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The government agency-grantee (AFPCES/PNPSSS/BCDA/PDIC, etc.) shall, upon receipt of the Certificate of Entitlement to Subsidy (CES) from the FIRB, files an application with the Department of Budget and Management (DBM) for the issuance of the SARO for the availment of tax expenditure fund (TEF) subsidy. Upon approval of the application, the DBM shall issue a SARO in favor of the BTr to cover the payment of the applicable taxes payable to the BIR. Upon receipt of the SARO, the government agency shall furnish the revenue district/office having jurisdiction over the government agency’s principal office, and the BTr a copy of the SARO. The BTr records the amount of TEF subsidy covered by the SARO in the BTr books of accounts both, as revenue and expenditure. The LTDPQAD/LTDO/RDO receives the SARO and transmits the same to the RAD. The corresponding revenue collection is recorded accordingly in the eNGAS by the RAD upon receipt of the BTr Journal Entry Voucher (JEV).

The BTr shall:

  1. Receive a copy of the SARO in favor of the BTr covering the TEF subsidy for the payment of the applicable tax payable to the BIR from the concerned government agency or GOCC (e.g. AFPCES/PNPSSS/BCDA/PDIC, etc.
  2. Prepare the JEV on TEF subsidy covered by the SARO;
  3. Record the collections/remittances from TEF in the BTr books of accounts; and
  4. Transmit to RAD the BTr JEV on TEF covered by the SARO.


  1. Receive copy of SARO from the beneficiary of the TEF subsidy (AFPCES/PNPSSS/BCDA/PDIC, etc.), and coordinate with the concerned taxpayers entitled to tax subsidy on the availment procedures (Refer to CM 111.2 Payment through SARO- Collection Reporting for details on the issuance of availment certificate e.g. TSAC); and
  2. Furnish the RAD with a copy of the SARO secured from NGA/GOCC.

The RAD shall:

  1. Receive the BTr JEV on TEF collections from the BTr and the copy of the SARO from the LTDPQAD/LTDO/RDO;
  2. Coordinate with the LTDPQAD/LTDO/RDO for the existence of any availment discrepancies (Refer to CM 207 Reconciliation of Collection through SARO of Chapter II of the Manual);
  3. Prepare the BIR JEV on TEF collections covered by the SAROs; and
  4. Record the TEF collections covered by the SARO in the eNGAS.