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RMC No. 111-2022: Publishes the full text of Executive Order No. 170 titled “Adoption of Digital Payments for Government Disbursements and Collections”

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Summary

RMC No. 111-2022 publishes the full text of Executive Order (EO) No. 170, Adoption of Digital Payments for Government Disbursements and Collections.

Key points

  1. Who must adopt digital payments. All departments, agencies and instrumentalities of government, including state universities and colleges and GOCCs (Covered Agencies), are directed to adopt digital payments. Local government units are enjoined to do the same.
  2. Digital disbursements. Covered Agencies use digital disbursement for payment of goods, services, financial assistance, and salaries, wages, allowances and other compensation. They may pay directly into recipients’ transaction accounts held in government or private financial institutions, without a special arrangement from the institution.
  3. Digital collections. Covered Agencies must offer a digital mode of collecting taxes, fees, tolls and other charges, though the Order does not foreclose accepting cash and other traditional payment. Only interoperable solutions compliant with the National Retail Payment System Framework may be used.
  4. Continuity and oversight. Each agency adopts a Business Continuity Plan, and non-digital payout channels may be used in an exigency of service. A Technical Working Group of DOF, DBM, BTr, BIR and the GPPB Technical Support Office guides cost-efficient and transparent procurement of digital payment solutions.
  5. Implementing rules. The DOF, with BSP, COA, DBM, BTr, BIR and other agencies, issues the IRR within ninety (90) days from the Order’s effectivity. The IRR includes tiering guidelines for digital collections.
  6. Transition period. Covered Agencies fully implement digital disbursements and collections within six (6) months from issuance of the IRR. A tiered transition based on readiness may apply, but it may not exceed three (3) years from the issuance of the IRR.

Who is affected

  • Government departments, agencies and instrumentalities, including SUCs and GOCCs
  • Local government units (enjoined)

Deadlines and effectivity

  • IRR issued within ninety (90) days from effectivity of the Order
  • Full implementation within six (6) months from issuance of the IRR
  • Tiered transition not to exceed three (3) years

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.