BIR Issuances – RMC 1-2024

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The BIR directed the National Government Agencies (NGAs) to discontinue the practice of using Electronic Tax Remittance Advice (eTRA) System for payment of penalties.


Revenue Memorandum Circular (RMC) No. 1-2024

9 January 2024

Revenue Memorandum Circular (RMC) No. 57-2014 mandated the NGAs to enroll and use the eTRA System only for the payment of withholding taxes and, therefore, does not cover other internal revenue taxes and penalties.

However, it has been observed that certain NGAs in their generation of Tax Remittance Advice (TRA) from the eTRA System, include penalties incurred for late filing and payment of withholding taxes.

As such, the BIR clarified that the payment of the basic withholding tax shall be made through the eTRA System while the corresponding penalties, if any, shall be paid in cash thru the Authorized Agent Banks (AABs) or any payment facilities prescribed by the BIR.

The BIR reiterates the provisions of Section 247, Title X of the National Internal Revenue Code of 1997, as amended, which prescribe that, if the withholding agent is the Government or any of its agencies, political subdivisions or instrumentalities, or a government-owned and controlled corporation, the employee thereof responsible for the withholding and remittance of the tax shall be personally liable for the additions to the tax prescribed therein. As a supplement, Revenue Memorandum Order (RMO)No. 8-2003 identified Heads of Offices and Chief Accountants or other persons holding similar positions officially designated as such by the head of office as equally liable in the settlement of the said penalties.

The BIR further clarified that payment of penalties using eTRA shall not be recognized as part of the Revenue District Offices eTRA collection until the said penalties has been collected and paid in cash thru the AABs or any payment facilities available in the BIR.

BIR Issuances – RMC 1-2024

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