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RMO No. 14-2002: Prescribes the policies and guidelines in implementing the Memorandum of Agreement entered into by and among the Department of Finance, Bureau of Internal Revenue, Department of Interior and Local Government, League of Provinces of the Philippines, League of Cities of the Philippines, League of Municipalities of the Philippines and the Liga ng mga Barangay sa Pilipinas on the commitment of all parties to help one another in the implementation of strategies to enhance their tax enforcement and collection efforts by utilizing all available resources necessary in the pursuit of these objectives

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Summary

RMO No. 14-2002, issued May 20, 2002, prescribes policies and guidelines for the Memorandum of Agreement among the DOF, BIR, DILG and the leagues of local governments to help one another enhance tax enforcement and collection.

Key points

  1. Lists from LGUs. The RDO secures from Local Government Units (LGUs) the annual list of taxpayers issued business permits, the annual list of professionals issued Professional/Occupational Receipt, and the quarterly list of contractors of government contracts of provinces, cities, municipalities and barangays.
  2. Documents before permit renewal. Every first working day of the year, the RDO reminds the Chief, Business Licenses Office of the LGUs in writing to require, before renewing business permits: income tax returns of the preceding quarter/s or year; VAT/Percentage Tax returns; Birth Certificate of Registration (BIR form No. 2303); and Annual Registration Fee Payment (BIR Form No. 0605).
  3. Withholding compliance. The RDO monitors compliance of Local Chief Executives, Treasurers and Chief Accountants with withholding tax rules through field verification, and notifies them of discrepancies.
  4. Assistance to LGUs. With the Taxpayer Assistance Division, the RDO helps LGUs disseminate tax reminders, provide BIR resource speakers to tax information conferences, and promote BIR programs on issuing official receipts and invoices.
  5. Property values and IRA. The Assessment Service, through the Asset Valuation Division, secures updates of the Current/Fair Market Value of properties from LGUs when revised or on request. The Revenue Accounting Division requires RDOs to submit the requirements for computing the Internal Revenue Allotment, to support issuing certificates to the four major leagues of LGUs.

Who is affected

  • Revenue District Offices
  • Local Government Units
  • Local Chief Executives, Treasurers and Chief Accountants of LGUs

Deadlines and effectivity

  • Written reminder to LGU Business Licenses Office: every first working day of the year
  • Contractor lists: quarterly

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.