BIR guidelines on NGA tax remittance via eTRA

Legal basis and related rules

The Order implements Revenue Regulations (RR) No. 1-2013, which prescribes the use of the Electronic Tax Remittance Advice (eTRA) System through eFPS for NGAs remitting withholding taxes.
The Order requires use of the TRA Debit Memo to document adjusting entries for erroneously generated eTRA.
The Order requires monitoring of NGAs’ compliance with Monthly Alphalist of Payees (MAP) under RR No. 2-2006, as amended by RR No. 1-2014.
Accounting treatment for collection recording follows the accounting entry guidance under DOF-DBM-COA Joint Circular 1-2000, as amended, particularly Section 5.1.
The Order amends, repeals, or revokes inconsistent issuances including RMO No. 16-2000 and RMO No. 2-2007.

Policy and objectives

All concerned BIR revenue offices must provide uniform procedures for implementation of RR No. 1-2013 on eTRA/eFPS remittance by all NGAs.
The Order establishes rules to ensure withholding taxes remitted through eTRA are timely and accurately posted in the Integrated Tax System (ITS) and credited as revenue in BIR’s books of accounts.
The Order requires reporting, verification, coordination, and monitoring to control and resolve erroneous eTRA remittances.
The Order provides a structured process for issuing TRA Debit Memo and making adjustments in ITS-CBRS only after required approvals.

Coverage: NGAs, offices, and system flow

The Order covers all concerned revenue offices, whether computerized or non-computerized, that implement NGAs remittance of withholding taxes via eTRA through eFPS.
The Order covers all National Government Agencies (NGAs), including their branches and extension offices, under the jurisdiction of the concerned revenue offices.
The Order covers NGAs that must be enrolled with eFPS and activated online by the concerned revenue office.
The Order covers BIR functional offices and systems involved in end-to-end processing, including RDO/LTS, NODC/RDCs, Security Management, DWSOD, MOMD, RAD, CPMD, Help Desk, and IT components ITS-CBRS and ITS operations.

Mandatory eFPS enrollment and access controls

Every concerned revenue office must issue a Notification Letter to all NGAs (including branches and extension offices) under its jurisdiction, informing them of the mandate to use eTRA through eFPS for remitting withholding taxes pursuant to RR No. 1-2013.
Each NGA must be enrolled with eFPS and activated on-line by the concerned revenue office within five (5) days from receipt of the NGA’s written request for enrollment.
The written request for enrollment must include the Taxpayer Identification Number (TIN) of the NGA and the complete address, including fund code(s), and the names of personnel authorized to use eFPS for filing withholding tax returns and remitting the corresponding withholding tax through eTRA.
Authorized personnel must secure corresponding access accounts to view/generate the Withholding Tax Collection Report of NGAs thru e-TRA under the reports facility of eFPS.
A request for revocation of access accounts must be filed immediately when the authority of authorized personnel to use eFPS-eTRA has been terminated.

Monitoring and correction of erroneous eTRA

Revenue personnel must closely monitor NGA remittances through the Withholding Tax Collection Report of NGAs thru e-TRA to detect erroneous entries, including scenarios where:
- The amount per system-generated TRA exceeds the withholding tax due and payable reflected in the electronically filed tax return (Scenario Code No. 4a).
- The sum of two or more eTRAs with different amounts exceeds the withholding tax due per the electronically filed tax return (Scenario Code No. 4b).
- The sum of eTRAs and cash payments through authorized banks exceeds the withholding tax due per the electronically filed tax return (Scenario Code No. 4c).
- Double or multiple system-generated TRAs have exactly the same withholding amount corresponding to only one electronically filed tax return (Scenario Code No. 4d).
- The amount per system-generated TRA is less than the withholding tax due reflected in the electronically filed tax return (Scenario Code No. 4e).
- No tax has been paid per the amount of tax due reflected in the electronically filed tax return (Scenario Code No. 4f).
Upon detection of errors, the concerned revenue offices and NGAs must follow these correction rules:
- The erring NGA must submit a written notice for validation and explanation; if the revenue office discovers the error first, it must coordinate with the NGA and require submission of the written notice.
- Validated errors must be corrected in ITS-CBRS and not through eFPS.
- ITS-CBRS correction must be effected only after the corresponding TRA Debit Memo is duly approved by the concerned Regional Director/ACIR, LTS.
- Only specified officials are authorized to personally cancel/modify erroneous entries affecting withholding tax in ITS-CBRS: the concerned Revenue District Officer, Chiefs of the Large Taxpayers Divisions (LTDs)–Makati and Cebu, and Chief, Large Taxpayer Document Processing Quality Assurance Division (LTDPQAD), following the ITS Operations Manual.
- No erroneous entry may be cancelled/modified in ITS-CBRS without prior verification and the duly approved recommending memorandum report submitted to the Regional Director or ACIR, LTS, and without the approved TRA Debit Memo.
One TRA Debit Memo must be issued for each erroneously generated eTRA on a per tax/form type and per transaction basis for the errors covered by the TRA Debit Memo mechanism.
Erroneous entries in eTRA that do not affect the amount of withholding tax are not covered by TRA Debit Memo correction.
The RDO/LTS Office must issue/transmit the appropriate copies of the duly approved TRA Debit Memo to the concerned revenue offices within twenty four (24) hours from receipt of the approved TRA Debit Memo from the Regional Director/ACIR, LTS.
For the LTS Office, the TRA Debit Memo copy intended for the Finance Division must be retained by the LTS Office and must form part of the docket.
A duly approved TRA Debit Memo is non-transferable and non-convertible to cash.
The Regional Director/ACIR, LTS must assign a serial number immediately after approval using this order:
- Revenue Region Number, for TRA Debit Memo issued by the concerned revenue region, and the term “LTS” for TRA Debit Memo issued by the LTS
- Calendar Year of approval
- RDO Number for processing by the concerned RDO and LTD Makati and Cebu, and the term “LTDPQAD” for processing by LTDPQAD
- Control Number with eight (8) characters
The control book maintained by the Regional Director/ACIR, LTS must contain the date of approval, serial number, NGA name/TIN/address, amount, TRA serial number and date, return period covered, tax type involved, and form type covered.
Necessary verification and, if appropriate, adjustments in ITS-CBRS to prevent overstatement must be made within five (5) days from receipt of the NGA’s written notice.
Adjustments in ITS-CBRS must never be made after the end of the calendar month of collection of the withholding taxes.
NGAs must be held to correct filing/payment timing under eTRA availability advisories:
- When eFPS downtime or unavailability occurs during the deadline period, BIR posts an advisory on the BIR website.
- Within twenty four (24) hours after issuance and posting of the subsequent advisory that informs availability of eFPS, NGAs must file withholding tax returns through eFPS and pay through eTRA; otherwise, the NGA is liable for penalties for late filing and payment of withholding tax.
- When downtime/unavailability occurs for meritorious reasons beyond the NGA’s control (including prolonged technical problems, force majeure, or fortuitous events), a separate issuance must address the matter.
Unused manual TRAs held by NGAs and BIR offices must be accounted and surrendered pursuant to the transitory provisions.

Reporting deadlines and reconciliation cycle

NODC and all concerned RDCs must generate monthly reports enumerated below and transmit them to the concerned RDOs/LTS Offices within the deadlines:
- Exception Report on Erroneous Entries Committed by NGAs (Annex “B”): not later than ten (10) days immediately after payment of the withholding taxes due through eTRA.
- Report of Adjustments To Erroneous Entries Committed by NGAs (Annex “C”): within twenty four (24) hours immediately after the end of the month of collection.
The Chief, Data Warehousing and Systems Operations Division (DWSOD) generates the exception report covering all RDOs and concerned LTS offices and transmits it to the Chief, MOMD within the same deadline for centralized monitoring.
RDO/LTS Offices must accomplish the Scenario Code column and the last three columns under the TRA report in Annex “C” to identify erroneous entries corresponding to issued TRADMs.
The accomplished Annex “C” report must be transmitted by RDO/LTS Offices to the Chief, MOMD together with copies of TRA Debit Memo within two (2) days from receipt of the report from NODC/RDCs.
MOMD must prepare a memorandum containing monitoring results and transmit it to the Chief, Revenue Accounting Division (RAD) for reconciliation and book adjustments not later than five (5) days after the end of the calendar month.
Finance and accounting reconciliation:
- RAD reconciles collections using the Withholding Tax Collection Report of NGAs through eTRA from eFPS, monthly/weekly regional finance/ LTDPQAD reports, MOMD monitoring memorandum results, and copies of duly approved TRA Debit Memo.
- RAD must transmit reconciled collection reports to the Bureau of Treasury (BTr) within eight (8) working days immediately after the end of the calendar month.
- RAD conducts reconciliation of eTRA-based collections with BTr.

Implementation duties by BIR units

RDO/LTS Office must:
- Receive NGA written requests for eFPS enrollment from the NGA, identifying authorized personnel, and coordinate for TIN validity issues with the NGA or the relevant RDC.
- Approve enrollment requests and activate eFPS access accounts of authorized NGA users pursuant to BIR rules.
- Issue written compliance notices to NGAs under its jurisdiction not yet using eFPS-eTRA, including an eFPS/eTRA briefing/training schedule and the requirement for written eFPS enrollment requests with TIN, address, fund code(s), and authorized personnel names.
- Conduct the scheduled briefings/trainings and ensure participants are properly informed and familiarized with appropriate handouts.
- Receive NODC/RDC reports, stamping “RECEIVED” with date and time and the receiving officer’s signature/initials.
- Monitor erroneous entries using eFPS Withholding Tax Collection Reports aided by the exception report.
- Conduct factual verification after receipt of NGA notices of erroneous entries, then prepare a written memorandum report and accomplish the TRA Debit Memo.
- Transmit recommending memorandum reports and supporting documents plus the accomplished TRA Debit Memo to the Regional Director/ACIR, LTS for review and approval.
- Issue/distribute TRA Debit Memo copies per the required distribution list and transmit the Annex “C” adjustments report (with TRA Debit Memo copies) to MOMD within two (2) days from receipt from NODC/RDC.
- Monitor NGA compliance with MAP under RR No. 2-2006 as amended by RR No. 1-2014, and undertake actions including penalties to ensure compliance.
Revenue District Officer/Chiefs of LTDs-Makati and Cebu/Chief LTDPQAD must:
- Review the written memorandum report on verification results.
- Sign or initial recommending approval when found in order.
- Cancel/modify ITS-CBRS entries upon receipt of the recommending memorandum report and the duly approved TRA Debit Memo, following ITS Operations Manual procedures.
- Forward the docket for file and reference.
Finance Division must:
- Receive TRA Debit Memo copies and stamp “RECEIVED” with date/time and receiving officer signature/initials.
- Generate Withholding Tax Collection Reports from eFPS-eTRA reporting facility.
- Record withholding tax collections in the Journal of Tax Remittance by Government Agencies (JTRGA) per DOF-DBM-COA Joint Circular 1-2000, as amended, including Section 5.1 accounting entries.
- Prepare a Journal Entry Voucher based on approved TRA Debit Memo copies and record in JTRGA.
- Submit every Tuesday a summary report of withholding tax remittances of all RDOs under the jurisdiction of revenue regional offices to RAD.
Regional Director/ACIR, LTS must:
- Receive recommending memorandum reports, supporting documents, and duly filled-up TRA Debit Memo copies with “RECEIVED” stamp, date/time, and receiving officer signature/initials.
- Evaluate and approve the recommending memorandum report and TRA Debit Memo.
- Assign serial numbers and record details in the control book immediately after approval.
- Transmit approved documents to concerned RDO/LTS offices for action.
MOMD must:
- Receive Annex “B” and Annex “C” documents and TRA Debit Memo copies, stamping “RECEIVED” with date/time and receiving officer signature/initials.
- Check ITS-CBRS adjustments using the report and TRA Debit Memo.
- If adjustments were not made, immediately require written explanation from the concerned revenue office.
- If no explanation is submitted or adjustment is not made after notice, submit a memorandum to the Commissioner of Internal Revenue or Deputy Commissioner for Operations through the Assistant Commissioner, Collection Service, listing non-compliant RDOs/LTS offices for action.
- Furnish details to the Chiefs, RAD and Collection Programs and Monitoring Division for performance evaluation and accounting adjustments.
RAD must:
- Receive monthly/weekly collection reports, MOMD monitoring memorandum, and approved TRA Debit Memo copies with “RECEIVED” stamp, date/time, and receiving officer signature/initials.
- Reconcile and record collection and adjustments for BIR books of accounts based on reconciled collections submitted by LTDPQAD.
- Transmit reconciled reports to BTr within eight (8) working days after month-end.
- Conduct reconciliation with BTr on eTRA vs. BTr collections.
CPMD must:
- Receive MOMD memorandum with “RECEIVED” stamp, date/time, and receiving officer signature/initials.
- Evaluate RDO/LTS performance based on the MOMD memorandum.
- Prepare evaluation reports with recommendations and submit to the Assistant Commissioner, Collection Service.
NODC/RDCs must:
- Receive written requests transmitted by revenue offices, stamp “RECEIVED” with date/time and receiving officer signature/initials, and process enrollment/access/account and TIN validation requests.
- Ensure BIR request forms for account creation/revocation are correctly and completely filled; return incomplete forms for correction.
- Validate NGAs’ declared TIN in ITS; return enrollment requests for correction when TIN is invalid.
- Transmit valid requests for account creation/revocation to Security Management Division.
- Activate enrollment requests for NGAs under non-computerized RDOs after validation.
- Generate and transmit Annex “B” and Annex “C” reports to RDOs/LTS offices within deadlines in the Order.
Security Management Division must:
- Receive requests for creation/revocation of access accounts from revenue offices, stamp “RECEIVED” with date/time and receiving officer signature/initials.
- Check completeness of request forms; return incomplete forms to NODC/RDCs.
- Process requests under existing rules/regulations/operations manual.
- Forward processed requests to the System Administration Section, DWSOD for implementation.
DWSOD must:
- Generate Annex “B” exception reports covering all RDOs and concerned LTS offices and transmit them to Chief, MOMD not later than ten (10) days immediately after payment of withholding taxes due through eTRA.
- Perform additional functions requested by concerned revenue offices.
BIR Help Desk must:
- Log all requests and issues (in writing, phone calls, or emails) from revenue offices and taxpayers.
- Forward logged requests/issues to concerned revenue offices for appropriate action/resolution.
- Monitor resolution actions taken by revenue offices for all logged issues.

Administrative penalties for violations

Strict compliance with the Order is required.
Any violation of the Order’s provisions is subject to administrative disciplinary action and must be dealt with accordingly.
Where eFPS remains unavailable and an NGA fails to file through eFPS and pay through eTRA after the advisory period requiring availability compliance, the NGA is liable for penalties for late filing and payment of the withholding tax.

Transitory provisions on unused manual TRAs

RDOs/LTS Offices must require NGAs under their jurisdiction to surrender all unused manual copies of TRA forms to the concerned RDOs/LTS Offices and submit a liquidation report in the format in Annex “D” within ten (10) days from receipt of the written notice to surrender.
RDOs/LTS Offices must conduct a physical inventory of unused manual TRA forms in their possession and prepare a report on received, issued, and unused manual TRA forms.
RDO reports plus unused forms must be transmitted to the Administrative Division of the Revenue Regional Office, and LTS reports plus unused forms must be transmitted to MOMD within ten (10) days after completion of the physical inventory and preparation of the report.
Regional Administrative Divisions must account and reconcile RDO surrendered reports and manual forms with their records, then transmit reconciled reports and unused forms to MOMD within ten (10) days after completion of reconciliation.
MOMD must reconcile with its records and forward reports and unused forms to the General Services Division (GSD) within ten (10) days for proper disposition following Commission on Audit rules and regulations.
If MOMD determines discrepancies, it must notify the concerned revenue office in writing to account for the discrepancy; if the revenue office fails to account, the discrepancy must be indicated in the report submitted to GSD.

Repeal and effectivity

RMO No. 16-2000, RMO No. 2-2007, and all inconsistent issuances are amended, repealed, or revoked accordingly.
The Order takes effect immediately.