RR No. 3-2016: Prescribes the policies and guidelines on the adoption of credit/debit/prepaid card payments as additional modes of payment of internal revenue taxes

Key points

1. Optional and at taxpayer’s cost. Card payment is voluntary. The taxpayer bears the convenience fee and other charges, including the Merchant Discount Rate, and these are never deducted from the tax due to the BIR.
2. Who may accept card payments. Only Authorized Agent Banks (AABs) may act as Acquirers. Before the BIR notifies an AAB, the BIR must test and approve its Card Payment Information System, the BIR and the AAB must sign a Service Level Agreement, and the AAB must submit its list of enabled card issuers.
3. Cards and erroneous payments. Only Philippine-issued cards in the taxpayer-cardholder’s name may be used. An erroneous payment does not give rise to an automatic charge back, and in meritorious cases the taxpayer applies for refund or tax credit.
4. Reporting and remittance. AAB-Acquirers must see that transactions are accurately and timely reported to the BIR and the Bureau of Treasury and remitted to the latter. An EPSP that is not the AAB-Acquirer sends daily transaction details to the BIR electronically, not later than 9:00 a.m. of the following day.
5. Date of payment and liability. Payment is deemed made on the date and time on the system-generated confirmation receipt, provided the BIR actually receives it. The taxpayer stays liable until the BIR receives the payment.
6. Initial implementation. At the start, taxpayers must file the related returns electronically. Other filing channels follow once BIR systems are enhanced.

Who is affected

• Taxpayers paying by credit, debit or prepaid card
• Authorized Agent Banks acting as Acquirers
• Electronic Payment Service Providers

Deadlines and effectivity

• EPSP daily report: not later than 9:00 a.m. the following day
• AAB list of card issuers: changes reported within 5 days