RR No. 2-2008: Amends certain rules and regulations relative to the collection and remittance of taxes paid to Authorized Agent Banks (AABs) thru Over-the-Counter and Electronic Filing and Payment System and further amends the Memorandum of Agreement relative to the accreditation of the AABs

Summary

RR No. 2-2008 amends rules on collection and remittance of taxes paid to Authorized Agent Banks (AABs) through Over-the-Counter (OTC) and Electronic Filing and Payment System (EFPS), and further amends the Memorandum of Agreement (MOA) on AAB accreditation.

Key points

1. Float period incentive. The float period runs from the day after collection until the prescribed remittance day. It is set semi-annually based on OTC transactions in the same semester of the preceding year and compliance with the MOA. The OTC float period is six (6), eight (8) or ten (10) days, and the EFPS float period ranges from three (3) to five (5) days.
2. Lower and first-time float. AABs with no OTC transactions or below the threshold get a float period one (1) day less than the minimum. Newly accredited AABs get the minimum float period notified by the BIR.
3. Crediting and remittance. Collections from EFPS and OTC (including Debit System, Electronic Service Machine and G-Cash) are credited to the Bureau of Treasury account on the date of collection. They are remitted on the date set in a written communication from the Assistant Commissioner, Collection Service. The EFPS float period is half of the OTC float period.
4. Penalties. Penalties for non-compliance with the MOA, under RR No. 15-94 as amended by RR No. 19-2001, are revised as shown in Annex A-2 of the MOA. Penalties imposed after effectivity on procedural errors and violations on remittance and other MOA, Bank Bulletin and revenue issuance rules are not subject to compromise.
5. Before the new MOA. Existing AABs comply with the existing MOA and file a Letter of Intent with the list of branches within 30 days from effectivity. They settle outstanding penalties within 30 days from receipt of written notice: 60% of penalties for procedural errors for Calendar Year 2007 and prior years, full payment for Calendar Year 2008, and full payment for late remittance except for pending compromise applications filed by December 31, 2007 that the Bank Accreditation Committee has decided.
6. Revocation. An AAB’s authority to collect is revoked for failing to file the Letter of Intent, submit documents or settle penalties on time. After evaluation by the BAC, it may also be revoked for MOA violations and non-payment of penalties.

Who is affected

• Authorized Agent Banks

Deadlines and effectivity

• Letter of Intent within 30 days from effectivity
• Outstanding penalties settled within 30 days from receipt of written notice
• Float period after the new MOA until June 30, 2008 follows the notice given at MOA signing

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