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CM 101.1 - AAB OVER-THE-COUNTER (OTC) ACCEPTANCE OF TAX PAYMENT AND REMITTANCE

Internal revenue taxes paid through AABs are generally made over-the-counter. AABs accept payment of taxes over-the-counter in accordance with the MOAs between the BIR, the BTr and the concerned banks, as well as the relevant issuances such as those on the modes of and procedures for the payment of taxes. Tax payments are then remitted electronically to the BTr through the BSP and are recorded by the BTr and the BIR accordingly.

  1. Acceptance of Tax Payment

The AAB branch shall:

  1. Receive from the taxpayer in triplicate copies the properly accomplished tax return/form/declaration, necessary attachments thereto, if any, and the BIR-prescribed deposit slip;

A BIR-prescribed deposit slip must have the following information: transaction date, name and Tax Identification Number (TIN) of taxpayer, BTr-BIR account number, account name which is BTr-BIR, name of the drawee bank and check number (for check payments), bank debit advice number (for debit system payment), and the amount of tax to be paid. Said deposit slip shall be accomplished and issued in triplicate copies, distributed as follows:

  • Original (taxpayer’s copy),
  • Duplicate (AAB’s copy), and
  • Triplicate (to be attached to the tax return/form/declaration)
  1. Check the completeness and correctness of presented documents ensuring that the tax return/form/declaration is properly filled up as to, among others, the name of the taxpayer, signature of the taxpayer/authorized representative or agent, and the amount to be paid;
  2. Stamp “RECEIVED” the three copies of the tax return/form/declaration, attachments/documents, if any, and deposit slips, the BIR-prescribed deposit slip, and other documents evidencing proofs of tax payment such as, among others, the copy of the TDM and the applicable withholding tax certificates (BIR Form Nos. 23.07 and 23.16). The attachments to the income tax return shall be stamped only on the page of the Audit Certificate, the Balance Sheet and the Income Statement. The other pages of the financial statements and its attachments need not be stamped “Received”. In case of corporations and other juridical persons, there should be stamped “RECEIVED” in at least two (2) sets extra copies of the audited financial statements for filing with the Securities and Exchange Commission;[1]
  3. Accept tax payment and machine validate the BIR-prescribed deposit slip accomplished by the taxpayer as evidence that the BIR tax payment was deposited to the account of the BTr;

The machine validation on the return/form/declaration/deposit slip shall reflect the date of payment, amount paid and transaction code, the name of the bank, branch code, teller’s code and teller’s initials.[2]

  1. Depending on the mode of payment, ensure that the following BIR policies are complied with:[3]
    • If tax is paid in cash, there is no limit in the amount of cash payment.
    • If the tax is paid thru check,
      • The taxpayer shall indicate the following data in the space provided in the check: “PAY TO THE ORDER OF” the presenting/collecting bank of the bank where the payment is to be coursed and FAO (For the Account of Bureau of Internal Revenue as payee; and under the “ACCOUNT NAME” the Taxpayer Identification Number (TIN). Checks for the payment of BIR taxes and other charges shall cover one tax type for one return period only.

Below is a sample of a check tax payment where the drawee bank and the presenting bank are one and the same.

Below is a sample of a tax check payment where the drawee bank and presenting bank are different from each other.

  • The following checks are not acceptable as check payments:
  • Accommodation checks – checks issued or drawn by a party other than the taxpayer making the payment;
  • Second-endorsed checks – checks issued to the taxpayer as payee who indorses the same as payment for taxes;
  • Stale checks – checks dated more than six (6) months prior to presentation to the authorized agent bank;
  • Postdated checks – checks dated a day or several days after the date of presentation to the AAB;
  • Unsigned checks – checks with no signature of the drawer; and
  • Checks with alterations/erasures, unless duly counter-signed by the drawer/authorized signatory himself/herself.
  • If the tax is paid thru the bank debit mode, the taxpayer must have a bank account with the AAB branch where he/she/it intends to file and pay his/her/its tax return/form/declaration, provided that the said AAB branch us within the jurisdiction of the Revenue District Office (RDO) where the tax payment is due and payable.
  • If the tax is paid thru Tax Debit Memo, the TDM number should be indicated in the BIR tax return/form/declaration/payment slip. A photocopy of the front and back pages of the TCC, the source of the TDM, as well as a copy of the TDM must be attached to the BIR tax return/form/declaration. Note that a TDM is not acceptable as payment for withholding taxes, including the fringe benefit tax, as well as for taxes, fees and charges collected under special schemes of the BIR such as excise tax deposits to cover payment of taxes for future removals of excisable articles.[4]
  1. Release triplicate copy of the machine-validated tax return/form/declaration and the original copy of the deposit slip to the taxpayer; and
  2. Post the tax payment collected, using the on-line tillering system, by crediting the BTr demand deposit account in the head office of the AAB.
  3. Remittance of Tax Collections

The AAB-Head Office (AAB-HO) shall:

  1. Prepare the Consolidated Report of Daily Collection (CRDC) (Annex 100-1.1) and send to the BTr and the BIR-NO-Revenue Accounting Division (RAD). Under existing policies, AABs transmit the CRDCs to RAD through eCRDC facility daily; and
  2. Remit tax collection to the BTr, thru the BSP, on the prescribed due date depending on the float period for OTC transactions, as officially notified by the BIR. The AAB-HO shall prepare the BSP Authority to Debit AAB-HO’s Demand Deposit Accounts (DDA) (Annex 100-1.2) in favor of the BTr corresponding to the total daily collections and send the same to BSP, copy furnished RAD.

The BSP shall:

  1. Debit the AAB-HO’s DDA corresponding to total daily tax collections due for remittance and credit such amount of collection to the “Special Account-BIR Collection” of the Treasurer of the Philippines (TOP); and
  2. Prepare and submit the BSP List of AAB remittances (Annexes 100-1.3/100-1.4) daily through e-mail to BTr and the RAD.
  3. Recording of Tax Collections

The BTr shall:

  1. Prepare the JEV on tax collections from the AABs; and
  2. Record daily in its books of account the BIR collections/remittances from AABs, and provide RAD with copy of the JEV on tax collections.

The BIR-RAD shall:

  1. Receive the CRDC from AAB-HO in Comma Separated Value (CSV) format via eCRDC facility;
  2. View the eCRDC validated file and export the Daily Summary of Collections through AABs in Excel format;
  3. Print the Daily Summary of Collections and validate the CRDC data with information from the BSP Authority to Debit, BSP List of AAB daily remittances, and the BTr JEV; and
  4. Prepare the BIR JEV and record the tax collections in the eNGAS.

[1] RMO No. 6-2010, as amended by RMO No. 13-2010.

[2] RR No. 16-2002.

[3] RR No. 4-97, as amended by RR No. 6-98 and RR No. 16-2002.

[4] RR No. 5-2000.