republic of the philippines department of … · budget & management (dbm) process flow....

LGUs SHARE ON EXCISE TAX COLLECTIONS

FROM MINERALS, MINERAL PRODUCTS &

QUARRY RESOURCES

Republic of the PhilippinesDEPARTMENT OF FINANCEBureau of Internal Revenue

NESTOR S. VALEROSOOIC-Assistant Commissioner

September 4, 2014

PROCESS FLOW


LGUs SHARE ON EXCISE TAX COLLECTIONS FROM MINERALS, MINERAL PRODUCTS & QUARRY RESOURCES


LARGE TAXPAYERS SERVICE

Excise Large Taxpayers Field & Operations

Division (ELTFOD)

REVENUE DISTRICT OFFICE

Collection Section

REVENUE REGIONAL OFFICE

Finance Division

REVENUE ACCOUNTING DIVISION

BUREAU OF TREASURY

(BTr)

DEPARTMENT OF BUDGET &

MANAGEMENT(DBM)

Process Flow

Prepare & submit Monthly Schedule of deposits/payments and removals made thruElectronic Filing & Payment System (EFPS) by Large Taxpayers

LARGE TAXPAYERS SERVICEExcise Large Taxpayers Field and Operations Division (ELTFOD)

REVENUE DISTRICT OFFICE(Collection Section)

Prepare & submit Monthly Certification of mining excise tax collections made thruAccredited Agent Banks (AABs) and Revenue Official Receipts (RORs) by Non-LargeTaxpayers

REVENUE REGIONAL OFFICE - FINANCE DIVISION

Receive request and verify, issue & forward the certification of mining excise taxcollections together with the following:

> Certification of remittances > List of deposited collections> Deposit slips

A

Revenue Accounting Div.


Process Flow


A. ADMINISTRATIVE UNIT• Receive Schedules and Certifications from Large Taxpayers Service (LTS)/

Revenue District Offices (RDOs)B. ALLOTMENT UNIT

• Verify payments and remittances from: Integrated Tax System (ITS), for payments made thru AABs List of Deposited Collections and Deposit Slips for payments made thru

Revenue Official Receipts (RORs) Bureau of the Treasury-Journal Entry Voucher (BTr-JEV)

• Send letters to RDOs/Regional Finance Division for clarification on the noteddiscrepancies and submission of supporting documents

• Prepare Joint Certification (JC) for the 40% share of LGUs from mining excise taxcollections based on DOF-DBM-DILG-DENR Joint Circular No. 2009-1 datedMarch 31, 2009

• Transmit JC to Bureau of Treasury, together with the supporting documents, forvalidation and approval purposes.

A


Process Flow

B

LTS / RDO

BTr• Receive JC for confirmation of tax remittances

DBM• Receive JC from the Bureau of Treasury (BTr)


Process Flow

• Validate the remittances of Excise Tax collections reflected in the BIR certifications

• Affix signature on the Joint Certification (JC) prepared by the BIR

• Transmit the signed JC to the DBM

• Consolidate Quarterly JC per LGU

• Release IRA to LGUs on the year immediately following the year the year of tax collections

Revenue Accounting Div.

B

PROCESS FLOW: LGUs SHARE ON EXCISE TAX COLLECTIONS FROM MINERALS, MINERAL

PRODUCTS & QUARRY RESOURCES

LARGE TAXPAYERS SERVICEExcise Large Taxpayers Field and

Operations Division (ELTFOD)

Prepare & submit Monthly Scheduleof deposits/payments and removalsmade thru EFPS by Large Taxpayers

REVENUE DISTRICT OFFICE(Collection Section)

Prepare & submit MonthlyCertification of mining excise taxcollections made thru AABs and RORsby Non – Large Taxpayers

FINANCE DIVISIONReceive request and verify, issue &forward the certification of mining excisetax collections together with thefollowing:• Certification of remittances• List of deposited collections• Deposit slips


A. ADMINISTRATIVE UNIT• Receive Schedules and Certifications from Large

Taxpayers Service (LTS)/Revenue District Offices (RDOs)B. ALLOTMENT UNIT• Verify payments and remittances from:

- Integrated Tax System (ITS) for payments made thruAuthorized Agent Banks (AABs)

- List of Deposited Collections and Deposit Slipsfor payments made thru Revenue Official

Receipts (RORs)- Bureau of the Treasury-Journal Entry Voucher

(BTr-JEV)• Send letters to RDOs/Regional Finance Division for

clarification on the noted discrepancies and submissionof supporting documents

• Prepare Joint Certification (JC) for the 40% share ofLGUs from mining excise tax collections based on DOF-DBM-DILG-DENR Joint Circular No. 2009-1 dated March31, 2009

• Transmit JC to BTr, together with the supportingdocuments, for validation and approval purposes.

BTr• Receive JC for

Confirmation of tax remittances

• Validate the remittances of excise tax collections reflected in the BIR certifications

• Affix signature on the Joint Certification (JC) prepared by the BIR

• Transmit the signed JC to the DBM

DBM• Receive JC from the

Bureau of Treasury (BTr)• Consolidate Quarterly JC

per LGU• Release IRA to LGUs on

the year immediately following the year the year of tax collections

LEGAL BASIS & DISTRIBUTION



SPECIAL SHARE LEGAL BASISDISTRIBUTION

COMPUTATION BENEFICIARY %

MINING TAXES

Article 290 of Republic Act No. 7160

DOF-DBM-DILG-DENR Joint Circular No. 2009-1 dated March 31, 2009

Revenue Memorandum Order No. 75-2010

40% of the total excise mining taxes collected

a. Where the natural resources are located in the provinces:

ProvincesCity/MunicipalityBarangay

Provided that where the natural resources are located in two or more provinces, or in more component cities or municipalities, or in two or more barangays, their respective shares shall be computed on the basis of :

Population - 70%Land Area - 30%

20%45%35%


SPECIAL SHARE LEGAL BASISDISTRIBUTION

COMPUTATION BENEFICIARY %

MINING TAXES

Article 290 of Republic Act No. 7160

DOF-DBM-DILG-DENR Joint Circular No. 2009-1 dated March 31, 2009

Revenue Memorandum Order No. 75-2010

40% of the total excise mining taxes collected

b. Where the natural resources are located in highly-urbanized or independentcomponent city:

CityBarangay

Provided that where the natural resources are located in such two or more cities, the allocation of shares shall be computed based on population and land area.

65%35%


SAMPLE COMPUTATION




COLLECTION FROM MINING (EXCISE) TAXESLT / Revenue District Office

2nd Quarter 2013

BRGY. GINTO’T PILAK, PAGHUHUKAY, PAGBABAHAGI

NAME OF TAXPAYER DATE OF PAYMENT BCS-A NO. AMOUNT

Company X 04/15/2013 A-56570 P 10,702,912.82

TOTAL P 10,702,912.82

TOTAL GROSS COLLECTION P 10,702,912.82

40% SHARE OF LGUs 4,281,165.13

PROVINCE OF Z 20% 856,233.03

MUNICIPALITY OF A 45% 1,926,524.31

BARANGAY 1 35% 1,498,407.79

P 4,281,165.13

SAMPLE COMPUTATION

COLLECTION FROM MINING (EXCISE) TAXESLT / Revenue District Office

2nd Quarter 2013PAGHUHUKAY, PAGBABAHAGI

NAME OF TAXPAYER DATE OF PAYMENT BCS-A NO. AMOUNT

Company A 04/15/2013 A-56570 P 10,702,912.82

TOTAL P 10,702,912.82

TOTAL GROSS COLLECTION P 10,702,912.82

40% SHARE OF LGUs 4,281,165.13

PROVINCE OF Z 20% 856,233.03

MUNICIPALITY OF A 45% 1,926,524.31

BARANGAY 1 35% P 1,498,407.79

P 4,281,165.13

DISTRIBUTION:1 375,216.662 173,859.113 349,305.414 225,623.435 209,591.726 164,811.46

TOTAL 1,498,407.79

SAMPLE COMPUTATION

* SHARE OF BARANGAYS P 1,498,407.79

BARANGAY LAND AREA POPULATION30%

SHARE BASED ON LAND AREA

70%SHARE BASED ON

POPULATIONTOTAL SHARE

TOTAL 5,005.9445 20,679 P 449,522.34 P 1,048,885.45 P 1,498,407.79

1 464.0111 6,576 41,667.13 333,549.53 375,216.66

2 41.0473 3,355 3,685.95 170,173.16 173,859.11

3 1,641.246 3,981 147,380.13 201,925.28 349,305.41

4 1,299.8411 2,147 116,722.75 108,900.68 225,623.43

5 874.4702 2,584 78,525.42 131,066.30 209,591.72

6 685.3288 2,036 61,540.96 103,270.50 164,811.46


SAMPLE COMPUTATION

Provided that where the natural resources are located in two or more provinces, or in more component cities or municipalities, or in two or more barangays, the following rules shall be observed in the computation of the IRA shares by LGUs:

1. The breakdown of Excise Tax due as to barangay or municipality is identified by the mining company based on the volumes and values extracted:

a. Certification from the mining company indicating therein the exact location of the mining/quarry/extraction site and breakdown of Excise Tax dues as to barangays and municipalities.

b. Memorandum of Agreement (MOA) on the sharing scheme, if any, between the barangays or municipalities.

Provided that where the natural resources are located in two or more provinces, or in two or more component cities or municipalities, or in two or more barangays, the following rules shall be observed in the computation of the IRA shares by LGUs:

2. The breakdown of Excise Tax due as to barangay or municipality is not identified:

a. Updated Masterlist of Land Area officially issued by the Land Management Bureau (LMB), and

b. Updated Census of Population officially issued by the National Statistics Office (NSO).

SALAMAT PO!

Republic of the Philippines

DEPARTMENT OF FINANCE

Bureau of Internal Revenue

LARGE TAXPAYERS SERVICE

NESTOR S. VALEROSOOIC-Assistant Commissioner

September 4, 2014

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