Taxationary 2016-12-22T11:34:22+00:00

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1951 Agreement. The Economic and Technical Cooperation Agreement Between the Government of the United States of America and the Government of the Philippines. (RMC 40-2007)
2305 Batch File Validation Module. Is a validation module of BIR Form 2305 for the CSV file generated by the employer using their own extract program. (RMC 59-2015)
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accessorial charges. Is the standard charges billed by international air or sea carriers to the forwarders and, in turn, billed (or subsequently passed on) by the forwarders to their clients at cost. (RMC 35-2006)
account enrollment. Is a web facility allowing users of eAccReg to create an account including those with manually issued Machine Identification Number (MIN). (RMC 45-2014)
account owner. Is a taxpayer who has successfully enrolled in the eDST System, and who shall be responsible for maintaining the Company’s eDST account balance, as well as creating (if necessary) the Branch User(s) for and in behalf of the Company. (RMC 51-2010)
account threshold. Is the value indicator of an eDST Account which, when reached, enables the System to notify the concerned Account Owner that payments must be made immediately, and thereby preventing the Account from reaching a “zero balance”. (RMC 51-2010)
accountable official/ employee. Any official or employee to whom the property has been entrusted for official use and who shall be liable for the money value of such equipment, furniture, or semi- expendable property in case of loss or improper use. (GAAM- Sec. 494, Vol. I). (RMO 20-2016)
accountable property. The property issued to Revenue Officials and Employees for official use. (RMO 20-2016)
accounting cycle. Starts with source documents (invoices, bills, paid checks, loan documents, bank deposit slips, and bank statements) proceeding to the cash receipts and cash disbursements journal, working paper summary and ending with the tax return. (RAMO 1-2000)
Accounts Payable (APs). Are the valid and legal obligations of NGAs/OUs, for which, goods/services/projects have been delivered/rendered/completed and accepted, regardless of the year when these obligations were incurred. (RMC 25-2014)
Accounts Receivable (AR). 1. Refers to the amount of tax due from a taxpayer who failed to pay the same within the time prescribed by law for its payment arising from (1) a self-assessed tax, or (2) a deficiency tax assessment issued by the Bureau. (RMO 71-2010) 2. Refers to an outstanding tax liability of a taxpayer arising from a tax assessment or any unpaid delinquent account which is considered final, executory, and demandable. (RMO 10-2014)
accreditation. A process whereby a printer/taxpayer applies with the Bureau of Internal Revenue (BIR) for pre-qualification to engaged in the printing of principal and supplementary receipts/invoices. (RR 15-2012)
accreditation number. Is a number issued to an accredited supplier for a particular machine model/brand. It is a combination of unique six (6) digit system-generated control number, prefixed by RDO Code and TIN; and suffixed by a two (2) digit check number for tracking additional brands/models. (RMO 10-2005)
Accredited Importers with BIR-ICCs and BIR-BCCs. All importers and custom brokers (individuals, partnerships, corporations, cooperatives, associations,[whether taxable or non-taxable]), unless otherwise exempted, who/which secured accreditation from the BIR following existing revenue issuances, including prospective importer required to secure the said BIR-ICC and BIR-BCC.(RR 10-2014)
accredited or recognized employee union. An employee union accredited pursuant to Executive Order No. 180 and its implementing rules and regulations. (RMO 38-2009)
accredited printers. A duly constituted agents of the BIR in the printing of principal and supplementary receipts/invoices and included in the List of Accredited Printers of Principal and Supplementary Receipts/Invoices published in the BIR website. (RR 6-2014)
Accredited Tax Agents (ATAs). Are also known as accredited tax practitioners, who are engaged in tax practice and are required to apply for accreditation prior to their performance of the following services in behalf of their client-taxpayers: (a) preparation, certification, audit and filing of returns, information returns or other statements required by Code of Regulations; (b) preparation of requests for ruling, petitions for reinvestigation, protests, requests for refund of tax credit certificates, compromise settlement and/or abatement of tax liabilities and other official paper or correspondence with the BIR and other similar or related activities; and (c) appearances in meetings, conferences, and hearings before any office of the BIR officially in behalf of a taxpayer or client in all matters relating to client’s rights, privileges, or liabilities under laws or regulations administered by the BIR. (RMO 24-2013)
Accumulated Reserves. Commonly referred to as the General Reserve Fund. It is the amount of accrued sum of money annually retained and deducted from the net surplus which is not intended for allocation and distribution to the members, usually deposited in the bank for the protection of and stability of the cooperative. (RR 14-2007)
Accumulation of Leave Credits. The incremental acquisition of unused leave credits by an official or employee. (RMO 15-2004)
acknowledgement number. Refers to control number issued by the AAB to the BIR to confirm that tax payment has been credited to the account of government or recognized as revenue (internal revenue tax collection) by the Bureau of Treasury. (RR 9-2002)
acknowledgement receipt. Refers to the receipt issued to the taxpayer for file no-payment returns and non-cash payment returns. (RMO 8-2013)
acquired assets. Refer to personal properties subject of an auction sale under Section 209 of the Tax Code, as amended, that were purchased by the government pursuant to Section 212 of the Tax Code, as amended, as well as the real properties subject of an auction sale under Section 213 of the Tax Code, as amended, that were declared forfeited in favor of the government pursuant to Section 215 of the Tax Code, in partial or full satisfaction of the delinquent taxpayer’s tax liabilities where, in case of real properties, the one (1)-year redemption period has already lapsed. (RMO 13-2014)
Acquirer. Is an AAB accepting payment of taxes and other applicable fees thru credit/debit/prepaid cards on behalf of the BIR, processes such tax payments of the taxpayers-cardholders, and remits the same directly to the Bureau of the Treasury (BTr). (RR 3-2016)
acquisition cost. Include the purchase price, tax assumed and the commission paid. (RR 6-2008)
Administrative and Human Resource Management Division (AHRMD). Division in the regional office responsible for maintaining records of issued equipment, semi- expendable properties on the basis of PAR/ICS and returned serviceable properties based on acknowledgment receipt as well as the monitoring of accountabilities over the properties and the processing of clearances of revenue personnel of their property accountabilities. (RMO 20-2016)
administrative office. An office where records of sales and/or cash collections are kept which may form part of the head office or branch. (RR 11-2008)
Administrative Unit (AdminU). Unit in the revenue district office responsible for maintaining records of issued equipment, semi- expendable properties on the basis of PAR/ICS and returned serviceable properties based on acknowledgment receipt as well as the monitoring of accountabilities over the properties and the processing of clearances of revenue district personnel of their property accountabilities. (RMO 20-2016)
administrator. 1. Executor of the decedent, or if there is no executor or administrator appointed, qualified, and acting within the Philippines, then any person in actual or constructive possession of any property of the decedent. (Sec 91 (C), NIRC) 2. An entity which had been pre-qualified by the concerned Regulatory Authority in accordance with the PERA Rules, and accredited by the Bureau of Internal Revenue (BIR) in accordance with the provisions of these Regulations. (RR 17-2011)
Adopt-a-School Program. A program which allows the private entities to assist a public school in a particular aspect of its educational program within an agreed period. (RR 10-2003)
adult-passenger. A passenger who has attained his twelfth birthday. (RR 15-2002)
Advance Pricing Arrangement (APA). Is an arrangement that determines, in advance of controlled transactions, an appropriate set of criteria (e.g. method, comparables and appropriate adjustments thereto, critical assumptions as to future events) for the determination of the transfer pricing for those transactions over a fixed period of time. (RR 2-2013)
Advice to Debit Account. An authorization issued by the NGA/OU appearing in the lower portion of LDDAP. (RMC 25-2014)
affiliate. A corporation that is directly or indirectly, through one or more intermediaries, controlled by, or is under the common control of another corporation. (RR 17-2010)
affiliated corporations. This means that two or more organizations are allied with or closely connected with one another, or with a central body but each organization continues to exist. It does not bear the construction that one of the “affiliated” organizations is in all particulars identical with or covered by the parent or main organization with which it is affiliated. (RMO 29-2002)
Agencies Involved. A statement enumerating Departments, agencies or offices that may be involved in, or affected by, the implementation of the requested issuance or approval. (RMC 57-2003)
agency. Any child-caring or child-placing institution licensed and accredited by the DSWD to implement the Foster Care Program. (RMC 41-2013)
Agency Budget Matrix (ABM). A document prepared by the DBM in the coordination with the office/agency which shows the release of funds by agency, program/activity/project, source of appropriation, fund code, allotment class, the amount to be released comprehensively and the need for clearance or authority prior to the release of funds. (RMC 59-2004)
Agency Code. It is an alphanumeric code provided by the DBM for each and every national government agency. (RR 1-2013)
agent. An Authorized Agent is any person, whether natural or judicial, who acts on behalf of a client, who may be the Lender or the Borrower or bothy, in respect of SBL Transaction. (RR 10-2006)
Agreement. A Memorandum of Agreement (MOA) or Agreement/Deed of Donation entered into by and between the adopting private entity and the public school specifying the terms and conditions of the adoption, including the tasks and responsibilities of the contracting parties. (RR 10-2003)
agricultural contract growers. Persons producing for others poultry, livestock or other agricultural and marine food products in their original state. (RR 14-2005)
alcohol products. Distilled spirits, wines, fermented liquors as generally classified under Chapter III, Title VI of the National Internal Revenue Code (NIRC) of 1997. (RR 3-2006)
allowable deductions. Include mining, milling and marketing expenses, and depreciation of properties directly used in the mining operations. (Sec 34 (G)(2), NIRC)
Allotment Release Order. A document issued by DBM, either in the form of an Agency Budget Matrix (ABM) or Special Allotment Release Order (SARO) authorizing the specific offices/agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated. (RMC 59-2004)
Annual Business Plan. Is the document submitted by the enterprise applying for accreditation under the Act and these Rules, which indicates the proposed imported and local acquisition of raw materials / supplies, machinery and equipment, tools and spare parts, as well as the projected production and sales covering its year of accreditation. (RMC 33-2004)
annual income tax return. This refers to the declaration of a taxpayer’s taxable income that is embodied in BIR Form Nos. 1700, 1701 or 1702, as the case may be, filed annually with the BIR, together with the required attachments. (RMO 10-2014)
Annual Procurement Plan (APP). The document that reflects the entirety of the procurement activities that will be undertaken by the procuring entity within the calendar year. (RMC 78-2008)
application system. Refers to the program or group of programs designed for a particular function. (RMO 24-2003)
Annual Taxable Income of a Resident Senior Citizen. The annual gross compensation, business and other income received by a resident senior citizen during each taxable year from all sources as defined in Section 31 of the Tax Code. (RR 4-2006)
apartel. A building or edifice containing several independent and furnished or semi-furnished apartments, regularly leased to tourists and travelers for dwelling on a more or less long-term basis and offering basic services to its tenants, similar to hotels. (RR 4-2006)
APO. Is the APO Production Unit, Inc., a government entity to undertake the base printing of secured internal revenue stamps and, together with the winning contractor, develop and maintain IRSIS. (RR 7-2014)
applicable taxable year/period. The taxable year/period for which qualification under the IVAP is sought. (RR 18-2006)
Appropriate Regulatory Authority (ARA). The agency/authority having jurisdiction over the Financial Institution’s (IF’s) operations. (RR 6-2004)
archival value. Is the value attached to the records that remain useful for the three branches of the government; legislative, judicial, executive, including constitutional offices, and the general public because those record makes government accountable to its citizen. (RMC 59-2013)
AR/DA Case. Refers to a tax liability by the taxpayer determined on a per tax type and per taxable period basis. For this purpose, an AR/DA docket may consist of more than one (1) AR/DA case. (RMO 11-2014)
AR/DA Docket. Is a compilation of documents pertaining to the taxpayer’s tax liability including, but not limited to, the Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) emanating from field audit, pre-audit, no-contact audit, or assessments arising from third-party information (e.g., RELIEF LN, TRS LN, etc.); Collection/Reminder Letter/Tax Return showing the amounts of the unpaid tax liability involved, and such other pertinent documents in support of the tax arrears. (RMO 11-2014)
AR/DA History Sheet (AHS)(formerly called Case History Sheet). A document showing the actions taken on the case by the concerned Revenue Officer (RO) handling the AR/DA case. This is regularly updated by the concerned RO handling the AR/DA docket/case every time an enforcement action has been undertaken thereon to provide easy reference in the preparation of the Monthly AR/DA Status Report. (RMO 11-2014)
ARs/DAs for Write-Off. Refers to an accounts receivable or delinquent account where write-off or cancellation may be effected due any of the following circumstances; (a) The five-year prescriptive period for the collection of the AR/DA case has already prescribed and such fact has been confirmed by the Committee on Prescribed Assessment/Collection cases that was created for this purpose; (b) The taxpayer has been declared insolvent by a competent Court in a final and executory judgment; (c) The individual taxpayer is deceased and no distrainable or leviable assets could be found; (d) The taxpayer is a corporation which was verified to have permanently ceased operations, or dissolved, either through voluntary or involuntary dissolution, with no distrainable or leviable properties found, and its subscribed shares of stock have been fully paid. (e) The taxpayer has availed of the benefits of the Tax Amnesty Law under Republic Act No. 9480 with a Certification of Compliance issued by the Deputy Commissioner for Operations, as recommended by the Task Force on Tax Amnesty, pursuant to Operations Memorandum No. 11-12-005 dated December 20, 2011. (f) A decision was rendered by a competent Court that the AR/DA case is uncollectible and the same has become final and executory; (g) The taxpayer is a general partnership and individual partners are declared insolvent; and (h) The taxpayer is a general partnership and the individual partners are deceased with no distrainable and leviable properties. (RMO 11-2014)
area. Refers to district/s or town/s or city/cities comprising a BIR revenue district. (RMO 4-2006)
area headquarters. See regional headquarters.
AR-Protested. Refers to AR where a request for reinvestigation or reconsideration has been filed due to the following reasons: (a) a written protest (legal or factual) was timely filed by the taxpayer but still awaiting the final resolution by the assessing office; (b) the taxpayer failed to receive the assessment notice/letter because it was sent to the address reflected in the filed tax return or the address indicated in the BIR’s ITS-Registration System, notwithstanding BIR’s receipt of a notice of change of address or a notice of business cessation; or (c) the taxpayer failed to receive the assessment notice/letter because t was inadvertently sent to the wrong address. (RMO 71-2010)
article. One set of content (includes text, images and file attachments) that is inputted in the CMS template by the CMS user and saved for publishing to the web resources (RMO 1-2008).
assaying. Is the determination of precious metal content in jewelry or precious metal alloys used for jewelry. (RMC 33-2004)
assembler. See manufacturer.
assessment number. The permanent and official number assigned and issued, for excise tax purpose, by the BIR to a specific business operation, or a part thereof, of a taxpayer dealing with the excisable tobacco products. (RR 3-2013)
assessment, preliminary or final, disputed or not. Refers to a tax assessment issued or self-assessment made on or before June 30, 2006 which has not yet become final and executory. (RMO 23-2006)
assessment shall become final, the. The failure of the taxpayer who requested for a reinvestigation to submit all relevant supporting documents within the sixty (60)- day period shall render the FLD/FAN “final” by operation of law. (RMC 11-2014)
assistance. The aid/ help/ contribution/ donation provided by an adopting private entity to a public school. May be in the form of, 2 but not limited to, infrastructure, teaching and skills development, learning support, computer and science laboratories, and food and nutrition. (RR 10-2003)
associated enterprises. Two or more enterprises are associated if one participates directly or indirectly in the management, control, or capital of the other; or if the same persons participate directly or indirectly in the management, control, or capital of the enterprises. (RR 2-2013)
associational. Members come from a registered and/or recognized associations, group, club, fraternity, religious groups, cultural and other similar aggrupation. (RMC 57-2012)
ATP System. An IT infrastructure that is part of E-Reg Taxpayer Registration Information Updates (TRIU) system that caters the on-line processing of ATP and the on-line submission of printer’s periodic reports with the capability to match and process data and generate discrepancy report of dubious entries. (RR 15-2012)
ATRIG. Is an authority issued by the Bureau of Internal Revenue (BIR), addressed to the Commissioner of Customs, allowing the release of imported goods from customs custody upon payment of applicable taxes, or proof of exemption from payment thereof, whichever is applicable. (RR 2-2016)
authentication. A confirmation that the record is accurate, complete and appropriate to the actions taken. (RR 16-2006)
Authority to Cancel Assessment (ATCA). Refers to a document issued and approved by a duly authorized revenue official as proof of the cancellation of the delinquent account of the taxpayer due to any of the following: (a) Assessments which have been declared null and void by a competent court in a final and executory judgment or covered by a final administrative decision by duly authorized revenue official, after the conduct of a thorough evaluation of the factual and legal bases therefor, as defined under Revenue Regulations No. 12-99; (b) AR/DA cases which are covered by the taxpayer’s valid availment of the benefits of Tax Amnesty; (c) Tax liabilities which were the subject of approved applications for abatement of penalties or compromise settlement pursuant to existing policies and guidelines; (d) Prescribed collection cases as determined by the Committee on Prescribed Collection Cases; (e) Tax liabilities considered uncollectible and approved for write-off; and (f) Other circumstances requiring the issuance of the said document as defined under Section II.5 of this Order. (RMO 11-2014)
Authorized Agent Bank (AAB). 1. Refers to any bank as certified by Bangko Sentral ng Pilipinas (BSP) which has satisfied the criteria on accreditation and is actually accredited to collect internal revenue taxes. (RR 9-2002) 2. Refers to a commercial or universal bank authorized by the BIR in accordance with the criteria for accreditation under pertinent revenue issuances to collect internal revenue taxes and receive the corresponding returns/attachments. (RMO 25-2015)
Authorized Government Depository Banks (AGDB). Refers to a bank where government entities are allowed by law to deposit their funds and maintain depository accounts, or by way of exception, a bank authorized by the Department of Finance (DOF) and the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) to be a government depository bank. (RMO 13-2014)
authorized officer. A senior officer of the taxpayer enrolled in the eORB System and authorized to review and submit the accomplished eORB Form. (RR 3-2013)
authorized representatives. Is a duly designated responsible officer/employee with a written authorization duly signed by the taxpayer-applicant or in case of eAccReg only, a responsible officer/employee of the supplier as indicated in the sworn statement. (RMC 45-2014)
authorized users. Is a duly designated responsible officer/employee of the Taxpayer in charge of accessing/utilizing the BIR’s Enhanced and Integrated eAccReg and eSales System. (RMC 45-2014)
Automated Ticketing System. An automated process which comprises the equipment, programs and procedures which allows access to airline data stored in a Customer Reservation System (CRS) or airline reservation system for the automated issuance of Standard Traffic Documents. (RMC 46-2008)
Automatically Zero-Rated Sale. Is a sale of goods, properties and services to a Freeport Zone-registered enterprise by a VAT-registered seller/supplier that is regarded as either an export sale or a foreign currency denominated sale under Section 106 of the Tax Code of 1997. (RMC 50-2007)
automobile. Any four- (4) or more-wheeled vehicle, other than a truck, pick-up, jeep/jeepney, bus or vehicle used for special purpose, which is propelled by gasoline or diesel and specially designed to transport persons and not primarily to transport freight or merchandise. (RR 4-2003)
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bad order stamps. Is the internal revenue stamps damaged while at the APO plant involving a deviation in any of the following specifications: (1) Quick Reference Code; (2) Unique Identifier Code; (3) latent image; (4) color; (5) core; and (6) dimension. (RR 7-2014)
baggage. Articles, effects and other personal property of a passenger as are necessary or appropriate for wear, use, comfort or convenience in connection with his trip. (RR 15-2002)
bank. 1. Every banking institution, as defined in Section 2 of Republic Act No. 337, as amended, otherwise known as the General Banking Act. 2. May either be a commercial bank, a thrift bank, a development bank, a rural bank or specialized government bank. (Sec 22 (V), NIRC)
banking activities. The functions or operations conducted to carry on the business of commercial banking such as accepting drafts and issuing letters of credit; discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; accepting or creating demand deposits; receiving other types of deposits and deposit substitutes; buying and selling foreign exchange and gold or silver bullion; acquiring marketable bonds and other debt securities; and extending credit, subject to such rules as the Monetary Board of the BSP may promulgate. (RR 8-2008)
banking institution. See bank.
bankruptcy. It is a condition when a delinquent taxpayer could no longer settle his/her/its debts inasmuch as his/her/its assets are insufficient for the payment thereof due to permanent cessation of business operations and prolonged loss of income. This condition should be declared by a competent court in a final and executory judgment that such person or entity is in a state of insolvency or bankruptcy. (RMO 11-2014)
base metals. Is iron and steel, copper, nickel, aluminum, lead, zinc, tin and their articles thereof, and other base metals and their articles as defined in Section XV of the Tariff and Customs Code of the Philippines, as amended. (RMC 33-2004)
base year. Refers to the taxable year immediately prior to the Current Taxable Year. (RR. 6-2005)
Bases Conversion and Development Authority (BCDA) (primary level). Refer to the implementing agency of the Project. (RR 17-2005)
basic tax assessed. The term refers to: (a) Unpaid tax shown on the return filed; (b) Tax due shown on the Assessment Notice and Letter of Demand, excluding surcharge, interest and compromise penalties; (c) Unpaid 2nd Installment Income Tax; and (d) Amount of Dishonored Check. (RMO 23-2006)
Batch Control Sheet (BCS). Refers to the form prepared by the collection officers that summarizes collection data for a batch of transactions. (RMO 8-2013)
Batch Control Sheet-A (BCS-A). 1. Is used for a batch of returns/forms/declarations and payments slips of taxpayers/payors settled through cash, check, or a combination of both. (RMO 8-2013) 2. Refers to the form prepared by the AAB branch and the Revenue District Office (RDO), that summarizes collection data from the return/form/declaration and deposit/payment slip of taxpayers settled through cash, check, or a combination of both. (RMO 25-2015)
Batch Control Sheet-B (BCS-B). Is used for non-cash tax payments, tax exempt, break even, no payment, or refundable returns/declarations. (RMO 8-2013)
benchmark. A point of reference for measurement of or a standard by which to measure the performance/compliance of taxpayers in a particular industry using one’s profit margin rate, Net VAT Due and Income Tax Due in relation to gross sales/receipts. (RMO 4-2006)
benchmarking. The process of determining and comparing the performance level of taxpayers in a given line of industry as far as Net VAT Due and Income Tax Due are concerned in relation to gross sales/receipts vis-à-vis profit margin rate for the purpose of setting an industry standard of taxpayers’ performance/compliance. (RMO 4-2006)
benchmarking cycle. Consists of systematic steps or procedures designed to accomplish the ultimate aim of determining the correct standard or benchmark. (RMO 5-2012)
benefactor. Any person, whether related to the senior citizen or not, who takes care of him/her as a dependant. (RR 4-2006)
Bilis Aksyon Partner. Is the counterpart Action Officer of the Civil Service Commission under the Mamamayan Muna Program in every agency pursuant to CSC MC No. 3, s. 1994. (RMO 38-2009)
Bill of Lading. Is the document issued by a carrier to a shipper, signed by a captain, agent, or owner of a vessel, furnishing written evidence regarding receipt of articles (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to a lawful holder of the bill of lading, as well as proof of ownership or title to the goods. (RMC 33-2004)
Bioethanol. Is the ethanol (C2H5OH) produced from biomass resources. (RR 8-2006)
BIR Certification on Number of OTC and Electronic Transactions Processed by AABs. Refers to the Certification issued by the BIR on the number of OTC and electronic transactions on collections of national internal revenue taxes processed by AABs which were successfully uploaded to the Collections & Bank Reconciliation (CBR) of the BIR Integrated Tax System (BIR-ITS) duly validated by the RDO/LTDO/LTS having jurisdiction over the AABs, in coordination with their respective Revenue Data Center (RDC)/National Office Data Center (NODC), that will serve as basis in the payment of transaction fees due to the AABs under the existing MOA. (RMO 25-2015)
BIR Importer Clearance Certificate (BIR-ICC) or BIR Customs Broker Clearance Certificate (BIR-BCC). A certificate issued to an importer or customs broker who qualifies with the BIR-prescribed criteria/requirements for accreditation, indicating therein the importer’s or customs broker’s name, registered address, and Taxpayer Identification Number (TIN). (RMO 10-2014)
BIR Portal. An enhanced BIR website; it is a transaction hub where the public can conveniently conduct business with the BIR over the internet anytime, anywhere and get valuable information and access eServices like never experienced before. (RMO 1-2008)
Board or BOI. Board of Investments. (RMC 33-2004)
BOC. Bureau of Customs. (RMC 33-2004)
BOA. The Board of Accountancy under the Professional Regulation Commision (PRC). (RR 11-2006)
book of final entry. See ledger.
book of original entry. See journal.
book value per share. The value per share computed by dividing the total Stockholders’ Equity of a corporation or net assets of the company by the number of outstanding shares or units of participation in a company. (RR 6-2008)
borrower. Any person, whether natural or judicial, who obtain shares of stock/securities from a Lender’s Portfolio or investment account under a MSLA strictly for purposes specified under Section 6 (f) hereof. (RR 10-2006)
borrowing period. The period agreed upon by the parties during which an SBL transaction should be outstanding, which period, shall in no case exceed two (2) years from the date of execution of the SBL Confirmation Notice. At the end of this period, the Borrower must return to the Lender the equivalent shares of stock borrowed. (RR 10-2006)
BPS. Bureau of Product Standards. (RMC 33-2004)
branch. 1. A fixed establishment in a locality which conducts operation of the business as an extension of the principal office with at least one tax type. (RMO 29-2002) 2. Means a separate or distinct establishment or place of business where sales transactions are conducted independently from the Head Office (HO). (RMO 10-2014)
branch users. It can be a Branch, a Department or a Unit within a Company’s Head/Branch Office who is created and authorized by the Account Owner to utilize DST for and in behalf of the Company. (RMC 50-2010)
brand family. Is two or more tobacco products manufactured, sold or distributed under the same brand, business or company name, which use a common name or the same means of identification. (RMC 23-2016)
brand variant. Is a brand on which a modifier is prefixed and/or suffixed to the root name of the brand, and/or a different brand that carries the same logo or design of the existing brand. (RMC 23-2016)
broker. Is a person engaged in the business of buying and selling securities for the account of others. (RR 6-2008)
BTr-Treasury Single Account. Refers to the bank account maintained by the Bureau of Treasury with the Bangko Sentral ng Pilipinas through which the government transacts all its receipts and payments pursuant to the provisions of Executive Order Nos. 55 and 449. (RMO 25-2015)
Bureau of Internal Revenue (BIR). Is a government agency under the supervision of the Department of Finance (DOF) mandated by law to generate financial resources for the government through the enforcement of internal revenue laws and regulations. (RMC 28-2015)
bus. A motor vehicle of 3.5 tons gross vehicle weight or more of any configuration, which is generally accepted and specially designed for the public transportation of persons and with any number of wheels and axles. (RR 4-2003)
business associates. One or combination of any of the stockholders, partners, directors, or employees who were gathered in an event organized for promotion, marketing and advertising of products and services, fund-raising activity for charitable institution and the like nature. (RR 3-98)
business operation. Is the economic undertaking of the cooperative that generates revenues/resources and causes the incurrence of expenditures, provides products and/or services to members in accord with the objectives and purposes as stated in the registered Articles of Cooperation. (RMC 54-2016)
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cabarets. Are restaurants or clubs where liquor or foods are served, with a stage provided for performances by musicians, dancers and comedians, including a venue for dancing by patrons/customers, similar to that of nightclubs. (RMC 18-2010)
calendar year. Is an accounting period which starts from January 1 and ends on December 31. (RAMO 1-2000)
Canadian personnel. Canadians or non – Philippine citizens, who are working in the Philippines on any project established under a subsidiary arrangement. (RMC 31-2013)
cancellation. The process by which the information pertaining to primary registration of a taxpayer is tagged as “cancelled” but nevertheless remains as part of the BIR’s registration database. (RR 11-2008)
Cannot Be Located (CBL) Taxpayer. Refers to a status of a registered taxpayer whose whereabouts could not be located in the address given by him/it in the return filed or at the address registered/given by him/it to the BIR. (RMO 10-2014)
capital assets. 1. All real property held by a taxpayer, whether or not connected with his trade or business, and which are not included among the real properties considered as ordinary assets under Sec. 39 (A) (1) of the Code. (RR 7-2003) 2. Property held by the taxpayer (whether or not connected with his trade or business), but does not include stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year. (Sec 39 (A)(1), NIRC)
capital expenditures or outlays. Is an expenditure category or expense class for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of the Government, including investment of capital stocks of Government-Owned and Controlled Corporations and their subsidiaries. (RMC 38-2015)
capital goods or properties. Goods or properties with estimated useful life greater than one (1) year and which are treated as depreciable assets under Sec. 34(F) of the Tax Code, used directly or indirectly in the production or sale of taxable goods or services. (RR 4-2007)
carbonated wine. An effervescent wine artificially charge with carbon dioxide and containing more than 0.392 of carbon dioxide per 100 milliliters of wine. (RR 17-2012)
cardholder. Is the holder of the credit/debit/prepaid card issued under its/his/her name used to make the tax payment. (RR 3-2016)
card issuer. Is a bank or financial institution authorized by the BSP that issues the credit/debit/prepaid card directly to the consumer. It assumes the primary liability for the cardholder’s capacity to pay for payments made using the card. (RR 3-2016)
card network. Is the existing card “brands” like Visa, Mastercard, etc.(RR 3-2016)
Card Payment Information System (CPIS). Is the information system that implements the mechanics of electronic transactions. (RR 3-2016)
card processor. Is an entity that processes the card payment transactions and is responsible for obtaining the payment approval from the card issuer through the card network. (RR 3-2016)
Cash Register Machine (CRM). A machine that has a memory and can record the sale/transfer of merchandise or service rendered, in lieu of a registered sales invoice or official receipt. (RR 11-2004)
cash sales invoice. This is an invoice issued for every transaction involving sale or transfer of goods or rendition of services whether the same is paid in cash, check, or any other similar mode of payment. (RMO 29-2002)
Cash Settlement Option. It do not require the actual delivery of stocks. Instead, the market value, at the exercise date, of the stock is compared to the exercise price, and the difference is paid by the grantor to the holder option. (RMC 79-2014)
Cash-Settled Securities Swap Transaction (CSST). Is an agreement entered into between financial institutions, and between financial institutions and the Bangko Sentral ng Pilipinas (BSP), to simultaneously buy or sell government securities spot and sell or buy comparable securities at a predetermined future date and price with the same counterparty. (RMC 62-2003)
casual buyers/customers. Refer to buyers/customers who are engaged in business or exercise of profession with individual purchase/transaction amounting to one hundred thousand pesos (P100,000) or more but did not qualify as regular buyers/customers. (RMO 4-2003)
CDA. Cooperative Development Authority. (RMC 33-2004)
ceased/dissolved. The status of a registered taxpayer who has completed the requirements for cancellation of registration prior to the termination of audit. (RR 7-2012)
Centennial Taxpayer Recognition Program (CTRP). Is a program instituted by the Bureau of Internal Revenue (BIR) to commemorate its centennial anniversary aimed at giving recognition to taxpayers, corporate or individual, who pay their taxes properly and who have shown remarkable growth rate/ratios in their tax payments (income and business) for taxable year 2003 as compared to taxable year 2002. (RMC 24-2004)
Centrally Managed Items (CMI). Lump-sum funds other than those treated as nationwide lump-sum, lodged under DepEd-CO, intended for activities and projects to be implemented by DepEd-ROs and IUs. (RMC 59-2004)
certificate. The document issued by any government agency for the purpose of giving information, or establishing proof of a fact. (RMO 13-2008)
Certificate of Accreditation. The evidence issued by the Board attesting to the compliance of an applicant with all the qualifications for accreditation, and which shall serve as a proof of the registration of the applicant with the Board for the activity/ies so accredited. (RMC 33-2004)
Certificate of Compliance. The certificate, in lieu of the then Certificate of Good Standing, issued to all types cooperatives after compliance with the rules of Authority. (RMC 54-2016)
Certificate of Deposit. Is a “written acknowledgement by a bank of the receipt of money on deposit which the bank promises to pay to the depositor, bearer or to some other person or order. (RMC 16-2003)
Certificate of Eligibility (COE). The certificate issued by the Appropriate Regulatory Authority as to eligibility of the NPL or ROPOA for the purposes of availing of the tax exemptions and privileges, and which, if applicable, likewise indicates its approval of the transfer of the NPAs from the FI to an SPV/Individual being in the nature of a “true sale”, pursuant to the provisions of the act and its implementing rules and regulations. (RR 6-2004)
Certificate of Entitlement to Subsidy (CES). Mean a non-transferable instrument issued by the FIRB to the BCDA for the SCTEP, in an amount sufficient to cover the Philippine taxes on Japanese firms or nationals operating as contractors, consultants or suppliers in the Project. (RR 17-2005)
Certificate of Product Quality/Analysis. The certification issued by the supplier, either local or foreign, or by an independent or third-party surveyor on the quality of goods transported and consigned in favor of the Oil Industry-Participant for use in the Fuel Bioethanol Program. (RR 8-2006)
Certified Authorizing Registration (CAR). It is issued by the BIR to effect the transfer of ownership over real property. (RR 13-2011)
charge sales invoice. This is an invoice issued for every transaction involving sale or transfer of goods/rendition of services but the payment or consideration of which is on deferred or account basis. (RMO 29-2002)
chartered flight. Flight operation which includes operations between ports or points situated in the Philippines and ports or points outside the Philippines, which include block charter, place under the custody and control of the charterer by a contract/charter for rent or hire relating to a particular airplane. (RR 15-2002)
child. A person below eighteen (18) years of age, or one who is over eighteen (18) but is unable to fully take care of, or protect, himself or herself from abuse, neglect, cruelty, exploitation or discrimination because of a physical or mental disability or condition. (RMC 41-2013)
Child Case Study Report. Is a written report prepared by a Social Worker containing all the necessary information about a child.(RMC 41-2013)
children. Passengers who have attained their second but not their twelfth birthday. (RR 15-2002)
Child with Special Needs. Is a child with developmental or physical disability. (RMC 41-2013)
cigar. All rolls of tobacco or any substitute thereof, wrapped in leaf tobacco. (Sec 147 (a), NIRC)
cigarettes. All rolls of finely-cut leaf tobacco, or any substitute thereof, wrapped in paper or in any other material. (Sec 147 (b), NIRC)
cigarettes packed by hand. The manner of packaging of cigarette sticks using an individual person’s hands and not through any other means such as a mechanical device, machine, or equipment. (Sec 145 (B), NIRC)
civil fruits of acquired/forfeited properties. Refers to the income earned from rents or leases of real and personal properties, amount of perpetual or life annuities, interests earned on bonds/securities, dividends from shares of stocks or other similar income. (RMO 13-2014)
client-taxpayer. Are taxpayers who are otherwise authorizing their tax agents/practitioners to file on their behalf. (RMC 11-2015)
cloned machine. A computer or device that functions exactly like another, better-known product. A machine without a specific/known brand. (RR 5-2005)
Closed AR/DA Case. A tax liability which has already been settled through any of the following modes, where the corresponding case docket has been transmitted to the Records Division or the Regional Administrative Division for safekeeping and reflected as closed in the Updates of AR/DA. (RMO 11-2014)
closely-held corporation. Is corporation at least fifty percent (50%) in value of the outstanding capital stock or at least fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote is owned directly or indirectly by or for not more than twenty (20) individuals. (RR 6-2008)
cloud. Is an internet-based computing where different services such as servers, storage and applications are delivered to an organization to cater specific business or non business requirements. (RMC 68-2015)
CMS approvers. 1. Selected BIR officials who review the articles created by the respective office’s CMS Editor prior to approval or rejection of the same. (RMO 1-2008) 2. Designated BIR officials per identified office who review, edit and save the entries created by their respective CMS Editor(s) via the CMS for the publication of pre-approved articles in the BIR Website. (RMO 23-2015)
CMS editors. Appointed BIR personnel that create articles to be published in the BIR website, portal and knowledge base. This can be done by inputting text and uploading images and documents for attachment. (RMO 1-2008)
CMS publisher. Appointed BIR official (normally the Chief or Assistant Chief of the Corporate Communications Division) who views the articles approved by the CMS Approvers for purposes of approving or rejecting its publication over the BIR website/portal/knowledge base. (RMO 1-2008)
CMS templates. Collection of Hypertext Markup Language (HTML) documents containing special tags, which define the data and layout specifications for a series of web publications. (RMO 1-2008)
Cognizant Technical Officer (CTO). The designated USAID official, responsible for monitoring the performance of the Contractor or Recipient and exercising technical cognizance over the USAID contract, grant or cooperative agreement. (RMC 40-2007)
collateral. Cash, government or equity securities or letters of credit guaranteed by a bank, provided to the Lender as security in accordance with the rules prescribed by the SEC and/or PSE until the borrowed share/security is returned. (RR No. 10-2006)
Collateral Management System Operator. Refers to PDTC, the entity also accredited by PDEx which is capable of operating a Collateral Management System and which accepts all assets intended as collateral for transactions under its Fixed-Income Securities Lending Program, and holds the same for the benefit of Lenders during the Borrowing Period. (RR No. 5-2007)
Collectible AR-Non-filing/Non-payment. Refers to AR originating from failure of a taxpayer to file a return or pay the tax due (e.g., stop-filer cases or automatic system-created receivables). (RMO 71-2010)
Collectible DA-Dishonored Checks. Refers to AR resulting from tax payment made thru bank draft or check but was denied by drawee-bank due to drawer-taxpayer’s insufficiency of funds in his/her/its bank accounts, accounts closure, or for other reasons of dishonor as prescribed under the Negotiable Instruments Law. (RMO 71-2010)
Collectible DA-FAN/FDDA. Refers to AR emanating from a Final Assessment Notice (FAN) or Final Decision on Disputed Assessment (FDDA) issued by the Bureau for deficiency internal revenue taxes. In addition, AR/DA covered by approved installment plan shall be included in this classification. (RMO 71-2010)
Collectible DA-Unpaid Self-Assessed Taxes. Refers to AR resulting from (a) tax due per return filed by taxpayers who failed to pay the same within the time prescribed for its payment; or (b) non-payment of the 2nd installment due from individual taxpayers who availed of installment payments of income tax under Sec. 56 (A)(2) of the Tax Code, as amended. (RMO 71-2010)
Collectible DA-With Application for Abatement. Refers to accounts wherein taxpayers have applied for abatement under an abatement program offered by the Bureau or have requested for abatement under Sec. 204 (B) of the Tax Code, as amended. (RMO 71-2010)
Collectible DA-With Offer to Compromise. Refers to accounts covered by an application for the availment of the compromise settlement program of the Bureau, of the taxpayers have offered to compromise the deficiency taxes due from them under Sec. 204 (A) of the Tax Code, as amended. (RMO 71-2010)
Collection Officer (CO). Refers to the duly authorized personnel in the RDO tasked to receive no-payment returns as well as non-cash payment returns and issue the corresponding Acknowledgement Receipt thereof. (RMO 8-2013)
Collection Officer Receipting Device (CORD). Refers to the mobile handheld receipting device and printer used for MRCOS. (RMO 8-2013)
Commencement of Business. In the case of pursuit of business or practice of profession, it shall be reckoned from the day when the first sale transaction occurred or within thirty (30) calendar days from the issuance of Mayor’s Permit/Professional Tax Receipt (PTR) by LGU, or Certificate of Registration issued by the Securities and Exchange Commission (SEC), whichever comes earlier. (RR No. 7-2012)
commercial invoices. The document issued by an exporter to signify sales. This document identifies the seller and buyer of articles, invoice number, date, shipping date, mode of transport, delivery and payment terms, and a complete listing and description of the articles sold including prices, discounts, and quantities. (RMC 33-2004)
commercial services. Non-industrial customers with demand greater than five (5) kilowatts for general power heating and/or lighting. Non-industrial customers are establishments wherein the main economic activity is agriculture, construction, trading, transportation operation and administration, communication services, storage and warehousing, waterworks and supply, financial services, real estate, restaurant and hotel services, and other community, social and personal services. (RMO 22-2005)
common carrier. Refers to persons, corporations, firms or association engaged in the business of carrying and transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public and shall include transportation contractors. (RR 14-2005)
Common Fund Scheme. The budgetary policy whereby cash allocation released to NGAs/Ous under the regular MDS sub-account may be used to cover payment of current year and prior year’s A/Ps of creditors/payees, after satisfying those programmed obligations as reflected/considered in the Monthly Disbursement Program (MDP), Budget Execution Document NO. 3 per National Budget Circular No. 550. (RMC 25-2014)
Commutation of Leave Credits. The conversion of unused leave credits to their corresponding monetary value. (RMO 15-2004)
Compact. A Millennium Challenge Compact between the USA and the Philippines. (RR 12-2010)
Compact Disc-Recordable (CD-R). An optical data storage written and read using lasers that can be read or viewed only but cannot be modified, deleted, or written over with new data. Recordable CDs are WORM (Write Once, Read Multiple). (RR 16-2006)
comparable transaction. A transaction that is comparable to the controlled transaction under examination taking into consideration factors such as the nature of the property or services provided between the parties, functional analysis of the transactions and parties, contractual terms, and economic conditions. (RR 2-2013)
comparable uncontrolled transaction. A comparable uncontrolled transaction is a transaction between two independent parties that is comparable to the controlled transactions under examination. (RR 2-2013)
Complete Computerized System. Refers to the books of accounts and other accounting records in electronic form, in accordance with Revenue Regulations No. 16-2006. (RR 10-2007)
Completely Build Up (CBU). Vehicles imported in completely assembled form and ready for use by the consumers. (RR 25-2003)
Completely Knocked Down (CKD). Parts and components for assembly purposes that are imported in disassembled condition. (RR 25-2003)
component of CAS. Any system application adopted to generate accounting records, reports and/or documents. (RMO 29-2002)
compounded liquors. The intoxicating beverages whatever concocted by or resulting from mixture of or addition to distilled spirits, either before or after rectification, of any coloring matter, flavoring extract or essence or other kind of wine, liquor or other ingredient. (RR 17-2012)
computer generated accounting records. This refer to official receipts, sales and cash invoices, cash vouchers, journal vouchers, billing statements, sales tickets and other underlying accounting records. (RMO 29-2002)
computer generated receipts and invoices. These are part of accounting records which are generated by the system with a capacity to produce sequential range of numbers. (RMO 29-2002)
computer generated subsidiary accounting records. These refer to Cash Receipt Book, Cash Disbursement Book, Accounts Payable Book, Accounts Receivable Book, Debit/Credit Memo Book and other underlying subsidiary accounting records being generated under a computerized system. (RMO 29-2002)
Computerized accounting books/ records. Refer to books of accounts and other accounting records in electronic form, such as electronic documents, transaction files, customer or vendor master files, and other files/databases maintained and used by a taxpayer in and under a computerized accounting system. (RMO 29-2002)
computerized accounting system (CAS). 1. A computer – based system used to process captured/ encoded accounting/financial data to generate books of account, reports, or any other accounting information. This system may either be comprehensive in nature to cover all the financial transactions of the system owner or may only be a component or components thereof. (RR 5-2002) 2. The integration of different component systems to produce computerized books of accounts and computer-generated accounting records and documents. For purposes of this issuance, it shall also refer to applications for the use of any or all of the CAS components. (RMO 29-2002)
computerized books of accounts. The computerized books of entries (e.g., journals, ledgers, subsidiaries etc.) emanating from processed transactions that are captured or encoded into the accounting system and/or interfaced system/s. (RR 5-2002)
confidential information. Is the sworn written statement given voluntarily to the informer. Such document must definitely state the facts or acts constituting fraud committed by a person or entity denounced to have violated or in violation of the NIRC of 1997, as amended. (RR 16-2010)
conglomerate. Is a combination of two or more corporations engaged in entirely different businesses together into one corporate structure, usually involving a parent company and a subsidiary/ies. (RR 17-2010)
consideration. The selling price, exclusive of interest. (RR 17-2003)
Consolidated Inventory of Seized and Forfeited Assets. Refers to the consolidated list of all acquired real and personal assets of the Bureau where the one (1)-year redemption period, in case of real property, has already lapsed, including those real properties where the titles are not yet consolidated in the name of the government .(RMO 13-2014)
consolidation. Is the union of two or more corporations into one corporate body, after which the constituent corporation cease to exist. Assets and Liabilities of the constituent are absorbed by the new company. (RR 17-2010)
Consolidation of Title. Refers to the transfer of ownership of a property from the name of the taxpayer from whom the property was acquired/forfeited to the name of the Republic of the Philippines as the new owner of the same. (RMO 13-2014)
Constitution. The fundamental and supreme law of the nation. (G.R. No. 122156, 3 Feb. 1997)
Constitutive Documents. The articles of incorporation and bylaws of a REIT. (RR 13-2011)
Construction in progress (CIP). Is the cost of construction work which is not yet completed. CIP is not depreciated until the asset is placed in service. Normally, upon completion, a CIP item is reclassified and the reclassified asset is capitalized and depreciated. (RR 4-2007)
constructive receipt. Occurs when the money consideration or its equivalent is placed at the control of the person who rendered the service without restrictions by the payor. (RR 14-2005)
Constructive Stamping. A system whereby constructive affixture is done by affixing to the taxable document/facility evidencing transaction the duplicate copy or certified true copy of the DST return (BIR Form No. 2000)/ proof of payment of DST. for the purpose of this order, the corresponding DST shall be collected by the Government Agencies/Instrumentalities (GAs) and indicated as an item on the Government Official Receipt (GOR) that will be issued. The GOR shall then be attached to the certificate as proof of payment of DST. (RMO 13-2008)
consultant (secondary level). Refer to the party whose services for the detailed design and monitoring of works are directly engaged by BCDA for the implementation of the Project, and when such party is unincorporated joint venture, the member of such joint venture. (RR 17-2005)
Consummation of the Transaction. The delivery and acceptance of the goods with the corresponding issuance of the sales invoice. (RMC 22-2006)
container. Any object used for or capable of holding one or more tobacco product packages. (RMC 23-2016)
Content Management System (CMS). Software that manages the content of the BIR website/portal and knowledge base. It allows non-technical users to update intranet resources, and functions hand-in-hand with other portal services to provide such fluidity of access and publishing functions. (RMO 1-2008)
contingency list. Is a temporary inclusion in the 2010 IPP to assist existing enterprises recover from global crisis aftermath and which also covers new projects of micro and small enterprises. (RMC 50-2010)
continuous and uninterrupted flight. The flight or voyage in the carrier of the same company from the moment a passenger, excess baggage, cargo, and/or mail is lifted from the Philippines up to the point of 4 final destination of the passenger, excess baggage, cargo and/or mail. (RR No. 15-2013)
contract. Is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. (Art 1305, NCC)
contract of sale. One of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent. (Art 1458, NCC)
contractor. A non-government organization, commercial for profit firm or individual (including experts) acting for and on behalf of USAID and carrying out a scope of work for a specific USAID Project or USAID Program. (RMC 40-2007)
contribution. The amount paid or in behalf of a member to the Program for coverage, based on salaries or wages in the case of formal sector employees, and on household earnings and assets, in the case of the self-employed, or on other criteria as may be defined by the Corporation in accordance with the guiding principles set forth in Article I of this Act. (RMC 27-2011)
contributor. A natural person who: (a) establishes and contributes to a PERA; (b) has a Tax Identification Number; and (c) has the capacity to contract. A person over fifty-five (55) years of age may still open a PERA and be a qualified Contributor. (RR 17-2011)
control. 1. Ownership of stocks in a corporation possessing at least fifty-one percent (51%) of the total voting power of all classes of stocks entitled to vote. (Sec 40 (C )(6)(c), NIRC) 2. Is the power of parent corporation to direct or govern the financial and/or operating policies of an enterprise so as to obtain benefits from its activities. (RR 17-2010) 3. Is any kind of control, direct or indirect, whether or not legally enforceable, and however exercisable or exercised. (RR 2-2013)
controlled transaction. Is any transaction between two or more associated enterprises. (RR 2-2013)
controls Beneficial a customer Owner and/or. Refers to the natural person(s) who ultimately owns or the natural person on whose behalf a transaction is being conducted. lt also includes those persons who exercise ultimate effective control over a legal person or arrangement. (RMO 27-2016)
conversion. Refers to the conversion into cash refund of unutilized tax credits during the validity period of the TCC. (RMO 15-2006)
Conversion Input Form (CIF). Refers to the form that will be used to gather required information for ARCS before encoding to the said system. (RMO 71-2010)
cooperative. Those associations duly registered with the Cooperative Development Authority (CDA), composed of at least fifteen (15) persons, majority of which are poor, having a common bond of interest, who voluntarily join together to achieve a lawful common social and economic end. (RR 14-2007)
coordination with agencies. A statement that the necessary coordination or consultations were made with the agencies involved or affected, attaching copies of their comments/recommendation thereon duly signed by the Department Secretaries or Heads of Agencies concerned. (RMC 57-2003)
corporation. Include partnerships, no matter how created or organized, joint stock companies, joint accounts (cuentas en participacion), association, or insurance companies, but does not include general professional partnerships and a joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating consortium agreement under a service contract with the Government. (Sec 22 (B), NIRC)
Corporation Code. The Batas Pambansa Bilang 68, otherwise known as Corporation Code of the Philippines. (RR 13-2011)
cost of goods manufactured and sold. Include all costs of production of finished goods, such as raw materials used, direct labor and manufacturing overhead, freight cost, insurance premiums and other costs incurred to bring the raw materials to the factory or warehouse. (Sec 27 (A), NIRC)
cost of goods sold. 1. Include all business expenses directly incurred to produce the merchandise to bring them to their present location and use. (RR No. 12-2007) 2. Include the invoice cost of the goods sold, plus import duties, freight in transporting the goods to place where the goods are actually sold, including insurance while the goods are in transit. (Sec 27 (A)(4), NIRC)
cost of services. 1. All direct costs and expenses necessarily incurred to provide the service required by the customers and clients including (a) salaries and employee benefits of personnel, consultants and specialists directly rendering the service and (b) cost of facilities directly utilized in providing the service such as depreciation or rental of equipment used and cost of supplies. (RMC 24-2008) 2. Include interest expense. (Sec 27 (E)(4), NIRC)
cost of services or direct cost of services. Include business expenses directly incurred or related to the gross revenue from rendition of services. (RR 12-2007)
coverage period. The period considered for the evaluation of performance on handling stop-filer cases. (RMO 14-2005)
covered employee. Any natural person who performs work for a Project or otherwise in connection with the Compact as an employee of MCA-Philippines or a Vendor, and who is not a Philippine citizen or Philippine permanent resident. (RR 12-2010)
covert surveillance. The surreptitious and undercover watch on the business operations of a person for a certain period before the conduct of the inventory of business documents evidencing receipt of income as well as movement of goods or rendition of services; or apprehension / seizure of the aforementioned business documents and properties found to be the subject of violations of the provision of the NIRC, as amended, and its implementing regulations. (RMO 3-2009)
Creditable Withholding Tax System. Taxes withheld on certain income payments are intended to equal or at least approximate the tax due of the payee on the said income. (RR 2-98)
credit. 1. Any loan, mortgage, financial lease, deed of trust, advance or discount, conditional sales contract, contract to sell or sale or contract of sale of property or service, either for present or future delivery, under which, part of all or the price is payable subsequent to the making of such sale or contract. (RMC 46-2014) 2. The equitable interest in that object. (RAMO 1-2000)
credit card. Is defined as any card, plate, coupon book, or other credit device existing for the purpose of obtaining money, goods, property, rabor or services or anything of value on credit. It is a payment card usually issued by banks to users (cardholders) as a method of payment. (RR 3-2016)
credit cooperative. Is a type of cooperative which provides thrift among its members and creates funds in order to grant loan for productive and provident purposes.(RR 14-2007)
credit memos. Memoranda issued in numbered form to customers/clients to indicate that the latter’s account with the issuer/seller has been increased to the extent of the particular amount described therein. (RAMO 1-2000)
creditors/payees. Internal and external creditors/payees of the NGAs/OUs. (RMC 25-2014)
CRM/POS machines linked to CAS. this refers to Cash Register Machines (CRM)/Point of Sale (POS) Machines that are electronically connected to a CAS or to a central server via network. (RMO 29-2002)
Currency Adjustment Factor (CAF). Is a fee charged by the forwarders to their clients covering losses incurred due to fluctuations in the exchange rates between peso and foreign currencies. (RMC 35-2006)
current taxable year. Refers to the taxable year for which qualifications under the NAP is sought. (RR 6-2005)
customers with active contracts. Are those whose Contract status is Active as of April 30, 2003. Customers whose services have been temporarily disconnected because of delinquent accounts as of April 30, 2003 are still classified under this group. (RMO 22-2005)
customers with terminated contracts. Are those whose Contract status is terminated as of April 30, 2003. These are permanently disconnected services. (RMO 22-2005)
customs broker. Refers to any person who is bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280 or the Customs Brokers Act of 2004, as amended. As provided therein, the “customs broker profession” involves services consisting of consultation, preparation of customs requisite documents for imports and exports, declaration of customs duties and taxes, preparation, signing, filing, lodging and processing of import and export entries; representing importers and exporters before any government agency and private entities in cases related to valuation and classification of imported articles and rendering of other professional services in matters relating to customs and tariff laws, its procedures and practices. (RMO 10-2014)
Custom System Development. Refers to the design and development of new application system based on the system requirements. The customized application system may be outsourced or developed internally. (RMO 24-2003)
cut-off. The point at which entries from one accounting period stop and entries for the next period begin. (RAMO 1-2000)
cutting. Is the process of shaping precious stones on revolving diamond charged or other abrasive grinding wheels. (RMC 33-2004)
D
data. A representation of information in a formalized manner suitable for communication, interpretation, or processing. Data consists of letters, numbers, or symbols. (RR 16-2006)
database. 1. A collection of information organized in such a way that a computer program can quickly select desired pieces of data. (RMO 29-2002) 2. A stored collection of related electronic data used by organizations to meet their information processing requirements. It is normally associated with software to access and manipulate that data. (RR 16-2006)
Data Management System. A software system that controls, relates, retrieves, and provides accessibility to data stored in the database. (RR 9-2009)
data set. An organized collection of data. (RMC 43-2014)
Date of Accreditation. Is the date when the Certificate of Accreditation is issued after the completion of the Board’s evaluation of the applicant for accreditation. (RMC 33-2004)
Date of Official Acceptance. Is the date stamped on the application and recorded in the Record of Application Book of the Board. (RMC 33-2004)
dation in payment (dacion en pago). A payment whereby property, whether real or personal, tangible or intangible, is alienated in favor of the creditor, which could either be an FI or an SPV, in satisfaction on a non-performing loan. (RR 6-2004)
dealer in denatured alcohol. A person, natural or judicial, who, other than as denaturer, sells or offers for sale or delivery to others, for himself or on commission, denatured alcohol in the original containers as bought or required by him without opening the same and breaking the internal revenue labels affixed thereto. (RR 3-2006)
dealer in securities. Means a merchant of stock or securities, whether an individual partnership or corporation, with an established place of business, regularly engaged in the purchase securities and their resale to customers, that is, one who as a merchant buys security and sells them to customers with a view to the gains and profits that may be derived therefrom. (RR 14-2005)
debit. The object of the event. (RAMO 1-2000)
debit card. Is a payment card otherwise known as a bank card or check card that provides the cardholder electronic access to their bank account(s) at a financial institutions. (RR 3-2016)
debit memos. Memoranda issued in numbered form to customers/clients to indicate that the latter’s account with the issuer/seller has been decreased to the extent of the particular amount described therein. (RAMO 1-2000)
defective diskette. Refers to a diskette which is infected with virus(es) (DV), and/or whose files are inaccessible or not readable by the system (DR) and/or whose data files have invalid format (DF) which do not conform with the prescribed electronic format. (RMO 4-2003)
deficiency. 1. The amount by which the tax imposed by this Title exceeds the amount shown as the tax by the taxpayer upon his return; but the amount so sown on the return shall be increased by the amounts previously assessed (or collected without assessment) as a deficiency, and decreased by the amount previously abated, credited, returned or otherwise repaid in respect of such tax. 2. If no amount is shown as the tax by the taxpayer upon this return, or if no return is made by the taxpayer, then the amount by which the tax exceeds the amounts previously assessed (or collected without assessment) as a deficiency; but such amounts previously assessed or collected without assessment shall first be decreased by the amounts previously abated, credited returned or otherwise repaid in respect of such tax. (Sec 56 (B)(1), NIRC)
dehydration. The process of removing water to produce anhydrous or dehydrated bioethanol containing more than ninety-nine percent (99%) by volume of ethanol (C2H5OH). (RR 8-2006)
Delinquent Account (DA). 1. the amount of tax due from a taxpayer who failed to pay the same within the time prescribed for its payment. (RMO 11-2014) 2. Refers to the amount of tax due on or before June 30, 2006 from a taxpayer who failed to pay the same within the time prescribed for its payment, arising from (1) a self-assessed tax, or (2) a deficiency assessment issued which has become final and executory. (RMO 23-2006) 3. An AR which arise from an unpaid self-assessed tax or an assessment which is already final and executory due to (a) failure to file a protest within thirty (30) days from receipt of the assessment; (b) failure to submit all relevant supporting documents within sixty (60) days from filing of the protest; and (c) failure to elevate to the Court of Tax Appeals (CTA) within thirty (30) days from receipt of the decision denying the protest. (RMO 7-2010)
delivery receipts. Are, like regular invoices or receipts, a part of the accounting records and, therefore, subject to registration and approval before the actual use of the same. (RAMO 1-2000)
dental services. The oral examination, cleaning, permanent and temporary filling, extraction and gum treatments, restoration, replacement or repositioning of the teeth, or alteration of the alveolar or periodontium process of the maxilla and the mandible that are necessary for the diagnosis and/or treatment of dental illness or injury. (RR 4-2006)
Department Code. The department’s unique identification provided by the DBM to all departments of government (e.g., Department of Education, Department of Finance, etc.) expressed in numeric form. (RR 1-2013)
Department of Finance (DOF). A government agency whose mandate is the formulation, institutionalization and administration of fiscal policies in coordination with other concerned subdivisions, agencies and instrumentalities of the government. (RMC 29-2015)
Department of Justice (DOJ). A government principal law agency whose mandate is to serve as the government’s prosecution arm and to administer the government’s criminal justice system. (RMC 29-2015)
DepEd-Central Office (CO). The sections/units/offices in the DepEd-OSEC (Proper) and the staff Bureaus and Centers, which implement the regular activities, LFPs and FAPs of DepEd. (RMC 59-2004)
dependent. 1. A legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect. (Sec 35 (B), NIRC) 2. Senior citizen, who may or may not be related to his benefactor and who is living with and dependent upon his benefactor for his chief support. (RR 4-2006)
deposit substitutes. An alternative form of obtaining funds from the public (borrowing from twenty or more individual or corporate lenders at any one time) other than deposits, through the issuance, endorsement, or acceptance of debt instruments for the borrowers own account, for the purpose of relending or purchasing of receivables and other obligations, or financing their own needs or the needs of their agent or dealer. (Sec 22 (Y), NIRC)
Detailed design report (DDR). Documentation on complete details of the application system design. (RMO 24-2003)
Development Assistance Activities of the USAID. A set of actions through which inputs, such as commodities, technical assistance, training, or resource transfers, are mobilized to produce specific outputs, such as vaccinations given, schools built, microenterprise loans issued, or policies changed. (RMC 40-2007)
development expenditures. Expenditures paid or incurred during the development stage of the mine or other natural deposits. (Sec 34 (G)(2), NIRC)
development software. Programs used to compile, interpret and assemble many sort of programming languages. (RMO 29-2002)
diagnostic and laboratory tests. Refer to X-Ray, CT Scans, Blood Chemistry Exams, Histopathology and Immunopathology, Hematology, Urinalysis, Parasitology and Bacteriology Tests, Serology, Blood banking, and other diagnostic examinations that are necessary for diagnosis and/or treatment of an illness and injury. (RR 4-2006)
Digital Video Disc- Recordable (DVD-R). A new generation of optical disc storage technology which holds more data than the CD-R. (RR 16-2006)
Direct Release of Funds. The decentralized system of Releasing the allotment, cash allocation and other fund-related documents to the DepEd-ROs and Implementing Units (IUs) by DBM-CO and DBM-ROs, as the case may be, as delineated in this Circular. (RMC 59-2004)
direct tax. The tax for which a taxpayer is directly liable on the transaction or business it engages in. (RMC 40-2007)
disability. Physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individuals. (RR 1-2009)
Disaster Recovery Procedure (DRP), Backup and Recovery Strategy. 1. A routine of procedures to restore from backup losses due to natural disasters, loss of power, internal sabotage or any form that can damage components of a computerized system. 2. This describes how an organization is to deal with potential and/or actual disasters; i.e., plan consisting of precautionary or remedial actions to be undertaken to minimize, maintain and /or immediately resume mission-critical functions in case of potential and/or actual disasters. (RMO 29-2002)
discounted loan. A loan where the entire interest and principal are paid at maturity. (RMC 28-2003)
dishonesty. Is the concealment or distortion of truth in a matter of fact relevant to one’s office as connected with the performance of his duties, or an absence of integrity, disposition to betray, cheat, deceive or defraud, and there is bad faith. (RMC 74-2012)
dishonored check. 1. Check used to pay the tax liability but was later dishonored by the concerned depository bank of the delinquent taxpayer. (RMO 11-2014) 2. Refers to a check drawn by the taxpayer and used for the payment of tax liability but was subsequently denied payment by drawee-bank due to taxpayer’s insufficiency of funds in his/her/its bank accounts, accounts closure, or for any other reason for non-acceptance thereof. (RMO 11-2014)
display. Any visual presentation or exhibition of tobacco product packages used for the sale or offer of sale of tobacco products. (RMC 23-2016)
disposal. The act of selling, landfill, or any other way of discarding valueless records in accordance with the provisions of R.A. 9470. (RMC 59-2013)
distributable income. The net income earned for the taxable year as adjusted for unrealized gains and losses/ expenses and impairment losses and other terms in accordance with internationally accepted accounting standards. (RR 13-2011)
distribution companies. The persons or entities which operate a distribution system in accordance with provisions of the EPIRA. (RR 14-2005)
distributor. Any person or entity that distributes or supplies tobacco products to retailers and/or other persons and entities who are not end-users or consumers of tobacco products. (RMC 23-2016)
dividends. Any distribution made by a corporation to its shareholders out of its earnings or profits and payable to its shareholders, whether in money or in other property. (Sec 73 (A), NIRC)
document. Are recorded informations regardless of medium or characteristics. (RMC 59-2013)
Documentary Stamp Tax Electronic Imprinting Machine (DSEIM). Is a device capable of imprinting the value of the DST and other data on the taxable document with remote loading and resetting feature, and with built-in modem which enables the users to load the DST thru an on-line set-up or electronic data transmission with the BIR using the Revenue Collection and Verification System (RCVS). (RR 7-2009)
DOF. Department of Finance (RMC 33-2004)
domestic. A corporation created or organized in the Philippines or under its laws. (Sec 22 (C), NIRC)
Double Entry System. Recognises the two-fold effect of every recorded event, the debit and the credit. (RAMO 1-2000)
DPWH. Department of Public Works and Highways (RR 12-2010)
DSWD. Department of Social Welfare and Development (RR 12-2010)
DTI. Department of Trade and Industry (RMC 33-2004)
E
early withdrawal. A withdrawal of a PERA assets, whether in full or in part, in such manner and at such time as to make the receipt of such PERA Assets not a Qualified PERA Distribution. (RR 17-2011)
early withdrawal penalty. Have the meaning ascribed to such term under Section 10 of these Regulations. (RR 17-2011)
eBIRForms Software Package (also known as Offline eBIRForms Package). Is a tax preparation software that allows the taxpayer and Accredited Tax Agent (ATA) to accomplish or fill up tax forms offline. (RR 6-2014)
eDST System. Is a web-based application system that provides an on-line mechanism through which taxpayers can utilize and imprint secured Documentary Stamps on taxable documents, using a prescribed laser printer. (RMC 51-2010)
eDST User. Is any person authorized by the Account Owner to utilize the DST Account balance and affix the prescribed documentary stamp to any taxable document. (RR 7-2009)
educational services. Academic, technical or vocational education provided by private educational institutions duly accredited by the DepEd, the CHED, and those rendered by government educational institutions and it does not include seminars, in-service training, review classes and other similar services rendered by persons who are not accredited by the DepEd, the CHED and/or the TESDA. (RR 14-2005)
Effective VAT Ratio (EVR). Means the profit margin rate of an industry, as benchmarked, multiplied by the VAT rate fixed by law. (RMO 5-2012)
Efficient Machine Service (EMS). Is an alternative collection facility. It is an automated and computerized kiosk that facilitates tax payment collection. (RMC 73-2005)
EFPS AAB. A BIR authorized agent bank (AAB) that has passed accreditation criteria for EFPS AAB such as being an internet-ready bank, indorsed by the Bureau of Treasury (BTR) for EFPS accreditation, and certified by the Information System Group of the BIR that the applicant bank’s system is acceptable and compatible with EFPS of the BIR. (RR 9-2002)
e-gasoline. The unleaded gasoline blended with fuel bioethanol. (RR 8-2006)
Election Campaign and Partisan Political Activity. An act designed to promote the election or defeat of a particular candidate or candidates to a public office. (RMC 15-2010)
Electronic Acknowledgement Receipt (eAR). Refers to the receipt issued for “No Payment” tax returns/forms/declarations and for tax returns where the taxes due thereon were paid through TDM, Tax Remittance Advice (TRA) or other non-cash payments. (RMO 8-2013)
Electronically Readable Format. The information supported by a system capable of producing an accessible and useable copy. (RR 9-2009)
electronic archive. A copy of files in a long-term storage medium for back-up/retention purposes. (RMO 29-2002)
Electronic Bureau of Internal Revenue Forms (eBIRForms). Refers to the two (2) types of electronic services (e-Services) provided by the Bureau relative to the preparation, generation, and submission of tax returns, which are the following: (a) Offline eBIRForms Package; and (b) Online eBIRForms System. (RMO 24-2013)
Electronic Data Interchange (EDI). The computer-to-computer exchange of business transactions in a standardized structured electronic format. (RR 9-2009)
electronic document. Information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically. (RR 16-2006)
Electronic Documentary Stamp Tax (eDST) System. Is a web-based application created for taxpayers and the BIR that is capable of affixing a secured documentary stamp on the taxable documents as defined under the appropriate provisions under Title VII of the National Internal Revenue Code of 1997. (RR 7-2009)
electronic filing (e-filing). 1. is the process wherein the taxpayer and ATA shall submit duly accomplished tax returns using the Online eBIRForms System. (RMO 24-2013) 2. Means the process of electronically filing tax returns, including attachments, specifically through the internet. (RMO 10-2014)
Electronic Filing and Payment System (EFPS). 1. The internet-based system of the BIR for the paperless filing of tax returns, the payment of taxes due thereon, and the submission of information such as Summary List of Sales and Purchase. (RR 3-2005) 2. Refers to the system developed and maintained by the BIR for electronically filing tax returns, including attachments, and paying taxes due thereon, specifically through the internet. (RMO 10-2014)
Electronic Fund Transfer Instruction System (eFTIS). The electronic processing and transmission of tax return information, including attachments, if any, and the payment of corresponding taxes due the government via the internet thru the BIR website. (RR 7-2009)
electronic linkage. The system that paves the submission/transmission of data and information in electronic format viewable and accessible to Bureau under secured environment via internet facilities. (RR 5-2002)
electronic mail (E-mail). the transmission of messages using electronic files over the communication networks. (RR 5-2005)
Electronic Official Receipt (eOR). Refers to the receipt issued for non-tax collection, excluding proceeds from the sale of loose-leaf documentary stamps. (RMO 8-2013)
electronic payment. Is another mode of payment for the convenience of taxpayers due to the emergence of e-Commerce, wherein secured payment is being made by simple transferring funds from a particular bank account or via a mobile number (i.e., Globe GCASH) to the government’s specific account/s with the use of advanced technologies. (RMO 24-2013)
Electronic Payment Service Provider (EPSP). The third-party entity that facilitates online payment transactions of the taxpayers cardholders, captures required transaction information, and generates prescribed reports to the BIR and the Acquirer. (RR 3-2016)
electronic record. A collection of related information in an electronically readable format. Electronic Records do not include hard-copy records that are created or recorded on paper or stored in or by an imaging system such as microfilm, microfiche, or storage-only imaging system. (RR 9-2009)
electronic record keeping. Those electronic business systems that create, process, store, maintain and provide access to the financial records of a person, including but not limited to custom and commercial accounting software, Point of Sale systems and Internet-based electronic commerce business systems. (RR 9-2009)
Electronic Revenue Official Receipt (eROR). Refers to the receipt issued for internal revenue taxes that were paid using cash, check, cash and check, cash and Tax Debit Memo (TDM), or check and TDM, or a combination thereof. (RMO 8-2013)
electronic signature. 1. The methodology or procedures prescribed by the BIR through the EFPS, employed by an individual taxpayer, or by an officer/s of a corporate taxpayer who is required by the Tax Code or appropriate regulation to affix his/her signature to such return, who files a return and pays taxes through EFPS, with the intention of authenticating, approving and attesting to the truth and correctness of the return. (RR 2-2002) 2. Any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document. (RR 16-2006)
Electronic Storage System. An electronic storage system to be used by the taxpayer or independent CPA for preserving books of accounts and other accounting records. (RR 5-2014)
Electronic Tax Remittance Advice (eTRA) System. The process of remitting taxes withheld by NGAs through the internet using the eFPS facility of the BIR, in lieu of the manual filing of Tax Remittance Advice. (RR 1-2013)
electronic ticketing. A method utilized to document the sale of passenger transportation services (electronic ticket) and other related services (electronic miscellaneous documents) without requiring the issuance of paper value documents. (RMC 46-2008)
electronic transaction. Refers to the electronic payment of tax liabilities through the Electronic Filing and Payment System (eFPS) or the eBIR Forms developed and maintained by the Bureau of Internal Revenue and other modes of electronic payment authorized by the BIR such as G-Cash Mobile Payment System or E-Tax Payment System of the Land Bank of the Philippines. (RMO 25-2015)
electroplating. Is the process of depositing a layer of metals onto a conductive surface through the use of electricity. (RMC 33-2004)
employee. 1. Any individual who is the recipient of wages and includes an officer, employee or elected official of the Government of the Philippines or any political subdivision, agency or instrumentality thereof. 2. Also includes an officer of a corporation. (Sec 78 (C), NIRC)
employer. The person for whom an individual performs or performed any service, of whatever nature, as the employee of such person. (Sec 78 (D), NIRC)
employment tests. Refers to the assessment tools that measures the mental ability, aptitude, proficiencies, potential ability, skills and knowledge of the job applicant. It is used as one of the basis for the selection of the most qualified applicant. (RMO 4-2005)
encoder. The person authorized and employed by the taxpayer to enter or encode all the transaction details into the eORB System. (RR 3-2013)
End Dating. For purposes of preventing the creation of stop filer cases, refer to the process of indicating in the system the end of the taxable period or date of the last return period for a particular registered form type/tax type for which a return is required to be filed. (RR 7-2012)
Energy Conservation Program. Reflecting the energy conservation measures, target savings, motor vehicles inventory, other strategies, total annual electricity and fuel consumption and savings for one (1) year. (RMC 1-2009)
enrollment. 1. Is the process of obtaining a Machine Identification Number for sales reporting purposes. (RMO 10-2005) 2. The on-line registration of all the taxpayer’s designated authorized representatives in the eORB System for accountability and security purposes. (RR 3-2013)
entertainment, amusement and recreation expenses. Includes representation expenses and/or depreciation or rental expense relating to entertainment facilities. (RR 10-2002)
entertainment facilities. 1. A yacht, vacation home or condominium. 2. Any item of real or personal property used by taxpayer primarily for the entertainment, amusement, or recreation of guests or employees. (RR 10-2002)
eORB Form. The prescribed document generated by the eORB System submitted to the BIR containing all the encoded daily transaction details of the taxpayer’s operations under the same format of the manually prepared eORB. (RR 3-2013)
eORB TS. A stand-alone application that can be downloaded by registered taxpayers from the eORB XTS for purposes of encoding the details of the data sources such as ODI/GUIA, ETRD, IEIRD,Purchase Order, and Sales Invoice forms. This application shall likewise enable the taxpayer to submit electronically to the BIR the ORB forms that are generated from the encoded details of data sources. (RMO 23-2013)
eORB XTS. A web-based application which maintains codes table values used by eORB TS and allows the BIR to receive electronically submitted ORB forms from the taxpayers. This application is likewise capable of generating compliance reports, discrepancy reports, and collection reports. (RMO 23-2013)
e-payment. Means the process of electronically paying a tax liability through the internet banking facilities of Authorized Agent Banks (AABs). (RMO 10-2014)
Equity Settlement Option. The grantee/subsequent owner pays the exercise price to the grantor and the latter is obligated to deliver the stocks to the owner of the option. (RMC 79-2014)
equivalent shares of stock/securities. Share of stock/securities of the same type or class of issue and of equivalent number to the shares/securities borrowed; Conversion, subdivision or consolidation, a takeover, or a right issue where it is not possible to return such borrowed share of stocks/securities because of a corporate re-structuring or similar event subsequent to the date of the SBL. (RR 10-2006)
establishment. Any entity, public or private, duly licensed and/or franchised by the national government agencies or the local government units. (RR 4-2006)
estimated tax. The amount which the individual declared as income tax in his final adjusted and annual income tax return for the preceding taxable year minus the sum of the credits allowed under this Title against the said tax. (Sec 74 (C), NIRC)
exact replica. Is the sample printed visual depiction of a tobacco product packaging submitted by manufacturers and importers to the BIR pursuant to an application for registration of new brands or variants of existing brands or new brands in accordance with Revenue Regulations No. 3-2006, and its amendatory issuances, which contain the graphic and textual health warnings and other additional information as required under RA 10643. (RMC 23-2016)
excess baggage. The part of the baggage which is in excess of that baggage which may be carried free of charge. (RR 15-2002)
exchange. An entity that provides a venue for the dealing/exchange of fixed income securities and is duly authorized by the SEC to engage in such activity. For purposes of these Regulations, the term shall only refer to the Philippine Dealing & Exchange Corp (PDEx). (RR 5-2007)
excisable establishment. Refers to any person, natural or judicial, who is engaged in the business of manufacturing, producing, assembling, importing and/or trading goods or article subject to excise tax under Title VI of the Tax Code of 1997. (RR 5-2002)
Excise Tax Portion. That portion of the purchase price of a petroleum product that is equal in the amount to the excise tax paid by the local refiner for said petroleum product. (RR 12-2010)
exclusive use of jewelry inputs, machinery and equipment. The employment, application, use or consumption by a Qualified Jewelry Enterprise of jewelry inputs, machinery and equipment acquired with incentives under this Act, solely for the 4 purpose of manufacturing jewelry or any aspect of such manufacturing process. (RMC 33-2004)
Execution of Warrant of Distraint and Levy. This refers to the implementation of the administrative and judicial remedies in the enforcement of collection of delinquent tax liabilities by a duly authorized Revenue Officer/Official of the Bureau. (RMO 11-2014)
executor. See adminstrator.
exhibitor. Primary lessee of the entire space where the operations of privilege-stores are held by virtue of a lease contract executed between the owner of the leased property and the organizer who subsequently sub-leases the same to the privilege-store operators during the entire duration of the lease contract. (RR 16-2003)
existing brand. A brand of alcohol or tobacco products which is included in Annexes A, B, C and D of R.A. No. 8240 and Revenue Regulations (RR) Nos. 1-97 and 2-97. (RR 3-2006)
Expanded Modified Direct Payment Scheme (ExMDPS). The payment procedure whereby the MDS-GSB shall pay the creditors/payees listed in the LDDAP-ADA no later than 48 hours but not earlier than 24 hours upon receipt of the said document from the NGA/OU. (RMC 25-2014)
expatriate employees. Is the aliens employed in managerial, confidential or highly technical positions. (RMC 41-2009)
exploration expenditures. Expenditures paid or incurred for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development stage of the mine or deposit. (Sec 34 (G)(2), NIRC)
export activities. It covers manufacture of export products, export services and activities in support of exporters. (RMC 50-2010)
export sales. 1. The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported and paid for in acceptable foreign currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas, (BSP). 2. Sale of raw materials or packaging materials to a nonresident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the Philippines of the said buyer’s goods and accounted for in accordance with rules and regulations of the Bangko Sentral ng Pilipinas (BSP). 3. Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed seventy percent (70%) of total annual production. 4. Sale of gold to the Bangko Sentral ng Pilipinas (BSP). 5. Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987, and other special law. 6. The sale of goods, supplies, equipment and fuel to persons engaged in international shipping or international air transport operations. (Sec 106 (A)(2), NIRC)
Extensible Mark-up Language (XML). Is a mark-up language that defines a set of rules for encoding documents. It is a textual data format with strong support via Unicode that is used for the representation of arbitrary data structure such as Web services. (RMO 24-2013)
F
facility. 1. May include but not be limited to sales, outlets, places of production, warehouse or storage places. (Sec 236 (A), NIRC) 2. May include but not limited to place of production, showroom, warehouse, storage place, garage, bus terminal, or real property for lease with no sales activity. A facility shall be registered as a branch whenever sales transactions/activities are conducted thereat. (RMO 10-2014)
failed settlement. The failure of the seller to deliver to the buyer the shares subject of the transaction within the required period. (RR 10-2006)
Failure to Refund Excess Taxes Withheld. When employer fails/refuses to refund excess taxes withheld to its employees. (RMC 21-2010)
family. The parents or brothers and sisters, whether of the full or half-blood, of child. (RMC 41-2013)
family of an individual. Includes only his brothers and sisters (whether by the whole or half-blood), spouse, ancestors, and lineal descendants. (RR 6-2008)
fiduciary. A guardian, trustee, executor, administrator, receiver, conservator or any person acting in any fiduciary capacity for any person. (Sec 22 (J), NIRC)
field or data element. A specified area of a record used for storing a particular class of data. Fields are sub-units of a record. (RR 16-2006)
file. 1. Refers to one transaction type (sales, local purchases, and importation) per month. (RMO 4-2003) 2. A named collection of records stored or processed as an individual entity. (RR 16-2006)
file formats. A standard of organizing and storing the data in the file such that specific applications will be able to use the data. (RR 16-2006)
Filipino Overseas Contract Worker (OCW). Are Filipino citizens employed in foreign countries, commonly referred to as OFWs, who are physically present in a foreign country as a consequence of their employment thereat. (RR 7-2012)
finalize. The act of determining that the encoded transaction details are correct and complete and therefore considered final for purposes that the said can already be included in the generation of the eORB Form. (RR 3-2013)
Final Withholding Tax System. The amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income. (RR 2-98)
financial hardship. Refers to a condition that is either temporary or permanent in nature and may be experienced by a delinquent taxpayer that could adversely affect the satisfaction of his basic needs that prevents him to immediately settle his/her/its tax liabilities. (RMO 11-2014)
financial inconvenience. Refers to a condition that is either temporary or permanent in nature and may be experienced by a delinquent taxpayer which prevents him from the continuous enjoyment of luxurious lifestyle that can be given-up without impairing the satisfaction of the delinquent taxpayer’s basic needs as defined in the immediately preceding paragraph. (RMO 11-2014)
financial institution. banks, non-bank financial intermediaries including quasi banks and finance companies. This does not, however, include insurance companies. (RR 12-2003)
financial intermediation services. Is the gross interest income received, including discounts received in cash or property, from all lending and investment activities of the financial institution. (RMC 28-2003)
financial leasing. The mode of extending credit through a non-cancellable lease contract under which the lessor purchases or acquires, at the instance of the lessee, machinery, equipment, motor vehicles, appliances, business and office machines, and other movable or immovable property in consideration of the periodic payment by the lessee of a fixed amount of money sufficient to amortize at least seventy percent (70%) of the purchase price or acquisition cost, including any incidental expenses and a margin of profit over an obligatory period of not less than two (2) years during which the lessee has the right to hold and use the leased property with the right to expense the lease rentals paid to the lessor and bears the cost of repairs, maintenance, insurance and preservation thereof, but with no obligation or option on his part to purchase the leased property from the owner-lessor at the end of the lease contract. (R.A. No. 5980 as amended by R.A. No. 8556; RR 12-2003)
financial staff. The DepEd employees in the SDOs or SSs who are appointed on a temporary or permanent basis as Accountant/ Senior Bookkeeper and Cashier/Disbursing Officer/Cash Clerk. (RMC 59-2004)
financial statements. Shall be composed of Balance Sheet, Income Statement/Profit and Loss Statement, Statement of Changes in Equity, Statement of Cash Flow, Notes, and Schedules attached to the aforecited statements. (RR 7-2007)
financing companies. Corporations except banks, investments houses, savings and loan associations, insurance companies, cooperatives, and other financial institutions organized or operating under other special laws, which are primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial, or agricultural enterprises, by direct lending or by discounting or factoring commercial papers or accounts receivables, or by buying and selling contracts, leases, chattel mortgages, or other evidences of indebtedness, or by financial leasing of movable as well as immovable properties. (R.A. No. 5980 as amended by R.A. No. 8556; RR 12-2003)
first level positions. Shall include clerical, trades and crafts, and custodial service which involve professional work in a non-supervisory or supervisory capacity. (RMO 4-2005)
fiscal year. An accounting period of twelve (12) months ending on the last day of any month other than December 31. (RAMO 1-2000)
fixed-income securities. Types of debt securities that are acceptable to the Lending Pool System for lending under the Fixed-Income Securities Lending Program of PDEx. (RR 5-2007)
fixed length file. A file in which each record has the same number of characters. (RR 16-2006)
Follow-on/Follow-through Offering of Shares. An offering of shares to the investing public subsequent to an IPO. (RR 6-2008)
forced leave. Continuous or intermittent 5 days mandatory leave required of an employee in a given year. (RMO 15-2004)
foreign. A corporation which is not domestic. (Sec 22 (D), NIRC)
foreign currency. Is a currency which is other than the functional currency of the qualified entity. (RR 6-2006)
foreign currency denomination sale. Sale to a nonresident of goods, except those mentioned in Section 149 and 150, assembled or manufactured in the Philippines for delivery to a resident in the Philippines, paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). (Sec 106 (A)(2)(b), NIRC)
foreign tax authority. Tax authority or tax administration of the requesting State under the tax treaty or convention to which the Philippines is a signatory or a party of. (Sec 6 (F)(3)(g), NIRC)
forfeited assets. See acquired assets.
forming. The generic terms for the processes used in shaping precious metals and imitations thereof such as bending, dapping, chasing, repousse, sinking, hammering, with or without stakes, using stamps and dies, forging, fusing and engraving. (RMC 33-2004)
forms screen. Is a screen showing the electronic format of certain BIR Form to be accomplished by the taxpayer or ATA upon selection of a definite form from the drop- down list indicated on the Parent Screen. (RMO 24-2013)
fortified wines. Natural wines to which distilled spirits are added to increase their alcohol strength. (Sec 142, NIRC)
Forward Estimate (FE). The future costs of the on-going policies of the government over a three-year period. (RMC 38-2015)
foster care. The provision of planned temporary substitute parental care to a child by a Foster Parent or a Foster Family. (RMC 41-2013)
foster child. A child placed under Foster Care.(RMC 41-2013)
foster family. A Foster Parent(s) and his/her immediate family members. (RMC 41-2013)
Foster Family Care License. The document issued by the DSWD authorizing the Foster Parent(s) to provide Foster Care. (RMC 41-2013)
foster parent. A person duly licensed by the DSWD to provide Foster Care. (RMC 41-2013)
Foster Placement Authority (FPA). The document issued by the DSWD authorizing the placement of a particular Foster Child with a Foster Parent(s). (RMC 41-2013)
franchise tax. A tax on a special privilege or right conferred by the State through the legislature and which, therefore, does not belong to the citizens of the country generally as a matter of common right. (RMC 74-2008)
fraud cases. These are audit cases which are referred to or developed by the National Investigation Division in the National Office or by the Special Investigation Division in the Regional Offices following the guidelines and procedures prescribed under Revenue Memorandum Order No. 15-95, as amended. (RMO 8-2006)
Freeport Zones and Economic Zones. As defined by law, are considered as separate customs territories. Sales by entities registered with these zones are either treated as sales outside the country (if the purchaser is a locator as well or if the goods are for export to a country other than the Philippines) or domestic sales. If considered as domestic sales, said sales are importations in the hands of the purchaser and are thus, subject to the corresponding customs duties and other taxes on imported products. (RR 2-2012)
freight. Is the basic charges of the international air or sea carriers in the movement of cargoes billed to forwarders, which are, in turn, billed (or subsequently passed on) by the forwarders to their clients. (RMC 35-2006)
fringe benefit. Any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank and file employees as defined herein). (Sec 33 (B), NIRC)
fuel bioethanol. The suitably denatured bioethanol, for use as blending component to unleaded gasoline to produce E-gasoline. (RR 8-2006)
functional currency. Is the currency of the primary economic environment in which the reporting entity operates; that is the currency of the environment in which an entity primarily generates and expends cash. (RR 6-2006)
functional description. This refers to documents showing a high level description of the functions and features of a computerized accounting system under evaluation. (RMO 29-2002)
functional specification report (FSR). Documentation on functional requirements and defines the application flow system. (RMO 24-2003)
Fund Generation and Contributions. The money of the fund shall be generated by the provident savings that the covered employees shall contribute for the purpose every month, and the equal amounts that their respective employers shall mandatorily contribute. (RMC 27-2011)
funding strategy. Is a funding program for a specific multi-year project indicating sourcing of financing to support said project for entire duration of the project, subject to DBM review and confirmation. (RMC 38-2015)
G
General Engineering and/or Building Contractors. Are those engaged in contracting business in connection with fixed works requiring specialized engineering knowledge and skill (e.g. reclamation works, railroads, highways, streets roads, tunnels, airports), or with any structure built, for the support, shelter and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof (e.g. sewers and sewerage, disposal plants and systems, parks, playgrounds, refineries). (RMC 4-2003)
general professional partnerships. Partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in trade or business. (Sec 22 (B), NIRC)
general sales agents. Are the travel agents/cargo agents that deal exclusively for and on behalf of a domestic carrier, or an on-line international air carrier, or an off-line international air carrier, and earn commission income for their services. (RMC 46-2008)
generation companies. Refers to a person or entities authorized by the Energy Regulatory Commission (ERC) to operate facilities used in the generation of electricity. (RR 14-2005)
generic machines. Are machines not identified by a specific trade or brand name. This includes clone machines. (RMO 10-2005)
global system. Refers to a system which is simultaneously used by a taxpayer for its Head Office and Branches worldwide. (RMO 29-2002)
goods. 1. All tangible and intangible objects which are capable of pecuniary estimation. (Sec 106 (1), NIRC) 2. Pertains to a tangible personal property. (RR 14-2008)
good diskette. Refers to a diskette which is free from virus(es) (GD), whose files are readable by the system, conform with the prescribed electronic format,validated and successfully uploaded to RELIEF system. (RMO 4-2003)
government agencies and its instrumentalities. Refers to the corporate government entity through which the functions of the government are exercised throughout the Philippines, including the various arms through which political authority is made effective in the Philippines, whether pertaining to the central government or the provincial or municipal branches or other forms of local government. (RMO 13-2008)
government agency/office. Any public office, department, bureau, agency, and instrumentality, whether pertaining to the national government or local government unit. (RMC 59-2013)
Governmental Proprietary Function. When a public corporation or a local government unit acts in its proprietary character, it is regarded as having the rights and obligations of a private corporation. (RR 18-2012)
government securities. Security issued by the Republic of the Philippines or any of its agencies, instrumentalities, and political subdivisions. (RR 20-2003)
grant option. In the event the option was granted due to an employee – employer relationship, and where the grantor is the employer and the grantee is the employee, and no payment was received for the grant of the said option, on the year the option was granted, the grantor cannot claim deductions for the grant of the stock option. (RMC 79-2014)
graphical health warnings. The photographic image printed on the tobacco product package, which accurately depicts the hazards of tobacco use and is accompanied by a textual warning related to the picture. (RMC 23-2016)
grave misconduct. Shall include the issuance of fake letters of authority and receipts, forgery of signature, usurpation of authority and habitual issuance of unreasonable assessments. (Sec 269, NIRC)
grievance. A work-related discontentment or dissatisfaction which had been expressed verbally or in writing and which, in the aggrieved employee’s opinion, has been ignored or dropped without due consideration. (RMO 38-2009)
grievance machinery. A system or method of determining and finding the best way to address the specific cause or causes of a grievance. (RMO 38-2009)
gross compliance ratio. Is defined as the actual VAT collection in ratio or as percentage to total potential VAT collection. (RMO 5-2012)
gross income. Equivalent to gross sales less sales returns, discounts, and allowances. (Sec 27 (A)(4), NIRC) It is the gross sales less sales returns, discounts, and allowances and cost of goods sold, in case of sale of goods, or gross revenue less sales returns, discounts, allowances and cost of services/direct cost, in case of sale of services. (RR 12-2007)
Gross Neglect of Duty. Is characterized by want of even the slightest case, or by cautious indifferences to the consequences, or by flagrant or palpable breach of duty. (RMC 74-2012)
gross output. The actual market value of minerals or mineral products, or of bullion from each mine or mineral land operated as a separate entity, without any deduction from mining, milling, refining (including all expenses incurred to prepare the said minerals or mineral products in a marketable state) as well as transporting, handling, marketing or any other expenses. (Sec 151 (B)(1), NIRC)
Gross Philippine Billings. 1. [international air carrier] The amount of gross revenue derived from carriage of persons, excess baggage, cargo and mail originating from the Philippines in a continuous and uninterrupted flight, irrespective of the place of sale or issue and the place of payment of the ticket or passage document. (Sec 28 (3)(a), NIRC) 2. [international shipping] Gross revenue whether for passenger, cargo or mail originating from the Philippines up to final destination, regardless of the place of sale or payments of the passage or freight documents. (Sec 28 (3)(b), NIRC)
gross receipts. 1. The compensation for all financial and non- 4 financial services, or combination thereof, exclusive of the value added tax, performed by financial institutions within the Philippines, which compensation or fees are actually or constructively received during the month or quarter. (RR 12-2003) 2. The total amount of money or its equivalent representing the contract price, compensation, service fee, rental or royalty, including the amount charged for materials supplied with the services and deposits and advanced payments actually or constructively received during the taxable quarter for the services performed for another person, excluding valued-added tax. (Sec 108, NIRC)
gross revenue. Include income from sale of services, likewise, taxable under Sec. 27(A). (RR 12-2007)
gross selling price. The total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or properties, excluding the value added tax. (RR 12-2003)
gross value in money. Means the “fair market value”. In the case of shares traded thru the stock exchange, “fair market value” shall consist of the actual selling price at which the transaction was executed in the trading system and/or facilities of the Local Stock Exchange. (RR 6-2008)
Group of Companies. The corporations that are related to one another as parent corporations, subsidiaries, affiliates and conglomerates. (RR 17-2010)
guests. Persons or entities with which the taxpayer has direct business relations, such as but not limited to, clients/ customers or prospective clients/customers. (RR 10-2002)
H
habitual stop-filer. Refers to a registered taxpayer who has been subjected to (a) at least two (2) ocular inspections or six (6) real stop-filer cases of any tax type, or created stop-filers for three (3) periods for a particular tax type due to non-filing of monthly and quarterly returns; or (b) at least one (1) ocular inspection or two (2) real stop-filer cases for a particular tax type due to non-filing of annual tax returns/annual information return and/or alphabetical lists of recipients of income from whom taxes were withheld. (RMO 41-2011)
hard copy. Any documents, records, reports or other data printed on paper. (RR 9-2009)
heads. Distillation fraction containing a high percentage of low boiling components such as aldehydes. (RR 3-2006)
head of family. An unmarried or legally separated man or woman, widow or widower, who is the benefactor of a defendant senior citizen. (RR 4-2006)
head office (HO). 1. The principal place of business as appearing in the Articles of Incorporation. In the case of individual, the head office shall be the principal place of business where the main books of accounts and other related accounting records are kept and maintained. (RMO 29-2002) 2. Refers to the declared specific or identifiable principal place/head office of business as stated in the Articles of Incorporation/Articles of Partnership/Articles of Cooperation/DTI Certificate of Registration, as the case may be, or, in the absence thereof, the place where the complete books of accounts are kept. It is the fixed place of business, whether rented or owned, and whether or not the products/services being sold are actually located or displayed thereat. For persons who conduct business in a nomadic or roving manner, such as peddlers, “tiangges”, mobile stores operators, common carries/school bus operators without designated garages/terminals, etc., their place of residence shall be considered as the HO. (RMO 10-2014)
health services cooperative. Is one organized for the primary purpose of providing medical, dental and other health services. (RMC 57-2012)
high-low point method. Is a method of computing the mean by taking the highest and the lowest points from the set of numbers. The mean represents the normal level points. (RMO 5-2012)
home country. The country under whose laws the international carrier was duly organized or incorporated. (RR 15-2013)
home page. Is the screen which requires input of the username and password upon access of the Online eBIRForms System. (RMO 24-2013)
Home RDO. Revenue District Office where taxpayer is actually registered per record appearing in ITS Registration Database (RMO 40-2004).
Home Study Report. A written report prepared by a Social Worker containing the necessary information on a prospective Foster Parent(s) and where applicable, the family of such prospective Foster Parent. (RMC 41-2013)
Host RDO. is the Revenue District Office that has jurisdiction over the specific areas chosen for visitation. (RMO 9-2006)
hotel/hostel. The building, edifice or premises or a completely independent part thereof, which is used for the regular reception, accommodation or lodging of travelers and tourists and the provision of services incidental thereto for a fee. (RR 4-2006)
I
IATA Cargo Accounts Settlement System (CASS) Cargo Agents. IATA’s duly accredited cargo agents who are authorized to issue in the Philippines cargo airway bills/passage documents of on-line international air carriers. (RMC 46-2008)
identification document. Any document or proof of being a senior citizen which may be used for the availment of benefits and privileges under these Rules. (RR 11-2015)
imitation jewelry. Articles falling under item (u) (1) but not including buttons, dress-combs, hair-slides or the like, or hairpins, not incorporating natural or cultured pearls, precious or semi-precious stones or precious metal or metal clad with precious metal, except as plating or as minor constituents. (RMC 33-2004)
imitations. Include platings and alloys of such metals. (Sec 150 (a), NIRC)
Imitation of precious metal. Are non-precious metal electroplated to simulate precious metals.(RMC 33-2004)
imitation of precious stone. Any man-made reproduction, copy, imitation, likeness and semblance of any of the aforementioned stones, processed, manufactured, or done in any method or procedure. (RMC 33-2004)
immediate family. Refers to the spouse, children, parents, unmarried brothers and sisters and any relative living under the same roof or dependent upon the employee for support. (RMO 15-2004)
implementing agents. Implementing agents may either be contractors or recipients. (RMC 40-2007)
Implementing Rules and Regulations (IRR). As revised, it is promulgated by SEC to implement the provisions of this Act. (RR 13-2011)
importation. The introduction of an alcohol or tobacco product from a foreign country into the Philippine customs’ territory or into a duly chartered economic and freeport zones and duty-free shops, whether for sale or not. (RR 3-2006)
importer. 1. Any person bringing motor vehicles into the country from a foreign country for the purpose of sale, for personal use or for use in business. (RR 25-2003) 2. Refers to any person who brings goods into the Philippines, whether or not made in the course of his trade or business. It includes non-exempt persons or entities who acquire tax-free imported goods from exempt persons, entities or agencies. (RMO 10-2014)
Import Incentives Availment Report (IIAR). A document issued by the Board carrying a serial number, together with the Certificate of Accreditation, which shall be presented to the BOC upon every tax and/or duty free importation by Qualified Jewelry Enterprise. (RMC 33-2004)
Inactive customers per BIR-ITS. Shall refer to customers which may either have an active or terminated contract with MERALCO but are not yet registered with the BIR. (RMO 22-2005)
inbound movement. The movement of cargoes from a foreign port to the Philippines. (RMC 35-2006)
includes. Not be deemed to exclude other things otherwise within the meaning of the term defined. –including. (Sec 22 (O), NIRC)
Income Generating Real Estate. The real property which is held for the purpose of generating a regular stream of income such as rentals, toll fees, user fees and the like, as may be further defined and identified by the SEC. (RR 13-2011)
income tax due. The income tax due per final or annual income tax return, undiminished by any amount of withholding tax or tax credit. (RR 18-2006)
income tax returns. All Income Tax Forms issued/ prescribed by the BIR including attachments thereto, written statements or other documents designed to be supplemental to and part of the said returns. (RR 10-2010)
Independent Certified Public Accountant. Accountant who possesses the independence as defined in the rules and regulations of the Board of Accountancy promulgated pursuant to Presidential Decree No. 692, otherwise known as the Revised Accountancy Law. (Sec 232 (B), NIRC)
independent enterprises or parties. Two enterprises are independent enterprises with respect to each other if they are not associated enterprises. (RR 2-2013)
indigenous petroleum. Include locally-extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and all other similar or naturally associated substances with the exceptions of coal, peat, bituminous shale and/or stratified mineral deposits. (Sec 151 (A) (4), NIRC)
industrial fruits of acquired/forfeited properties. Refers to those that are produced by lands of any kind through cultivation or labor (e.g. palay, sugar cane, corn, cultivated vegetables and fruit bearing trees, etc.). (RMO 13-2014)
industrial services. Are for industrial customers with demand greater than five (5) kilowatts for general power, heating and/or lighting. Industrial customers are establishments wherein the main economic activity is mining, quarrying, manufacturing and processing, electricity generation and distribution, and gas and steam manufacturing. (RMO 22-2005)
industry. A group of companies engaged in the production of similar goods or services. (RMO 4-2006)
infant. A passenger who has not attained his second birthday. (RR 15-2002)
informer. Any qualified person who voluntarily provides definite and sworn information not yet in the possession of the BIR nor of the public knowledge, leading to the discovery of frauds upon the internal revenue laws or violations of any provisions of the NIRC of 1997, as amended, resulting in the recovery of the revenues, surcharges and fees and/or the conviction of the guilty party and/or the imposition of any fine or penalty. (RR 16-2010)
in-house/customized CAS. this refers to the accounting system developed internally in accordance with prescribed user requirements. (RMO 29-2002)
In-house Developed Application System. Refers to the application system developed by the Bureau. (RMO 24-2003)
initial payments. Payment or payments which the seller receives before or upon execution of the instrument of sale and payments which he expects or is scheduled to receive in cash or property (other than evidence of indebtedness of the purchaser) during the year when the sale or disposition of the real property was made. It covers any downpayment made and includes all payments actually or constructively received during the year of sale, the aggregate of which determines the limit set by law. (RR 16-2005)
Initial Public Offering (IPO). A public offering of shares of stock made for the first time in the Local Stock Exchange. (RR 6-2008)
input tax. The value-added tax due from or paid by a VAT-registered person in the course of his trade or business on importation of goods or local purchases of goods or services, including lease or use of property, from a VAT-registered person. It shall also include the transitional input tax determined in accordance with Section 111 of this Code. (Sec 110 (A)(3), NIRC)
insert. Any communication inside an individual package and/or carton purchased at either wholesale or retail by consumers, such as leaflet or brochures. (RMC 23-2016)
insolvency. See bankruptcy.
institutional. Members consist of employees, workers and/or officers of a particular institutions. (RMC 57-2012)
insurance companies. Entities that undertakes for a consideration to indemnify another (insured) against loss, damage or liability arising from an unknown or contingent events. (RR 12-2003)
insurance and pension funding companies. Are those engaged in life and non-life insurance business as defined under the Insurance Code and pre-need companies, including health maintenance organizations. (RMC 4-2003)
intangible costs in petroleum operations. Any cost incurred in petroleum operations which in itself has no salvage value and which is incidental to and necessary for the drilling of wells and preparations of wells for the production of petroleum. (Sec 34 (G)(1), NIRC)
integration testing. Testing performed to expose faults in the interfaces and in the interaction between integrated components. (RMO 24-2003)
Inter-Active Forms (IAF) System. Refers to the system/facility developed and maintained by the BIR, other than the eFPS, that allows taxpayers to electronically file tax returns and pay the corresponding taxes due thereon through the internet banking facilities of AABs. (RMO 10-2014)
interest income. Include interest and discounts earned on loans and investment transactions. (RR 12-2003)
International Agreements or Agreement on Tax Matters. Refers to Tax Information Exchange Agreements (TIEAs) which may be negotiated between the Philippines and other Contracting States or jurisdictions. (RR 10-2010)
international air carrier. Foreign airline corporation doing business in the Philippines having been granted landing rights in any Philippine port to perform international air transportation services/activities or flight operation anywhere in the world. (RR 15-2002)
international common carrier. An International Air Carrier or International Sea Carrier, as herein defined. (RR 15-2013)
International Convention or Tax Treaty. Is the Double Taxation Convention (DTCs) or Double Taxation Agreement (DTAs) negotiated between the Philippines and other Contracting States or jurisdictions for the avoidance of double taxation and the prevention of physical evasion with respects to taxes on income. (RR 10-2010)
internal revenue stamp. Is the BIR-issued stamp with a dimensional size of 23 millimeters (mm) by 43 mm containing multi-layered security features and an IRSIS-assigned Unique Identifier Code and a Quick Reference Code containing information pertinent only to the cigarette container (e.g. pack) to which the internal revenue stamp is affixed. (RR 7-2014)
Internal Revenue Stamp Integrated System (IRSIS). Is the web-based application system for ordering and distribution of internal revenue stamps, as well as, for real-time monitoring of the said stamps upon its affixture on the cigarette products, and for generating the required reports. (RR 7-2014)
international sea carrier. Foreign shipping corporation doing business in the Philippines, having touched or intention of touching any Philippine port to perform international sea transportation services/activities from the Philippines to anywhere in the world and vice versa. (RR 15-2013)
international shipping. ‘Gross Philippine Billings’ means gross revenue whether for passenger, cargo or mail originating from the Philippines up to final destination, regardless of the place of sale or payments of the passage or freight documents. (RMC 40-2013)
interest income. For purposes of RR No. 12, the term shall include interest and discounts earned on loans and investment transactions. (RR 12-2003)
in the course of trade or business. The regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless whether or not the person engaged therein in a nonstock, nonprofit private organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members or their guests), or government entity. (Sec 105, NIRC)
in the discretion of the grantor. In the discretion of the grantor, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of the part of the income question.. (Sec 64 (B), NIRC)
invalid stop-filer case. Refers to a case that has been automatically created by RCS or manually identified by the non-computerized RDOs, the creation/identification of which falls under any of the following reasons upon evaluation by the Case Officer: (a) erroneous registration of taxpayer’s tax types/form types; (b) Collection and Bank Reconciliation System (CBRS) and Returns Processing System (RPS) suspension due to invalid Taxpayer Identification Number (TIN), tax type, form type and return period; (c) non-encoding of no-payment returns; (d) non-encoding of with payment-returns coupled with failure to upload the Limited Bank Data Entry (LBDE) data transmitted by the Authorized Agent Banks (AABs) to the ITS; (e) system configuration error such as wrong codes tables brought about by incorrect legislative due dates, old form types, and un-updated or wrong holidays; (f) non-encoding/non-uploading of the Alphabetical List of Employees and Payees required to be attached to BIR Form Nos. 1604 CF (Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes) and 1604 E (Annual Information Return of Creditable Taxes Withheld [Expanded]/ Income Payments Exempt from Withholding Tax); and (g) error in the manual encoding of the taxpayer’s information details using the ITS Create a Case facility as a result of re-creation of a stop-filer case in the ITS arising from inadvertent closure thru data fix of the originally identified stop-filer case. (RMO 41-2011)
inventory. A descriptive listing of the records holding by records series indicating its specific location, inclusive date and volume in cubic meter. (RMC 59-2013)
Inventory Custodian Slip (ICS). The official form used to issue tangible items amounting to less than P15,000.00 to end-user to establish accountability over them. (Appendix 59, GAM Vol. II). (RMO 20-2016)
investible funds. Funds of the REIT that can be placed in investment vehicles other than income generating real estate such as real estate related assets, managed funds, government securities, and cash and cash equivalents. (RR 13-2011)
investment certificates. See long-term deposit.
investor. The owner of investor securities or investor shares. (RR 13-2011)
investor securities or shares. Are the shares of stock issued by a REIT or derivatives thereof. (RR 13-2011)
issue-based audit cases. These are cases whose audit focuses on a specific issue which may or may not be recurring and needs immediate resolution. (RMO 8-2006)
Issuing Office. See Original VAT TCC Issuing Office.
Iterative System Development. Refers to the design and development of enhancements to the existing application system. (RMO 24-2003)
J
jeep/jeepney. 1. A locally assembled military type vehicle manufactured by local firms with no foreign affiliations, which is similar in appearance to the McArthur or Eisenhower type with canvas or hard top shell. 2. Locally assembled variant of the said vehicle primarily used for transport of passenger. (RR 4-2003)
jeopardy assessment. Is a tax assessment made by an authorized Revenue Officer without the benefit of complete or partial audit. (Sec 13 (c), NIRC)
job requirements. Requisites not limited to the qualification standard of the position, but may include skills, competencies, potential, physical characteristics and personality traits necessary for the successful performance of the duties required of the position. (RMO 4-2005)
journal. To which the happenings or transactions affecting the business of a taxpayer are recorded consecutively day by day as they occur. (RR V-1; Sec 232 (A), NIRC)
justification. An explanation on the economic, administrative or other justification for the requested issuance of approval. (RMC 57-2003)
K
Key Performance Indicator (KPI). Refers to a set of measures that helps the Bureau determine if the concerned office in the Bureau is reaching its performance and operational targets. (RMO 41-2011)
Knowledge Base (KB). Contains information similar to the BIR website except for some information relevant to internal users, particularly the BIR Contact Center (BIRCC), such as repository of resolved escalated issues, script loaded in the BIRCC Interactive Voice Response System (IVRS), list of contact persons per BIR office, etc. (RMO 1-2008)
L
landed cost. Consists of the invoice amount, custom duties, freight, insurance and other charges. If the goods imported are subject to excise tax, the excise tax shall form part of the tax base. (RR 16-2005)
Land Registration Authority (LRA). Is a government agency under the Department of Justice (DOJ) mandated by law to preserve the integrity of the land registration process, protect the sanctity of the Torrens System, and act as the central repository of records relative to original registration of lands titled under the Torrens System. (RMC 28-2015)
large taxpayer. A taxpayer who has been classified and duly notified by the Commissioner of Internal Revenue as a Large Taxpayer (regular and excise) for having satisfied any or a combination of the set criteria as to tax payments, financial condition, and results of operations as prescribed in Revenue Regulations No. 1-98 and Section 245 of the NIRC of 1997, including amendatory provisions of law and regulations. (RMO 29-2002)
Large Taxpayers Assistance Division I (LTADI). Refers to Large Taxpayer Assistance Division I under the Large Taxpayer Service (LTS) which has jurisdiction over regular large taxpayers not tagged as excise taxpayers. (RMO 10-2006)
Large Taxpayers Assistance Division II (LTADII). Refers to Large Taxpayer Assistance Division I under LTS which has jurisdiction over large taxpayers under Makati and Cebu. (RMO 10-2006)
late remittance. When employer remits the correct amount withheld beyond the prescribed due date. (RMC 21-2010)
late returns. A tax return filed beyond the date prescribed under the National Internal Revenue Code (NIRC) and existing rules and regulations. Tax returns filed with check payments made by the taxpayer on due date but received by Authorized Agent Banks (AABs) after the cut-off time/clearing time and reported in the Batch Control Sheet (BCS) the following working day shall not be considered as late returns/late payments. (RR 13-2010; RMO 77-2010)
Latest Business Tax Return. The Value Added Tax (VAT) or Percentage Tax returns covering the previous six (6) months. For those with less than six (6) months of operations, this refer to the monthly business tax returns filed to date. (RR 3-2005)
Latest Income Tax Return (LITR). The ITR for the preceding Tax Year be it on a calendar or fiscal year. (RR 3-2005)
lead school. A SS with financial staff which has been specially assigned to assist a geographically contiguous cluster of SSs without financial staff, hereinafter referred to as clustered schools, in terms of budgeting, accounting and cashiering as determined by the DepEd Secretary. (RMC 59-2004)
Lease or Operating Agreement. Is the document that stipulates the agreement between the lessee and lessor with regard to the use and/or operation of the former of the storage facilities owned by the lessor. (RR 2-2012)
leave of absence. The right granted to officials and employees not to report for work– with or without pay– as may be provided by law. (RMO 15-2004)
ledger. To which are posted the classified accounts or items of transactions entered in the journal or its equivalents. (RR V-1; Sec 232 (A), NIRC)
legal basis. A statement citing the legal basis for the requested issuance or approval. (RMC 57-2003)
legal services. Any activity which requires the application of law, legal procedure, knowledge, training and experiences which shall include, among others, legal advice and counsel, and the preparation of instruments and contracts, including appearance before the administrative and quasi-judicial offices, bodies and tribunals handling cases in courts, and other similar services as may be defined by the Supreme Court. (RMC 23-2010)
legitimate purpose. Any purpose that is not contrary to law, morals and public policy. (RMC 54-2016)
lender. Is any institution qualified by PDEx under its Fixed-Income Securities Lending Program, who lends securities from his/its pool of assets or the assets of his/its clients (in the case of Lending Agents). (RR 5-2007)
lender/lending agent. 1. Any person or entity who lend shares of stock/securities from his pool of assets as principal or from the assets of his client in case of a Lending Agent. (RR 10-2006) 2. Is an institution accredited by the BSP or the SEC and qualified by PDEx that lends securities from the assets of its clients for SBL/SLTs under the Fixed-Income Securities Lending Program of PDEx. (RR 5-2007)
lending investors. Includes all person other than banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions who make a practice of lending money for themselves or others at interest. (RR 14-2005)
Lending Pool System Operator. The Philippine Depository and Trust Corporation (PDTC), the entity accredited by PDEx which is capable of operating a Lending Pool System and which accepts all securities intended for transactions under its Fixed-Income Securities Lending Program and delivers the same to Borrowers upon execution of an SBL/SLT. (RR 5-2007)
lessee. The one who is granted the use of a storage facility by virtue of a lease agreement with its owner or operator. (RR 2-2012)
lessor or operator. Used synonymously with an owner or the one that grants the use of a storage facility with whom a lease agreement was executed. (RR 2-2012)
Letter Notice (LN). Is served by the Bureau upon taxpayers who were found to have under-declared their sales or purchases through the Third Party Information Program can be considered a notice of audit or investigation which would in effect disqualify the taxpayers concerned from amending any return which is the subject of such audit or investigation. (RMC 40-2003)
Letter of Introduction (LOI). A letter addressed to the MDS-GSB, issued by the NGA/OU to its creditors/payees for the purpose of opening an account or validation of an existing account. (RMC 25-2014)
LGU Beneficiary. Province or city/municipality where the race track is located and where partly owned by the province and by the city/municipality, the share shall be proportionately allocated. (RMC 74-2008)
libel. A public and malicious imputation of a crime, or of a vice or defect, real or imaginary, or any act, omission, condition, status or circumstance tending to discredit or cause the dishonour or contempt of a natural or juridical person, or to blacken the memory of one who is dead. (G.R. No. 47971, Oct. 1990, 191 SCRA 61, 67)
light commercial vehicle (LCV). 1. A motor vehicle, whether four-wheel drive or not, such as commuter vans. 2. Utility vehicles. 3. Sports Utility Vehicles (SUV). (RR 4-2003)
Limited Bank Data Entry System (LBDES). Refers to the Integrated Tax System (ITS) capability which allows the AAB to encode and send payment information to the Revenue Data Center (RDC) through Electronic Data Transmission (EDT). (RMO 25-2015)
List of Collections (LC). Refers to the summary of daily collections to serve as guide for the RCO in the preparation of the necessary bank deposit slip/s. (RMO 8-2013)
List of Due and Demandable Accounts Payable with Advice to Debit Account (LDDAP-ADA). An accountable form integrating the ADA with the LDDAP which is a list reflecting the names of creditors/payees to be paid by the NGA/OU and the corresponding amounts of their unpaid claims, duly certified and approved by the heads of the accounting unit and the agency, or authorized officials. (RMC 25-2014)
List of Not Yet Due and Demandable Obligations (LNYDDO). A list reflecting the NGA/OU obligations charged against prior year’s budget for which, goods, services and projects are not yet delivered, rendered, nor completed/accepted as of December 31 of the preceding year. (RMC 25-2014)
Loan Agreement. A contract in writing where one of the parties delivers to another money or other consumable thing, upon the condition that the same amount of the same kind and quality shall be paid. (RMC 48-2011)
local destination charges. Is the fees charged by the forwarders to their clients for their services rendered in the Philippines involving inbound movement. (RMC 35-2006)
local movement. Is the movement of cargoes from one place in the Philippines to another place in the Philippines. (RMC 35-2006)
local origin charges. Is the fees charged by the forwarders to their clients for their services rendered in the Philippines involving outbound movement. (RMC 35-2006)
Local Social Welfare and Development Office (LSWDO). Is the social welfare and development office of an LGU. (RMC 41-2013)
Local Government Unit (LGU). The appropriate barangay, municipality, city or province. (RMC 41-2013)
local stock exchange. Any domestic organization, association, or group of persons, whether incorporated or unincorporated, licensed or unlicensed, which constitutes, maintains, or provides a marketplace or facilities for bringing together purchasers and sellers of stocks, and includes the market place and the market facilities maintained by such exchange. (RR 6-2008)
lodging establishment. Those establishment that are regularly engaged in the hotel business, but which, nevertheless, are not registered, classified and licensed as hotels by reason of inadequate essential facilities and services. (RR 4-2006)
long-term contracts. Building, installation or construction contracts covering a period in excess of one (1) year. (Sec 48, NIRC)
long-term deposits. Refer to certificate of time deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments with a maturity period of not less than five (5) years, the form of which shall prescribed by the Bangko Sentral ng Pilipinas (BSP) and issued by banks only (not by nonbank financial intermediaries and finance companies) to individuals in denominations of Ten thousand pesos (P10,000) and other denominations as may be prescribed by the BSP. (Sec 22 (Z)(FF), NIRC; RMC 18-2011)
low-cost housing. Refers to housing projects intended for homeless low-income family beneficiaries, undertaken by the Government or private developers, which may either be a subdivision or a condominium registered and licensed by the Housing and Land Use Regulatory Board/Housing (HLURB) under BP Blg. 220, PD No. 957, or any other similar law, wherein the unit selling price is within the selling price ceiling per unit of P750,000.00 under RA No. 7279, otherwise known as the “Urban Development and Housing Act of 1992” and other laws, such as RA No. 7835 and RA. No. 8763. (RR 14-2005)
M
Machine Identification Number (MIN). 1. The unique, system-generated control number issued by the BIR to the taxpayer through its Electronic Sales Reporting System (eSales), to acknowledge the enrollment of the machine into the facility. (RR 5-2005) 2. Is a nine (9) digit unique number issued by the system to every Cash Register Machine or Point-of Sales upon successful registration in the Electronic Accreditation and Registration System (eAccReg); and in Electronic Sales (eSales) Enrollment. It is intended for use in the Electronic Sales Reporting. (RMO 10-2005)
magnetic form. Refers to a 3.5 inch floppy diskette. (RMO 4-2003)
major repairs/enhancement. Shall refer to any change, upgrade, integration or modification on the machine and/or software. (RMO 10-2005)
managerial employee. One who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees. (RR 11-2010)
mandatory cases. These are cases set forth under Revenue Memorandum Circular No. 13-2003, as amended by RMC No. 43-2003 and other cases that may be defined in the audit program issued for particular year. (RMO 8-2006)
mandatory list. Includes the recently passed R.A. No. 9593 or the Tourism Act of 2009, covers all areas/activities where the inclusion in the IPP and/or the grant of the incentives under EO 226 is mandated by law. (RMC 50-2010)
manual filing. Is a conventional process of preparing and submitting tax returns using the following formats: (a) printed forms from the Offline eBIRForms Package or pre-printed forms; (b) Downloadable Portable Document Format (PDF);or (c) MS Excel Format (.xls). The duly accomplished tax returns shall be printed and the hard copy shall be submitted or filed and tax due shall be paid to any Authorized Agent Bank (AAB), Revenue District Office (RDO) or Revenue Collection Officer (RCO), whichever is applicable. (RMO 24-2013)
manual payment. Is the manual settlement of tax due wherein the taxpayer shall physically hand-over the payment or make Over-the Counter (OTC) payment to AAB or RCO, if applicable. (RMO 24-2013)
Manual TCVD. conventional way of conducting tax mapping operation without the use of a mobile device. (RMO 9-2006)
manufacturer. 1. Any person or group of persons, juridical or otherwise, who produces, assembles, fabricates, or otherwise manufactures a motor vehicle by combining body frame/chassis, engine, drive-train, suspension and other automotive parts. 2. One who alters any part of a motor vehicle to meet the specification of an automobile and render it fit for registration with the Land Transportation Office. (RR 25-2003) 3. Is any person or entity that is engaged in the business of manufacturing or assembling tobacco products. (RMC 23-2016)
manufacturer’s or importer’s selling price. The price, net of excise and value added taxes, at which locally manufactured/assembles or imported automobiles are offered for sale by the manufacturer/assembler or importer to the dealers or to the public directly or through their sales agents, as reflected in the manufacturer’s/assembler’s or importer’s sworn statement duly filed with the BIR, or in their Sales Invoice/ Official Receipts, whichever is higher. (RMC 52-2010)
manufactured dividends or benefits. The amount of dividends or other benefits that accrue on the shares of stock/securities that are lent out which the Borrower is obliged to pass on to the Lender in accordance with the terms of the agreement. (RR 10-2006)
Manufactured Income/ Substitute Payment. Otherwise referred to as “ Passthrough Payment”, shall consist of both or any one of the following: (a) interest income or coupon payment received from the Lent/Borrowed Securities arising from corporate action of the Issuer thereof~ or (b) interest income that has accrued and received by the Borrower from its sale of the Lent/Borrowed Securities which the Borrower is obliged to pass on to the Lender during the life of the SBL/SLT, in accordance with the terms of the agreement. (RR 5-2007)
marginal income earner. Those individuals whose business do not realize gross sales or receipts exceeding P100,000 in any 12-month period. (RR 11-2008)
marketed nationwide. A brand that is commercially produced and marketed, as defined herein, in all the Revenue Regions in Metro Manila and in at least fifty one percent (51%) of all the other Revenue Regions. (RR 3-2006)
Mark-to-Market. The practice of periodically re-pricing the shares on loan against the value of the Collateral based on current market prices of the shares of stock and the Collateral. (RR 10-2006)
mastercase. Any box, or packaging of any form that is used to store or hold containers, reams/cartons, or any tobacco product packaging, for shipping or transport. (RMC 23-2016)
Master Security Lending Agreement (MSLA). A written contract between the Borrower and the Lender or the Lending Agent embodying the general terms and conditions for the conduct of SBL Transactions. (RR N10-2006)
matching. Is the judicious pairing of a child with a Foster Parent and family members based on the capacity and commitment of such Foster Parent to meet the individual needs of a particular child and the capacity of such child to benefit from the placement. (RMC 41-2013)
maternity leave. The leave of absence granted to female employees legally entitled thereto, in addition to vacation and sick leave. For purposes of maternity leave, miscarriage shall be within the period of pregnancy. (RMO 15-2004)
maturity date. Shall refer to the date specified in the NPS when the full cash value of the net refundable amount shall be paid by the BIR to the VAT TCC Holder-Applicant. (RMO 21-2012)
mean. The average or sum of all values in a distribution divided by the number of values in the distribution. It is used to approximate the expected value or statistical industry norm. (RMO 4-2006)
media. The physical forms of recorded information. This includes paper, film, computer disks, computer tapes, and any other materials on which information can be recorded. (RR 16-2006)
medical services. Refers to hospital rooms and services, professional services of attending physicians and other healthcare professionals, and diagnostic and laboratory tests that are necessary for the diagnostic and/or treatment of an illness or injury. (RR 4-2006)
medicinal preparation. Any compounded substance prepared and used as a remedy or cure for alleviating, palliating, or preventing some diseases or body disorders whether applied orally, externally or any other manner of application. (RR 3-2006)
medicines. Refers to both prescription and non-prescription medicines, and articles approved by the BFAD-DOH, which are intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in man; but do not include food and devices or their components, parts or accessories. (RR 4-2006)
Medium Term Expenditure Program (MTEP). Is the three to five year requirements of the agency’s yearly priority programs, activities, projects (PAPs) within a given or assumed budget ceiling. (RMC 38-2015)
merger. 1. The ordinary merger or consolidation. 2. The acquisition by one corporation of all or substantially all the properties of another corporation solely for stock. (Sec 40 (C)(6)(b), NIRC) 3. Is a combination of two companies where one is completely absorbed by another. The surviving corporation assumed all the rights, privileges, and liabilities of the merged corporation. (RR 17-2010)
Metro Manila and Regions. Revenue regions composed of revenue district offices established by the BIR for internal revenue tax purposes. (RR 3-2006)
microfinance. Is a credit and savings mobilization program exclusively intended for the poor to improve the asset base of households and expand the access to savings of the poor. (RR 14-2007)
Millennium Challenge Corporation (MCC). A corporation of the government of USA established pursuant to the USA Millennium Challenge Act of 2003, as amended. (RR 12-2010)
miller. Is a person engaged in milling for others (except palay into rice, corn into corn grits, and sugar cane into raw sugar). (RR 14-2005)
minerals. All naturally occurring inorganic substances (found in nature)whether in solid, liquid, gaseous or any intermediate state. (Sec 151 (B)(2), NIRC)
mineral products. Things produced and prepared in a marketable state by simple treatment processes such as washing or dying, but without undergoing any chemical change or process or manufacturing by the lessee, concessionaire or owner of mineral lands. (Sec 151 (B)(3), NIRC)
minimum wage earner. A worker in the private sector paid the statutory minimum wage, or an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned (RA 9504). (Sec 22 (Z)(HH), NIRC)
minor repairs. Shall refer to repair of sales machines which do not alter the information stored in the machine and does not change, upgrade or modify the machine and/or software. (RMO 10-2005)
miscellaneous payroll period. A payroll period other than, a daily, weekly, biweekly, semi-monthly, monthly, quarterly, semi-annual, or annual period. (Sec 78 (B), NIRC)
misconduct. Is a transgression of some established and definite rule of action, more particularly unlawful behavior or gross negligence by a public officer. (RMC 74-2012)
mission statement. It is a brief description of the organization’s fundamental purpose, both for those in the organization and for the public. (RMO 23-2011)
mixed income earner. A compensation-earner, who at the same time is engaged in business or practice of profession. (RR 11-2008)
Mobile Revenue Officers System (MROS). 1. Is a system aimed at providing the Revenue Officers with a wireless mobile device equipped with the facility to access the central database for recording and tracking of findings on taxpayer’s compliance during the conduct of tax mapping operation. (RMO 9-2006) 2. Refers to the automated and integrated system that provides all authorized collection officers the means for the immediate capture of tax and non-tax payments, as well as receipt of no-payment tax returns, and the issuance of Revenue Official Receipts (RORs), Official Receipts (ORs) or Acknowledgement Receipts (ARs), as the case may be, the automatic generation of pertinent reports, and secured real-time reporting of collection information to the BIR internal systems. (RMO 8-2013)
modes of service of RTAO/RSO. The RTAO/RSO shall be served personally by the Head of Office to the revenue personnel to be transferred. However, if personal service of the Order cannot be effected, e.g. when the affected personnel is on authorize leave of absence, said Order shall be served thru substituted service, by registered mail at his/her address appearing on the 201 file or at his her last known written address. (RMO 38-2011)
Modified Disbursement System, Government Servicing Bank (MDS-GSB). The authorized government servicing banks, such as Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), and Philippine Veterans Bank (PVB), to which DBM issues the NCAs for crediting to the MDS sub-accounts of NGAs. (RMC 25-2014)
monetization. Refers to the conversion of the outstanding balance of VAT TCC into cash pursuant to the VAT TCC Monetization Program. (RMO 21-2012)
Monthly Disbursement Program (MDP). The monthly breakdown of the total disbursement requirements of the NGA/OU for the fiscal year corresponding to its commitments and obligations. (RMC 25-2014)
Monthly Electricity Consumption Report (MERC). Reflecting the average monthly consumption and savings in term of kWh and percentage, related information of buildings. (RMC 1-2009)
Monthly Fuel Consumption Report (MFCR). Reflecting the average monthly consumption of gasoline/diesel and savings for the month in terms of liters and percentage. (RMC 1-2009)
Monthly Report on Taxes Assessed (BIR Form 40) Unprotested. Is a report prepared by the Regional Assessment Divisions, the Enforcement Service and the Large Taxpayers Service (LTS) which shows the details of the FANs issued and served/mailed to concerned taxpayers, which became final and executory due to taxpayer’s failure to validly protest the same within the prescribed thirty (30)-day period. (RMO 11-2014)
monthly sales. 1. Gross monthly sales per machine, as stored in the machine’s non-volatile memory. (RR 5-2005) 2. Refers to the gross monthly total sales subject to value added tax (VAT), whether taxable (12%) or zero-rated (0%), net of VAT, discounts granted and other adjustments to sales, VAT exempt sales, and sales subject to other percentage taxes as stored in the machine’s non-volatile memory. (RMO 12-2012)
motorist hotel. Any structure with several separate units, primarily located along the highway, with individual or common parking space, at which motorist may obtain lodging and some instance, meals. (RR 4-2006)
multi purpose cooperative. Is a type of cooperative which combines two (2) or more of the business activities of the different types of cooperatives. (RR 14-2007)
Multilateral MSLA. An MSLA entered into by three or more borrowers and Lenders/Lending Agent embodying the general terms and conditions for the conduct of SBL transactions. For purposes of these Regulations, references to MSLA shall also include the Multilateral MSLA. (RR 1-2008)
multinational company. A foreign firm or entity engaged in international trade with its affiliates or subsidiaries or branch offices in Asia-Pacific Region and other foreign markets. (RR 11-2010)
Multinational Enterprise (MNE). Is a foreign company doing business in the Philippines that is part of a group of companies with business establishments in two or more countries. (RR 17-2010)
Multi-Year Obligational Authority (MYOA). Is a document issued by DBM either for locally funded projects or foreign assisted projects implemented by agencies in order to authorize the latter to enter into multiyear contracts for the full project cost. (RMC 38-2015)
Multi-Year Project (MYP). The program or project which will take more than one year to complete that requires multi-year appropriations. (RMC 38-2015)
municipal hospital. A government hospital located in, and operated and funded by the municipality. (RMC 74-2008)
Mutual Agreement Procedure (MAP). Is a means through which tax administrations consult to resolve disputes regarding the application of double tax conventions. (RR 2-2013)
mutual fund company. An open-end and close-end investment company as defined under the Investment Company Act. (Sec 22 (Z)(BB), NIRC; RR 6-2008)
N
National Archives. The National Archives of the Philippines, which is established and strengthen under R.A. 9470. (RMC 59-2013)
national collection. The collections in the ARMM of internal revenue taxes, fees and charges and taxes imposed on natural resources. (RR 5-2003)
National Government Agencies (NGAs). Entities which perform functions not normally undertaken by the public sector, wholly dependent on the government for their budgetary requirements. (RMC 25-2014)
National Government (NG) Books of Accounts. Refers to one of the two (2) sets of accounting books required to be maintained by the BIR, as an agency of the national government, for purposes of recording all income and/or tax collections that could not be disbursed by the agency in its operations but are required to be remitted directly to the Bureau of the Treasury (BTr). (RMO 13-2014)
National Secretariat. The office composed of representatives of the three education agencies, namely the DepEd, CHED and TESDA, which will provide overall management and coordination of the Program. (RR 10-2003)
national system. Refers to a system, which is simultaneously used by a taxpayer for its head office and branches nationwide. (RMO 29-2002)
Nationwide Lump-Sum. Appropriations indicated as such in the GAA which are used as funding source for creation of positions in thee elementary/secondary schools and SDOs and for newly legislated/established high schools of DepEd, among others. (RMC 59-2004)
natural fruits of acquired/forfeited properties. Refers to the income generated from acquired/forfeited assets that are considered spontaneous products of the soil without human labor intervention (e.g. common grass, herbs, etc.), as well as the young and other products of animals (chicks, chicken eggs, etc). (RMO 13-2014)
NEDA. Refers to National Economic and Development authority. (RR 4-2006)
negotiated or private sale. Refers to the sale of acquired/forfeited assets through negotiations with a potential buyer who is willing to pay the price of whichever is higher between the fair market value (FMV) as determined by the Commissioner based on the prevailing Department Order bearing the published Schedules of Zonal Values of Real Properties or the FMV as shown in the latest tax declaration issued by the provincial, city or municipal assessor. It is a mode of sale where the process of submission, evaluation, and consideration of offers is being undertaken until the best offer is made and accepted. Negotiated sale of real property is made after the conduct of two (2) failed public auctions, subject to prior approval of the Secretary of Finance pursuant to Section 216 of the Tax Code (NIRC) of 1997, as amended. (RMO 13-2014)
net capital gain. The excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges. (Sec 39 (A)(2), NIRC; RR No. 6-2008)
net capital loss. The excess of the losses from sales or exchanges of capital assets over the gains from such sales or exchanges. (Sec 39 (A)(3), NIRC; RR No. 6-2008)
net income from mining operations. Gross income from operations less ‘allowable deductions’ which are necessary or related to mining operations. (Sec 34 (G)(2), NIRC)
net operating loss. The excess of allowable deduction over gross income of the business in a taxable year. (Sec 34 (D)(3), NIRC)
Net Operating Loss Carryover (NOLCO). Net operating loss of the business or enterprise during the first three years from the start of commercial operations which have not been previously offset as deduction from gross income shall be carried over as a deduction from gross income for the next five consecutive years immediately following the year of such loss. (RMC 23-2008)
net retail price. The price at which the distilled spirits, sparkling wine/ champagne, fermented liquor, or cigarettes are sold on retail in at least five (5) major supermarkets in Metro Manila or in the regions, excluding the amount intended to cover the applicable excise tax and the value added tax. (Sec 141, 142, 143, 145, NIRC; RR No. 17-2012)
Net Value-Added Tax Due (net VAT due). The difference between the output tax and input tax. (RR 18-2006)
new brand. Brand that is registered and introduced in the market after the date of effectivity of R.A. No. 8240. (RR 3-2006)
New RDO. Revenue District Office where taxpayer was transferred and required to transact business. (RMO 40-2004)
new retail price. The price, as determined by the BIR through a survey to be conducted by itself, or by the National Statistics Office (NSO) when deputized for the purpose by the BIR, at which an alcohol or tobacco product is sold at retail in such number of major supermarkets or retail outlets as prescribed by the Act, excluding the amount intended to cover the applicable excise tax and value – added tax. (RR 3-2006)
non-bank financial intermediary. 1. A financial intermediary, as defined in Section 2(D)(C) of Republic Act No. 337, as amended, otherwise known as the General Banking Act, authorized by the Bangko Sentral ng Pilipinas (BSP) to perform quasi-banking activities. (Sec 22 (W), NIRC) 2. Persons or entities whose principal functions include the lending, investing or placement of funds or evidences of indebtedness or equity deposited with them, acquired by them or otherwise coursed through them, either for their own account or for the account of others. (RR 12-2003)
non capital expenditures. Is an expenditure category or expense class which address spending on predictable, repeatable costs for goods and services for the conduct of normal government operations. (RMC 38-2015)
non-cash payment return. Refers to the tax return/form/declaration where the tax due thereon is paid through TRA, TDM, TSAC, DC or any authorized combination thereof. (RMO 8-2013)
non compliant package. Any tobacco product packaging or labelling, including mastercases, insets, onserts, or outside packaging and labelling, that fails to comply with the packaging and/or labelling requirements and specifications under RA 10643, these Rules, and other regulations and guidelines issued to further implement the provisions of RA 10643. (RMC 23-2016)
non-compliant taxpayer. A taxpayer who, as a result of surveillance / stocktaking activities, has been found to have committed the violations enumerated in Item (1), Section IV of this Order, and who, notwithstanding the issuance of several notices of violations, continues to refuse to comply with the requirements provided under existing rules and regulations. (RMO 3-2009)
nongovernment organization. 1. A non profit domestic corporation. (Sec 34 (H)(2)(c), NIRC) 2. Shall refer to non-profit domestic corporations and organizations as defined under Section 34 (H)(2)(c) of the Tax Code, organized and operated exclusively for scientific, research, educational, character-building and youth and sports development, health, social welfare, cultural or charitable purposes, or a combination thereof, no part of the net income or which inures to the benefit of any private individual. (RMO 22-2005)
non-industrial services. See commercial services.
non-life insurance companies. Including surety, fidelity, indemnity and bonding companies are subject to VAT. They are not liable to the payment of the premium tax under Sec. 123 of Tax Code. (RR 14-2005)
non-performing assets (NPA). Consist of Non-Performing Loans (NPLs) of, and Real and Other Properties Owned or Acquired (ROPOAs) by, FIs for which a COE was issued by the Appropriate Regulatory Authority. (RR 6-2004)
non-performing loan (NPL). Loans and receivables, such as mortgage loans, unsecured loans, consumption loans, trade receivables, lease receivables, credit card receivables, and all registered and unregistered security and collateral instruments, including, but not limited to, real estate mortgages, chattel mortgages, pledges, and antichresis whose principal and/or interest has remained unpaid for at least one hundred eighty (180) days after they have become past due or any of the events default under the loan agreement has occurred, as of June 30, 2002, as certified by the Appropriate Regulatory Authority. (RR 6-2004)
non profit. No net income or asset accrues to or benefits any member or specific person, with all the net income or asset devoted to the institution’s purposes and all its activities conducted not for profit. (RMC 67-2012)
non-remittance. When employer fails to remit total amount withheld. (RMC 21-2010)
nonresidents. Are not residents of the Philippines and not citizens thereof. (RMO 27-2016) nonresident alien. An individual whose residence is not within the Philippines and who is not a citizen thereof. (Sec 22 (G), NIRC)
nonresident Alien not engaged in trade or business (NANETB). The aggregate period of stay in the Philippines does not exceed 180 days during any calendar year. (RMO 27-2016)
nonresident citizen. 1. A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein. 2. A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis. 3. A citizen of the Philippines who and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year. (Sec 22 (E), NIRC)
nonresident foreign corporation. Applies to a foreign corporation not engaged in trade or business within the Philippines. (Sec 22 (I), NIRC)
nonresident foreign under foreign laws corporations and not engaged (NRFC) in trade. Are corporations or business organized in the Philippines. (RMO 27-2016)
non-resident lessor or owner. Refers to any person, natural or judicial, an alien, or a citizen who establishes to the satisfaction of the Commissioner of Internal Revenue the fact of his physical presence abroad with a definite intention to reside therein, and who own/leases properties, real or personal, whether tangible or intangible, located in the Philippines. (RR 14-2005)
non-revenue passenger. the non-revenue passenger as defined under Resolution No. 788 of the International Air Transport Association regarding Free and Reduced Fare or Rate Transportation and any other Free/Reduced Rate Mileage Programs Administered by individual International Air Carriers. (RR 15-2002)
non-stock. No part of its income is distributable as dividends to its members, trustees, or officers. (RMC 51-2014)
non-stock, non-profit corporation or organization. Shall refer to corporation, organization or association enumerated under Section 30 of the Tax Code. (RMO 22-2005)
non-VAT official receipts. 1. It is a proof of sale of service and/or leasing of properties which shall be the basis of Percentage Tax liability of the seller. 2. It is a written admission or acknowledgement of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers. (RR 18-2012)
non-VAT sales invoices. It is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of Percentage Tax liability of the seller. (RR 18-2012)
non-volatile memory. Types of memory that retain their contents when power is turned off. (RR 11-2004)
non-withholding of tax. When employers fail to withhold the tax on the taxable income of the employee. (RMC 21-2010)
no-payment return. Refers to the tax return that is not accompanied by any payment when the same is filed with any authorized BIR receiving office (e.g. breakeven, no transaction, refundable or second installment tax return). (RMO 8-2013; RR 6-2014)
notes. Must comprise a summary significant accounting policies and other explanatory notes/statements. (RR 7-2007)
Notice of Payment Schedule (NPS). is a certificate to be issued by the BIR to the taxpayer/holder of the VAT TCC who enrolled in the VAT TCC Monetization Program after confirmation of the taxpayer’s entitlement to monetization. This document shows, among others, the name of the taxpayer-recipient of the cash refund, the net refundable amount, the date of issuance, and its corresponding maturity date. (RMO 21-2012)
Notice of Sale for Acquired/Forfeited Assets (NOSAFA). Refers to the public notification for the auction sale of acquired/forfeited assets which contains, among others, the list of the assets to be sold including their respective classifications and the minimum bid/floor prices. (RMO 13-2014)
Notice of Transfer of Allocation (NTA). A scheme whereby a department/agency shall instruct their Modified Disbursement Scheme-Government Servicing Bank (MDS-GSB) to transfer a specific amount out of their Notice of Cash Allocation (NCA) available book balance to the MDS accounts of the agencies within the same department,receiving NCA directly from DBM. (RMC 59-2004)
NSCB. Refers to National Statistical Coordinating Board. (RR 4-2006)
number of working days in a year. The required number of days that the employer expects an employee to be at work within a calendar year. (RR 10-2008)
O
objective. It is a “verb noun” statement describing what an organization must do well in order to effectively implement its strategy and its mandate. (RMO 23-2011)
obligation. Is a juridical necessity to give, to do or not to do. (Art 1156, NCC)
obscure. To cover, conceal or cause, whether partly or fully, any change or effect that would lessen the visibility, legibility or prominence of the Graphic Health Warning. (RMC 23-2016)
occupational. Members come from same or allied profession or actual occupation. (RMC 57-2012)
office clearance. A document certifying that a revenue personnel to be transferred is cleared of all money and property accountabilities with the office where he/she is currently assigned, and is required to be submitted before he/she can be accepted by the Head of the Office where the person will be transferred. (RMO 38-2011)
official receipt. 1. A receipt issued for the payment of services rendered or of goods sold on account. (RMO 29-2002) 2. (Accountable Form No. 51) refers to the receipt issued to internal and external parties for all non-tax collections. (RMO 8-2013) 3. Acceptable evidence of receipt of payment for disbursement where the payee/recipient is a dealer, supplier or business establishment required by the BIR to issue the same in the sale/lease of goods or properties and/or sale of services. (RMC 2-2014)
offline. It is a technical term generally used when the user accomplishes any activity while the user’s workstation is not connected to the internet. (RMO 24-2013)
off-line carrier. An international air carrier having no flight operations to and from the Philippines. (RR 15-2002)
Offline eBIRForms Package. Is a tax preparation software that allows taxpayers and ATAs to accomplish or fill-up tax forms offline. Instead of the conventional manual process of filling-up tax returns on pre-printed forms that is highly susceptible to human error, taxpayers or ATAs can directly encode data, validate, edit, save, delete, view, print and submit their tax returns. The package can do automatic computations and has the capability to validate information encoded by taxpayer or ATAs. Taxpayers/ATAs can submit it to the Online eBIRForms System after filling-out the forms in this package. (RMO 24-2013)
off-line flights. A flight operations carried out or maintained by an international air carrier between ports or points outside the territorial jurisdiction of the Philippines, without touching a port or point situated in the Philippines, except when in distress or due to force majeure. (RR 15-2002)
offshore destination charges. Is the charges of the foreign forwarders/agents billed to the forwarders for the service rendered abroad involving outbound movement which are, in turn, billed by the forwarders to their clients at cost. (RMC 35-2006)
offshore origin charges. Is the charges of foreign forwarders/agents billed to the forwarders for the services rendered abroad involving inbound movement which are, in turn, billed by the forwarders to their clients at cost. (RMC 35-2006)
off-the-shelf. A ready-made software or solution that is readily available in the market to support the business requirements of an establishment/company. It is also called packaged software. (RMO 29-2002)
oil industry-participant. An Oil Company duly authorized and accredited by the DOE pursuant to its Fuel Bioethanol Program. (RR 8-2006)
Old/Previous RDO. Revenue District Office where taxpayer was previously registered after approval of request for transfer of registration records. (RMO 40-2004)
online. Is the most common technical term used wherein the user connects his workstation to the internet to access various information through the worldwide web (RMO 24-2013).
online advertising/classified ads. Is a form of promotion that uses the internet to deliver marketing messages to attract customers. (RMC 55-2013)
On-line ATP System. An IT infrastructure that caters to the on-line processing (application, approval and issuance) of ATP and the on-line generation of printer’s periodic reports with the capability to match and process data and generate discrepancy report of dubious entries. (RR 18-2012)
online auction. These are auctions conducted through the internet via an online service provider that specifically hosts such auctions. (RMC 55-2013)
on-line carrier. An international air carrier having or maintaining flight operations to and from the Philippines. (RR 15-2002)
Online eBIRForms System. Is a filing infrastructure that accepts tax returns submitted online and automatically computes penalties for tax returns submitted beyond due date. The system creates secured user accounts for taxpayers, ATAs, and TSPs for use of the online system and allows ATAs to file on behalf of their clients. The system also has a facility for TSPs to test and certify the data generated by their tax preparation software (certification is by form). It is capable of accepting returns data filed using system-certified TSP tax preparation software. (RMO 24-2013)
on-line flights. A flight operations carried out or maintained by an international air carrier between ports or points in the territorial jurisdiction of the Philippines and any port or point outside the Philippines. (RR 15-2002)
online intermediary service. Is a third party that offers intermediation services between two trading parties. (RMC 55-2013)
online shopping or online retailing. Is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the internet without an intermediary service. (RMC 55-2013)
Online System for Accreditation of Printers. A convenient facility for monitoring accredited printers which interface with the E-Reg TRIU System for the online issuance of ATP receipt/invoices. (RR 15-2012)
onsert. Any communication affixed to the outside of an individual package and/or carton purchased at either wholesale or retail by consumers, such as a brochure beneath the other cellophane wrapping or glued to the outside of the cigarette package. (RMC 23-2016)
open access records. The public records that have not been prohibited for public access. (RMC 59-2013)
open data. Is data that can be freely used, reused, and redistributed by anyone – subject only, at most, to the requirement to attribute. (RMC 43-2014)
Operating Units (OUs). An “agency” receiving NCAs directly from DBM. (RMC 25-2014)
options. Are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying security at a predetermined price, called the exercise or strike price, on or before a predetermined date, called the expiry date, which can only be extended by the Commission upon stockholders’ approval. (RR 6-2008)
ordinary assets. All real property specifically excluded from the definition of Capital Assets under Sec. 39 (A) (1) of the Code. (RR 7-2003)
ordinary income. Includes any gain from the sale or exchange of property which is not a capital asset or property described in Section 39(A)(1). (Sec 22 (Z), NIRC)
ordinary loss. Any loss from the sale or exchange of property which is not a capital asset. (Sec 22 (Z), NIRC)
organizer. See exhibitor.
Original VAT TCC Issuing Office. Shall refer to the office that originally processed the claim for tax credit/refund and/or the office that issued the original VAT TCC, prior to the transfer or revalidation thereof. (RMO 21-2012)
OSCA. The Office of Senior Citizen Affairs of cities and municipalities headed by a senior citizen for a term of three (3) years. (RR 4-2006)
Outbound Correspondence Number (OCN). A systems-generated control number which serves as reference for every Authority to Print issued to a taxpayer. (RR 18-2012)
outbound movement. Is the movement of cargoes from the Philippines to a foreign port. (RMC 35-2006)
out-of-district return. Refers to a tax return filed outside the jurisdiction of the RDO, LTDO,or LT Division where the taxpayer is registered or where the return is required to be filed under the NIRC and existing rules and regulations. (RMO 77-2010)
out-of-pocket expenses. Incurred by professionals, such as lawyers, which they later bill to their clients. (RMC 6-2003)
output tax. The value-added tax due on the sale or lease of taxable goods or properties or services by any person registered or required to register under Section 236 of this Code. (Sec 110 (A), NIRC)
outside packaging and labelling. Any external packaging or labelling that contains tobacco products or packages, other than a mastercase, including, but not limited to, packaging that contains a set of tobacco product packages, such as a ream/carton. (RMC 23-2016)
outsourced application system. Refers to the application system not developed by the Bureau. (RMO 24-2003)
outstanding stopfiler case officer. Refers to a Case Officer with the highest overall rating on stopfiler case closure using the given criteria. (RMO 14-2005)
outstanding stopfiler group supervisor. Refers to a Group Supervisor who has direct supervision over the outstanding case officers. (RMO 14-2005)
outstanding stopfiler RDO. refers to RDO with the highest overall rating on stopfiler case closure using the given criteria. (RMO 14-2005)
outstanding tax credit certificates. Consist of all TCCs with creditable/outstanding balances, whether in the possession of the original grantee(s) or of their transferees. (RMO 15-2006)
outstanding tax liability. 1. Refers to a tax assessment that is already final and executory (RMO 15-2006). 2. Refers to the tax assessment or any unpaid delinquent account where the collection thereof is already considered as final, executory and demandable. (RMO 21-2012)
outstanding VAT TCCs. consist of all VAT TCCs with unutilized balances, whether in the name of the original grantee(s) or their respective transferee(s) as approved by the BIR. (RMO 21-2012)
outstanding VAT TCC balance. Is the unutilized balance reflected at the back portion of the VAT TCC and in the BIR’s Integrated Tax System- Tax Credit and Refund System (ITS-TCRS). (RMO 21-2012)
Overseas Filipino Investor. An individual citizen of the Philippines who is working abroad, including one who has retained or reacquired his Philippine citizenship under Republic Act No. 9225, otherwise known as the “Citizenship Retention and Reacquisition Act of 2003”. (RR 13-2011)
Over-the-Counter Payment (OTC). Refers to the manual payment of tax liabilities thru the AABs. (RMO 25-2015)
overt surveillance. The type of surveillance which commences with the inventory-taking of the business documents of the person under surveillance followed by the actual observation and close monitoring of the business activities of such person. (RMO 3-2009)
P
paid-up capital stock. A portion of the authorized capital stock which has been both subscribed and paid. It also refers to the amount paid for the subscription of stock in a corporation including the amount paid in excess of par value, net of treasury stock. (RR 10-2007)
packaged (off-the-shelf) system. Refers to the ready-to-use application system acquired by the Bureau. (RMO 24-2003)
parent. Is a corporation which has control over another corporation directly or indirectly through one or more intermediaries. (RR 17-2010)
parental leaves. Leave benefits granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required. Parental leave of not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year. (RMO 15-2004)
parent screen. Is the first screen that will appear once the Offline eBIRForms Package is accessed by the user. The screen requires the basic information of a taxpayer, as follows: (a) Taxpayer Identification Number (TIN); (b) RDO Code; (c) Line of Business; (d) Taxpayer’s/Registered Name; (e) Registered Address; (f) Zip Code; and (g) Telephone Number. This particular screen also shows the different types of BIR Forms to be filled-up by the taxpayer and ATA including the duly accomplished forms already saved by user. (RMO 24-2013)
Participating Government Financial Institution (GFI). Shall refer to any government bank duly designated by the DOF to serve as a trustee bank for purposes of monetizing the outstanding VAT TCCs covered by this Order. (RMO 21-2012)
Participation Agreement. An agreement which signifies a party’s undertaking and willingness to be bound by the Program Rules of PDEx and the MSLA, as a Borrower, Lender and Lending Agent, or both as applicable. (RR 5-2007)
paternity leave. The leave privilege granted to a married male employee allowing him not to report for work for a period of seven (7) days, either in a continuous or in an intermittent manner by the employee on the days immediately before, during and after childbirth or miscarriage of his legitimate spouse. (RMO 15-2004)
payable. The date the obligation becomes due, demandable or legally enforceable. (RR 12-2001)
payroll period. A period for which payment of wages is ordinarily made to the employee by his employer. (Sec 78 (B), NIRC)
Pending AR/DA Case. Refers to a tax liability of a taxpayer, the covering docket of which is still in the possession of the concerned office/official for collection enforcement awaiting necessary and appropriate actions prior to transmission thereof to the Records Division or the Regional Administrative Divisions, as the case may be, for safekeeping and future reference, and/or the same has not yet been reported to the Accounts Receivable Monitoring Division as a closed case in the monthly updates of AR/DA cases as attachments to the GCL report. (RMO 11-2014)
pension house. A private, or family-operated tourist boarding house, tourist guest house or tourist lodging house, regularly catering to tourist, and/or traveler, containing several independent table rooms, providing common facilities, such as toilets, bathroom/showers, living and dining rooms and/or kitchen and where a combination of board and lodging may be provided. (RR 4-2006)
PERA Act. Republic Act No. 9505, otherwise known as the “Personal Equity and Retirement Account (PERA) Act of 2008”. (RR 17-2011)
PERA assets. The aggregate assets of the Contributor in his PERA at any one time, including the cash funds and the Qualified/ Eligible PERA Investment Products into which the funds of the PERA are invested and reinvested, and all the income earned therefrom. (RR 17-2011)
PERA Processing Office. The Audit Information Tax Incentives and Exemption Division of the Bureau of Internal Revenue which will be tasked to process all applications, reports, and other transactions in connection with the PERA Act and these Regulations. (RR 17-2011)
PERA Rules. The rules and regulations implementing PERA Act jointly promulgated by the Regulatory Authorities. (RR 17-2011)
PERA TCC. A BIR – issued Tax Credit Certificate which will serve as entitlement by a qualified to the five percent (5%) tax credit for PERA related transaction as discussed in Section 8 of these Regulations. (RR 17-2011)
percentage tax due. The tax due per return, which is the product of gross sales/receipts and the applicable percentage tax rate. (RR 18-2006)
PERD. Project Evaluation and Registration Department of the BOI. (RMC 33-2004)
Permanent Cessation of Business. It is a condition when the individual taxpayer has permanently stopped the operations of his business with proper tax clearances issued by the concerned RDO having jurisdiction over the taxpayer and by the concerned Permits and Licensing Division of the City/Municipality where the taxpayer is conducting business. For individual taxpayer with multiple businesses, however, the cessation of operations of one registered business shall not be considered as a permanent cessation of business by the individual taxpayer/owner. (RMO 11-2014)
Permit to Operate. Is the document issued by the Bureau of Internal Revenue (BIR) to excise taxpayers or operators, lessors/lessees of storage facilities of articles subject to excise taxes which shall include the appropriate terms and conditions for the strict observance of the permittee, including the exact description of the commodity to be contained therein. (RR 2-2012)
Permit to Operate Exempt Facility. Is the document to be issued by the BIR to operators, lessors/lessees of storage facilities of articles which are not subject to excise tax. Said permit should contain the appropriate terms and conditions for the strict observance of the permittee, including the exact description of the commodity to be contained therein. (RR 2-2012)
permittee. Is the taxpayer granted by the BIR a permit to operate. The permittee is one who either owns, operates and/or leases to others the storage facilities as covered by a lease or operating agreement. (RR 2-2012)
Per Phase System Development. Is a development process wherein the developed system is divided into functionality. Development is divided into phases if the application system will take sometime to complete. (RMO 24-2003)
person. 1. An individual, a trust, estate or corporation. (Sec. 22 (A), NIRC) 2. Includes an officer or employee of a corporation who as such officer, employee or member is under a duty to perform the act in respect of which the violation occurs. (Sec 247 (c), NIRC)
Personal Equity and Retirement Accounts (PERA). A Contributor’s voluntary retirement account established from the Qualified PERA Contributions and/or Qualified Employer Contributions, for the purpose of being invested solely in Qualified/ Eligible PERA Investment Products. (RR 17-2011)
personally owned motor vehicles and/or for personal use. A motor vehicle shall be deemed personally-owned or for personal use if the invoice, bill sale and bill of lading are made out in the name of the natural person provided that the number of units imported by that person shall not exceed in two in any given twelve-month period. (RMC 52-2010)
personal property. Consists of those movable properties (chattels/personalty) which may include personal tangible assets (e.g. machineries, furniture and fixture, equipment, etc.) or intangible assets (e.g. shares of stocks, deposits in banks, bonds, securities, etc.). (RMO 13-2014)
personnel actions. Any action denoting the movement or progress of personnel in the civil service such as original appointment, promotion, transfer, reinstatement, reemployment, detail, reassignment, secondment and demotion. (RMO 4-2005)
persons liable. Any person who, in the course of his trade or business, sells, barters, exchanges or leases goods or properties, or renders services, and any person who imports goods, shall be liable to VAT imposed in Secs. 106 to 108 of the Tax Code. (RR 14-2005)
person with disability. Is any individual suffering from restriction or different abilities, as a result of mental, physical or sensory impairment to perform an activity in a manner or within the range considered normal for human being. (RR 1-2009)
perspective. It is a view of an organization from a specific vantage point which is traditionally used to encompass an organization’s activities. (RMO 23-2011)
petroleum. The naturally occurring mixture of compounds of hydrogen and carbon with a small proportion of impurities and shall include any mineral oil, petroleum gas, hydrogen gas, bitumen, asphalt, mineral wax, and all other similar or naturally-associated substances, with the exception of coal, peat, bituminous shale and/or other stratified mineral fuel deposits. (RR 2-2012)
petroleum products. Are products formed in the case of refining crude petroleum through distillation, cracking, solvent refining and chemical treatment coming out as primary stocks from the refinery such as, but not limited to: LPG, naphtha, gasoline, solvents, kerosene, aviation fuels, diesel oils, fuel oils, waxes and petrolatums, asphalt, bitumens, coke and refinery sludges, or other such refinery petroleum fractions which have not undergone any process or treatment as to produce separate chemically-defined compounds in a pure or commercially pure state and to which various substances may have been added to render them suitable for particular uses. (RR 2-2012)
Phase IV-A Customers. Shall refer to small commercial and industrial customers, flat streetlights and government hospitals and metered streetlights with a demand of less than forty kilowatt (<40 kW). (RMO 22-2005) Phase IV-B Customers. Shall refer to medium, large, very large and extra large commercial and industrial customers and government hospitals and metered streetlights with a demand equal or more than forty kilowatt (≥40 kW). (RMO 22-2005) Philippine Air Carrier. An airline corporation duly organized and existing under the laws of the Republic of the Philippines that is engaged in both domestic and international air transportation of goods, passengers, or both. (RR 15-2013) Philippine Carrier. A Philippine Air Carrier and/or Philippine Sea Carrier, as herein defined. (RR 15-2013) Philippine permanent resident. A natural persons holding Philippine Immigrant visas. (RR 12-2010) Philippine Sea Carrier. Shipping corporation duly organized and existing under the laws of the Republic of the Philippines that is engaged in both domestic and international sea transportation of goods, passengers, or both. (RR 15-2013) Pilot Acceptance Certificate. A certification stating that the concerned site has complied with the exit criteria of Roll Out & Implementation Team. (RMO 24-2003) placement. Is the physical transfer of a Foster Child with the Foster Parent. (RMC 41-2013) place of final destination. The place of final disembarkation designated or agreed upon by the parties in a contract of air transportation where the passengers, their excess baggage, cargo and/or mail are to be transported and unloaded by the contracting airline company. (RR 15-2002) Point-of-Sale (POS) Machine. A computerized replacement for the CRM. It is much more complex than the CRM, inasmuch as the POS system has the capability to record and track customer orders, process and debit credit card accounts, link to other systems in the establishments’ network, and manage inventory. (RR 11-2004) polishing. The process of smoothing and shining the surface of metals for jewelry making or precious stones for lapidary. (RMC 33-2004) portal channels. The aggregated content with direct links to the available information resources. (RMO 1-2008) portal facility. A secured web on-line single sign-on service facility where taxpayers with Internet access can lodge their enrollment and sales report. (RR 5-2005) post-audit. It covers the same areas and supplemented by tracing the transaction under audit to the books of accounts. (RMC 47-2009) Posted in the CBR of the BIR-ITS. Refers to valid OTC and electronic transactions that passed the CBR validation rules and reflected in the appropriate taxpayer ledger. (RMO 25-2015) Potentially Collectible ARs/DAs. Refers to pending ARs/DAs which are not eligible for write-off or to be placed under the suspense AR/DA file under the existing criteria; hence, can still be collected, either fully or partially, through the enforcement of collection remedies. (RMO 11-2014) Potential Problems. A statement on the potential risks, problems, or complications, if any, that may arise if the request for Presidential issuance or approval is granted or denied. (RMC 57-2003) pre-audit. Is the examination of documents supporting a transaction or series of transactions before these are paid for and recorded. (RMC 47-2009) preceding fiscal year. Is the fiscal year immediately preceding the date of issuance of a regular COC. (RMC 54-2016) precious metals. 1. Include platinum, gold, silver and other metals of similar or greater value. (Sec 150 (a), NIRC) 2. Gold, silver, platinum, palladium, rhodium, ruthenium, iridium, and osmium. These include alloys of precious metals, solders and plating chemicals such as rhodium and palladium plating solutions and potassium gold cyanide and potassium silver cyanide and silver cyanide in salt solution. (RMC 33-2004) precious stones. Diamond, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, garnet that are used in jewelry making, including those formerly classified as semi-precious stones. (RMC 33-2004) precious stone appraisal and certification. The examination of precious stone to determine its quality (i.e., cut, clarity, color and carat) and estimated market value. (RMC 33-2004) prepaid card. Is a payment card that provides the cardholder electronic access to their stored value account at a financial institution or electronic money issuer authorized by the Bangko Sentral ng Pilipinas (BSP). (RR 3-2016) pre-printed invoices/ receipts. Sequentially pre-numbered receipts/invoices with approved Authority to Print (ATP) reserved for system downtime. (RMO 29-2002) Prescribed AR/DA Case. Refers to an account receivable or a delinquent account where the Statute of Limitations to collect has already lapsed without the proper execution by the authorized representatives of the Bureau of the administrative remedies and no valid Waiver of the Statute of Limitation for Collection has been executed by the concerned taxpayer and duly accepted by the concerned BIR official under the existing rules and regulations. An AR/DA case cannot be considered as “prescribed” when any of the circumstances suspending the running of the prescriptive period to collect provided under Section 223 of the Tax Code exists. However, the AR/DA case could not be considered “prescribed” unless the Committee on Prescribed Cases has confirmed that the AR/DA case has actually prescribed. (RMO 11-2014) primary contractor (secondary level). Refer to the party whose services are engaged by BCDA for the implementation of the Project, and when such party is an unincorporated joint venture, the member of such joint venture. (RR 17-2005) primary cooperative. Is a cooperative the members of which are natural persons except electric cooperatives which the implementing rules and regulations of RA 9520 or the authority may allow. (RMC 57-2012) primary offering. The original sale made to the investing public by the issuer corporation of its unissued Shares of Stock. (RR 6-2008) primary records. Invoices, bills, vouchers, cancelled checks, bank statements, notes, inventory lists, receipts and other assets used in the business. (RAMO 1--2000) primary registration. The process by which a person, whether an individual, including estates and trusts, or a corporation and other juridical entities, upon application and full compliance with the registration requirements prescribed in Revenue Regulations No. 7-2012, is registered with and consequently included in the registration database of the BIR. (RMO 10-2014) principal or main employer. Are the employer to whom an employee renders his services for most of his time during the taxable year. (RR 7-2012) principal receipts/invoices. It is a written account evidencing the sale of goods and/or services issued to customers in an ordinary course of business. (RR 18-2012) principal stockholder. A stockholder who is, directly or indirectly, the beneficial owner of more than ten percent (10%) of any class of Investor Securities of the REIT combined. (RR 13-2011) prior years. The taxable year 2004 and prior years in which period no Preliminary Assessment Notice (PAN) or Final Assessment Notice (FAN) has been issued against a taxpayer liable to pay income tax, business tax and other internal revenue tax. (RR No. 18-2006) private archives/collections. The records belonging to private individuals and/or entities which are of archival value. (RMC 41-2013) private entity. 1. An individual engaged in trade or business or engaged in the practice of his profession or other business organizations, like a partnership, corporation or cooperative, either resident or non-resident, who/which teams up with the Department of Education (DepEd), or with the Commission on Higher Education (CHED), or with Technical Education and Skills Development Authority (TESDA), towards providing much needed assistance and service to public schools. 2. Adopting Private Entities. (RR 10-2003) private securities. Securities not covered by Subsection 2.13 hereof. (RR 20-2003) privilege-store. A stall or outlet which is not permanently fixed to the ground and is normally set up in places like shopping malls, hospitals, office buildings, hotels, villages or subdivisions, churches, parks, streets and other public places, which puts on sale a variety of goods/ services within brief durations of time. (RR 16-2003) privilege-store operator. Person or entity sub-leasing from the exhibitor or organizer a space upon which privilege-stores are erected for the purpose of selling goods or services during the entire duration of the lease contract. (RR 16-2003) process flow. This refers to the flow of procedures presented in diagram form. (RMO 29-2002) processing. Pasteurization, canning and activities which through physical or chemical process alter the exterior texture or form or inner substance of a product in such manner as to prepare it for special use to which it could not have been put in its original form or condition. (Sec 111 (B), NIRC) produced. syn. created, fabricated, manufactured, extracted, processed, cured, aged. producers cooperative. Is one that undertakes joint production whether agricultural or industrial. (RMC 57-2012) Product Acceptance Advice. A document stating that a product meets the relevant acceptance criteria. (RMO 24-2003) Product Acceptance Certificate. A certification stating that a product conforms to relevant acceptance criteria and is officially accepted. (RMO 24-2003) product launch. The introduction in the domestic market of a brand or variant of an alcohol or tobacco product, whether locally manufactured or imported, that satisfies the conditions for being commercially produced and marketed as prescribed in Section 2 (1) of these Regulations. (RR 3-2006) Product Rejection Advice. A document stating that a product does not meet the relevant acceptance criteria. (RMO 24-2003) Profit and Loss Statement. The breakdown of the specific accounts shall be properly labeled: Sales/Revenues, Cost of Goods Sold for seller of goods or Cost of Services for seller of services, Selling and Administrative Expenses, Financial Expenses, Other Income and Other Expenses. Sales/Revenues, Financial Expenses, Other Income and Other Expenses should be supported by Cost of Goods Sold for seller of goods or Cost of Services for seller of services, and Selling and Administrative Expenses should be fully explained in the Notes. (RR 7-2007) progressive system of taxation. One in which the tax rate increases as the income increases. (Sec. 28, Art. V, 1987 Philippine Constitution) Projects, Programs and Activities (PPA). Are undertakings pursued by the Bureau of Internal Revenue (BIR) to be able to achieve the purpose for which it was established or created. (RMO 18-2014) proof liter. A liter of proof spirits. (Sec 141, NIRC) proof of service. This refers to the portion of the transmittal letter which bears the signatures of the Head of Office and the subject revenue personnel with the dates of service and acknowledgement, respectively, by both parties. (RMO 38-2011) proof spirits. Liquor containing one-half (½) of its volume of alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten thousandths (0.7939) at fifteen degrees centigrade. (15°C) (Sec 141, NIRC) properties. See goods. Property Acknowledgment Receipt (PAR). The official form used to record the issue of PPE to end-user, in lieu of the Memorandum Receipt (MR) and Acknowledgment Receipt of Equipment (ARE). (Appendix 71, GAM Vol. II). (RMO 20-2016) Property Division (PropD). Division in the National Office responsible for maintaining records of issued equipment, semi- expendable properties on the basis of PAR/ICS and returned serviceable properties based on acknowledgment receipt as well as the monitoring of accountabilities over the properties and the processing of clearances of revenue personnel of their property accountabilities. (RMO 20-2016) Property Monitoring and Control Section (PMCS). Section under PropD responsible for maintaining records of issued equipment and semi- expendable properties on the basis of PAR/ICS and returned serviceable properties based on acknowledgement receipt and the monitoring of accountabilities over these properties as well as the processing of clearances of property accountabilities of revenue personnel. (RMO 20-2016) Property Transfer Report (PTR). The official form prepared for the transfer of property from one Accountable Officer/Agency/Fund Cluster to another Accountable Officer/Agency/Fund Cluster, in lieu of the Invoice Receipt of Property (IRP). (Appendix 76, GAM Vol. II). (RMO 20-2016) proprietary educational institution. Any private school maintained and administered by private individuals or groups with an issued permit to operate from the Department of Education,Culture and Sports (DECS), or the Commission on Higher Education (CHED), or the Technical Education and Skills Development Authority (TESDA), as the case may be, in accordance with existing laws and regulations. (Sec 27 (B), NIRC) proprietary machines. Are machines with proprietary design or technique identified by a specific trade or brand name. (RMO 10-2005) pseudo supplier. Shall refer to taxpayer-user who can be categorized as (a) Direct importers of CRM/POS for their own internal use and/or for distribution to their different branches/franchisees; (b) Companies who develop their own sales receipting system software for their use and/or for distribution to their different branches/franchisees. (RMO 10-2005) Public Access Registry. The public access register containing prohibition and restriction on the unauthorized disclosure and access of information in any public records. (RMC 59-2013) public archives. The public records that are under the custody and control of the Executive Director of NAP. (RMC 59-2013) public auction sale. Refers to a mode of sale being made in behalf of the government in which personal or real properties are being sold to multiple buyers thru competitive bidding where the potential buyers are given equal chance to compete on the basis of their bid prices/offers which should be equal to or more than the set minimum bid/floor price. The properties covered by the sale can either be properties already owned by the government as a consequence of forfeiture, or properties that are still owned by the delinquent taxpayers which are to be sold under the authority of a court of law or a government agency with similar authority. (RMO 13-2014) public company. A company listed with the Exchange which has, upon and after listing, at least one thousand (1,000) public shareholders each owning at least fifty (50) shares of any class and who in the aggregate own at least forty percent (40%) of the outstanding capital stock of the REIT at the initial year; provided that the minimum ownership shall be increased to sixty seven percent (67%) within three (3) years from its listing. (RR 13-2011) public records. The records or classes of records, in any form, in whole or in part, created or received by a government agency in the conduct of its affairs and which have been retained by that government agency or its successors as evidence or because of the information contained therein. (RMC 59-2013) public school. A government school, whether elementary, secondary, post-secondary or tertiary, which enters into an Agreement with an adopting private entity concerning assistance referred to under paragraph (e) hereof. (RR 10-2003) Public Sector Labor-Management Council (PSLMC). The Council responsible for the promulgation, implementation and administration of the guidelines for the exercise of the right of government employees to organize pursuant to Executive Order No. 180. (RMO 38-2009) Public Testing and Research. A market study where tobacco products : (1) removed or withdrawn from a manufacturing plant or warehouse,or (2) imported to the Philippine market, are distributed to consumers to determine and understand consumer behaviour, preferences and decision process in buying products. (RMC 23-2016) purely TIN issuance. Refers to issuance of TIN to applicants under Executive Order (EO) 98, series of 1998 e.g. in the case of individuals required to incorporate the TIN in all forms, permits, licenses, clearances, official papers and documents which they secure from other government agencies e.g. Local Government Unit (LGU), Department of Trade and Industry (DTI), Land Transportation Office (LTO), Department of Foreign Affairs (DFA), etc. It also includes issuance of TIN to Overseas Filipino Workers (OFWs)/Overseas Contract Workers (OCWs) as defined under these Regulations as well as to Non-Resident Foreign Corporations (NRFC)/Non-Resident Alien not engaged in Trade or Business (NRANETB) subject to final withholding tax on income derived from sources within the Philippines. (RMO 10-2014) Q qualification standards. Is a statement of the minimum qualification for a position which shall include education, experience, training, and civil service eligibility. (RMO 4-2005) Qualified Employer’s Contribution. The contribution made by the employer (whether as a single proprietorship, a partnership or a corporation) from the private sector to the PERA established by his/ its employee which, together with such employee’s contribution, if any, shall not exceed such employee’s Qualified PERA Contribution. (RR 17-2011) Qualified Jewelry Enterprise (QJE). Any natural or juridical entity, either a single proprietorship, cooperative, partnership, or corporation, organized and existing under Philippine laws, which is issued a BOI accreditation under R.A. No. 8502 and its Implementing Rules and Regulations. (RMC 33-2004) Qualified PERA Contributions. The contributions of the Contributor to his PERA, which shall not exceed P 1,000,00.00 per calendar year (if the Contributor is a non-Overseas Filipino), or P 200,000.00 per calendar year (if the Contributor is an Overseas Filipino or in representation of an Overseas Filipino), and in accordance with the provisions of Section 6 in theses Regulations, subject to the adjustments authorized by the Secretary of Finance, taking into consideration the present value of the contribution using the Consumer Price Index as published by the National Statistics Office, fiscal position of the Government and other pertinent factors. (RR 17-2011) Qualified PERA Investment Income. All income earned by the PERA Assets. (RR 17-2011) Qualified / Eligible PERA Investment Products. The investment product duly approved by the concerned Regulatory Authority. (RR 17-2011) quality audit. Is the examination of the taxpayer’s books and records in sufficient depth for the purpose of ascertaining the correctness and validity of entries and the propriety of application of tax laws. (Sec 6 (A), NIRC) quarry resources. Any common stone or other common mineral substances as the Director of the Bureau of Mines and Geo-Sciences may declare to be quarry resources such as, but not restricted to, marl, marble, granite, volcanic cinders, basalt, tuff and rock phosphate. (Sec 151 (B)(4), NIRC) quasi-banking activities. Borrowing funds from twenty (20) or more personal or corporate lenders at any one time, through the issuance, endorsement, or acceptance of debt instruments of any kind other than deposits for the borrower’s own account, or through the issuance of certificates of assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending or purchasing receivables and other similar obligations. (Sec 22 (X), NIRC) quasi-banking functions. Means the borrowing of funds from twenty (20) or more persons or corporate lenders at any one time, through the issuance, endorsement or acceptance of debt instruments of any kind, other than deposits, for the borrower’s own account or through the issuance of certificates of assignment or similar instruments with recourse, or of repurchase agreements, for purposes of relending or purchasing receivables or other similar obligations. (RMC 65-2008) Quick Reference (QR) Code. Is a two dimensional barcode that holds information on the internal revenue stamp. (RR 7-2014) R RAD. Revenue Accounting Division of the BIR Collection Service. (RR 12-2010) rank and file employees. All employees who are holding neither managerial nor supervisory position as defined under existing provisions of the Labor Code of the Philippines, as amended. (Sec 22 (Z)(AA), NIRC) raw cane sugar. The natural sugar extracted from sugarcane through simple mechanical process by pressing for the juice; boiled to crystallize; filtered using centrifuge to separate these crystals, and dried, resulting to crystallize brown sugar. (RR 8-2015) raw sugar. Sugar whose content of sucrose by weight in dry state, corresponds to a polarimeter reading of less than 99.5 degrees. (RR 4-2015) Ready-for-use Memorandum. A memorandum stating that a particular functionality of the system meets the relevant evaluation criteria. (RMO 24-2003) real and other properties owned or acquired (ROPOA). Real and other properties owned or acquired by an FI in settlement of its loans and receivables, including, but not limited to real properties, shares of stocks, and chattel formerly constituting collateral for secured loans by way of dation in payment (dacion en pago), judicial or extra-judicial foreclosure, or execution of judgment as of June 30, 2002; and to such real properties acquired by an FI after June 30, 2002, through the same modes in settlement of a loan or receivable classified as NPL as of June 30, 2002; in either case certified by the Appropriate Regulatory Authority. (RR 6-2004) real estate dealer. Any person engaged in the business of buying and selling or exchanging real properties on his own account as a principal and holding himself out as a full or part time dealer in real estate. (RR 7-2003) real estate developer. Any person engaged in the business of developing real properties into subdivisions, or building houses on subdivided lots, or constructing residential or commercial units, townhouses or other similar units for his own account and offering them for sale or lease. (RR 7-2003) Real Estate Investment Trust (REIT). Is a stock corporation established in accordance with the Corporation Code of the Philippines and the rules and regulations promulgated by SEC principally for the purpose of owning income-generating real estate assets. (RR 13-2011) real estate lessor. Any person engaged in the business of leasing or renting real properties of his own account as a principal and holding himself out as a lessor of real properties being rented out or offered for rent. (RR 7-2003) real or actual stop-filers. Are taxpayers who were identified to have failed to file their returns after the list of Stop-filers generated by Revenue Data Center (RDC) from returns Compliance System (RCS) for computerized Revenue District Offices (RDOs), and the manually prepared List of Stop-filers for non-computerized RDOs were cleaned-up of all the root causes of tagging taxpayers as stop filers when in fact they are not real or actual stop filers. (RMO 18-2002) real property. 1. Have the same meaning attributed to that term under Article 415 of Republic Act No. 386, otherwise known as the “Civil Code of the Philippines.” (RR 7-2003) 2. Refers to any land and the improvements introduced to it that are made by human efforts (buildings, acquisition of various property rights, machineries that are permanently attached to the land, and the like). (RMO 13-2014) reasonable allowance. An allowance computed in accordance with rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, under any of the following methods: (a) straight-line method; (b) declining-balance method; (c) sum-of-the-years-digit method; and (4) any other method which may be prescribed by the Secretary of Finance upon recommendation of the Commissioner. (Sec 34 (F)(2), NIRC) reasonable private benefit plan. A pension, gratuity, stock bonus or profit-sharing plan maintained by an employer for the benefit of some or all of his officials or employees, wherein contributions are made by such employer for the officials or employees, or both, for the purpose of distributing to such officials and employees the earnings and principal of the fund thus accumulated, and and wherein it is provided in said plan that at no time shall any part of the corpus or income of the fund be used for, or be diverted to, any purpose other than for the exclusive benefit of the said officials and employees. (Sec 32 (B)(6)(a), NIRC) Receipt of Returned Items (RRI). The form issued to resigning/retiring/transferring revenue official/employee for returned serviceable or unserviceable equipment and semi-expendable properties to the PropD/AHRMD. (RMO 20-2016) receipt system. See constructive stamping. receiving office. Shall refer to the concerned BIR Office that is designated to conduct initial processing and evaluation of the Application for VAT TCC Monetization. (RMO 21-2012) recipient. An individual or an organization receiving direct financial assistance (a grant or cooperative agreement) from USAID to carry out an activity or program. (RMC 40-2007) reconsideration. May involve questions of fact or law or both and refers to a plea for a re-evaluation of an assessment, for the former, on the basis of existing records without need of additional evidence. (RMO 37-94) Record of Application Book of the Board. The Record of Application for Accreditation Book under R.A. No. 8502 especially evolved for purposes of the Act, wherein the name of the applicant shall be recorded and the corresponding date of the official acceptance of the application are so consecutively entered. (RMC 33-2004) records. Recorded information produced or received in the initiation, conduct or completion of an institutional or individual activity and that comprises content , context and structure sufficient to provide evidence of the activity. (RMC 59-2013) records custodian. Is any agency employee with responsibilities over a particular set of records. (RMC 59-2013) records management. The managerial activities involved with respect to records creation, records maintenance and use, transmission, retention, and records disposition in order to achieve adequate and proper documentation of policies and transactions of government for its efficient, effective and economical operation. (RMC 59-2013) records management audit. The periodic inspection of the records holdings of government offices, whether national or local for purposes of identifying and incorporating records series that are not yet included in the agency RDS. (RMC 59-2013) records office. An organizational unit responsible for planning, developing, prescribing, disseminating and enforcing policies, rules and regulations and coordinating agency-wide records management program. (RMC 59-2013) records officer. Is the employee responsible for overseeing the records management program and providing guidance on adequate and proper recordkeeping. (RMC 59-2013) records series. A group of related records arranged under a single unit, label or kept together as a unit because the records deal with a particular subject, result from the same activity or have a related special form. (RMC 59-2013) recruitment. Is the process whereby job applicants are properly evaluated through sound screening and systematic method of determining the merit and fitness of a person on the basis of qualifications and competence to perform the duties and responsibilities of the position. (RMO 4-2005) redeemed shares. Are shares bought back by the issuing corporation for the purpose of retirement or cancellation. (RR 6-2008) redemption period. It is the one (1)-year grace period given to the taxpayer-owner of a certain real property subject of an auction sale proceeding within which to redeem the property from the date of sale or the date when the property was declared forfeited by the government. (RMO 13-2014) reference document. The document evidencing a particular transaction the details of which are encoded into the eORB System, such as but not limited to, Excise Tax Removal Declaration, ODI-GUIA, Purchase Invoice, etc. (RR 3-2013) reference file. Is the list of DST utilizations of an eDST Branch USers. (RMC 51-2010) refined sugar. Those sugar whose content of sucrose by weight, in the dry state, corresponds to a polarimeter reading of 99.5° and above. (RR 6-2007) refining. Methods of purifying precious metals from its impurities up to 99.99% purity. (RMC 33-2004) refund. The repayment to the purchaser of all or a portion of the fare, rate or charge for unused carriage or service. (RR 15-2002) refundable amount. Refers to the outstanding balance of VAT TCC, after deducting the taxpayer’s outstanding tax liability/ies, except withholding taxes. (RMO 21-2012) regional headquarters. A branch established in the Philippines by multinational companies and which headquarters do not earn or derive income from the Philippines and which act as supervisory , communications and coordinating center for their affiliates, subsidiaries, or branches in the Asia-Pacific Region and other foreign markets. (Sec 22 (Z)(DD), NIRC) regional operating headquarters. A branch established in the Philippines by multinational companies which are engaged in any of the following services: general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development; technical support and maintenance; data processing and communications; and business development. (Sec 22 (Z)(EE), NIRC) Regional Payroll Service Unit (RPSU). The DepEd-RO unit which shall take charge of the preparation of payroll and other related documents for the SDOs including the elementary schools and SSs without financial staff under the SDO coverage. (RMC 59-2004) registration. 1. Is the manner of informing the BIR of the machines sold prior to delivery or use of the machines. Permit to Use will be issued upon successful registration together with the Machine Identification Number. (RMO 10-2005) 2. Is the operative act of the Authority granting judicial personality to a proposed cooperative and is evidenced by the Certificate of Registration. (RMC 57-2012) Registry of Scripless Securities (RoSS). Is the central securities clearinghouse for all government securities and acts as an intermediary only insofar as transmitting to BSP the trade settlement instructions of the transacting parties. (RMC 62-2003) regular buyers/customers. Refer to buyers/customers engaged in business or exercise of profession with whom the taxpayer had transacted at least six (6) transactions in the previous year or current year, regardless of amount of sale per transaction. (RMO 4-2003) Regular List. Includes nine (9) priority investment areas that were identified to support the current priority programs of the government. (RMC 50-2010) Regular Lump-Sum. Appropriations indicated as such in the GAA which are used as funding source for salary adjustments based on approved Equivalent Record Forms, salary differential to convert teaching positions to Master Teacher positions, reclassification of positions and repair and maintenance of school buildings, among others. (RMC 59-2004) regular operating requirement. The Personal Service (PS), Maintenance and Other Operating Expense (MOOE) and Capital Outlays component of activities, which DepEd performs in the conduct of its day-today operation. (RMC 59-2004) regular revalidation. Refers to the one-time extension of the validity period of TCCs prior to their expiration at the end of the fifth (5th) year from the date of issue of the original TCC. (RMO 15-2006) regular suppliers. These are the suppliers who are engaged in business or exercise of profession/calling with whom the taxpayer-buyer has transacted at least six (6) transactions, regardless of amount per transaction, either in the previous year or the current year. (RR 14-2008) regular taxpayer. 1. Is a business persons other than privilege store operators or organizers. (RR No. 16-2013) 2. A taxpayer that has not been classified and notified as a large taxpayer pursuant to Sec. 245 of the Tax Code of 1997 and Revenue Regulations No. 1-98, including amendatory law and regulations. (RMO 29-2002) Regulatory Authorities. It is the (a) Bangko Sentral ng Pilipinas (BSP) as regards banks, trust entities, and other BSP supervised financial institutions; (b) the Securities and Exchange Commission (SEC), for investment companies, investment houses, Stock brokerages; and (c) the Office of the Insurance Commission (OIC), for the insurance companies and pre-need plan companies. (RR 17-2011) rehabilitation leave. The leave of absence taken on account of wounds or injuries incurred in the performance of an employee’s duties. (RMO 15-2004) reinvestigation. May involve questions of fact or law or both, and base on the newly-discovered or additional evidence that a taxpayer intents to present. (RMO 37-94) REIT Plan. The plan, including its amendments, of the REIT registered with the Commission. (RR 13-2011) relatives. Persons, other than family members, related to a child by consanguinity or affinity up to the fourth degree. (RMC 41-2013) relatives within the Sixth (6th) Civil Degree of Consanguinity. This means the father, mother, children, grandchildren, grandfather, grandmother, brothers, sisters, uncles, aunts, nephews, nieces, first cousins and second cousins of BIR officials or employees and other public officials or employees. (RR 16-2010) relevant supporting documents. Understood as those documents necessary to support the legal basis in disputing a tax. Assessment as determined by the taxpayer. (RR 12-99) report for duty per RTAO/RSO. A document to be accomplished by the revenue personnel to be transferred informing the Head of Office where he/she will be reporting for duty in compliance with RTAO/RSO, indicating the date of reporting, RTAO/RSO number and date of issuance. (RMO 38-2011) report on tax remittance advice used/cancelled/lost. A report prepared by the NGAs as an attachment to Requisition and Issue Voucher (RIV) for their subsequent requisition of blank TRAs from the concerned RDOs. (RMO 2-2007) representation expenses. expenses incurred by a taxpayer in connection with the conduct of his trade, business or exercise of profession, in entertaining, providing amusement and recreation to, or meeting with, a guest or guests at a dining place, place of amusement, country club, theater, concert, play, sporting event and similar events or places. (RR 10-2002) required reports. The mandatory reports prescribed under Section 2, Rule 8 of the Revised IRR, in relation to Article 53 of RA 9520, and Section 3 (f) of RA 6939. (RMC 54-2016) Requisition and Issue Slip (RIS). The official form used to request supplies/goods/equipment/property carried in stock and by the Supply and/or Property Division/Unit to issue the items requested. (Appendix 63, GAM Vol. II). (RMO 20-2016) resident alien. An individual whose residence is within the Philippines and who is not a citizen thereof. (Sec 22 (F), NIRC) resident citizen. A Filipino citizen with permanent/legal residence in the Philippines, and shall include one, who, having migrated to foreign country, has returned to the Philippines with the definite intention to reside therein, and whose immigrant visa has been surrendered to the foreign government. (RR 4-2006) resident foreign corporation. Applies to a foreign corporation engaged in trade or business within the Philippines. (Sec 22 (H), NIRC) residential. Members working and/or actually and physically residing in the same place. (RMC 57-2012) residential units. Apartments and houses & lots used for residential purposes, and buildings or parts or units thereof used solely as dwelling places (e.g., dormitories, rooms and bed spaces) except motels, motel rooms, hotels and hotel rooms. (RR 14-2005) restaurant. Any establishment offering to the public, regular and special meals or menu, fastfood, cooked food, and short orders. (RR 4-2006) restricted access records. Records which access have been restricted because there exists a legal impediment and/or standard or advice issued by the ED that requires such public records to be withheld from public access. (RMC 59-2013) retailer. Any person or entity engaged in the direct sale or offer for sale of tobacco products to consumers or end-users. (RMC 23-2016) retail price. The amount of money or price which an ultimate consumer or end-user pays for cigars or cigarettes purchased. (Sec 147 (d), NIRC) retention period. The specific period of time established and approved by the National Archives of the Philippines as the life span of records, after which they are deemed ready for permanent/ archiving or destruction. (RMC 59-2013) Return of Property Accountabilities (RPA). The form used to document return of accountable properties by a resigning/retiring/transferring accountable official/employee to the PropD/AHRMD. (RMO 20-2016) Returns Compliance System. An ITS module which identifies all registered taxpayers who failed to file their returns within the prescribed time frame. (RMO 14-2005) Revenue Administrative Orders (RAO). These refer to matters that deal strictly with more or less permanent administrative set-up of the Bureau. Delineation of organizational structures, statements of functions and/or responsibilities, definitions and delegations of authority, staffing and personnel requirements, standards of performance, establishment of Bureau-wide programs, installation of systems, and the like, are most likely subject matter of Revenue Administrative Orders. These issuances are for general guidance, compliance and/or information. (RMO 53-2010) Revenue Audit Memorandum Order (RAMO). These refer to the uniform audit procedures to be observed by revenue officers in the conduct of audit of tax cases and in their submission of reports of investigation. (RMO 53-2010) Revenue Bulletins (RB). These refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue’s position on certain specific issue of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public. (RMO 53-2010) Revenue Collection Officer (RCO). Refers to a duly bonded personnel of the Bureau who is authorized to collect internal revenue taxes. (RMO 8-2013) Revenue Delegation of Authority Orders (RDAO). These refers to functions delegated by the Commissioner to revenue officers in accordance with law. (RMO 53-2010) Revenue District Office (RDO). has jurisdiction over taxpayers within their area of responsibility. (RMO 10-2006) Revenue Issuances. All issuances made by the Commissioner and/or his/her duly authorized representatives such as but not limited to Revenue Regulations (RR), Revenue Memorandum Orders (RMO), Revenue Memorandum Circulars (RMC), Revenue Audit Memorandum Orders (RAMO), Revenue Delegation Authority Orders (RDAO), Revenue Administrative Orders (RAO), Revenue Memorandum Rulings (RMR), Revenue Bulletins (RB), Revenue Travel Assignment Orders (RTAO) and Revenue Special Order (RSO). (RMO 53-2010) Revenue Memorandum Circulars (RMC). These issuances shall disseminate and embody pertinent and applicable portions, as well as amplifications of the rules, precedents, laws, regulations, opinions and other orders and directives issued by or administered by the Commissioner of Internal Revenue, for the information, guidance or compliance of revenue personnel. (RMO 53-2010) Revenue Memorandum Orders (RMO). These are directives or instructions outlining procedures, techniques, methods, processes, operations, activities, work flow, and the like, which are necessary to carry out programs or to achieve policy goals and objectives. These issuances may be of general or of limited scope yet in any case require definite compliance by those concerned. They are not addressed to any particular group of employees or offices because they are for general information, but those directly concerned with the compliance of these provisions are either definitely stated, or unmistakably implied thereat. (RMO 53-2010) Revenue Memorandum Rulings (RMR). These refer to the rulings, opinions and interpretations to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. (RMO 53-2010) Revenue National Accreditation Board (RNAB). The body in the BIR National Office constituted to accredit tax practitioners/agents who are regularly engaged in making representation for or on behalf of a client/s before any BIR office. This board reviews and approves/disapproves the recommendation of the RRAB of every BIR REgional Office. (RR 11-2006) Revenue Official Receipt. (BIR Form 25.24) Refers to the receipt issued to taxpayers for all internal revenue tax collections. (RMO 8-2013) Revenue Regional Accreditation Board (RRAB). The body in the BIR National Office constituted to accredit tax practitioners/agents who are regularly engaged in making representation for or on behalf of a client/s before any BIR office. This board submits its recommendation to the RNAB of the BIR National Office. (RR 11-2006) Revenue Special Orders (RSO). 1. Instructions or directives for the accomplishment of special assignments or missions of significance which are temporary in nature or for a definite period of time. These issuances specifically mention the personnel or units of organizations concerned. (RMO 53-2010) 2. This refers to an order of the CIR assigning an internal revenue officer/employee to special duties which are temporary in nature or for a definite period of time, not exceeding one (1) year. This may include transfers or revenue officers involved in excise tax functions, i.e. Revenue Officers On-Premise (ROOPs). (RMO 38-2011) Revenue Travel Assignment Orders (RTAO). 1. These orders assign revenue personnel to specific functions in specific units. Travel assignment orders specifically mentions the name of revenue personnel concerned. (RMO 53-2010) 2. This Order direct a revenue personnel to be transferred or reassigned to specific functions in a specific office and is issued by the Commissioner of Internal Revenue (CIR) pursuant to Section 17 of the National Internal Revenue Code. (RMO 38-2011) roadmap. It is a diagram which describes the high level strategic objectives that the organization must deliver if it is to successfully execute its strategy. (RMO 23-2011) root name. Letter, word, number, symbol, or character; or a combination of letters, words, numbers, symbols, and/or characters that may or may not form a word; or shall consist of a word or group of words, which may or may not describe the other word or words. (RR 3-2006) roving machine. CRMs, POS machines and other invoice/receipt generating machines controlled and managed by the taxpayer’s head office and transferred for use in any of its branches, as the need arises. (RMO 12-2012) royalties. As generally used means payment of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes used for radio or television broadcasting, any patent, trademark, design, or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. (RMC 77-2003) rule. Any agency statement of general applicability that implements or interprets a law, fixes and describes the procedures in, or practice requirements of, an agency, including its regulations. The term includes memoranda or statements concerning the internal administration or management of an agency not affecting the rights of, or procedure available to, the public. (Sec 2 (1), Administrative Code) Rulings of First Impression. These refers to the rulings, opinions and interpretation of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws without established precedent, and which are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue. (RMO 53-2010) Ruling with Established Precedents. These refer to mere reiteration of previous rulings, opinions and interpretations of the Commissioner, as delegated to duly authorized internal revenue officers (i.e. Deputy Commissioner, Legal and Inspection Group; Assistant Commissioner, Legal Service; Regional Directors) that are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue. (RMO 53-2010) S sabbatical leave. Granted to Career Executive Service Officers (CESO) and CES Eligible who are incumbents of CES positions for at least five (5) years and who have achieved a performance rating of at least Very Satisfactory under the CES Performance Evaluation System (CESPES) for five (5) consecutive years to pursue any of the activities of not more than six (6) months with pay. (RMO 15-2004) sale or exchange of services. The performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration, whether in kind or in cash, including those performed or rendered. (RR 14-2005) sale or transfer of option. If the option is transferred by the grantee/subsequent owner without any consideration, the same shall be treated as a donation of shares of stock subject to donor’s tax. (RMC 79-2014) sales discount. 1. The grant of which is not dependent upon the happening of a future event, may be excluded from the gross sales within the same month/quarter it was given. (RR 16-2005) 2. The actual discount, or that discount, which in no case shall exceed 20% of the gross selling price of the goods sold or services rendered to senior citizens by certain establishments enumerated under the Act and in these Regulations. (RR 4-2006) sales or commercial invoice. This is a written account of goods sold or services rendered and the prices charged therefor used in the ordinary course of business evidencing sale and transfer or agreement to sell or transfer of goods or services. (RMO 29-2002) sales machine. 1. A machine or device that dispenses receipt/ invoice for purposes of tendering sales transaction. (RR 11-2004) 2. Shall refer to CRM, POS, and other machines such as but not limited to taximeters, vending machines, handheld/roving mobile devices, validating machines and other machines used in the issuance of receipts/invoices.(RMO 10-2005) Sales Receipting System Software. This refers to systems software solely for sales receipting/invoicing that supports the business requirements of an establishment/company in the issuance of sales receipts/invoices. (RMO 10-2005) sales report number (SRN). 1. A system-generated number issued to taxpayers to confirm receipt of the sales report (RR 5-2005). 2. A number generated by the eSales System to confirm receipt of monthly sales report per machine. (RMO 12-2012) sales return and allowances. A proper credit or refund was made during the month or quarter to the buyer for sales previously recorded as taxable sales. (RR 16-2005) SBL Confirmation Notice. A notice in a format prescribed by the PSE which is sent by the Lender/ Lending Agent to the Borrower to indicate the details of the SBL Transaction including, but not limited to, the type of securities borrowed and terms of borrowing. (RR 10-2006) School Division Office (SDO). The section and unit comprising the SDO-proper and all elementary schools that are functionally and administratively supervised by it including SSs without financial staff which it is assigned to assist in terms of budgeting, accounting and cashiering, as determined by DepEd Secretary. (RMC 59-2004) SEC. The Securities and Exchange Commission. (RR 11-2006) secondary offering. An offer for sale to the investing public by the existing shareholders of their securities which is conducted during an IPO or a follow-on/follow-through offering. (RR No. 6-2008) secondary records. Books of accounts and working papers that summarize and list the individual documents including adjustments, when necessary. (RAMO 1-2000) secondary registration. Shall pertain to subsequent registration activities after the issuance of BIR Certificate of Registration (COR) relative to the printing and issuance of official receipts/sales invoices; keeping/registering of books of accounts and other accounting records; applying for certain accreditation requirements and securing other applicable registration-related permits. (RMO 10-2014) secondary school with financial staff. A SS with a duly appointed Accountant/Bookkeeper and Cashier/Disbursing Officer/ Cash Clerk on a temporary or permanent status who draws his salary from DepEd and is assigned to handle the accounting and cashiering functions. (RMC 59-2004) second level positions. Involve professional, technical and scientific work in a non-supervisory or supervisory capacity up to Division Chief level or its equivalent. (RMO 4-2005) secure area. An area which is free from dust and moist to preserve the life of diskettes and must be protected from any unauthorized use or loss of diskettes. (RMO 4-2003) secured environment. refers to the safeguard of information and data from unauthorized access infusing a high quality protection from the source to the destination over the wide area network. (RR 5-2002) securities. 1. Shares of stock in a corporation and rights to subscribe for or to receive such shares. 2. Includes bonds, debentures, notes or certificates, or other evidence of indebtedness, issued by any corporation, including those issued by a government or political subdivision thereof, with interest coupons or in registered form. (Sec 22 (T), NIRC; RR 20-2003) Securities Borrowing and Lending (SBL). The lending (borrowing) of shares of stock/securities listed in the Philippine Stock Exchange from an investor’s portfolio or investment account to support trading strategies of the borrower or purposes specified under these Regulations with the commitment by the borrower to return or deliver the equivalent shares/securities to the lender at the end of borrowing period. (RR 10-2006) securities return. The obligation of the Borrower to return the equivalent of the Lent/Borrowed Securities on or before the expiration of the Borrowing Period, in accordance with the requirements provided under the Fixed-Income Securities Lending Program of PDEx. (RR No. 5-2007) selection line-up. Is a listing of qualified and competent applicants for consideration to a vacancy which includes, but not limited to, the comparative information on their education, experience, training, civil service eligibility, performance rating (if applicable), relevant work accomplishments, physical characteristics, psycho-social attributes,personality traits and potential. (RMO 4-2005) selective audit cases. These are cases with tax returns whose selection for audit is based on criteria embodied in a Revenue Memorandum Order, or as expressly directed by the Commissioner. These criteria are based on data from returns filed by taxpayers and/or those provided by external sources which are analyzed to identify the business types and industries presenting the greatest risks or taxpayers with high tax potential. (RMO 8-2006) Self-assessed Tax Liability. Refers to a tax liability resulting from any of the following: (a) Dishonored check; (b) Tax due per return filed by taxpayers who failed to pay the same within the time prescribed for its payment; and (c) Non-payment of the 2nd installment due from individual taxpayers who availed of installment payments of income tax under Sec. 56 (A) (2) of the Tax Code, as amended. (RMO 11-2014) self-employed individual. One who may either be a single proprietor engaged in business or in the practice of his profession. (RR 7-2012) semi-knocked down (SKD). Parts and components for assembly purposes that are imported in partially assembled condition. (RR 25-2003) senior citizen or elderly. Any resident Filipino citizen aged 60 years old and above. (RR 4-2006) separate or distinct establishment. An establishment where business transactions occur at a place other than where the head office is located. (RR 11-2008) separation pay. Any payment made by an employer to an employee because of dismissal, constitutes compensation regardless of whether the employer is legally bound by contract, statute, or otherwise, to make such payment. (RR 2-98) service cooperative. Is one which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services. (RMC 57-2012) shareholder. Include holders of a share/s of stock, warrant/s and/or option/s to purchase shares of stock of a corporation, as well as a holder of a unit of participation in a partnership (except general professional partnerships) in a joint stock company, a joint account, a taxable joint venture, a member of an association, recreation or amusement club (such as golf, polo or similar clubs) and a holder of a mutual fund certificate, a member in an association, joint stock company, or insurance company. (Sec 22 (M), NIRC) Shares Considered as Worthless. Those shares when offered for sale or requested for share redemption, no amount can be realized by the owner of the share. (RR 6-2008) shares of stock. Include shares of stock of a corporation, warrants and/or options to purchase shares of stock, as well as units of participation in a partnership (except general professional partnerships), joint stock companies, joint accounts, joint ventures taxable as corporations, associations and recreation or amusement clubs (such as golf, polo or similar clubs), and mutual fund certificates. (Sec 22 (L), NIRC) Short-Duration Surveillance (tax compliance check). The type of surveillance wherein the business operations of the target taxpayer are observed for purposes of detecting non-compliance with the Bureau’s primary and secondary registration requirements. It is an on-and-off activity which does not involve prolonged on-premises observation. (RMO 3-2009) Short Messaging System (SMS). An electronic communications service for sending short text messages using mobile phones. (RR 5-2005) short sale or short selling. Any sale of shares of stock/securities not yet in the possession of the seller. (RR 10-2006) sick leave. The leave of absence granted specifically on account of illness or disability on the part of the employee, or of any member of his immediate family. (RMO 15-2004) side panel. The surface of the pack that has the largest surface available next to the principal display service where Graphic Health Warning shall appear. (RMC 23-2016) signboards. A collective term used to refer to signboards, blackboards, whiteboards, posters,tarpaulins, streamers, electronic boards and such other similar materials. (RMO 18-2014) simple average method. Is a method of computing the average figure by dividing the total by the set of numbers. (RMO 5-2012) single cab chassis. A motor vehicle with complete engine power train and chassis equipped with a cab that has a maximum of two (2) doors and only one (1) row of seats. (RR 25-2003) single family residential unit. A building or structure that will be used for residential purposes. (RR 6-2004) small-scale mining. Is any single unit mining operation having an annual production of not more than 50,000 metric tons of ore. (RR 7-2008) smoking. Shall be construed as the carrying of a lighted cigarette, cigar, pipe or other smoking paraphernalia, whether or not the same is being puffed, inhaled or smoked. (RMO 8-2002) SMD. Supervision and Monitoring Department of the BOI. (RMC 33-2004) socialized housing. Is the housing programs and projects covering houses and lots or home lots only that are undertaken by the government or the private sector for the underprivileged and homeless citizens, which shall include sites and services development, long-term financing, liberalized terms on interest payments, and as such other benefits in accordance with the provisions of Republic Act 7279. (RMC 36-2011) social worker. A registered and licensed Social Worker of the DSWD, LGU or Agency. (RMC 41-2013) software. Is a program, or series of programs, containing instructions for a computer required either for the operational processes of the computer itself (operational software) or for the accomplishment of other tasks (application software). (RMC 77-2003) solutio indebiti. 1. The payment is made when there exist no binding relation between the payor, who has no duty to pay, and the person who received the payment. 2. The payment is made through mistake, and not through liberality or some other cause. (G.R. No. 82670, 15 Sep. 1989) sparkling wine or champagne. An effervescent wine containing more than 0.392 grams of carbon dioxide per 100 milliliters of wine resulting solely from the secondary fermentation of the wine within a closed container. (RR 17-2012) Special Allotment Release Order (SARO). It is an order issued by the Department of Budget and Management for the payment of assumed taxes authorized under the CES. (RR 12-2010) Special Collecting Officer (SCO). refers to the duly bonded personnel of the General Service Division in the National Office (NO) and the Regional Administrative Divisions (AdmDs) who is duly authorized to collect non-tax payments from internal and external parties. (RMO 8-2013) Special Leave Privileges. The leave of absence that officials and employees may avail of, for maximum of three (3) days per year, over and above vacation, sick, maternity and paternity leaves, to mark personal milestones and/or attend to filial and domestic responsibilities. (RMO 15-2004) special purpose machines. Are machines for internal use only and do not generate sales. (RMO 10-2005) special purpose vehicle. A motor vehicle, other than truck, cargo van, jeep/jeepney/jeepney substitute, bus, and single cab chassis as defined herein, designed for specific applications such as cement mixer, fire truck, boom truck, ambulance and/or medical unit, and off-road vehicles for heavy industries and not for recreational activities. (RR 25-2003) special revalidation. Refers to the retirement, recall and cancellation of all outstanding TCCs, and their replacement with update forms bearing enhanced security features. (RMO 15-2006) specialty feeds. Non-agricultural feeds of food for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets. (RR 14-2005) spin-offs. Is a situation when a parent corporation organize a subsidiary corporation, to which it transfers a portion of its assets in exchange for all the subsidiary’s capital stock. (RR 17-2010) spirits or distilled spirits. The substance known as ethyl alcohol, ethanol or spirits of wine, including all dilutions, purifications and mixtures thereof, from whatever source, by whatever process produced, and shall include whisky, brandy, rum, gin and vodka, and other similar products or mixtures. (Sec 141, NIRC) spoiled stamps. The damaged internal revenue stamps where the UIC is still visible or QR Code is still verifiable by the machine. (RR 7-2014) spurious receipt. Is a receipt that lacks one, some or all of the elements of a valid receipt. (RMO 16-2003) staggered filing of returns. Is the observance of returns filing deadline by industry group. (RMC 2-2003) Stamp Verifier App. Is an Android and iOS application for BIR and public use to verify the validity of QR code of the stamp affixed on a cigarette pack QR Code, one of the security features of the stamp, refers to a two-dimensional barcode that holds information relative to the product to which the stamp is affixed. (RMC 51-2016) Stand-Alone CRM/POS Machine. 1. Are those machines that run independently and is not linked or connected to any other machine or system. (RR 11-2004) 2. Are those that can run independently from CAS. (RMO 29-2002) Statement of Changes in Equity. It must show either all changes in equity or changes in equity, other than those arising from transactions with equity holders acting in their capacity as equity holder. (RR 7-2007) Statutory Minimum Wage (SMW). Rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE) (RA 9504). (Sec 22 (Z)(GG), NIRC) stemmed leaf tobacco. Leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco. (Sec 140, NIRC) still wine. Is the wine containing not more than 0.392 of carbon dioxide per 100 milliliters of wine. (RR 17-2012) stockbroker. Includes all persons whose business it is, for other brokers, to negotiate purchases or sales of stocks, or engaged in the business of effecting transactions in securities for the account of others but does not include a bank or underwriters for one or more investment companies as defined in the Investment Company Act. (RR 6-2008) stop-filer. A registered taxpayer who failed to file the required returns within the prescribed due date. (RMO 14-2005) stop-filer case. 1. A case created by the system due to an identified stopfiler for assignment to a Case Officer for appropriate action and monitoring. (RMO 14-2005) 2. Refers to a case created by the RCS due to an identified stop-filer, for computerized Revenue District Offices (RDOs), or manually identified stop-filer, for non-computerized RDOs, for assignment to a Case Offcer for appropriate action and monitoring. (RMO 41-2011) 3. Refers to system created case when a taxpayer fails to file a return for a required tax type for a taxable period (i.e., Income Tax, VAT, Percentage Tax, etc.) which is required to be filed regularly (monthly, quarterly, annually). (RMO 10-2014) Storage-only Imaging System. A system of computer hardware and software that provides for the storage, retention and retrieval of documents originally created on paper. (RR 9-2009) Sub-Allotment Release Order (Sub-ARO). An internal document issued by DepEd-CO or RO transferring a portion of available allotment to DepEd-RO or IU, respectively. (RMC 59-2004) subcontracting. The act of entering into an agreement with another qualified jewelry enterprise engaged in jewelry 6 manufacturing to perform any or specified part of the manufacturing process. (RMC 33-2004) subcontractor and supplier (tertiary level). Party whose services are engaged by, and/or who supplies goods, materials, supplies, etc. to, the primary contractor and consultant for the implementation of the Project. (RR 17-2005) submission. The electronic transmittal of accomplished eORB Form, after all the encoded transactions were already finalized, through the facility of the eORB System. (RR 3-2013) subsidiary. A corporation more than fifty (50%) of the voting stock of which is owned or controlled directly or indirectly through one or more intermediaries by another corporation, which thereby becomes its parent corporation. (RR 17-2010) substituted filing. When the employer’s annual return (BIR Form 1604CF) may be considered as the “substitute” Income Tax Return (ITR) of employee inasmuch as the information provided in his income tax return (BIR Form 1700) would exactly be the same information contained in the employer’s annual return (BIR Form No. 1604-CF). (RMC 1-2003) sub-subcontractor and sub-supplier (fourth level). Party whose services are engaged by, and/or supplies goods, materials, supplies, etc. to, the subcontractor and supplier for the implementation of the Project. (RR 17-2005) subtransmission asset. The facilities related to the power delivery service below the transmission voltages and based on the functional assignment of asset including, but not limited to step-down transformers used solely by load customers, associate switchyard/substation, control and protective equipment, reactive compensation equipment to improve power factor, overhead lines, and land where such facilities/equipments are located. (RR No. 14-2005) Sub-VAT Subsidy Checks (SVSCs). Instruments issued by the BIR to the subcontractors and suppliers upon presentation by the subcontractors and suppliers of their VSCs to the BIR for appropriate annotation of the requested amount of SVSCs to be issued in favor of sub-subcontractors and sub-suppliers, in accordance with Section 6 (A)(4) hereof. (RR 17-2005) sugar. Is a sugar other than Raw Cane Sugar as defined in the preceding paragraph. This includes sugar whose content of sucrose by weight, in the dry state corresponds to a polarimeter reading of 99.5° and above and/or whose color is 800 ICU or less. (RR 8-2015) sugar owners. Persons who have legal title over the refined sugar. (RR 13-2008) sugar refinery/mill. The entity, natural or juridical, engaged in the business or milling sugarcane into raw or in the refining of raw sugar. (RR 8-2015) suggested net retail price. The net retail price at which locally manufactured or imported distilled spirits, sparkling wines/champagnes, fermented liquor, or cigarettes are intended by the manufacturer or importer to be sold on retail in major supermarkets or retail outlets in Metro Manila for those marketed nationwide, and in other regions, for those with regional markets. (Sec 141, 142, 143, NIRC) suitably denatured. The condition of ethyl alcohol when a material or substance, known as denaturant, has been added to the ethyl alcohol, in accordance with the approved formula of the BIR, to destroy the character of the same and making the added denaturant difficult to separate therefrom. (RR 3-2006) superior qualifications. Shall mean outstanding relevant work accomplishments, educational attainments and training appropriate for the position to be filled. It shall include demonstration of exceptional job mastery and potential in major areas of responsibility. (RMO 4-2005) supervisory employee. Are those who, in the interest of the employer, effectively recommend such as managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. (RR 11-2010) supplementary compensation. Includes payments to an employee in addition to the regular compensation such as commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits, with or without regard to a payroll period. (RR 2-98) supplementary receipts/invoices. It is a written account evidencing that a transaction has been made between the seller and the buyer of goods and/or services, forming part of the books of accounts of a business taxpayer of recording, monitoring and control purposes. (RR 18-2012) supplier. Shall refer to manufacturer, distributor, dealer or vendor of sales machines and/or sales receipting system software. (RMO 10-2005) Suspended in the CBR of the BIR-ITS. Refers to invalid records which did not pass the CBR validation rules that requires corrections or resolutions of concerned parties (BIR/Bank Personnel). (RMO 25-2015) Suspense ARs/DAs. Refers to accounts receivable or delinquent accounts which could not be collected at the moment or are considered as temporarily not collectible (TNC) due to any of the following circumstances: (a) The individual taxpayer is serving life imprisonment and has no distrainable or leviable properties; (b) The individual taxpayer is suffering from a lingering disease and has no distrainable or leviable properties; (c) The taxpayer is a corporation which was verified to have permanently ceased operations or has been officially dissolved, no Warrant of Distraint and Levy was served, its subscribed shares of stock have not been fully paid, and the whereabouts of its stockholders could not be located; (d) A foreign national who came to the Philippines as a consultant or who has engaged in business in the Philippines, and has been verified to have left the country after the completion of the project/permanent cessation of the business, and has not returned since then; (e) The individual taxpayer is out of the country over a long period of time and without certainty of any intention to go back to the Philippines and has no distrainable or leviable properties; (f) The taxpayer was tagged with a “Cannot Be Located (CBL)”status pursuant to existing rules and regulations and has no distrainable or leviable properties; (g) When no property of the taxpayer could be located despite the issuance and execution of the Warrant of Distraint and/or Levy (WDL); (h) When the Commissioner or any of his authorized representative is prohibited from enforcing the collection remedies due to an Order issued by the competent court and the taxpayer has complied with all the legal requirements such as, but not limited to, the posting of a continuing surety bond until the court has rendered its final decision on the case; (i) The taxpayer is a general partnership where the individual partners are serving life imprisonment and has no distrainable or leviable properties; (j) The taxpayer is a general partnership and the individual taxpayers are suffering from a lingering disease and has no distrainable or leviable properties; (k) The taxpayer is a general partnership and the individual partners are out of the country over a long period of time and have no intention of going back to the Philippines and have no distrainable or leviable properties; (l) The taxpayer is a general partnership and the individual partners could not be located and have no distrainable and leviable properties; and (m) The taxpayer is a partnership which was verified to have permanently ceased operations or has been officially dissolved, no WDL was served, and the whereabouts of its partner could not be located. (RMO 11-2014) Sworn Declaration on the Number of Over-the-Counter and Electronic Transactions. Refers to the report on the number of over-the-counter (OTC) and electronic transactions processed on collections of national internal revenue taxes duly sworn and certified by the AABs and submitted to the BTr to serve as basis for the computation of transaction fees under existing MOA. (RMO 25-2015) synchronization process. The process of downloading from the eORB’s website by the taxpayer of all the pertinent list of codes, values, rates and other information in order that the database in the taxpayer’s installed eORB System is harmonized with that of the BIR eORB System. (RR 3-2013) system demonstration. This refers to the presentation of the actual use of an accounting system or any of its components either on a test or production environment. (RMO 29-2002) system enhancement. Any change or modification in the system software or architecture components of a computerized application system that will change, add value or further improve the system. (RR 11-2004) system flow. This represents the inputs, outputs and processes of a system (RMO 29-2002). system generated number. Number generated automatically by a computerized system used in reference to a particular accounting document. (RMO 29-2002) System Requirement Specifications (SRS). A high level documentation that contains the functional and technical solutions provided by the service provider/vendor based on TOR. (RMO 24-2003) T tagging. The process by which the business registration information of a taxpayer is tagged as “Inactive” but nonetheless remains part of the BIR’s registration database. (RR 7-2012) tails. A distillation fraction containing components with higher boiling points. (RR 3-2006) tamper free. Sales data or integrity of the data were not manipulated to alter/avoid the recording of a sale transaction; and machine/software specifications/features were not altered or modified. (RMO 10-2005) TAMP taxpayer. 1. For purposes of this Order, this refers to any taxpayer that has been identified by the RDOs as one of their top taxpayers covered by TAMP and whose stop-filer cases will be strictly monitored for purposes of determining the performance of the RDOs in the resolution of stop-filer cases. (RMO 41-2011) 2. These refer to taxpayers that have been identified by the RDO which account for at least 80% of the tax collection of the District and as such are the top taxpayers who are covered by TAMP. They shall be strictly monitored on their stop filer cases, drastic changes in revenue payments, submission of required information returns and lists, and compliance with revenue rules and regulations. (RMO 20-2014) target area. Each Revenue District Office will survey their area of responsibility to pinpoint places with high concentration of business establishments where a large number appears to be un-registered or with very low tax compliance. (RMO 9-2006) taxable income. The pertinent items of gross income specified in this Code, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income by this Code or other special laws. (Sec 31, NIRC) taxable fringe benefits. Expenses incurred by the employee but which are paid by his employer. (Sec 33 (B), NIRC) taxable net income. The pertinent items of gross income specified in Section 32 of the NIRC less all allowable deductions enumerated in the Section 34 of the same Code (itemized or optional standard deductions) and the dividends distributed by a REIT out of its distributable income as of the end of the taxable year as: (a) dividend to owner of the common shares; and (b) dividends to owners of the preferred shares pursuant to their rights and limitations specified in the articles of the Incorporation of the REIT. (RR 13-2011) taxable person. Any person liable for the payment of VAT, whether registered or registrable in accordance with Sec. 236 of the Tax Code. (RR 14-2005) taxable quarter. The quarter that is synchronized to the income tax quarter of the taxpayer (i.e. calendar quarter or fiscal quarter). (RR 8-2002) taxable sale. The sale, barter, exchange and/or lease of goods or properties, including transactions “deemed sale” and the performance of service for a consideration, whether in cash or in kind, all of which are subject to tax under Secs. 106 and 108 of the Tax Code. (RR 14-2005) taxable year. The calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net income is computed under this Title. (Sec 22 (P), NIRC) tax clearance. The clearance issued by the Collection Enforcement Division (CED) attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account. (RR 3-2005) tax credit. Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof. (Sec 110, NIRC) tax gap. Is defined as the aggregate amount of true tax liability imposed by law for a given tax year that is not paid voluntarily and timely. It represents the difference between the actual revenue collected and the amount that would be collected if there were 100 percent compliance. (RMO 5-2012) Tax Management Association of the Philippines Inc. (TMAP). Is a non-stock, non-profit corporation composed of corporations or partnerships engaged in business in the Philippines or general professional partnerships engaged in the practice of law or public accountancy, and represented by professionals engaged in tax practice formed for the purpose of, among others, assisting government planners for a more effective implementation of tax laws, together with proposing tax reforms. (RMC 52-2011) tax mapping kit. Documents and tools that a Mobile RO should be equipped with during TCVD. (RMO 9-2006) taxpayer. 1. Any person subject to tax imposed by this Title. (Sec 22 (N), NIRC) 2. Any person whether individual or corporate, earning purely business income. (RR 6-2005) Taxpayer Account Management Program (TAMP). Is similar to the Account Executive and Account Manager Concept in the Private Corporate environment which shall be part of performance measurement of the individual Revenue Officers (RO). it focuses on the top business taxpayers, whether individuals or non-individuals which accounts for at least 80% of District Collections. (RMO 14-2005) taxpayer class. Kind of taxpayer, whether individual or corporation. (RMO 4-2006) Taxpayer Identification Number (TIN). The reference index number issued and assigned by the BIR to each and every person registered in its database. (RR 11-2008) taxpayer profiling. Is a method of gathering data or information to determine the general view of what is actually occurring within a system. It covers extensive analysis of taxpayer data within a given line of industry to diagnose compliance bottlenecks. (RMO 5-2012) tax payment. Is defined as the delivery of money to fulfill a legal obligation as provided by the NIRC of L997, as amended. (RR 3-2016) tax practitioners/agents. Those who are engaged in the regular preparation, certification, audit and filing of tax returns, information returns or other statements or reports required by the Code or Regulations. (RR 11-2006) tax remittance. Is the remittance to the Bureau of the Treasury (BTr) by the AAB-Acquirer of the tax payments made by taxpayers-cardholders. (RR 3-2016) Tax Remittance Advice (TRA). 1. The serially numbered document to be distributed by the BIR to the National Government Agencies (NGAs) and attached to every Withholding Tax Return filed for payment of taxes withheld to the BIR and shall be certified by the Chief Accountant and approved by the head of the NGA or his duly authorized representative. 2. The basis for the BIR and the BTR’s to record the collection and deposit in their respective books of accounts. (RR 5-2003) Tax Software Provider. Is an individual/organization who shall render services to taxpayers by offering third-party solutions, that is, a tax preparation software that will generate the required tax returns covered by this Order. (RMO 24-2013) Tax Subsidy Availment Certificate (TSAC). The instrument issued by the Bureau of Internal Revenue (BIR) to the BCDA, upon proper application by the BCDA, showing the amount of tax assumed by the BCDA for each of the primary contractors and consultant with the SCTEP, which includes, but is not limited to, the subsidy on income tax and VAT. (RR 17-2005) Tax Subsidy Debit Memo (TSDM). The document issued by the BIR to the primary contractors and consultant, subcontractors and suppliers, sub-subcontractors and sub-suppliers, upon proper application with the BIR, to evidence the amount of tax payment actually made using the subsidy. (RR 17-2005) Tax Treaties. Is the Double Taxation Conventions or Double Taxation Agreements entered into by and between the Philippines and other Contracting States or jurisdictions for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. (RR 15-2013) tax type. Kind of tax, such as income tax (IT), value-added tax (VAT), etc. (RMO 4-2006) Technical Specification Report (TSR). Documentation on technical architecture and performance of the system. It defines the modification and testing approach, conversion plan and design. (RMO 24-2003) terminal. Depot shall be used synonymously and, for purposes of these Regulations, shall refer to a facility with at least one (1) structure, such as a silo, tank, yard or warehouse, intended for storage of commodities, whether in bulk or in packages, which may or may not have handling equipment, such as pipelines or conveyors, as well as berth for mooring cargo carriers. (RR 2-2012) terminal leave. The money value of the total accumulated leave credits of a revenue employee, based on the highest salary received prior to or upon the employee’s date of retirement / voluntary separation. (RMO 15-2004) Terms of Reference (TOR). A document stating the objectives, key business functions, input/output requirements, hardware/software requirements and the service level agreements of the system to be developed. (RMO 24-2003) TESDA. Technical Education and Skills Development Authority (RMC 33-2004) theme. It is an approach or focus area of an organization to attain its mission and vision, and deliver value to its stakeholders. (RMO 23-2011) time deposit. A deposit account paying interest for a fixed term, with the understanding that funds cannot be withdrawn before maturity without giving advance notice. (RMC 16-2003) TIN issuance and registration. Refers to issuance of TIN to all persons who will engage in business, practice of profession or employment and who may or may not be subject to any national internal revenue tax but may be required to file the corresponding tax return, statement or other documents as required by the Code such as: income tax, estate and donor’s tax, value added tax, percentage tax, withholding tax, excise tax and documentary stamp tax (DST), including registration of its branch/es (for purposes of securing a branch code). (RMO 10-2014) tobacco product packages. The packet and package of tobacco products and any outside packaging and labelling of tobacco products for sale and distribution in the domestic market, importation, trade, exchange, or for exhibition, such as, but not limited to, packs, tins, boxes, pouches, flip-tops, slide and shell packages, cartons, packages containing one (1) product unit, or other containers of tobacco products containing the logo and trademark of the tobacco companies, primarily intended for consumer or for retail sale. (RMC 23-2016) tobacco products. Tobacco products, cigars, cigarettes packed by hand or cigarettes packed by machine as generally classified under Chapter IV, Title VI of NIRC of 1997. (RR 3-2006) total landed value. the total of the (i) market value of the motor vehicles imported as indicated in the motor vehicle reference books, such as the Japanese and U.S. Red Book, Karo and World Car Book on automobile utility vehicles and other motor vehicles, or the dutiable value as defined in Sec. 201 of the Tariff and Customs Code of the Philippines as amended, whichever is higher; (ii) customs duties paid on the imported goods; and (iii) all other charges arising from, or incident to, the importation. (RR 25-2003) tourist inn. Lodging Establishment catering to transients, which does not meet the minimum requirement of an economy hotel. (RR 4-2006) trade or business. Includes the performance of the functions of a public office. (Sec 22 (S), NIRC) trading participants/agent facilitator. Brokers and/or dealers authorized to operate a trading right in PSE pursuant to PSE rules. (RR 1-2008) Transaction Fee-Based Scheme. Refers to the mode of compensation to the BIR- AABs under the existing Memorandum of Agreement (MOA) for services rendered in the collection of internal revenue taxes pursuant to the provisions of Executive Order No. 55. (RMO 25-2015) Transfer Commitment Form (TCF). Refers to the document submitted by a taxpayer that all audit/investigation of all pending and/or open cases, if any, whether audit (AUD) of open related case/s and settlement of Accounts Receivable (AR)/returns Compliance System (RCS) cases/s and other pending cases/application from the old/previous RDO shall be continued/settled in the new RDO. (RMO 40-2004) Transfer of Registration. The process of transmitting the records of a registered taxpayer from one BIR district office to another where the new registered address falls under the jurisdiction of a BIR district office other than where it is currently registered. (RR 7-2012) Transfer Related Docket (TRD). Refers to the compilation of transfer related input form, the list open Case Monitoring System (CMS) cases and taxpayers ledgers for all tax types for the last three (3) consecutive taxable years and other documentary requirements submitted by a taxpayer. This will also include any and all pending request of taxpayer on application to use Computerized Accounting System (CAS) or Components thereof pursuant to RMO 29-2002 and Application for Authority to Print (ATP) pursuant to RMO 28-2002. (RMO 40-2004) transient passengers. A passenger who originated from outside of the Philippines towards a final destination also outside of the Philippines but stops in the Philippines for a period of less than forty eight (48) hours, or even more than forty-eight (48) hours, if the delay is due to force majeure or reasons beyond his control, where in both cases the passenger boarded an airplane of the same airline company bound to the place of final destination. (RR 15-2002) Transit Invoice (BIR No. 3007). The official form used to document the issuance of equipment and semi- expendable properties through delivery/ shipment by official forwarder. (RMO 20-2016) transmission companies. Any person or entity that owns and conveys electricity through the high voltage backbone system and/or sub transmission assets e.g. NPC or TRANSCO. (RR 14-2005) transmittal letter. This refers to a letter addressed to the Head of Office requiring him/her to personally serve the RTAO/RSO to the revenue officer/employee referred to therein and also to have it acknowledged by the subject revenue personnel. (RMO 38-2011) transshipment. The transport or shipment of alcohol or tobacco products from a foreign port into any port(s) of the Philippines strictly for subsequent shipment to a foreign port or destination where the shipping manifest pertaining thereto specifically states that the destination therefor is for a foreign port without introducing the same into the Philippine customs territory. (RR 3-2006) travel agents. Is the International Air Transport Association’s (IATA’s) duly accredited travel agents who are authorized to issue in the Philippines tickets of on-line and off-line international air carriers. (RMC 46-2008) treasury shares. Are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption which is not for cancellation, donation or through some other lawful means. Such shares may again be disposed of for a reasonable price fixed by the board of directors. (RR 6-2008) truck. A motor vehicle of 3.5 tons gross vehicle weight or more of any configuration that is primarily designed for the carriage of goods and with any number of wheels and axles. (RR 4-2003) trust liabilities. Receipts of collections covering performance/bidders/ bail bonds, collections made on behalf of other agencies, inter-agency transferred funds and service fees. (RMC 59-2004) Turnover of Property Accountabilities (TPA). The form used to document turnover of accountable properties by a resigning/retiring/transferring accountable official/employee to another BIR official/ employee. (RMO 20-2016) U UEE Data Entry Module. Is a data entry module where the employer inputs all the registration updates of exemption of its employees one by one with validation before sending electronically to the BIR. (RMC 59-2015) Uncollectible ARs/DAs. Refers to delinquent accounts where the current prospect of collection is either nil or zero (for ARs/DAs eligible for write-off) or are temporarily considered as not collectible (for suspense ARs/DAs). (RMO 11-2014) Uncollectible DA-Suspense. Refers to DA where any of the following circumstances are present: (a) taxpayer is deceased leaving no distrainable and leviable assets. However, if the assessment issued is for both spouses and the other spouse is still living, the same should not be considered as uncollectible; (b) taxpayer is serving life imprisonment without distrainable and leviable assets; (c) taxpayer is suffering from lingering illness and not capable of earning a living, without distrainable and leviable assets; (d) taxpayer is declared insolvent by the court or is found to be incapable of earning a living upon verification, and without distrainable and leviable assets; (e) taxpayer is an individual and his/her whereabouts is unknown. Without distrainable and leviable assets; (f) the taxpayer is a foreign national who came to the Philippines as a consultant, or a foreign corporation who has done business in the Philippines, and left after the completion of the project leaving no distrainable and leviable assets; and (g) taxpayer is a domestic corporation, which was verified to have ceased operations or has been officially dissolved, with no distrainable and leviable assets and its subscribed shares of stock have been fully paid; Provided, it has been determined that the whereabouts of its responsible officers could no longer be located. (RMO 71-2010) Uncollectible DA-Write Off. refers to DA where write off may be effected due to any of the reasons: (a) DA case where the Final Assessment Notice was not received by the taxpayer due to change of address, notwithstanding the Bureau’s timely receipt of information on such change of address from the said taxpayer and the period to assess has already prescribed (without prejudice to the institution of applicable administrative sanction against the erring Bureau official/s); (b) period to collect has already prescribed (without prejudice to the institution of applicable administrative sanction against the erring Bureau official/s); (c) a decision was already rendered by the Court declaring the account as uncollectible, and such decision has become final and executory; (d) theDA is considered uncollectible, as decided by the Bureau’s National Evaluation Board (NEB); and (e) the administration and collection costs involved do not justify the collection of the amount due. However, if the docket involves assessment of more than one (1) tax type, the aggregate amount thereof should be subject to the above threshold. (RMO 71-2010) under remittance. When employer fails to correctly remit total amount withheld or when the total amount of remittance is lesser than the total amount withheld. (RMC 21-2010) under withholding. When employer fails to correctly withhold the tax which should be equal to the tax due of the employee for the taxable year. (RMC 21-2010) Undivided Net Savings. The amount arising from net surplus or any portion thereof which the Board of Directors or the General Assembly of the cooperative decides not to divide or make available to members in the form of interest on share capital, patronage refund, reserve refund, education and training fund, optional fund or any other statutory reserve. (RR 14-2007) unit. An apartment unit in the case of apartments, house in the case of residential houses; per person in the case of dormitories, boarding houses and bed spaces; and per room in case of rooms for rent. (RR 14-2005) Unique Identifier Code (UIC). The code/serial number that represents an internal revenue stamp. (RR 7-2014) unlisted REIT. A duly incorporated REIT that has not listed with the Exchange. (RR 13-2011) updates. The process by which the information supplied during the primary registration process are changed either upon taxpayer’s or BIR initiative. (RR 11-2008) unrelated trade, business or other activity. Any trade, business or other activity, the conduct of which is not substantially related to the exercise or performance by such educational institution or hospital of its primary purpose or function. (Sec 27 (B), NIRC) USAID Program. An organized set of activities and allocation of resources directed toward a common purpose, objective, or goal undertaken or proposed by an agency in order to carry out the responsibilities assigned to it. (RMC 40-2007) USAID Project. Is one or several types of activities that contribute to a given result or set of results. It is a structured undertaking (often involving considerable money, technical assistance, services, personnel and equipment) of limited duration that is developed through various administrative, analytical, and approval processes in order to achieve a tangible objective (such as school construction project, adult literacy project). (RMC 40-2007) unutilized TCC Forms. Refer to the old blank TCC forms which are still in the custody of the issuing offices and unreleased to any claimant. (RMO 15-2006) User Classification Page. Is the screen where the user will be redirected upon validation of the information provided therein then the user will select whether he is an Accredited Tax Agent (ATA) or a Tax Software Provider (TSP), whichever is applicable. (RMO 24-2013) User Validation Certificate. A document stating that full functionality of the enhancement deliverable conforms to relevant user evaluation criteria. (RMO 24-2003) utilization. 1. Any amount in cash or in kind (including administrative expenses) paid or utilized to accomplish one or more purposes for which the accredited nongovernment organization was created or organized. 2. Any amount paid to acquire an asset used (or held for use) directly in carrying out one or more purposes for which the accredited nongovernment organization was created or organized. (Sec 34 (H)(4), NIRC) V vacation leave. The leave of absence granted to officials and employees for personal reasons, approval of which is dependent upon the necessities of the service. (RMO 15-2004) Value Added Tax (VAT). 1. Is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods. Properties or services. (Sec 105, NIRC) 2. A tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and of importation of goods into the Philippines. (RMC 74-2008) variant of a brand. Brand of alcohol or tobacco products on which a modifier is prefixed and/or suffixed to the root name of the brand. (RR 3-2006) VAT official receipt. 1. It is a proof of sale of service and/or leasing of properties which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer. 2. It is a written admission or acknowledgement of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers. (RR 18-2012) VAT sales invoice. It is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer. (RR 18-2012) VAT TCC holder-applicant. Shall refer to any taxpayer-holder of the VAT TCC, whether as the original grantee or as transferee/assignee thereof, who signified the intention to enroll in the VAT TCC Monetization Program. (RMO 21-2012) VAT TCC Monetization-Processing Office. Shall refer to the office designated under this Order to conduct final review and evaluation of the Application for VAT TCC Monetization, as well as the preparation and issuance of the NPS, after the initial evaluation of the said application has been conducted by Receiving Office. (RMO 21-2012) VAT TCC Monetization Program. Refers to a mechanism adopted by the government to give qualified VAT-registered persons the cash equivalents of their respective outstanding VAT TCCs either thru a discounting facility of the participating Government Financial Institution (GFI) or redemption of the full cash value of the outstanding VAT TCC balances with the BIR upon reaching the specified maturity dates thereof. (RMO 21-2012) VAT sales invoice. It is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the output tax liability of the seller and the input tax claim of the buyer. (RR 18-2012) VAT Subsidy Checks (VSCs). The prenumbered instruments released by the BIR to BCDA for issuance to each of the primary contractors and consultant, drawn against the VAT TSAC of each of the primary contractors and consultant. (RR 17-2005) VAT-exempt transaction. Refers to the sale of goods, properties or services or the use or lease of properties that is not subject to VAT (output tax) and the sell/supplier is not allowed to any tax credit of VAT (input tax) on purchases related thereto. (RMC 50-2007) VAT-registered person. Any person who is registered as a VAT taxpayer under Sec. 236 of the Tax Code. (RR 14-2005) vehicle used for special purpose. A vehicle designed and used for a special purpose or for a specific application such as cement mixer, fire truck, ambulance and/or medical unit, armored vehicle, crane, hearse, and the like. (RR 4-2003) vendor. Is a natural and legal persons engaged directly by MCA-Philippines to provide or perform MCC-funded goods and services. (RR 12-2010) vision statement. It defines the desired or intended future state of an organization. (RMO 23-2011) volatile memory. Memory that loses its content when the power is turned off (RR 11-2004). voucher. May be an invoice, receipt, check or other document that shows the details of each transaction. It supports each entry in the book of accounts, however, it cannot take the place of journal. (RAMO 1-2000) vouchers and cancelled checks. Only show that amounts claimed as business expenses had been spent and confirm the fact of disbursement, but do not necessarily prove that the expenses for which they were disbursed are deductible items. (RAMO 1-2000) W wages. All remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration paid in any medium other than cash. (Sec 78 (A), NIRC) Warehousing and Distribution Section (WDS). Section under PropD responsible for the issuance of PAR/ICS on equipment and semi- expendable properties for documentation and control purposes as well as acknowledgment receipt for returned serviceable properties for the transfer of accountability. (RMO 20-2016) Web-based MRCOS. Refers to the online browser-based MRCOS application used for inquiry, generation of reports and system administration. This is accessible through the BIR intranet. (RMO 8-2013) weighted average method. A method of computation wherein the benchmark or average is derived by taking into account the proportional relevance of each component, rather than treating each component equally. It is calculated by multiplying each number by a weight, adding these together and then dividing the total by the sum of the weights. (RMO 4-2006) wholesale price. The amount of money or price paid for cigars or cigarettes purchased for the purpose of resale, regardless of quantity. (Sec 147 (c), NIRC) withholding agent. Any person required to deduct and withhold any tax under the provision of Section 57. (Sec 22 (K), NIRC) withholding tax returns. Are tax returns required to be filed within a prescribed period, containing among others, information on the amount of taxes withheld and due to be remitted by the tax filer-payor of income (i.e., 1601-C, 1601-E, 1601-F, 1600 and 1603). (RMO 2-2007) workers cooperative. Is one organized by workers, including the self-employed, who are at the same time members and owners of the enterprise. (RMC 57-2012)