RMO No. 11-2008: Amends the criteria for bank accreditation and prescribes the policies, guidelines and procedures relative to the determination of the applicable float period as incentives to Authorized Agent Banks (AABs) and imposition of penalties for violations committed by AABs

Summary

RMO No. 11-2008 amends the bank accreditation criteria and sets rules on float periods as incentives for Authorized Agent Banks (AABs), plus penalties for AAB violations, under RR No. 2-2008.

Key points

1. Accreditation criteria. A bank must be a commercial or universal bank, meet BSP financial ratios, have the infrastructure the BIR requires, and have been profitable for the immediately preceding 3 years.
2. Extra criteria for re-accreditation. The bank must have no existing liabilities for penalties, surcharges and interests from procedural errors, late reporting or late remittance. It must also have been an AAB collecting through Over-the-Counter (OTC) during the MOA term.
3. Extra criteria for EFPS-AABs. The bank must be Certified Internet Ready by the BSP, have a system certified compatible with the BIR EFPS, and be authorized by the BSP Monetary Board to accept deposits from the Bureau of Treasury.
4. Float period incentive. OTC float is 6 days for 1,000 to 200,000 transactions, 8 days for 200,001 to 400,000, and 10 days for more than 400,000. EFPS float is half of the OTC float, and no other fees may be collected from taxpayers on top of the tax.
5. Special float cases and review. An AAB with no OTC transactions or fewer than 1,000 in the semester gets a float 1 day less than the minimum. Newly accredited AABs get the minimum float for the first 2 consecutive semesters. Float is set semi-annually from the same semester of the preceding year and MOA compliance.
6. Performance evaluation and penalties. AABs are evaluated on acceptance of returns, reporting of collections (48 hours on regular days, 72 hours at deadlines, 24 hours where the BIR requires it, such as Capital Gains Tax), and retrieval and processing of returns. The penalties in Annex A-2 of RR No. 2-2008 are strictly enforced.

Who is affected

• Banks applying for accreditation or re-accreditation as AABs
• Accredited AABs
• Newly accredited AABs

Deadlines and effectivity

• Float determined semi-annually
• Newly accredited AABs: minimum float for the first 2 consecutive semesters
• Collection data transmitted within 48 hours (72 hours at deadlines)

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