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RMC No. 77-2019: Publishes the full text of the Memorandum of Collaboration (MOC) and MOC Sub-Agreement to ensure safe and efficient data sharing in accordance with RA No. 10173, RA No. 10963 and EO No. 53 between BIR and the Insurance Commission

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Summary

RMC No. 77-2019 publishes the full text of the Memorandum of Collaboration (MOC) and MOC Sub-Agreement on data sharing between the BIR and the Insurance Commission (IC), under RA No. 10173, RA No. 10963 and Executive Order No. 53.

Key points

  1. Areas of collaboration. The sub-agreements cover collection of life insurance premium tax and crediting of the IC’s share, and exchange and reconciliation of data to determine the tax liability of insurance companies, pre-need companies, mutual benefit associations, HMOs and other IC-supervised entities. They also cover automated interconnectivity for compulsory insurance, certification of the IC’s 25% share of premium tax collection, and service of the Warrant of Distraint and Levy on licensed insurance companies and companies under conservatorship, receivership or liquidation.
  2. Oversight. An inter-agency collaboration committee and sub-committee oversee and monitor implementation and recommend policies. The Department of Finance monitors the parties’ performance, and the parties submit regular monitoring and performance evaluation reports to the DOF.
  3. Data sharing limits. The IC shares members’ data with the BIR for assessment, collection and enforcement of national internal revenue taxes only. The BIR shares taxpayer data not otherwise covered by Section 270 of the NIRC with the IC for tax validation purposes only, subject to Section 4 of National Privacy Commission Circular No. 16-02.
  4. Access and safeguards. Access and the types of processing are limited to the officers and employees listed in the Technical Annex, and changes need the approval of the respective Commissioner. Each agency designates a Data Protection Officer, applies security measures, and treats the other’s information with utmost confidentiality under the Data Privacy Act.
  5. Complaints and effectivity. A data subject whose rights under the Data Privacy Law are violated may file a complaint before the Commissioner of Internal Revenue for the BIR or the Commissioner for the IC. The MOA takes effect upon signing and stays in force for five years or until mutually abrogated, and its effectivity may not be extended.

Who is affected

  • Bureau of Internal Revenue
  • Insurance Commission
  • Insurance companies, pre-need companies, mutual benefit associations and HMOs

Deadlines and effectivity

  • MOA effective upon signing, in force for five years or until mutually abrogated
  • Effectivity may not be extended

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.