COLLECTION MANUAL - CHAPTER I (THE COLLECTION CHANNELS AND MODES OF PAYMENT)
CM 100 OVERVIEW
National internal revenue taxes are, at present, generally collected through Authorized Agent Banks (AABs). Taxpayers can pay their taxes through AABs using the following payment systems: i) over-the-counter payment; ii) Electronic Filing and Payment System (eFPS); iii) Electronic Fund Transfer Instruction System (eFTIS) which is used by commercial and universal banks in paying the banks’ own tax liabilities, and iv) other payment facilities of an AAB such as the Efficient Service Machines (ESM)/eZPAY kiosk (EZPK), Mobile (G-Cash) Payment facilities; and other receiving outlet/a of an AAB.
In places where there are no AABs, tax payments can be made directly through Revenue Collection Officers (RCOs) who shall issue Revenue Official Receipt (BIR Form No. 25.24) for each and every tax payment received. However, under certain conditions as may be allowed by the Commissioner of Internal Revenue, RCOs can also receive tax payment during specific tax deadlines and tax filing seasons, even if there are AABs in the area, for the convenience of taxpayers.
Some tax payments are likewise made through direct crediting such as the Checkless Payment System for internal revenue taxes due from the Bangko Sentral ng Pilipinas (BSP) as well as taxes due on the disposition of forfeited assets by the BSP and the Direct Crediting of the Bureau of the Treasury (BTr) of its own tax liabilities including withholding tax payments on government securities and other payments of some National Government Agencies (NGAs) under special laws.
Other payment schemes include the collection of withholding taxes from the NGAs through Tax Remittance Advice (TRA), and the payment of taxes by some NGAs and Government-Owned and Controlled Corporations (GOCCs) through the Special Allotment Release Order (SARO).
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:
- Authorized Agent Bank (AAB) – refers to a commercial or universal bank authorized by the BIR to collect internal revenue taxes and receive the corresponding returns/attachments in accordance with the criteria for accreditation under pertinent revenue issuances.
- Over-the-Counter Payment (OTC) – refers to the manual payment of tax liabilities of AABs.
- Cash Payment – refers to the payment of tax liabilities in the currencies (paper bills or coins) that are legal tender in the Philippines.
- Bank Debit System – refers to the system whereby a taxpayer, through a bank debit memo/advice, authorizes withdrawals from its/his/her existing bank account for payment of tax liabilities.
- Tax Debit Memo (TDM) – refers to BIR Form No. 2311 duly issued by the Commissioner or his duly authorized representative acknowledging that the taxpayer named therein has duly paid its/his/her internal revenue tax liability through the use of a duly issued and existing Tax Credit Certificate (TCC). The TDM serves as the official receipt from the BIR evidencing a taxpayer’s payment or satisfaction of his tax obligation. The amount shown therein shall be charged against and deducted from the credit balance of the aforesaid TCC.
- Check – refers to the bill of exchange or order instrument drawn on a bank that is payable on demand.
- Limited Bank Data Entry System (LBDES) – refers to the Integrated Tax System (ITS) capability which allows the AAB to encode and send payment information to the Revenue Data Center (RDC) through Electronic Data Transmission (EDT).
- Electronic National Government Accounting System (eNGAS) – is an accounting software developed by the Commission on Audit (COA) to ensure correctness, reliability, completeness and timeliness in recording government financial transactions and to generate financial reports in accordance with the policies and procedures of the new NGAS.
- Batch Control Sheet-A (BCS-A) – the form prepared by the bank branch and the RDO, that summarizes collection data from the return/ form/ declaration and deposit/payment slip of taxpayers settled through cash, check, or a combination of both.
- Batch Control Sheet-B (BCS-B) – this form is prepared by the Revenue District Office (RDO) and summarizes collection data from tax-exempt, break-even, no payment, or refundable return/form/declaration.
- Journal Entry Voucher (JEV) – this form serves as certification that the amount of collections has been credited or debited to the BIR’s account in the BTr.
 Revenue Memorandum Order (RMO) No. 11-2008.
 Revenue Regulations (RR) No. 5-2000.