BIR Productivity Incentive Fund Rules

Revenue Targets: Official, approved revenue goals for BIR used in budget formulation, excluding projected revenues from unenacted new measures
Increase in Total Revenue Collections: Actual incremental collections of BIR between two immediate preceding years adjusted to exclude tax refunds, based on Bureau of the Treasury Cash Operations Report

Fund activates only if there is a year-on-year increase in BIR collections
The immediately preceding year's revenue target must be met and certified by the Department of Finance

Fund amount cannot exceed what Congress authorizes (maximum P100 million)
If increase in revenue collections is less than authorized amount, the fund is limited to actual incremental collections

Incentive is in lieu of other productivity or similar benefits
Any previously granted benefits under similar schemes will be deducted from this incentive

Allocation based on BIR's Performance Evaluation System
Performance system approved by Civil Service Commission under relevant executive orders
Implementing guidelines to be issued and approved by Internal Revenue Commissioner and Secretary of Finance

Unused amounts of the Fund lapse at year-end; cannot be carried over to next year
Fund is treated as receipts automatically appropriated as per the General Appropriations Act

BIR prepares Incentive Plan and submits it to the Office of the President with recommendations of Secretary of Finance
Submission must include certifications of actual revenue collections from Bureau of Treasury and revenue target attainment from Department of Finance
BIR requests special budget release from Department of Budget and Management supported by President’s approval and said certifications
BIR required to report Fund utilization and status to Secretary of Finance with copy to Department of Budget and Management

Accounting shall comply with existing accounting and auditing rules and regulations