For Gov’t. entities to be taxable, the ff requisites must concur:
1) the gov’t entity concerned must not be performing as
essential government function; and
2) it must be engaged in similar business, industry, or
activity as performed by other ordinary taxable corporations.
All income realized from or received in the exercise of its proprietary
functions shall be subject to income tax and business taxes in the same
manner as other private corporations similarly situated.

4. RR 18-2012
October 22, 2012
Policies and Guidelines
- All persons, whether private or government, who are
engaged in business shall secure/apply from the BIR
an Authority to Print principal and supplementary
receipts/invoices.
National Government Agencies (NGAs), Government
Owned and Controlled Corporation (GOCCs) and Local
Government Units (LGUs) engaged in proprietary
functions shall apply for ATP in the printing of their
principal and supplementary receipts/invoices.

5. RR 18-2012
October 22, 2012
- For newly registered taxpayers, the ATP shall be
secured simultaneously with the Certificate of
Registration (COR)
- The taxpayer-applicant shall apply for an ATP and
submit the required documents , using the On-line
ATP System.
- As a general rule, all applications for ATP of the
Head Office (HO) and all its branches shall be done
on-line.

6. RR 18-2012
October 22, 2012
- There shall be one application for ATP per establishment
(HO or Branch) which shall be filed with RDO/LT Office
concerned where the HO is registered.
- The approved ATP shall be valid only upon full usage
of the inclusive serial numbers of principal and supplementary
receipts/invoices reflected in such ATP or five (5) years from
issuance of the same, whichever comes first.
- Only BIR Accredited Printers shall have the exclusive
authority to print principal and supplementary
receipts/invoices.

7. RR 18-2012
October 22, 2012
Transitory Provision
All unused /unissued principal and supplementary
receipts/invoices printed prior to the effectively of these Regulations,
shall be valid until June 30, 2013.
A taxpayer with expiring ATP for its invoices/receipts (principal
and supplementary) shall apply for a new ATP not later than Sixty (60)
days prior to actual expiry date. All unused/unissued
principal/supplementary receipts/invoices shall be surrendered to the
RDO where the taxpayer is registered on or beofre the 10th day after
the validity peiord of the expired recipts/invoices for destruction. An
inventory listing of the same shall also be submitted.

8. RR 15-2012
December 3, 2012
Regulations on the Accreditation of
Printers as a prerequisite to their
Printing Services of Official
Receipts, Sales Invoices and Other
Commercial Receipts and/or
Invoices

9. RR 15-2012
December 3, 2012
Policies and Guidelines
- the application for accreditation of printers shall be in the
form a Sworn Statement duly executed by the applicant-printer.
- all printers registered as engage in the business of
printing principal and supplementary invoices/receipts shall
be required to undergo the accreditation process.
- all applications for accreditation of printers shall be
submitted using the Online System of Accreditation of
Printers
- a list of all duly-accredited printers per RDO shall be posted
and regularly updated at the BIR website (www.bir.gov.ph) for
ready reference by the public.

10. RR 15-2012
December 3, 2012
Policies and Guidelines – continue…
- only BIR Accredited Printers shall have the exclusive authority to print
principal and supplementary receipts/invoices
- A taxpayer may file a petition for revocation of the printer’s
Certificate of Accreditation in meritorious cases.
- discovery of printing of spurious Ors/Sis shall be a ground for
immediate revocation of Certificate of Accreditation/dis- accreditation of
the accredited printers. The discovery thereof shall be a cause of
immediate business closure under “OPLAN KANDADO” and the
filing of a criminal case against t he accredited printers.

11. RR 15-2012
December 3, 2012
Policies and Guidelines – continue…
- The Certificate of Accreditation shall be subject for revocation if the
following findings have been discovered:
a. Tampered Certificate of Accreditation
b. Any misrepresentation on the Sworn Statement submitted by
the printer
c. Valid stop filer cases against printer for the last three (3) months
of operation.
d. Unsettled delinquent accounts against printer for the last three
(3) months
e. Requiring a minimum number of booklets from their
client/customer
f. Failure to submit reports as required
g. Any violation(s) of the accredited printer on the policies and
procedures

12. RR 15-2012
December 3, 2012
Effectivity Clause:
Effective once the online system for Accreditation of
Printers becomes available upon release of a Revenue Issuance
announcing its availability.

13. RMC 68-2012
November 5, 2012
Condonation of Tax Liabilities of
Local Water Districts
(RA No. 10026)

14. RMC 68-2012
November 5, 2012
Republic Act (R.A.) No. 10026
“All unpaid taxes or any portion thereof due from a local
water district for the period starting August 13, 1996 until the
effectivity date of this Act are hereby condoned by the
government subject to the following conditions:
1) that the BIR, after careful review of the financial
statements of a water district applying for condonation
of taxes due, established its finanial incapacity, after providing
for its amaintenance and operating expenses, debt servicing
and reserved fund, to meet such obligations for the period
stated herein.

15. RMC 68-2012
November 5, 2012
Republic Act (R.A.) No. 10026
continue….
2) that the water district availing of such condonation
shall submit to Congress of the Philippines a program of
internal reforms, duly certified by the local water utilities
administration, that would bring about its economic and
financial viability.
NOTE:
The condonation is not automatic and that a local water district must
meet certain requirements before it can avail of the tax incentives.

16. RMC 68-2012
November 5, 2012
APPLICATION
The applicant must file with the Technical working
Committee on abatement through the Assistant Commissioner
– Collection Services stating the requirements prescribed under
RMC 68-2012.
PRESCRIPTION
All applications for condonation must be filed on or
before April 30, 2013. No application for condonation may
be processed after the said date.

17. RR 1-2013
January 23, 2013
Further Expands the Coverage of
Taxpayers Required to File Tax
Returns and Pay Taxes Through the
Electronic Filing and Payment System
(eFPS) to Include National government
Agencies (NGAs) Mandatorily
Required to use the Electronic Tax
Remittance Advice (eTRA)

18. RR 1-2013
January 23, 2013
ISSUANCE OF A NOTIFICATION LETTER
The Bureau of Internal Revenue (BIR) shall issue a Notification
Letter to all National Government Agencies, including their branches
and extension offices located nationwide which have their own
disbursement functions, to inform them that they are mandated to use
the eFPS in filing the required returns and in paying the taxes due
thereon.

19. RR 1-2013
January 23, 2013
RESPONSIBILITY OF THE NATIONAL GOVERNMENT AGENCY’S
The Head Office of the concerned NGA shall be responsible in
providing the BIR with the list of all its branches/field or extension
offcies located nationwide which have their own disbursement
functions, with information as to their respective business addresses,
agency codes and taxpayer identification numbers (TINs).

20. RR 1-2013
January 23, 2013
ENROLLMENT FOR SYSTEM USAGE
All NGAs notified are required to enroll first with the BIR’s
eFPS facility and they shall be required to submit to the Revenue
District Office where they are registered the names of two (2)
authorized officers designated to file the required tax returns pursuant
to Section 52 (A) of the Tax code (e.g. Head of Office and chief
Accountant/Disbursement Officer).

21. RR 1-2013
January 23, 2013
RETURNS COVERED BY ENROLLMENT
NGAs mandated to file electronically thru the issuance of the
Notification Letter shall file their tax returns via the eFPS, whether or
not payment shall make use of eTRA.
TIME OF FILING OF RETURNS AND PAYMENT OF TAX DUE
Usually add five days on the due dates of manual filing of
returns. For complete list of deadlines please refer to RR 1-2013 and
RMC 23-2012 available on our website (www.bir.gov.ph).

22. RMC 23-2012
February 14, 2012
Reiteration of the Officials and
Employees of government Offices
for the Withholding of applicable
taxes on certain Income Payments
and the Imposition of Penalties for
Non-Compliance Thereof

23. HISTORY
EXECUTIVE ORDER N0 651
February 16, 1981
REQUIRING GOVERNMENT OFFICES, AGENCIES AND
INSTRUMENTALITIES TO COMPLY STRICTLY WITH
THE LAWS AND REGULATIONS ON WITHHOLDING OF
TAXES

24. EXECUTIVE ORDER
N0. 651
”directing all ministries, bureaus, offices, agencies and
instrumentalities of the Philippines and provincial, city or municipal
governments, as well as Government Owned and Controlled Corporations
to comply strictly with the requirement for withholding and remittance of
internal revenue taxes imposed by the NIRC.”
“every ministry, agency, office, or instrumentality shall submit to
the Bureau of Internal Revenue the name and position of the employee or
officer charged with the duty to withhold and remit taxes, not later than
sixty (60) days from the issuance of this Order and any change of
designation thereafter shall be reported within ten (10) days from the date
thereof.”
“any employee or officer of any government office or agency,
charged with the duty to withhold and remit internal revenue taxes within
the time prescribe, is personally liable to surcharges and interests arising
from delinquencies in withholding and remittance of taxes, in addition to a
fine of not less than 5,000 pesos and an imprisonment of not less than one
year nor more than two years.”

25. WHO ARE THE RESPONSIBLE GOVERNMENT
OFFICIALS (RMO 8-2003 – March 3, 2003)
1) Local Government Units:
a) Provinces - Governor, Provincial Treasurer and
Provincial Accountant
b) Cities - Mayor, City Treasurer and City Accountant
c) Municipalities - Mayor, Municipal Treasurer and Municipal
Accountant
d) Barangays - Barangay Captain and Barangay Treasurer

26. WHO ARE THE RESPONSIBLE GOVERNMENT
OFFICIALS (RMO 8-2003 – March 3, 2003)
2) National Government Agencies – Heads of Offices ( officials
holding the highest position) and Chief accountants or
other persons holding similar positions in departments,
bureaus, agencies and instrumentalities officially
designated as such by the head office.
3) Government Owned or Controlled Corporation (GOCC) –
Heads of Offices (officials holding the highest position) and chief
accountants or other person holding similar positions officially
designated as such by the head of office.
4) Other Government Offices – Heads of Offices (official
holding the highest position) and chief Accountants or other
persons holding similar positions officially designated as
such by the head of office.

27. WHO ARE THE RESPONSIBLE GOVERNMENT
OFFICIALS (RMO 8-2003 – March 3, 2003)
5) Government Offices with Decentralized accounting
System and/or Branches/Regional Offices/District Offices
Registered with their respective Revenue district Offices
Heads of such Offices/Regional/District Offices (officials
holding the highest position) and Chief Accountants or other
persons holding similar positions officially designated as such by
the head of office. (example: a) in case of BIR Regional Offices,
it shall be the Regional Director and Chief, Finance Division and
b) in case of DECS, the Regional Director and Chief, Budget &
Finance Division).

28. RESPONSIBILTY OF
AGENCIES/OFFICES/GOCC’s/LGU’s
(Memorandum – ACIR Collection Service July 22,2004)
We are all directed to:
- identify and submit an updated name of personnel charged with the
duty to deduct, withhold and remit taxes withheld on Compensation,
Expanded, Final and Gov’t Money Payments (GMP) on Percentage
and Value added Tax including Franchise Tax.
- submit the names of the incumbents of such positions to the
Commissioner of Internal Revenue thru the Revenue District Office
within thirty (30) days from receipt of such notification. Any change of
such incumbents shall be reported, and names of the replacement
submitted within ten (10) days from such change or replacement.
Note: The designated official shall be personally liable for the additions to the tax
prescribed in Chapter 1, Title X of the National Internal Revenue Code, as
amended, for violations of withholding tax laws and regulations.

29. RESPONSIBILTY OF
AGENCIES/OFFICES/GOCC’s/LGU’s
(Memorandum – ACIR Collection Service July 22,2004)
ANNEX “B-1”
REGISTRATION OF OFFICIAL DESIGNATED AS WITHHOLDING AGENTS
FOR THE GOVERNMENT PURSUANT TO EXECUTIVE ORDER NO. 651

30. ANNEX “B-1”
REGISTRATION OF OFFICIAL DESIGNATED AS WITHHOLDING AGENTS
FOR THE GOVERNMENT PURSUANT TO EXECUTIVE ORDER NO. 651
____________
D a t e
The Commissioner
Bureau of Internal Revenue
National Office Bldg., Diliman Quezon City
ATTENTION: The Revenue District Officer
Revenue District Office No. 55
San Pablo City
Gentleman:
In compliance with Executive Order No. 651, as implemented by Revenue Regulations No. 1-87, as amended by Revenue Regulation
Nos. and 10-97, we are submitting the names of officials designated as withholding agents who are charged with the duty to withhold and remit taxes for:
_____________________________________ ______________________________
(NAME OF GOVERNMENT OFFICE) (ADDRESS)
NAME OF WITHHOLDING AGENT POSITION
Name: __________________________________ A.
Address: __________________________________
TIN: ___________________________________________
Head of Agency
Mayor
Governor
B.
Name: __________________________________
Address: __________________________________
TIN: ___________________________________________
Chief, Accountant
City Treasurer
Municipal Treasurer
Provincial Treasurer
Barangay Captain
Barangay Treasurer
DATE OF DESIGNATION: ________________________________
MONTH DAY YEAR
These officials are personally liable for the additions to the tax prescribed in Chapter 1, Title X of the National Internal
Revenue Code as amended.
Very truly yours,
__________________________________
SIGNATURE OVER PRINTED NAME
______________________
Position

31. Responsibilities of the Government
Officials/Employees as Withholding
Agents (RMC 23-2012)
1. To register the government Office as withholding agent
2. To require employees to submit the duly accomplished
Application for Registration (BIR Form 1902) for newly
hired employees and BIR Form 2305 for updates within
ten (10) days upon commencement of employment or
after the change in exemption.
3. To withhold the correct amount of Tax
4. To remit on time taxes with held.

32. Responsibilities of the Government
Officials/Employees as Withholding
Agents (RMC 23-2012)
5. To issue the corresponding certificates of taxes
withheld
6. To do the year-end adjustment
7. To timely file with the BIR, the annual information
return and alphabetical lists of employees/payees, if
applicable.

33. Responsibilities of the Government
Officials/Employees as Withholding
Agents (RMC 23-2012)
PENALTIES
1. Additions to the Tax – Interest, surcharges,
compromise penalties (Sec. 251, 249, 248, 252,
275)
CRIMINAL LIABILITIES
Sec. 255, 256, 272 and 275 of NIRC

34. RR 5-2012
April 2, 2012
Binding Effect of Rulings Issued
Prior to Tax Reform Act of 1997

35. RR 5-2012
April 2, 2012
COVERAGE
- All rulings issued prior to January 1, 1998 will no longer have
any binding effect. Consequently , these rulings cannot be invoked as
basis for any current business transaction/s. Neither can these
rulings be used as basis for securing legal tax opinions/rulings.
REPEALING CLAUSE
- All existing rules and regulations or parts thereof which are
inconsistent with the provisions of these Regulations are hereby
amended , repealed or revoked accordingly.

36. RMC 22-2012
Clarification on the
Implementation of RR 5-2012

37. RMC 22-2012
April 2, 2012
1. All BIR Rulings issued prior to Jan 1, 1998 are not to
be used as precedent by any taxpayer as a basis to
secure rulings for themselves for current business
transaction/s or in support of their position against any
assessment.
2. All BIR rulings issued prior to Jan 1, 1998 are not to be
used by any BIR action lawyer in issuing new rulings
for request for rulings involving current business
transaction/s.

38. RMC 22-2012
April 2, 2012
3. However, BIR Rulings issued prior to Jan 1, 1998 remains to be
valid but only:
a. To the taxpayer who was issued the ruling; and
b. Covering the specific transaction/s which is the
subject of the same ruling
4. BIR Rulings issued prior to Jan 1, 1998, shall remain valid as
mentioned above, unless expressly notified of its
revocation or unless the legal basis in law for such
issuance has already been repealed/amended in the
current Tax Code.