RMC No. 60-2021: Publishes the Amended Rules and Regulations to Implement RA No. 9335 (Attrition Act of 2005)

Key points

1. Coverage and revenue collection. The Rules cover all officials and employees of the BIR and the BOC, regardless of employment status, with at least six (6) months of service. Revenue Collection is actual collections less additional revenues from new laws not in the original BESF estimate, plus or minus adjustments for macroeconomic indicators exceeding or falling short of DBCC-approved assumptions.
2. Revenue targets. Targets are based on the original estimated Revenue Collection in the BESF as approved by the DBCC, which communicates them to the Board by June 30 each year. District targets consider business establishments, excisable product firms and registered employers with their historical taxes, plus non-recurring transactions of ten percent (10%) or more of a District’s monthly collections. Each Bureau submits the distribution of targets among Districts to the DBCC on or before March 31.
3. Rewards and Incentives Fund. The Fund comes from collections in excess of targets, net of Tax Credit Certificates. It is 15% of the excess if the excess is 30% or below, and 15% of the first 30% plus 20% of the remaining excess if more than 30%. At least twenty-five percent (25%) of the Fund goes to Unit rewards, which cannot be paid as additional salaries or allowances.
4. Individual and District incentives. Individual rewards follow each person’s relative contribution to the excess, as shown in performance ratings, with higher positions and positions subject to attrition getting more, and non-monetary rewards are allowed. If a Bureau misses its target by less than ten percent (10%), Districts that exceed their allocated target get a District Incentive of ten percent (10%) of the excess, except Districts that deliberately forgo collection.
5. Attrition. An official or employee with revenue collection targets may be separated by final Board decision, on the Commissioner’s recommendation, if collection falls short of the target by at least seven and a half percent (7.5%), after notice and hearing and subject to civil service rules. It does not apply to newly-created Districts not exceeding two years in operation or to recent mid-period transferees, with exceptions, and the Board considers factors such as laws reducing the tax base and tariff or port actions by the President.
6. Appeals, Boards and reports. Affected personnel may appeal to the CSC or the Office of the President within fifteen (15) days from receipt, but the Board decision is immediately executory pending appeal. Each Bureau has a Revenue Performance Evaluation Board chaired by the DOF Secretary or Undersecretary, with a Secretariat, and Commissioners file quarterly collection reports. The BIR or BOC may qualify for the Performance-Based Bonus only if it fails to qualify for rewards under RA No. 9335.

Who is affected

• Officials and employees of the BIR and the Bureau of Customs with at least six (6) months of service
• Revenue District Officers, Revenue Officers and others with collection targets
• Districts of the BIR and collection Districts of the BOC

Deadlines and effectivity

• Revenue targets communicated to the Board by June 30 each year
• District target distribution submitted to DBCC on or before March 31
• Appeal within fifteen (15) days from receipt of the Board decision
• List of positions subject to attrition submitted no later than the end of the first quarter of the fiscal year