RR No. 05-2003: Implements the remittance of the shares/allotment from certain internal revenue taxes to the following provinces/city comprising the expanded Autonomous Region in Muslim Mindanao (ARMM): Sulu, Tawi-Tawi, Lanao del Sur, Maguindanao (except Cotabato City), Marawi City and Basilan Province (excluding Isabela City)

Key points

1. Areas covered. The areas are Sulu, Tawi-Tawi, Lanao del Sur, Maguindanao (except Cotabato City), Marawi City and Basilan Province (excluding Isabela City).
2. 70% and 30% shares. The BIR and other Collecting Officers remit the 70% ARMM share of national collections from businesses in the Region through the Regional Treasurer. They remit the 30% National Government share to the Bureau of Treasury, through the nearest Authorized Government Depository Bank branch for payments by Revenue Official Receipt (ROR), and directly to the Bureau of Treasury for withholding tax payments by Tax Remittance Advice (TRA).
3. Allotment to the Regional Government. The Regional Government’s allotment of the remaining 30% National Government share in current year collections within ARMM runs for five (5) years. It starts after its inclusion in the Annual Appropriations Act.
4. VAT increment. The 50% of the 80% National Government share of yearly incremental VAT collections within ARMM is split 20% for the city or municipality where collected and 80% for the Regional Government.
5. Mode of payment. Withholding tax payments of national government agencies use the TRA, while other internal revenue tax payments are made only through a ROR issued by authorized Revenue Collecting Officers.

Who is affected

• BIR and other Collecting Officers
• Businesses operating in the expanded ARMM
• National government agencies making withholding tax payments

Deadlines and effectivity

• Allotment of the 30% share runs for five (5) years after inclusion in the Annual Appropriations Act