RMC No. 74-2008: Publishes the full text of DOF-DBM Joint Circular No. 2008-1 entitled “Guidelines and Procedures for the Release of the LGU Shares from the Value-Added Tax in Lieu of Franchise Tax Collected from Racetrack Operations of the Manila Jockey Club, Inc. and the Philippine Racing Club, Inc.”

Key points

1. Coverage. The Joint Circular covers LGU shares of the VAT collected from the racetrack operations of MJCI and PRCI under RA Nos. 8407 and 7953, respectively.
2. BIR responsibilities. The BIR prepares annual and monthly summaries of VAT payments of MJCI and PRCI and sends them to the Bureau of Treasury for validation. It submits the computation of LGU shares with a BIR-BTr Joint Certification to DBM, and gives DBM projected VAT payments for the National Expenditure Program.
3. Bureau of Treasury responsibilities. The BTr validates the summaries against credit advices and deposits. It signs the yearly BTr-BIR Joint Certification and returns it to the BIR within fifteen (15) days from receipt of the summary of VAT payments.
4. DBM responsibilities. DBM includes the projected VAT payments in the National Expenditure Program. It releases the shares directly to the LGUs based on the BIR computation, subject to cash programming, budgeting, accounting and auditing rules.
5. Other provisions. If a provision is held invalid, the others remain valid. Shares of other beneficiaries under RA Nos. 8407 and 7953 are to be set in a separate issuance, and uncovered cases go to the DBM Central Office or Regional Office.

Who is affected

• LGU beneficiaries of the VAT from MJCI and PRCI racetrack operations
• BIR, Bureau of Treasury and DBM

Deadlines and effectivity

• BTr returns the Joint Certification within fifteen (15) days from receipt of the summary
• BIR summary of monthly VAT payments to BTr within ten (10) days after the end of the month of filing
• Computation of LGU shares to DBM on or before April 30, 2009 and each year after
• Projected VAT payments to DBM not later than March 15, 2008 and each year after