GOOD GOVERNANCE AND SOCIAL RESPONSIBILTY

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE

Submitted By:

Cuenco, Christopher

Del Rosario, Jaymar

Duarte, Mary Lyn

Ferido, Paolo

Submitted to:

Ms. Corazon Labrado

BUREAU OF INTERNAL REVENUE LOGO

MANAGEMENT COMMITTEE

Caesar R. Dulay
Commissioner of Internal Revenue
Room 511, BIR National Office Building,
BIR Road, Diliman, Quezon Cit
caesar.dulay@bir.gov.ph
922-3293/981-7121/981-7124

Arnel SD. Guballa

Deputy CommissionerOperations Group Room 404, National
Office Building, BIR Road, Diliman, Quezon City
arnel.guballa@bir.gov.ph
924-3242/925-1790

Marissa O. Cabreros
Deputy Commissioner
Legal Group
Room 504, National Office Building,
BIR Road, Diliman, Quezon City
marissa.cabreros@bir.gov.ph
925-5274/928-0480

Lanee C. David
Deputy Commissioner
Information Systems Group
Room 409, National Office, Building
BIR Road, Diliman, Quezon City
lanee.david@bir.gov.ph
922-4817/924-7309

Celia C. King
Deputy Commissioner
Resource Management Group
Room 410, National Office Building,
BIR Road, Diliman, Quezon
REFLECTION

One of the Philippine’s important agency is the Bureau of Internal Revenue which is under the Department of
Finance. They can be considered as the one of the backbone in the nation and the economy. Through collecting internal revenue taxes,
fees and charges, all forfeitures, penalties and fines connected therewith, including the execution of judgements in all cases decided in
its favor by the Court of Tax Appeals and the ordinary courts, taxation serves as the lifeblood of the country and the key to the
survival of a developing country. Bureau of Internal Revenue helps the government to improved different sectors within the nation,
uplifting and giving the quality of life to the Filipino citizens by having sufficient funds through regulating the taxes. Base on the
studies , it shows that BIR maintain and still improving the percentage of the tax collection that they collect every year and they are
being transparent for the public assurance and complacent of the people.

Bureau of Internal Revenue (BIR) cited that the central role play in realizing the Philippines “economic breakout”
underscored the importance of both tax administration and policy reforms in ensuring a steady revenue stream for the Duterte
administration’s ambitious program to modernize the country’s infrastructure backbone and accelerate poverty reduction. The BIR, as
you see, plays a central role in realizing the audacious economic program the government has embarked on. This is the reason targets
have been raised and our organization is geared up to collect trillions,” bearing the cornerstone of a strategy to emancipate of million
Filipinos from poverty.

Taxpayers must pay the right amount of tax is a social responsibility to the country. The taxes we pay will go to the
government funds that will be used in developing and improving the government facilities and life of Filipinos, inside and outside our
country. If all income earners will pay the right amount of tax, the government can collect more money to support its objectives such
as building roads, schools, better government salaries and improve government services. These factors can help attracting more
investors and jobs in the Philippines. More people having jobs, means more people having money to spend which will directly or
indirectly improve business as well.

On the opposite, if all the income earners will illegally reduce the amount of tax obligations, the government will
have no funds on hand and will resort to availing private or foreign loans in order to govern the country. There will be lesser funds to
builds roads, schools, infrastructure, lower wages that decreases morale which leads to poor government services. In this scenario, the
cycle of poverty will continue because investor may cease from investing in the Philippines which will reduce jobs and increase
poverty. With less jobs in the country, people will have less money to spend and less potential customers in the business. Crime will
increase which may also directly and indirectly affect the family and business.

On the other hand, BIR employees should keep “honesty, courtesy and service in mind” when undertaking their
respective tasks, and reminded them that being incapable of change has consequences.. The Bureau of Internal Revenue must be
transform into a vibrant organization that can respond to the changing times and demands of the modern taxpayer. They must did their
job well done, what if they are not committed on their works and they take advantage and have a self-interest, everything will be
worst. That’s why Bureau of Internal Revenue is entrusted, they must did their job with sincerity without any form of corruption
because they holds the key for improving and uplifting the lives of every Filipinos and growth of the economy.
MANDATE

The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties
shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all
forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court
of Tax Appeals and the ordinary courts. The Bureau shall give effect to and administer the supervisory and police powers conferred to
it by this Code or other laws. (Section 2 of the National Internal Revenue Code of 1997)

MISSION

“We collect taxes through just enforcement of tax laws for nation-building and the upliftment of the lives of Filipinos”

VISION

“The Bureau of Internal Revenue is an institution of service excellence and integrity”

GUIDING PRINCIPLE

"Service Excellence with Integrity and Professionalism"

CORE VALUES

 God-fearing

 Innovativeness

 Transparency
 Integrity

 Accountability

 Competency

 Patriotism
TAX INFORMATION

Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other
disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment,
sale or transfer of an obligation, rights, or property incident thereto.

Donor's Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are
living at the time of the transfer.

Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of
death and on certain transfers which are made by law as equivalent to testamentary disposition.

Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person’s income,
emoluments, profits and the like.

Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade
or business whose gross annual sales or receipts do not exceed P550,000 and are not VAT-registered.

Value-Added Tax is a business tax imposed and collected from the seller in the course of trade or business on every sale of properties
(real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect tax, thus, it can be passed on to
the buyer.

Withholding Tax on Compensation is the tax withheld from individuals receiving purely compensation income.

Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable against the
income tax due of the payee for the taxable quarter year.

Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable against the
income tax due of the payee for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due
from the payee on the said income.

Withholding Tax on Government Money Payments is the withholding tax withheld by government offices and instrumentalities,
including government-owned or -controlled corporations and local government units, before making any payments to private
individuals, corporations, partnerships and/or associations.

COMMUNITY MORTGAGE PROGRAM

The Community Mortgage Program (CMP) is a mortgage financing program of the Social Housing Finance Corporation (SHFC)
which assists legally organized associations of underprivileged and homeless citizens to purchase and develop a tract of land under the
concept of community ownership. The primary objective of the program is to assist residents of blighted areas to own the lots
they occupy, or where they choose to relocate to and eventually improve their neighborhood and homes to the extent of their
affordability.

Under Republic Act (RA) No. 7279, known as the Urban Development and Housing Act of 1992, the sale of real property which shall
be utilized for a socialized housing project under the CMP is exempt from the Capital Gains Tax or ordinary Income Tax and its
corresponding creditable withholding tax. The said sale however is subject to the payment of the Documentary Stamp Tax (DST).

Procedures and Compliance Requirements.

The application for the issuance of the Tax Exemption Certificate for socialized housing projects covered under the CMP shall be filed
with the Legal and Legislative Division, Rm. 709, 7 th Floor, BIR National Office, together with the complete documentary
requirements therefor. The Tax Exemption Certificate shall be the basis of the RDO having jurisdiction over the real property sold for
the issuance of the Tax Clearance and Certificate Authorizing Registration (CAR/TCL) necessary for the transfer of the title of the real
property.
Related Revenue and Other Issuances.

Revenue Regulations No. 17-2001 Revenue Regulations (RR) No. 17-2001 (implementing the provisions on Community Mortgage
Program of RA No. 7279, otherwise known as the "Urban Development and Housing Act of 1992"), specifically repealed Section
4.C.2 and Section 5.I of RR No. 9-93 and Section 4.C(b) and Section 5.F and G of RR No. 11-97.

Revenue Memorandum Circular (RMC) No. 42-2001 (Circularizing the Tax Incentives of Sellers of Real Properties in Existing
Areas for Priority Development (APDs) Sites, and in other Areas that may be Identified by the Local Government Units as Suitable
for Socialized Housing Projects under R.A. No. 7279, Otherwise Known as the "Urban Development and Housing Act of 1992" and
the Valuation of the Subject Real Properties for National Internal Revenue Tax Purposes)Revenue Memorandum Circular (RMC)
No. 35-2014 (Circularizing Relevant Portions of Housing and Urban Development Coordinating Council (HUDCC) Resolution No.
1, Series of 2013, Approving the Adjustment of the Price Ceiling for Socialized Housing), adjusted the ceiling price for horizontal
socialized housing from P400,000.00 per house and lot to P450,000.00.

Revenue Memorandum Circular (RMC) No. 36-2011 (BIR Rulings on Socialized Housing under Republic Act No. 7279), clarifies
that the price ceiling for the sale of socialized lots only shall not exceed forty percent (40%) of the maximum limit prescribed for the
house and lot package.

History
o Spanish era o Estrada administration
o American era o Arroyo administration
o Japanese era o B. Aquino administration
o Post-war era o Duterte administration
o Marcos administration
o C. Aquino administration

Duterte administration
 Rodrigo Duterte signed the Republic Act 10963 or the Tax Reform for Inclusion and Acceleration Act of 2017, which lowered
personal income tax rates but increased taxes on certain goods, leading to a net increase in revenue. This excess revenue will
be used to fund the major expansion in public infrastructure in the country. Signed into law by President Rodrigo Duterte on
December 19, 2017.

The Bureau of Internal Revenue is an agency of Department of Finance. BIR collects more than half of the total revenues of
the government. Caesar Dulay is the current Commissioner of BIR.

Customer Founder: Philippine Commission

service: (02) 981 Founded: 1 August 1904
TYPE Tax Collection 7003 Jurisdiction: Philippines
Law Enforcement

BIR National Office

Headquarters Building, Agham FUNCTIONS OF BIR:
Road,
The powers and duties of the Bureau of Internal Revenue are:
Diliman, Quezon
City, Philippines
 Reduction and collection of all internal revenue taxes, fees
Agency Caesar R. Dulay, and charges; and
executive Commissioner  enforcement of all forfeitures, penalties, and fines
connected therewith, including the execution of judgments in all
Parent Department of
cases decided in its favor by the Court of Tax Appeals and the
agency Finance
ordinary courts;
Website www.bir.gov.ph  It shall also give effect to the administer supervisory and
police powers conferred to it by the National Internal Revenue
Code and special laws.