RMO No. 29-2008: Further amends RMO No. 17-2008, as amended by RMO No. 26-2008, due to adjustments in the allocation of the CY 2008 BIR collection goal by implementing office affected by delisting/enlisting of taxpayers, and by period affected by non-realization of programmed GDP-real growth rate and implementation of RA No. 9504, among others

Key points

1. Reasons for the adjustment. The adjustment reflects the change in office accountability for delisted/enlisted taxpayers effective May 2008, updated collection data from delisted mining companies, and the shortfall in GDP growth: programmed at 6.1% but actually 4.6% for the first semester of 2008. It also reflects the effectivity of RA No. 9504, which began in July 2008 as reduced remittance of Withholding Tax on Wages.
2. Shifts between quarters. Part of the second quarter target moved to the third quarter. Part of the original third quarter target moved to the fourth quarter, because the DOF projected that lower monthly Withholding Tax on Wages would be offset by higher quarterly income tax collection from taxpayers using the Optional Standard Deduction.
3. 2008 target. The 2008 goal of P 844.950 B was set in the third quarter of 2007. It is made up of P 810.306 B on Operation and P 34.644 B on Non-operation, against 2007 collection of P 713.596 B (Operation P 679.034 B, Non-operation P 34.562 B). This means required growth of 18.41% overall, 19.33% for Operation and 0.24% for Non-operation.
4. VAT target. The 2008 VAT target of P 204.879 B is 41.27% higher than the actual 2007 VAT collection of P 145.029 B. The average VAT growth rate over the last four years, starting 2004, is 16.02%.
5. Reporting. Collections from delisted/enlisted taxpayers, including those that suspended or ceased operations, are reported separately from collections from regular taxpayers in the implementing offices.

Who is affected

• BIR implementing offices

Deadlines and effectivity

• Applies to CY 2008
• Office accountability change for delisted/enlisted taxpayers effective May 2008
• RA No. 9504 implementation started July 2008