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CM 102 - PAYMENT THROUGH ELECTRONIC FILING AND PAYMENT SYSTEM (eFPS)

The BIR adopted the Electronic Filing and Payment System (eFPS) pursuant to the provisions of the NIRC of 1997, as amended and in accordance with the requirements of the Electronic Commerce Act.[1] The eFPS is developed primarily to provide the taxpayers with convenient service through faster processing and immediate confirmation of the filing of tax returns and payment of taxes. The system is an alternative mode of filing returns and payment of taxes which deviates from the conventional manual process. It allows the eFPS-enrolled taxpayers to directly encode tax return information, submit the tax returns, and pay their taxes due online over the internet through the BIR website.

DEFINITION OF TERMS

For purposes of this Manual and in order to provide clarity and better understanding of the policies and procedures in the implementation thereof, the words and phrases herein provided are defined as follows:

  1. Electronic Filing and Payment System (eFPS) – refers to the system developed and maintained by the Bureau of Internal Revenue (BIR) for electronic filing of tax returns, including attachments, if any, and paying taxes due thereon specifically through the internet.
  2. eFPS AAB - refers to a BIR – Authorized Agent Bank (AAB) that has passed the accreditation criteria for eFPS – AAB such as being an internet-bank, indorsed by the BTr for eFPS accreditation, and certified by the Information System Group (ISG) of the BIR that the AAB’s system is acceptable and compatible with the eFPS of the BIR.
  3. eFiling – refers to the process of electronically filing tax returns/forms/declarations including attachments, if any, specifically through the internet.
  4. ePayment – refers to the process of electronically paying a tax liability through the internet banking facilities of AABs.
  5. Filing Reference Number – refers to the control number issued by the eFPS to acknowledge that a tax return/form/declaration, including attachments, has been successfully filed electronically. This shall serve as evidence of the fact of filing and the date of filing of the return.
  6. Confirmation Number – refers to the control number issued by the AAB to the taxpayer and the BIR to acknowledge that the taxpayer’s account has been successfully debited electronically in payment of his tax liability. Such Confirmation Number shall be considered as the equivalent of a bank validation and official receipt issued by the AAB and shall further serve as evidence of the fact of payment of the taxpayer’s liability to the extent of the amount reflected in the Confirmation Number. And the date of payment by the taxpayer.
  7. Acknowledgement Number – refers to the control number issued by the BIR to the taxpayer to confirm that a tax payment has been credited to the account of the government or recognized as a revenue (internal revenue tax collection) by the Bureau of the Treasury.
  8. File Transfer Protocol (FTP) – a reliable end-to-end type of transport of files from sites connected through a network to facilitate transfer of files in the form of a tax file or binary integers.
  9. Large Taxpayer – refers to a taxpayer who has been classified and duly notified by the Commissioner of Internal Revenue (CIR) for having satisfied any or a combination of set criteria as prescribed in RR No. 1-98 or any amendatory regulations. This includes all large taxpayers under the jurisdiction of the Large Taxpayer Service (LTS) and Large Taxpayer District Offices (LTDOs).
  10. Non-Large Taxpayer – refers to a taxpayer whose tax payments and financial conditions do not satisfy the set criteria as per RR No. 1-98 or any amendatory regulations and/or has not been classified and notified as a Large Taxpayer by the CIR.
  11. Due Date – refers to the date prescribed by law or regulations within which to file a particular return and pay the tax due thereon.
  12. Electronic Signature – refers to the methodology or procedures prescribed by the BIR through the eFPS, employed by an individual taxpayer, or by an officer of a corporate taxpayer, who is required by the NIRC of 1997, as amended or appropriate regulations to affix his/her signature to such return, who files a return and pays taxes through eFPS, with the intention of authenticating, approving, attesting to the truth and correctness of the return. In the case of a corporate taxpayer, the electronic signature shall be deemed to be the signature singly, and collectively of both the authorized corporate officer/s that are required by the NIRC of 1997, as amended or appropriate regulations to file and swear to the truth and correctness of such return and who are certified as such officers by the corporate secretary in a document submitted to the BIR.
  13. Paid-up Capital Stock – Shall mean that 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.
  14. Complete Computerized System – refers to the books of accounts and other accounting records in electronic form, in accordance with RR No. 16-2006.

Who May Avail of the eFPS Facility

The eFPS is available to a taxpayer who is registered in the BIR ITS with an e-mail account and an internet access. The taxpayer availing of eFPS facility enrolls online with the eFPS which is linked to the BIR website (http://www.bir.gov.ph).[2]

Coverage

The use of the eFPS is mandatory to the following:[3] (i) large taxpayers pursuant to RR No. 2-2002; (ii) all government bidders pursuant to RR No. 3-2005; (iii) corporations with paid-up capital stock of Ten Million Pesos (Php 10,000,000.00) and above pursuant to RR No. 10-2007; (iv) corporations with complete computerized system pursuant to RR No. 10-2007; (v) taxpayers belonging to the list of Top 20,000 private corporations under Section 2.57.2 (M) of RR No. 2-98, as last amended by RR No. 14-2008, in relation to RR No. 5-2004; and (vi) taxpayers belonging to the Top 5,000 individual taxpayers pursuant to RR No. 6-2009.

Other taxpayers mandated to use the eFPS include the stock broker, insurance companies as provided under RMC No. 71-2004, as well as enterprises enjoying fiscal incentives granted by other government agencies such as those registered with the (i) Philippine Economic Zone Authority; (ii) Board of Investments; (iii) various zone authorities covered under RA No. 9400; (iv) Cagayan Special Economic Zone Authority; (v) Export Authority; (vi) Tourism Infrastructure and Enterprise Zone Authority. [4]

Furthermore, users of the Electronic Documentary Stamp Tax (eDST) System are mandated to enroll under the BIR eFPS. Payment of DST under the eDST shall be made thru the eFPS or thru the eFTIS.

Enrollment for System Usage

Identified taxpayers required to file via the eFPS and/or volunteering taxpayers who would like to avail of the eFPS shall enroll online in the eFPS, in accordance with existing regulations. Circulars and orders. A taxpayer that will e-pay shall enroll with any eFPS AAB where he/she/it intends to pay through the bank debit system. However, large taxpayer’s enrollment shall be limited only to the eFPS AABs authorized to serve them and who are capable to accept e-payments.[5]

Returns Covered by the Enrollment

A taxpayer enrolled with the eFPS shall file the applicable returns as specified in RR No. 9-2001, as amended by RR No. 2-2002 and RR No. 5-2004 (See Annex 100-3for the list of tax returns that may be filed with eFPS).

Filing of Returns and Payment of the Tax

The time of filing of some tax returns was provided in Section 7 of RR No. 9-2001, as amended by RR No. 5-2004. Filing of returns thru eFPS under the different business industry classifications shall follow the guidelines under RR No. 26-2002.

Following the “pay-as-you-file” principle, the electronic payment of the tax due shall be made within the day the return is electronically filed. Where manual payment is allowed, payment shall also be made within the banking hours of the day when the tax return/form/declaration was electronically filed. However, no penalty shall be imposed for taxpayers who e-filed earlier and paid at a later date but on or before the due date for the payment of the applicable tax.[6]

Payment of taxes electronically shall be done thru the bank debit system using the internet banking facilities of any eFPS AAB authorized to accept payment through the eFPS Facility. To ensure the security and integrity of the transaction, eFPS AABs shall require taxpayers to enroll in their respective eFPS bank debit system using the bank’s internet banking facilities. However, insurance companies and stock brokers are required to e-pay with any of the eFPS AAB chosen by the Insurance Commission (IC) and the Securities and Exchange Commission (SEC), respectively.

For taxpayers intending to utilize Tax Credit Certificate (TCC) in payment of taxes, their returns shall have to be e-filed earlier than the due date to allow the BIR sufficient time to issue the requisite Tax Debit Memo (TDM) on or before the due date for payment of the applicable tax.[7]

Filing of the Audited Financial Statements/Certificate of Withholding Tax

Taxpayers availing of eFPS are required to submit all required attachments (e.g. audited financial statements, withholding tax certificates, TDM, etc.) to the applicable tax returns/declarations to the concerned RDO/Large Taxpayer Assistance Division (LTAD)/Excise Taxpayers Regulatory Division (ETRD)/LTDO where it/he/she is registered within fifteen (15) days from the date of filing of such tax returns/declarations. The required attachments must be with the printed copy of e-filed returns with its Filing Reference Number. For electronically submitted financial statements as attachments to the eFPS-filed Income Tax Returns (ITR), however, the same must first be converted to pdf file and winzipped before it is attached to the ITR.[8]

Confirmation of Receipt of Returns/ Documents and Payment of Taxes

The reckoning date when the tax return/form/declaration and other attachments, as well as the payment of the tax due thereon, is deemed received by the BIR shall be as follows:[9]

  1. In case of e-filing and e-payment, the return is deemed filed, on the date appearing in, and after a Filing Reference Number is generated and issued to the taxpayer via the eFPS. The tax due thereon is deemed paid after a Confirmation Number has been issued by the eFPS AAB to the taxpayer and the BIR. In addition, a Bank Acknowledgement Number shall be issued by the AAB to the BIR to confirm that the tax payment has been credited to the account of the government or recognized as revenue (internal revenue tax collection) by the BTr. The receipt of the return occurs at the time it enters the eFPS and shall be evidenced by the date indicated in the Filing Reference Number.
  2. In case of e-filinf and manual payment, the return is deemed filed on the date appearing in, and after a Filing Reference Number is issued to the taxpayer via the eFPS. The print-out of the Filing Reference Number shall be presented to the AAB for manual payment of the tax due thereon. The payment thereof is received upon validation of the document containing the Filing Reference Number generated by the eFPS and the issuance of machine validated deposit slip by the AAB.

The presumptions relating to electronic signature shall be in accordance with the provisions of RR No. 9-2001, as amended by RR No. 2-2002.

[1] Section 244 of the NIRC of 1997, as amended, in relation to Section 27 of Republic Act No. 8792 or the “Electronic Commerce Act”.

[2] RR No. 9-2001.

[3] RMC No. 69-2009.

[4] RR No. 1-2010.

[5] Sec. 4 of RR No. 9-2001, as amended by RR No. 2-2002 and RR No. 5-2004.

[6] RMO No. 5-2002, as amended by RMO No. 19-2002.

[7] RMO No. 5-2002.

[8] RR No. 9-2001 and RMO No. 10-2006.

[9] Section 9 of RR No. 9-2001, as amended by RR No. 9-2002, and RMO No. 5-2002, as amended by RMO 19-2002.