RMO No. 28-2016: Prescribes the policies, guidelines and procedures in implementing the Memorandum of Understanding between the Home Development Mutual Fund and the BIR in electronic filing of tax returns thru eBIRForms and issuance of eCAR

Summary

RMO No. 28-2016 sets the policies and procedures for implementing the Memorandum of Understanding between HDMF and the BIR on electronic filing of tax returns through eBIRForms and issuance of eCAR to HDMF member-borrowers.

Key points

1. HDMF email and confirmation. The HDMF Head Office creates one email account for all borrowers before using the eBIRForms System. HDMF gives the borrower a copy of the email confirmation and a printed copy of the filed return.
2. Authorization and filing. HDMF secures a Special Power of Attorney from member-borrowers to file and remit taxes from their HDMF transactions. A borrower may instead file and pay directly before HDMF processing. HDMF must ensure complete documents and correct taxes.
3. BIR support. Every BIR frontline service provides a special lane for HDMF transactions on Tuesdays and Thursdays. The concerned RDO lets HDMF secure the eCAR for its member-borrowers under existing BIR policies.
4. Withholding and penalties. Section 2.57.4 of Revenue Regulation No. 2-98, as amended, applies, so withholding is done when paid or payable, whichever is earlier. Compromise penalties follow RMO Nos. 19-2007 or 7-2015, whichever applies, and other penalties follow Section 255 Title X of the Tax Code, as amended.
5. System downtime. If eBIRForms is unavailable during deadlines, HDMF may file returns printed from the eBIRForms Offline Package manually with the RDO where the real property is located. It must still submit the contents electronically within ten (10) days from the announcement that the system is available again.

Who is affected

• HDMF member-borrowers
• Home Development Mutual Fund (HDMF)

Deadlines and effectivity

• Special lane: every Tuesday and Thursday
• Electronic submission after downtime: within ten (10) days from the availability announcement

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