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General Course for Revenue Officers BPRTC 300 Slide 1TMD
BASIC PROCEDURES
& REQUIREMENTS FORTAXPAYERS CONCERN
Module 300
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General Course for Revenue Officers BPRTC 300 Slide 2TMD
Objectives
Know the basic procedures and requirements for the
registration of new taxpayers;
Identify the different BIR Forms;
Know the filing of different returns and payment oftaxes;
Name and describe the basic functions of thedifferent divisions in the BIR Regional Office; and
Know how to claim tax refund and get tax clearance.
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General Course for Revenue Officers BPRTC 300 Slide 3TMD
Registration of New Taxpayers
Person subject to internal revenue shall register to theappropriate Revenue District Officer:
within 10 days from date of employment or
on or before the commencement of business or before payment of any tax due, or upon filing of a return, statement or declaration as
required in the NIRC
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General Course for Revenue Officers BPRTC 300 Slide 4TMD
List of Major Fomrs (ENCS)
FORM NO. FORM TITLE
0605 Payment Form
1600 Monthly Remittance Return ofValue-Added Tax and OtherPercentage Taxes Withheld
(Under RAS 1051, 7649, 8241 and8424)
1600-WP Remittance Return of PercentageTax on Winnings and Prizes Withheld
by Race Track Operators
1601-C Monthly Remittance of Income TaxesWithheld on Compensation
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General Course for Revenue Officers BPRTC 300 Slide 5TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1601-E Monthly Remittance Return ofCreditable Income Taxes Withheld(Expanded) (Except for transactionsinvolving onerous transfer of realproperty classified as ordinary
asset)
1601-F Monthly Remittance Return of FinalIncome Taxes Withheld
1602 Quarterly Remittance Return ofFinal Income Taxes Withheld (OnInterest Paid On Deposits And YieldOn Deposit Substitutes/Trusts/Etc.)
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General Course for Revenue Officers BPRTC 300 Slide 6TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1603 Quarterly Remittance Return ofFinal Income Taxes Withheld (OnFringe Benefits Paid to EmployeesOther Than Rank and File)
1604-E Annual Information Return ofCredible Income TaxesWithheld(Expanded)/IncomePayments Exempt from WithholdingTax
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General Course for Revenue Officers BPRTC 300 Slide 7TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1604-CF Annual Information Return ofIncome Taxes Withheld onCompensation and FinalWithholding Taxes
1606 Withholding Tax Remittance Return(For Onerous Transfer of RealProperty Other Than Capital AssetIncluding Taxable and Exempt)
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General Course for Revenue Officers BPRTC 300 Slide 8TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1700 Annual Income Tax Return (forIndividuals Earning CompensationIncome-Including Non-Business/Non-Professionals
Related income)
1701 Annual Income Tax Return (ForSelf-Employed, Professionals,Estates and Trusts - Including
Those with both Business andCompensation Income)
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General Course for Revenue Officers BPRTC 300 Slide 9TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1701Q Quarterly Income Tax Return (ForSelf-Employed, Professionals,Estates and Trusts - Includingthose with both Business and
Compensation Income)
1702 Annual Income Tax Return (ForCorporations and Partnerships)
1702Q Quarterly Income Tax Return (ForCorporations and Partnerships)
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General Course for Revenue Officers BPRTC 300 Slide 10TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1703 Annual Income Information Return(For Non-Resident Citizens/OCWsand Seamen - For Foreign-SourcedIncome)
1706 Capital Gains Tax Return (ForOnerous Transfer of Real Propertyclassified as Capital Asset - bothTaxable and Exempt)
1707 Capital Gains Tax Return (ForOnerous Transfer of Shares ofStock Not Traded Through theLocal Stock Exchange)
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General Course for Revenue Officers BPRTC 300 Slide 11TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1707-A Annual Capital Gains Tax Return(For Onerous Transfer of Shares ofStock Not Traded Through TheLocal Stock Exchange)
1701-A1F Account Information Form (For Self-Employed, Estate and Trust)
1702-A1F Account Information Form (ForCorporations and Partnerships)
1800 Donor's Tax Return
1801 Estate Tax Return
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General Course for Revenue Officers BPRTC 300 Slide 12TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2000 Documentary Stamp TaxDeclaration/Return
2304 Certificate of Income Payment NotSubject to Withholding
Tax (Excluding CompensationIncome)
2305 Certificate of Update of Exemptionand of Employer's and Employees
Information
2306 Certificate of Final Income TaxWithheld
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General Course for Revenue Officers BPRTC 300 Slide 13TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2307 Certificate of Credible Tax Withheldat Source
2316 Employer's Certificate ofCompensation Payment/Tax
Withheld (For CompensationPayment With or Without TaxWithheld)
2550M Monthly Value-Added Tax
Declaration
2550Q Quarterly Value-Added Tax Return
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General Course for Revenue Officers BPRTC 300 Slide 14TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2550Q Quarterly Value-Added Tax Return
2551 Quarterly Percentage Tax Return(Except Transactions InvolvingShares of Stock Listed and Traded
Through The Local StockExchange, and Percentage TaxPayable Under Special Laws)
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General Course for Revenue Officers BPRTC 300 Slide 15TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2552 Percentage Tax Return (ForTransactions Involving Shares ofStocks Listed & Traded ThroughThe Local Stock Exchange or
Through Initial and/or SecondaryPublic Offering)
2553 Return of Percentage Tax PayableUnder Special Laws
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General Course for Revenue Officers BPRTC 300 Slide 16TMD
Filing & Payment as to Kind of Taxes
Persons liable to pay any internal revenue tax shall file areturn covering all transactions of the return period.
Payment of returns with either of the following - AuthorizedAgents Bank, a Revenue Collection Officer, duly authorized
City or Municipal treasurer within the jurisdiction of theRevenue District Office.
In case of no payment, returns should be filed directly to theRegional District Office where the taxpayer is registered.
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General Course for Revenue Officers BPRTC 300 Slide 17TMD
THE ASSESSMENT DIVISION AND
THE REFUND PROCESS
Functions of the Assessment Division
Develop regional programs, standards and other measures necessaryto implement the assessment prescribed by the National Office;administer, monitor and evaluate said assessment programs andrecommend improvements thereto;
Provide liaison and coordination with other regions when investigation/audit involves assistance from district offices outside the region;
Evaluate training needs of Revenue Officers on assessment matters;
Review audit reports coming from RDO and Special InvestigationDivision (SID) which do not involve tax fraud criminal prosecution;
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General Course for Revenue Officers BPRTC 300 Slide 18TMD
THE ASSESSMENT DIVISION AND
THE REFUND PROCESS
Functions of the Assessment Division
Review and act on all letters of protests, requests for reinvestigationand similar communications;
Prepare, approve and monitor/ issuance of preliminary assessment
notice and assessment notice/ demand letter;
Supervise and coordinate submission of assessment reports byRDOs and consolidate such reports; and
Perform such other related functions as may be assigned.
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General Course for Revenue Officers BPRTC 300 Slide 19TMD
THE DIFFERENT SECTIONS IN THE
ASSESSMENT DIVISION
Assessment Programs and Performance AuditSection
Review and Evaluation Section
Tax Billing Section
Regulatory Operations Monitoring Section
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General Course for Revenue Officers BPRTC 300 Slide 20TMD
HOW TO CLAIM TAX REFUND
Requirements in Claiming Tax Refund (RMO 39-94
dated May 6, 1994)
Income tax return for the year
TIN I.D. Card
Valid employees ID issued by employer
Authorization (if authorized representative)
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General Course for Revenue Officers BPRTC 300 Slide 21TMD
TAX REFUND FLOW CHARTADMINISTRATIVE DIVISION
Receive TRP
TRP Summary/ Diskette, NFT, SAA
ASSESSMENT DIVISION
Certify expenses necessary and
lawful
FINANCE DIVISON
Batch TRP check/ match.Draw UV to effect receipt of SAA Prepare DA
ASSISTANT DIRECTOR
Approve TRP Summary
Prepare DA
FINANCE DIVISION
Certify availability of funds.
Draw UV to effect debit accounts by LBP
LANDBANK
Issue Debit Advice to BIR
CC Administrative DivisionFund Transfer (IOM)
ADMINISTRATIVE DIVISION
Mail TRN after five (5) days after DA
Taxpayer
LANDBANKPU Issued Refund
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General Course for Revenue Officers BPRTC 300 Slide 22TMD
THE SPECIAL INVESTIGATION DIVISION
Function of the Assessment Division
Develop regional program, plans, standards, and other measuresnecessary to implement the tax fraud investigation and intelligenceprograms described by the National Office;
Develop criminal tax cases and conduct intelligence operation to
detect, prevent and neutralize and individuals and organizationsinvolved in syndicated crimes, smuggling and use of fake BIRaccountable forms;
Conduct or undertake the investigation and/ or recommendreinvestigation of tax fraud cases referred by the Intelligence andInvestigation Division and cases referred by the RDO;
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General Course for Revenue Officers BPRTC 300 Slide 23TMD
THE SPECIAL INVESTIGATION DIVISION
Conduct liaison activities with other intelligence, police andinvestigative agencies for the conduct of arrests raids and seizures;
Coordinate and integrate all intelligence activities of the district officesof the region;
Prepare and submit regional accomplishment report or tax fraudinvestigation and intelligence operations to the National Office;
Conduct the reinvestigation of administrative cases against personnelwithin the region involving light offenses and on those referred by the
Intelligence and Investigation Service (IIS) ; and
Perform such other related functions as may be assigned.
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General Course for Revenue Officers BPRTC 300 Slide 24TMD
THE SPECIAL INVESTIGATION DIVISION
Different Sections in the SID are:
Intelligence Operation Section Tax Fraud Investigation Section
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General Course for Revenue Officers BPRTC 300 Slide 25TMD
THE COLLECTION DIVISION AND
BIR CLEARANCE
Functions of the Collection Division
Develop regional programs, plans, standards and other measuresnecessary to implement the collection programs and accounting ofrevenues prescribed by the National office;
Monitor and evaluate the implementation of the said collection
programs and recommend improvements thereto to the NationalOffice;
Maintain liaison with the accredited banks and ascertain compliancewith the remittance procedures;
Maintain records of accounts receivable within the region and issuenotice of delinquency and Tax Clearance Certificates;
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General Course for Revenue Officers BPRTC 300 Slide 26TMD
THE COLLECTION DIVISION AND
BIR CLEARANCE
Execute the final judgment on appealed cases;
Coordinate and oversee the sale of forfeited properties;
Set-up the control and accounting of receivable accounts;
Prepare and issue Tax Debit memo (TDM) based on Tax Credit
Certificates (TCC) submitted by taxpayers within the jurisdiction ofthe region;
Monitor all matters pertaining to acquired assets within the region;
Supervise and coordinate submission of reports on collections andon registration and regulatory operations;
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General Course for Revenue Officers BPRTC 300 Slide 27TMD
THE COLLECTION DIVISION AND
BIR CLEARANCE
Evaluate offers of compromise settlement of delinquent accounts;
Prepare and issue ATCA on cases settled by compromise includingthose under suspense file and recommendations for closure; and
Perform such other related functions as may be assigned.
Different Sections in the Collection Division are:
Collection Programs and Performance Audit Section
Receivable Accounts Monitoring Section Withholding Agents Monitoring Section
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General Course for Revenue Officers BPRTC 300 Slide 28TMD
HOW TO GET TAX CLEARANCE
Secure and accomplish application form and have it notarized
For individual applicants:
1. Present latest income tax returns2. Present authorization letter for representative
For single proprietors/ partnerships/ corporations:Present:
1. Latest income tax returns
2. VAT registration certificate3. Monthly/ Quarterly/ VAT returns4. Authorization letter for representative
Required fees
1. Documentary Stamp P30.002. Certification Fee 15.00
Taxpayers record up-date duly received by RDOs concerned.
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General Course for Revenue Officers BPRTC 300 Slide 29TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Functions of the Legal Division
Serve as the legal counsel in cases involving assessment andcollection of internal revenue taxes, fees, etc., within the region;
Evaluate situations referred by district offices concerning applicationof a revenue ruling, technical advice or post-review memorandum and
if appropriate, refer them to the National Office;
Issue clearances and/ or legal clarifications based on establishedprecedents;
Elevate to the National Office, cases for rulings or opinions, whichinvolve national policies or where there are no establishedprecedents;
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General Course for Revenue Officers BPRTC 300 Slide 30TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Recommend action on disputed assessments to authorized officials
and review and recommend actions on offers of compromise;settlement of assessments involving question of law; refer the sameto the Legal Service for review, evaluation and final approval of theCommissioner;
Evaluate evidence of any case before judicial action, civil or criminal,is instituted and prepare corresponding pleadings and memoranda;
Assist the Provincial Prosecutors or State Prosecutors of theDepartment of Justice in criminal prosecution of violators of the
National Revenue Code(NIRC) and related statutes;
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General Course for Revenue Officers BPRTC 300 Slide 31TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Process claims for tax refund/credit of erroneously paid or illegallycollected taxes involving questions of law(s); Refer the same to the
Legal Service for review, evaluation and final approval of theCommissioner;
Review and evaluate for the approval of the Regional Director thereports and recommendations submitted by the RDOs regarding theuse of computerized books of accounts applications for taxexemptions such as VAT exemption from corporate income tax underSection 26 of NIRC, registration of Retirement Plan under RA No.4917, registration of Donee Institutions under Batas Pambansa No.45
and application for registration under the Law on Senior Citizen; and
Perform such other related functions as may be assigned.
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General Course for Revenue Officers BPRTC 300 Slide 32TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Different Sections in the Legal Division are:
Litigation and Prosecution Section
Appellate and Personal Inquiry Section
Law Section