BUREAU OF INTERNAL REVENUE

1. BUREAU OF INTERNAL REVENUE BIR eServices Presented by: Mr. Victor O. Baylon Head, RDC Mindanao

2. The Electronic Filing and Payment System (eFPS) BUREAU OF INTERNAL REVENUE

3. eFPS Overview An e-service from the Bureau of Internal Revenue that allows/ gives taxpayers a paperless tax filing experience and convenient payment of tax dues utilizing the power of the Internet

4. BUREAU OF INTERNAL REVENUE Coverage of eFPS • eFPS is the first e-Service offered by the BIR to taxpaying public in June 2001 • Mandatory for Large Taxpayers in August 2002 • RR 5-2004 mandates eFPS to top 10,000 private corporation registered across ITS RDOs (duly identified under RR 17-2003) in filing/paying for tax returns beginning August 1, 2004 • RMC 71-2004 mandates eFPS to Insurance Companies and Stock Brokers • RR 3-2005- mandates eFPS to all prospective participants to any government procurement of goods and services • RR 4- 2005 strongly advising bank borrowers and co-makers to file ITRs/other required info using eFPS • RMO 10-2006 – mandates Government Agencies and Instrumentalities including LGUs

5. BUREAU OF INTERNAL REVENUE Coverage of eFPS • RR 10-2007 mandates eFPS to (1) Corporations with paid-up capital stock of P10M & above (2) Corporations with complete computerized system (3) Taxpayers joining public bidding pursuant to EO No. 398 as implemented by RR 3-2005 • RR 14-2008 increased mandated taxpayers to top 20,000 private corporations • RR 6-2009 mandated taxpayers under top 5,000 individual taxpayers

6. Features of the eFPS BUREAU OF INTERNAL REVENUE • Fast • Pre-fills information • Automatic calculations • Instant filing confirmations • Easy • Online guides and FAQs • Pop-up messages • Convenient • Available 24 x 7 through the BIR website (www.bir.gov.ph) • e-Filing deadlines are given additional grace period as specified in RR 26-2002 • e- payment due dates are 5 days later than manual filing • Anywhere, anytime • Secure • Data transmission is encrypted • Employs multi-level access control: username / password and challenge questions • Free • No enrollment fee • No usage fee • No postage / courier expenses

7. BUREAU OF INTERNAL REVENUE Tax Returns given additional grace period (Filing) per RR 26-2002 and 5 days Payment grace period from Manual payment due date • Monthly Withholding Taxes except withholding on VAT and Percentage Taxes • Monthly VAT Declaration (2550M) • Monthly Percentage Tax (2551M)

8. Tax Return Forms available in eFPS • 0605 Payment Form • 1600 Monthly Remittance Return of Value - Added Tax and Other Percentage Taxes Withheld • 1600WP Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track • 1601C Monthly Remittance Return of income Taxes Withheld on Compensation • 1601E Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) • 1601F Monthly Remittance Return of Final Income Tax Withheld • 1602 Monthly Remittance Return of Final Income Taxes Withheld • 1603 Quarterly Remittance Return of Final Income Taxes Withheld • 1604CF Annual Info Return of Income Taxes Withheld on Compensation and Final Withholding Taxes • 1604E Annual Info Return of Creditable Income Taxes (Expanded)/Income Payments Exempt from Withholding Taxes • 1700          Annual Income Tax Return • 1701 Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts

9. Tax Return Forms available in eFPS • 1701Q Quarterly Income Tax Return for Self-Employed Individuals, Estates and Trusts • 1702 Annual Income Tax Return for Corporation and Partnerships • 1702Q Quarterly income Tax Return • 1704          Improperly Accumulated Earning Tax Return • 2000 Documentary Stamp Tax Declaration/Return • 2200A Excise Tax Return for Alcohol Products • 2200AN Excise Tax Return for Automobiles and Non-Essential Goods • 2200M Excise Tax Return for Mineral Products • 2200P Excise Tax Return for Petroleum Products • 2200T Excise Tax Return for Tobacco Products • 2550M Monthly Value-Added Tax Declaration • 2550Q Quarterly Value-Added Tax Return • 2551 Quarterly Percentage Tax Return • 2551M Monthly Percentage Tax Return • 2552 Percentage Tax Return (for stock transactions) • 2553 Percentage Tax Return for Special Laws

10. BUREAU OF INTERNAL REVENUE Pre-requisites for Availment • Registered with BIR-Integrated Tax System (ITS) • Registration data uploaded to BIR eFPS server • Board Resolution or Secretary’s Certificate or Certification signed by President/ Treasurer/Head of Office (for Branch Offices) designating the corporation’s authorized personnel (maximum of 3 users per TIN) who shall enroll for system usage • Online enrollment to eFPS • Enrollment to chosen Authorized Agent Banks’ e-Payment System

11. BUREAU OF INTERNAL REVENUE User Requirements • Computer with internet connection • Computer with modem • Telephone line (for dial-up connection) • Internet connection (i.e DSL, Leased line, Cable Internet. Wireless Broadband) provided by an Internet Service Provider (ISP) • 256MB RAM or Higher (recommended) • Internet browser • Microsoft Internet Explorer ver. 6 or higher • Mozilla Firefox 2.0 or 3.0 (recommended) • Monitor that supports at least 800x600 resolution • Acrobat Reader version 8 or higher • Email account

12. BUREAU OF INTERNAL REVENUE AABs for eFPS

13. eSubmission is developed to enable taxpayer to submit their Monthly Alphalist of Payees (MAP) and Summary Alphalist of withholding Tax, Summary List of Sales, Purchases and Importations (SLSPI) attachments electronically via email/web facility.

15. Supply the necessary information

17. What is eRegistration? • eREGISTRATION offers a convenient on-line internet access to taxpayer registration services. • Issuance of Taxpayer Identification Number (TIN) online for individual taxpayers, • Payment of Registration Fee (RF) for both newly-registered and existing taxpayers, • and issuance of Certificate of Registration (COR) for Single Proprietors, Professionals and Mixed Income Earners who are newly-registered online.

18. Functionalities of the e-REGISTRATION system • Basic Taxpayer Data Validation • TIN Issuance for Single Proprietors, Professionals, Mixed Income Earners, Employees, and Taxpayers per E.O. 98 • RDO Verification of Taxpayer Data • Payment of Registration Fee (RF) for new eTIN Registrants and Existing Business Taxpayers • Generation and Printing of Certificate of Registration (COR) • Update of Old TIN and Manual Entry of Pre-Generated TIN • Reports Generation • System Administration

19. Specific User Type: • Self employed Individuals • Single Proprietors • Professionals • Mixed Income Earners • Third Party Users • Employers • Authorized Government Agencies / Instrumentalities (GAI) • Other Authorized Users • RDO users

22. Policies Specific to self employed individuals: • Valid email account • BIR confirmation link expires after 3 days • Initial ARF can be paid • On-line thru link to be sent by email • Thru Authorized Agent Banks of RDO • G-cash • Revenue Collection Officer • Succeeding ARF payments to be made on or before January 31 of every year • Print out of Confirmation Page / ARF proof of payment copy furnished to RDO • Attendance to briefing / orientation for new registrants • Failure to pay ARF / proceed to RDO to complete registration will subject the on-line applicant to TCVD • activities of RDO

23. Policies Specific to employers: • On-line registration of employer user; Employees cannot apply, only thru employer • Only one user per employer; if identified user is unavailable, transfer account to new user • Mandatory registration for the following employers: • Large Taxpayers (LT) • EFPS registered • Taxpayer Account Management Program (TAMP) corporations • Employer Status in ITS is active as Withholding Agent for Compensation Earners (WC) • In case of multiple employment, main employer shall apply for the TIN on-line • Employer checks if employee has TIN, verifies declarations in Form 1902 ;

24. eAccreg is an online accreditation, registration of CRM/POS Machines and/or other business machines generating receipts/invoices.

25. PART I ACCREDITATION OF MACHINES/SOFTWARE TSPMD 5

26. Documentary Requirements (Section 7.4 of RR 11-2004) Proof of current annual Registration Fee payment (BIR Form 0605); Photocopy of Certificate of Registration from BIR; Photocopy of Certificate of Registration from SEC (for corporation) or DTI (for Single Proprietorship); A sample receipt generated by the machine legibly showing the data required enumerated in this regulation; A sample receipt showing the reading of the daily sales and accumulated grand total recorded in the machine; A demo or evaluation copy of the software to be used in the actual operation of the POS machines; The system description and design/structure of the machine being submitted for accreditation; The master reset key (CRM)/password (POS), whichever is applicable, that can be used in reading sales data of all units of the particular model being accredited; Machine brochure; and Operating manual. TSPMD 9

27. COMPOSITION OF THE ACCREDITATION BOARD (Section 8 of RR 11-2004) Regional Office/Revenue District Office (RDO) HEAD: Concerned Revenue District Officer ASST. HEAD: Chief, CONED of the nearest RDC Members: Representative of the concerned RDC Representative of Assessment Section of RDO Representative of TSS of RDO TSPMD 15

28. Functional & Technical Evaluation Checklist (Annex ‘E’) Last Page First Page TSPMD 16

29. PROCEDURES ON ACCREDITATION NMAB/RMAB evaluates application for accreditation • if approved, RDO encodes details of application for accreditation using the eAccReg System. Then the system generates Certificate of Accreditation for issuance to Accredited Supplier. • if disapproved, return documents to supplier w/ letter of denial informing them that they have to re-configure their machine/system to comply with BIR requirements. TSPMD 17

30. PART II REGISTRATION OF SALES MACHINES FOR ISSUANCE OF ‘PERMIT TO USE’ TSPMD 25

31. MODE OF APPLICATION FOR REGISTRATION • Application thru e-mail • Application by going to the BIR office TSPMD 26

32. REGISTRATION by TYPE of SALES MACHINES • Accredited Machines – accredited supplierregisters the machines within five (5) days from date of sale of machine and before actual use by taxpayer-user. • Non-Accredited Machines – taxpayer-user registers the machines bought from non-accredited supplier within five (5) days from acquisition and before its actual use. • Special Purpose Machines – taxpayer-userregisters the machines bought within five (5) days from acquisition and before its actual use. TSPMD 27

33. ELECTRONIC REGISTRATION of Accredited Sales Machines BIR Web (www.bir.gov.ph) Accredited Supplier • downloads the file attachment (supplier.csv); • fill-up form; • sends it to bir_eaccreditation_113@bir.gov.ph TSPMD 29

34. supplier.csv TSPMD 30

35. TSPMD 32

36. TSPMD 33

37. ELECTRONIC REGISTRATION of Accredited Sales Machines BIR • Checks e-mail on application for registration of machines by accredited supplier; • Validates csv file sent by accredited supplier and process application of machines by accredited supplier using the eAccReg System (system generates a ‘Permit to Use’ [Final]). A Permit Number and Machine Identification Number (MIN) are indicated for each machine registered; • Sends e-mail notification to accredited supplier that machines being registered has been issued Permit Number(s) and MIN(s) and the hard copy of the permit is now ready for pick-up; • Prints the ‘Permit to Use’ of machines applied for registration, using the eAccReg System, and Issue the ‘Permit to Use’ to Accredited Supplier. Accredited Supplier • Receives e-mail notification; • Picks-up ‘Permit to Use’ for issuance to taxpayer-user TSPMD 34

38. ELECTRONIC REGISTRATIONof Non-Accredited Sales Machines BIR Web (www.bir.gov.ph) Taxpayer-user • downloads the file attachment • (taxpayer-user.csv); • fill-up form; • sends to bir_eaccreditation_004@bir.gov.ph TSPMD 44

39. taxpayer-user.csv TSPMD 45

40. ELECTRONIC REGISTRATIONof Non-Accredited Sales Machines BIR • Checks e-mail on application for registration of machines by taxpayer-user; • Process application of machines by taxpayer-user using the eAccReg System (system generates a ‘Provisional Permit to Use’). A Permit Number and Machine Identification Number (MIN) are indicated for each machine registered; • Sends e-mail notification to taxpayer-user that machines being registered has been issued Permit Number(s) and MIN(s) and the hard copy of the permit is now ready for pick-up; • Prints the ‘Permit to Use’ of machines applied for registration, using the eAccReg System, and Issue the ‘Permit to Use’ together with the decal to taxpayer-user. Taxpayer-user • Receives e-mail notification • Go to BIR to pick-up ‘Provisional Permit to Use’ together with the decal TSPMD 47

41. POST EVALUATION OF NON-ACCREDITED MACHINES BIR evaluates machines with issued ‘Provisional Permit to Use’ (List of Provisional Permits is available in the eAccReg System) within three (3) months from granting the permit. • If compliant – issue Final Permit to Use using the eAccReg System. • If not compliant: • 1. Issue ‘Letter Warning’ and inform taxpayer to re-configure his machines • to comply with BIR requirements. • 2. After 2 weeks of non-compliance, ‘Provisional Permit to Use’ will be • revoked by issuing a ‘Letter of Revocation’ and effect the cancellation of • the issued ‘Provisional Permit to Use’ using the eAccReg System. TSPMD 53

42. ELECTRONIC REGISTRATIONof Special Purpose Machines BIR Web (www.bir.gov.ph) Taxpayer-user • downloads the file attachment (special purpose machines.csv); • fill-up form; • sends to bir_eaccreditation_004@bir.gov.ph TSPMD 59

43. special purpose machines.csv TSPMD 60

44. ELECTRONIC REGISTRATIONof Special Purpose Machines BIR • Checks e-mail on application for registration of special purpose machines by taxpayer-user; • Validates submitted csv file and process application of machines by taxpayer-user using the eAccReg System (system generates a ‘Permit to Use Special Purpose Machine’). A Permit Number is indicated for each machine registered; • Sends e-mail notification to taxpayer-user that machines being registered has been issued Permit Number(s) and the hard copy of the permit is now ready for pick-up; • Prints the ‘Permit to Use Special Purpose Machines’ of machines applied for registration, using the eAccReg System, and Issue the Permit to taxpayer-user. Taxpayer-user • Receives e-mail notification; • Go to BIR and pick-up ‘Permit to Use Special Purpose Machine’ TSPMD 62

45. Sticker for Special Purpose Machines (Annex “P” of RMO 10-2005) TSPMD 65

46. eMail Online Application to: RDO 112, Tagum City – eaccreg_112@bir.gov.ph RDO 113, West Davao City – eaccreg_113@bir.gov.ph RDO 132, East Davao City - eaccreg_132@bir.gov.ph RDO 114, Mati City - eaccreg_114@bir.gov.ph RDO 115, Digos City - eaccreg_115@bir.gov.ph

47. Computerized Accounting System Application (RMO 29-2002)

48. Requirements: • BIR Application Form 1900 • Company Profile • Photocopy of COR • Photocopy of current REG Fee (0605) • Photocopy of previously issued permit • Location map • Inventory of approved unused OR/Invoice • List of branches that will use the system • other docs needed by the CSET

49. Requirements: • Technical requirements: • Application name and software used • Function and features of the system • System flow • Process flow • Back-up frocedure, Disaster recovery plan • Sworn Statement (annex C) and proof of ownership • List of sample reports and correspondences • System demo (if needed) • other docs needed by the CSET

50. Computerized System Evaluation Team: • Representative from: • Taxpayer Service Section – District Office • Assessment Section – District Office • Revenue Data Center - Mindanao