Mandate NGAs to use eFPS for tax filing

Key definitions for eTRA/eFPS

Section 2.1 defines the Electronic Tax Remittance Advice (eTRA) System as the process of remitting taxes withheld by NGAs through the internet using the eFPS facility of the BIR in lieu of manual filing of TRA.
Section 2.2 defines the Electronic Filing and Payment System (eFPS) as the system developed and maintained by the BIR for electronically filing tax returns (including attachments, if any) and paying taxes due thereon through the internet.
Section 2.4 defines e-filing as the process of electronically filing tax returns (including attachments, if any) through the internet.
Section 2.5 defines e-payment as the process of electronically paying a tax liability through the internet banking facilities of Authorized Agent Banks (AABs).
Section 2.6 defines Authorized Agent Bank (AAB) as any bank certified by the Bangko Sentral ng Pilipinas (BSP), accredited to collect internal revenue taxes.
Section 2.7 defines Tax Remittance Advice (TRA) as a serially-numbered document prescribed by the DBM for NGAs to remit withheld taxes on funds coming from DBM, distributed by the BIR, to be accomplished and certified by the Chief Accountant and approved by the Head of the concerned NGA (or duly authorized representative), attached to every withholding tax return filed as payment for taxes withheld, and used as the basis for the BIR and the Bureau of Treasury (BTr) to record tax collection.
Section 2.8 defines Electronic Tax Remittance Advice (eTRA) as a TRA accomplished on-line via the BIR’s eFPS facility.
Section 2.9 defines NGAs as government agencies whose main fund/budget comes from the DBM based on the yearly budget allotment under the General Appropriations Act.
Section 2.10 defines Agency Code as the alphanumeric code provided by the DBM for each NGA.
Section 2.11 defines Department Code as the department’s unique identification provided by the DBM, expressed in numeric form.
Section 2.12 defines “Return” to include the specific BIR forms enumerated therein for withholding and related tax remittances, including BIR Form 1601-C, 1601-E, 1601-F, 1603, 1600, 1702, 1702Q, 2550M, 2550Q, 2551M, and 2000.

Issuing authority, notification, and NGA duties

These Regulations are issued as BIR Revenue Regulations No. 1-2013, dated January 23, 2013, titled “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)”.
Section 3 requires the BIR to issue a Notification Letter (Annex “A”) to all NGAs, including branches and extension offices nationwide that have their own disbursement functions, to inform them they are mandated to use eFPS for filing required returns and paying taxes due.
Section 4 requires the Head Office of the concerned NGA to provide the BIR the list of branches/field/extension offices nationwide with their business addresses, Agency Codes, and Taxpayer Identification Numbers (TINs).
Section 8 requires the concerned Revenue District Office (RDO) to conduct the mandatory eTRA briefing to the notified NGAs, and requires notified NGAs to attend the briefing on eTRA as a pre-requisite to enrollment in the eFPS.

eTRA enrollment and system usage requirements

Section 5 mandates that all NGAs notified through the Notification Letter must enroll in the eTRA system by first enrolling with the BIR’s eFPS facility using the detailed procedures in Annex “B”.
Section 5 requires enrollment submission to the registered Revenue District Office of 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).
Section 5 requires NGAs to also enroll with any AAB where they intend to pay through the bank debit system, in cases of remittance of withheld taxes on funds not coming from DBM or for payment of internal revenue taxes through cash and not through TRA.
Section 6 mandates that NGAs enrolled by virtue of notification must file electronically through eFPS the returns enumerated in Section 2.12, whether or not payment uses eTRA.

Mandatory e-filing and payment timing rules

Section 7 provides due dates for electronic filing of returns by specific BIR form and timing relative to the withholding period or taxable year:
- BIR Form 1601-C: on or before the 10th day following the month in which withholding was made; except December: on or before January 15 of the succeeding year.
- BIR Form 1601-E: on or before the 10th day following the month in which withholding was made; except December: on or before January 15 of the succeeding year.
- BIR Form 1601-F: on or before the 10th day following the month in which withholding was made; except December: on or before January 15 of the succeeding year.
- BIR Form 1603: on or before the 10th day of the month following the quarter in which withholding was made.
- BIR Form 1600: on or before the 10th day of the month following the month in which withholding was made.
- BIR Form 1702: on or before the 15th day of the fourth month following the close of the taxable year (calendar or fiscal).
- BIR Form 1702Q: within sixty (60) calendar days following the close of each of the first three (3) quarters of the taxable year (calendar or fiscal year).
- BIR Form 2550M: on or before the 20th day after the close of the month.
- BIR Form 2550Q: on or before the 25th day after the close of the taxable quarter.
- BIR Form 2551M: on or before the 20th day after the close of the month.
- BIR Form 2000: on or before the 5th day after the close of the month when the transaction subject to DST occur.
Section 7 prohibits using the “staggered filing” allowed for withholding agents/taxpayers enrolled in eFPS facility for NGAs; NGAs must electronically file following the due dates in the table.
Section 7 requires payment of the tax due on the same day the return is e-filed by accomplishing on-line the Tax Remittance Advice (TRA).

When eTRA is used and branch-code rule

Section 7 limits the use of eTRA to NGAs’ tax liabilities arising from the use of funds coming from DBM.
Section 7 requires NGAs’ tax liabilities arising from use of funds other than those coming from DBM (based on the NGA Annual Budget as approved under the GAA) to be paid using cash through the bank debit system of the AAB where the NGA has enrolled for this purpose.
Section 7 requires a separate tax return to be accomplished for those tax liabilities because a particular fund requires a separate branch code.
Section 7 requires the NGA, if the fund has no separate branch code, to secure the branch code from the concerned RDO following existing procedures in registration.

Reporting and processing by BIR and BTr

Section 9 requires the BIR, through its Information Systems Group, to generate reports of NGAs’ remitted withheld taxes using TRA based on cutoff dates to be defined under a separate revenue issuance.
Section 9 requires submission of the generated report by the BIR’s Revenue Accounting Division to the Bureau of Treasury (BTr).
Section 9 provides that the BTr uses the submitted report to record and credit the remittances as the BIR’s tax collections.

Pilot roll-out and continuation rules

Section 10 directs that for the pilot roll-out of eTRA, the Withholding Tax Division conducts eTRA briefing with the selected NGAs.
Section 10 requires NGAs not given the Notification Letter under Section 3 to continue filing returns manually, accomplishing the appropriate tax returns and attaching corresponding TRAs before the documents are received by their registered RDOs.
Section 10 requires RDOs to process such manual tax returns and report the collections through TRAs following existing procedures.

Repeal, effectivity, and administrative coverage

Section 11 repeals, modifies, or amends any revenue regulations, memoranda or circulars, or other issuances inconsistent with these Regulations.
Section 12 provides that these Regulations take effect after fifteen (15) days following publication in the Official Gazette or in a newspaper of general circulation.