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A new mode of payment for National Government Offices (NGAs) was implemented in April 2000, following the signing of the DoF-DBM-COA Joint Circular (JC) No. 1-2000, as amended by Joint Circular No. 1-2000 A on July 31, 2000. The said Circular embodies the joint agreement between the Department of Finance, the Department of Budget and Management and the Commission on Audit, which provides for the guidelines in the remittance through the use of Tax Remittance Advice (TRA) of all taxes withheld by the NGAs to the BIR. Revenue Memorandum Order (RMO) No. 2-2007 provides for the policies and procedures for monitoring the collection of withholding tax payments through TRA from the NGAs.


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. Tax Remittance Advice (TRA) – refers to the serially numbered documents to be distributed by the BIR to National Governments Agencies (NGAs) and attached to each and every withholding tax return filed for payment of taxes withheld to the BIR, duly certified by the NGA Chief Accountant and approved by the head of the NGA or his duly authorized representative. This shall be the basis for the BIR and the BTr to record the tax collection in their respective books of accounts.
  2. 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 (i.e. BIR Form No. 1601-C, 1601-E, 1601-F, 1600 and 1603).
  3. Notice of Cash Allocation (NCA) – refers to the cash authority issued by the DBM to central, regional and provincial offices, and operating units to cover the cash requirements of the agencies. The NCA specifies the maximum amount of withdrawal that an agency can make from a government bank for the period indicated.