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CM 107 - PAYMENTS THROUGH THE REVENUE COLLECTION OFFICER (RCO)

The RCO is an internal revenue officer who is designated by the RDO, subject to the approval of the Regional Director, to receive tax payment, tax return/form/declaration and attachment, and issue Revenue Official Receipts (ROR) – (BIR Form 2524). The designated RCOs are bonded in strict compliance with the rules and regulations of the Commission on Audit (COA) and the Bureau of the Treasury.[1] In accordance with RMO 4-2007, the RCO applies for the adequate fidelity bond while the Finance Division pays for the said bond applied for. The RCOs are strictly monitored by the Chief of the Collection Section of the RDO and the Finance Division of the Regional Office to ensure that all the collections made are deposited intact within the prescribed period.

The authority to accept tax payment is granted to the RCO in places where there is no AAB. The RCO shall receive all tax returns/forms/declarations with or without payment and issue ROR for payment of income tax, value-added tax and percentage tax, other miscellaneous taxes, as well as the annual registration fee. They also issue Official Receipt for certification fees and sell loose documentary stamps. The RCO may accept payments in cash, subject to certain threshold, or in checks, regardless of the amount.

Pursuant to RMO No. 4-2007, however, and for the convenience of the taxpayers during specified tax deadlines, the RCOs are allowed to receive tax payments, tax returns/forms/declarations even when there are AABs in the area.

In areas where there are AABs, there is no limit in the amount of cash to be accepted as payment of annual income taxes (BIR Form Nos. 1700, 1701 and 1702) by RCOs during the income tax filing and payment deadline.[2] However, for all other taxes to be accepted, the issuance of ROR by the RCO shall be limited only to tax payments, in cash not exceeding Twenty Thousand Pesos (Php 20,000.00) per return. There shall be no limit on the amount if the payment is made thru checks.[3]

The authority to issue ROR by RCOs in areas where there are AABs shall apply only on the following deadlines.[4]

  • On January 31 – for payment of Annual Registration Fee
  • On the 10th day of the month – for the remittance of withholding taxes
  • On the 20th day of the month – for the filing and payment of business taxes (Percentage and Value-Added Taxes)
  • On the 25th day of the month – for the filing and payment of quarterly VAT; and
  • For the annual income tax payment, the issuance of RORs shall start five (5) working days prior and until April 15.

The following checks should be accepted by the RCOs in the payment for internal revenue taxes:[5]

  • Manager’s or cashier’s checks;
  • Checks drawn against a joint or multiple account for the purpose of tax payment of the personal tax liability of any of the members thereof, provided that the name and TIN of the paying member/s shall be indicated on the back/face of the check;
  • Checks drawn against the personal account of the owner of a single proprietorship in payment of the tax liability of his/her business;
  • Checks drawn against the account of a single proprietorship in payment of the tax liability of the owner, provided that the name and TIN of the owner are indicated at the face/back of the check; and
  • Checks issued by either of the spouses to pay their income tax liabilities.

However, the following checks are not acceptable as check payments:[6]

  • 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 a day or several days after the date of presentation to the authorized agent bank;
  • Unsigned checks – checks with no signature of the drawer; and
  • Checks with alterations/erasures without counter signatures.

To secure remittance of tax collections by the RCO, there shall be strict compliance with Section 69 of PD 1445, Department of Finance Order No. 52-96 dated May 22, 1996, as well as Section 22 of COA Circular No. 2002 re: Manual of National Government Accounting System for National Government Agencies date June 18, 2002, requiring that all collections should be deposited with Authorized Government Depository Bank (AGDB) for the account of the agency of the Treasurer of the Philippines daily or not later than the next banking day.[7]

To ensure that payments received by RCOs are processed and accurately accounted for, the RCOs are required to encode the tax returns’ payment data in the CBR “ADD” facility – DEPOSIT SLIP FOR TRANSACTION” of the ITS, for computerized districts, or in the Payment Data Entry System (PDES), for non-computerized districts, in accordance with RMO No. 4-2007. Through the PDES, a stand-alone system, the Bureau can monitor and reconcile the collections of the non-computerized RDOs in areas where there are no AABs. The encoded payment data will be electronically transferred to their respective RDC through the File Transfer Protocol (FTP) for uploading in the CBR-ITS.

[1] Detailed procedures contained in Section 101 of PD 1445 which pertains to the “State Audit Code of the Philippines”, Section 305 (f) of GAAM Vol. I and Sec. 2 of the Treasury Order No. 01-95 of the Bureau of the Treasury effective January 1, 1996.

[2] RMO No. 2-2010.

[3] RMO No. 8-2009.

[4] RMO No. 4-2007.

[5] RMO No. 32-2008, as amended by RMO No. 8-2009.

[6] RR No. 16-2002.

[7] RMO No. 4-2007 and RMO No. 31-2007.