Electronic Filing and Payment System (eFPS): Its Importance

and Effectiveness to the Taxpayer’s of Cauayan City, Isabela

Russel Antonette S. Cortez

MBA
 Chapter 1

The Problem and Its Background

In line with the government’s policy of providing fast

and convenient manner of transacting with government

offices, The Bureau of Internal Revenue being one of the

government agencies with a very important role in nation

building conceptualized and introduced Electronic Filing and

Payment System (eFPS) to make filing of tax returns and

payment of taxes convenient for taxpayers through a much

faster processing and immediate confirmation of tax returns

filed and paid. It assures accuracy and completeness of

information provided therein which may be used as a reliable

reference by the Bureau and/or other agencies.

The Electronic Filing and Payment System (eFPS) is

paperless tax filing and payment system developed by the

Bureau of Internal Revenue. Enrolling is free of charge, but

may subject to a minimum average daily balance, depending on

your bank.
 With the eFPS, taxpayers can avail of paperless tax

filing experience and can also pay their taxes online

through the accessibility of internet, banking service via

debit facility from their enrolled bank account. In

addition, since eFPS can be accessed through internet,

taxpayers can file their taxes anytime and anywhere as long

as they are using computer connected to internet.

In using eFPS, taxpayers should have an e-mail account

and stable internet access. Taxpayers who would like to

avail of the eFPS shall register in accordance with the

provisions of the applicable regulations, circulars and

orders.

Thus this study aims to determine the effectiveness and

importance of Electronic Filing and Payment System (eFPS) to

the taxpayers of Cauayan City, Isabela.

Conceptual Framework

The eFPS is easy to use, it is quick and simple as

secure. Users get immediate feedback from the system when

enrolling, e-filing or performing e-payments. Self-

validating errors are minimized because all of the

information supplied by the taxpayer is validated before

final submission. It is available 24 hours a day a 7 days a

week. Returns and payment transactions are secured as all

data transmission is encoded and secured by the state of the

art technology provided by SSL (Secure Sockets Layer) which

is the industry standard protocol for secure web-based

communications. Likewise, users’ validation or

authentication is handled by the systems enrollment and log

on facility, which has two levels of security, username

password and challenge questions. In addition, eFPS is

securely hosted and protected by state of the art security

measures such as firewalls, intrusion detection and anti-

virus systems. eFPS employ the same security measures to

ensure that payment sent by eFPS to their e-payment

facilities are secure.

 Enrollment procedures for the eFPS can be viewed online

at the eFPS webpage under job aids link. Similarly,

respective revenue district offices also assist taxpayers on

enrolling. eFPS will inform you thru a pop up message that

your enrollment has been successfully received. Then you

have to wait for an e-mail message from BIR informing you of

the status of your enrollment whether approved or dis

approved. Once your account has been activated, you are

ready to e-file and e-pay and perform all the function

within eFPS. It is important for you to remember your

username and password as well as the correct answer to the

challenge question. You are encouraged to to change your

user password regularly for security purposes using the

Change User Info Facility. In case you forgot your password,

you may go to the eFPS site and click the “Forgot Passwod

Link”. You need to supply your TIN, Branch Code, Username

and Answer to the Challenge Question. An e-mail will send to

you with a system generated password. How about if your

answer to the challenge question is forgotten. In this

scenario, the following procedures should be accomplished:

First, the taxpayer shall write a request for the

cancellation of the eFPS account at the Revenue District

Office (RDO) where registered; Second, if the registered

taxpayer is a non-individual, submit a Board Resolution

authorizing the user/s to use eFPS. If the registered

taxpayer is an individual, submit Certification of

Authorized user/s (maximum of 3 persons); Next, the RDO

shall evaluate the request to cancel the account if

justifiable; Then, after cancellation of the account, the

authorized user shall re-enroll online to indicate his new

username, password and answer to the challenge question in

the Enrollment Form; Afterward, The RDO shall activate (or

reject/put on-hold) the account after proper evaluation;

Finally, upon activation, the user may log in in eFPS using

the new login credentials supplied during enrollment.

There are some instances that eFPS may be unavailable.

Like system maintenance and/technical error. It will be

announced through an official advisory. A formal

notification will also be subsequently issued when systems

operators normalize/stabilize. And if unavailability happens

taxpayer may file their returns manually. No penalty, will

be charged.
 All taxpayers who are mandatorily covered to use eFPS

failed to do so shall be imposed a penalt of P1000 per

return. In addition, the taxpayer shall also be imposed

civil penalties equivalent to 25% of the tax due to be paid

for filing a return not in accordance with existing

regulations, thus tantamount to WRONG VENUE filing.

In case of no payment filing, still the mandated

taxpayer or taxpayer enrolled under eFPS shall still use the

system. The taxpayer will received an acknowledgement

notification stating the Filing Reference Number (FRN) of

the return filed. Likewise, with the return filed with

payment, aside from FRN, taxpayer will also receive

notification from their bank stating that their account has

already been debited.

It has been stated earlier that eFPS is a paperless

filing experience, however, if the tax return filed through

this system contains attachment, the taxpayer will still be

submitting the required attachments to their respective

revenue district offices within fifteen (15) days from the

date of filing.

Returns e-filed can be amended as long as Letter of

Authority has not been yet issued for investigation.

 Registration update is not covered by eFPS. Changes

should be done through Form 1905 an filed with your

respective RDO where you are registered.

In order to use eFPS, you would need to use a computer

with an internet connection, an e-mail account so you can

receive e-mail notifications from eFPS and the BIR.

Enrollment and usage of eFPS is free of charge. However,

check with your bank where you have enrolled if they charge

fees or require a minimum average daily balance.

Research Paradigm

In this paradigm, the independent variables are the

profile of business owners that are affected by the eFPS and

the level of awareness of these business owners to eFPS.

Also in the paradigm, the effectiveness and importance of

eFPS to the taxpayers of Cauayan City.

Statement of the Problem

This study aims to determine the effectiveness of

Electronic Filing and Payment System of the Bureau of

Internal Revenue in Cauayan City, it aims to answer the

following:

1. What is the profile of the business owners in terms

of the following variables:

a. Age

b. Sex

c. Civil Status

d. Number of Children

e. Educational Attainment

f. Number of Business Establishment Owned

g. Type of Ownership

h. Number of Employees
2. How aware are the business owners of the eFPS in

terms of the following:

a. Read from BIR Memorandum Orders and Circulars

b. Learned from seminar

c. Learned from collegues/tax agents and

practitoners

d. Read from the BIR website.

3. How do the BIR and the business owners assess the

effectiveness of the eFPS in terms of the following:

a. Contributed in the timeliness in payment of

taxes by business owners

b. Availment of paperless tax filing experience

c. Suitable for internet-banking service

d. Increased the knowledge on certain e-services

provided by the Bureau.

 4. How satisfied are the business owners in terms of

the effectiveness of Electronic Filing and Payment

System?

5. Is there a significant relationship between the

effectiveness of eFPS and the profile of the

business owners and the level of awareness of

business owners on the eFPS?

6. Is there a connection of the level of awareness of

the implementation of eFPS and the level of

satisfaction of the business owners?

Research Hypotheses

The following null hypotheses were tested:

1. There is no significant relationship between the

effectiveness of Electronic Filing and Payment System

and the profile of the business owners, the level of

 awareness and level of satisfaction of business owners

on the Electronic Filing and Payment System of the BIR.

2. There is no significant relationship on the level of

awareness of the implementation of eFPS and the level

of satisfaction of the business owners.

Significance of the Study

This study aims to determine the effectiveness of

Electronic Filing and Payment System of the Bureau of

Internal Revenue in Cauayan City. The result of which will

hopefully serve the following:

Bureau of Internal Revenue: To have a ready reference

regarding the effectiveness of Electronic Filing and Payment

System.

Business Owners: The result of the study may help the

business owners understand the importance

of eFPS.
Tax Agents and Practitioners: That they may be inspired to

use the eFPS for ease of work and save time. They may help

the Bureau to explain further the importance of eFPS to

their clients.

The Researcher: The result of the study will be a very

valuable learning experience in the field of research.

Other Researchers: That they may be motivated to undertake

similar study and serve as reference undertaking research.

Scope and Delimitation

Currently, the eFPS allows you to e-file and e-pay for

the following forms.

Form 0605 - Payment Form

Form 1600 - Monthly Remittance Return of Value Added

Tax and other Percentage

Taxes Withheld

Form 1600WP - Remittance Return on Percentage Tax of

Winnings and Prizes

Form 1601C - Monthly Remittance Return of Income

Taxes Withheld on Compensation

Form 1601E - Monthly Remittance Return of Creditable

Income Tax Return (Expanded)

Form 1601F - Monthly Remittance Return of Final Tax

Withheld

Form 1602 - Monthly Remittance Return of Final Tax

Withheld

Form 1603 - Quarterly Remittance Return of Final Tax

Withheld

Form 1604CF - Annual Information Return of Income

Taxes Withheld on Compensation

Form 1604E - Annual Information Return of Creditable

Income Taxes Withheld

Form 1700 - Annual Income Tax Return

Form 1701 - Annual Income Tax Return

Form 1701Q - Quarterly Income Tax Return for Self-

Employed Individual, Estates &

Trusts

Form 1702 - Annual Income Tax Return

Form 1702Q - Quarterly Income Tax Return

Form 2000 - Documentary Stamp Tax Declaration Return

Form 2000OT - Documentary Stamp Tax Declaration

Return-One Time Transaction

Form 2200A - Excise Tax Return for Alcohol Products

Form 2200AN - Excise Tax Return for Automobiles and

Non-Essential Goods

Form 2200M - Excise Tax Return for Mineral Product

Form 2200P - Excise Tax Return for Petroleum Products

Form 2200T - Excise Tax Return for Tobacco Products

Form 2550M - Monthly Value Added Tax Declaration

Form 2550Q - Quarterly Value Added Tax Declaration

Form 2551M - Monthly Percentage Tax Return

The current user coverage of eFPS includes

 Taxpayers under Taxpayer Account Management Program

(TAMP)

 Accredited Importer and Prospective Importer

 National Government Agencies (NGA’s)

 All Licensed Local Contractors

 Enterprise Enjoying Fiscal Incentives (PEZA, BOI,

Various Zone Authorities)

 Top 5000 Individual Taxpayers

  Corporations with Paid-up Capital Stock of P10 million

and above

 Corporations with complete Computerized Accounting

System (CAS)

 Procuring Government Agencies with Respect to

Withholding of VAT and Percentage Taxes

 Government Bidders

 Insurance Companies and Stock Brokers

 Large Taxpayers

 Top 20, 000 Corporations.

Other taxpayers who are filing their own returns and have

tax payment due are not required to file electronically.

However, nothing prevents them to voluntarily enroll and

file using the Electronic Filing and Payment System.

Definition of Terms

Acknowledgment Number – refers to the control number issued

by the BIR to the taxpayer to confirm that tax payment has

been credited to the account of the government.

Age - the length of time that the person has lived

Authorized Agent Bank (AAB) – refers to any bank as

certified by the Bangko Sentral ng Pilipinas (BSP) which has

satisfied the criteria on accreditation and is actually

accredited to collect internal revenue taxes.

Bureau of Internal Revenue - an agency of Department of

Finance that collects more than half of the total revenues

of the government.

Business Owners – individual or entity who owns a business

in an attempt to profit from the successful operations of

the company.

Civil Status – indicates if a person is single, married or

widowed.

Confirmation Number - refers to the control number issued by

the AAB to the taxpayer and BIR to acknowledge that the

taxpayer’s account has been successfully debited

electronically in payment of his tax liability. Such

Confirmation Number shall be considered the equivalent of a

bank validation and official receipt issued by the AAB and

shall further serve as evidence of

the fact of payment of the taxpayer’s liability to the

extent of the amount reflected in the Confirmation Number,

and the date of payment by the taxpayer.

Due Date – the date prescribed by law or regulations within

which to file a particular return and pay the tax due

thereon.

Electronic Filing and Payment System (eFPS) - refers to the

system developed and maintained by the Bureau of Internal

Revenue (BIR) for electronically filing tax returns,

including attachments, if any, and paying taxes due thereon,

specifically through the internet.

e-Filing – means the process of electronically filing

returns including attachments, if any, specifically through

the internet.

e-Payment – means the process of electronically paying a tax

liability through the internet banking facilities of AABs.

Filing Reference Number – refers to the control number

issued by the EFPS to acknowledge that a tax return,

including attachments, has been successfully filed

electronically. This shall serve as evidence of the fact of

filing and the date of filing of the return.

Number of Business Owned - number of commercial activity a

business owner is engaged.

Number of Children – number of persons who are offspring in

the family.

Revenue Memorandum Circular – are issuances that publish

pertinent and applicable portions, as well as

amplifications, of laws, rules and regulations and

precedents issued by the BIR.

Revenue Memorandum Order – are issuances that provide

directives or instructions.

Secure Socket Layer (SSL) – is the standard security

technology for establishing an encrypted link between a web

server and a browser. This link ensures that all data passed

between the web server and browsers remain private and

integral.

TAMP Taxpayers- these refer to the taxpayers that have been

identified by the RDO which account for at least 80% of the

tax collection of the district.

Tax Agents and Practitioners - a person representing

taxpayer to file returns and pay tax due (if any) at the

time of filing, or perform any other duties as prescribed by

law.
 Chapter 2

Review of Related Studies

REVENUE MEMORANDUM ORDER NO. 5-2002

SUBJECT: Guidelines and Procedures in the Adoption of

Electronic Filing and

Payment System (EFPS).

TO : All Revenue Officials, Employees and Others Concerned.

____________________________________________________________

____________

I. BACKGROUND:

The Electronic Filing and Payment System (EFPS) is developed

primarily to provide Philippine taxpayers with top quality

and convenient service through a much faster processing and

immediate confirmation of filing of tax returns and payment

of taxes due thereon. EFPS is an alternative mode of filing

returns and payment of taxes which deviates from the

conventional manual process of encoding paperbound tax

returns filed which is highly susceptible to human errors

and intervention. The system allows the taxpayers to

directly encode, submit their tax returns and pay their

taxes due online over the internet through the BIR website.

EFPS would undoubtedly reduce the government’s

administrative and operational costs in interacting with

taxpayers and in collecting taxes.

II. OBJECTIVES:

This Order is issued to:

A. Provide guidelines and procedures in the implementation

of Electronic Filing and Payment System prescribed under

Revenue Regulations Nos. 9-2001 and 2-2002.

B. Define roles and responsibilities of all concerned

offices.
C. Ensure the accurate and timely generation of collections

and other ad hoc reports.

III. POLICIES:

A. EFPS shall be available to all taxpayers with e-mail

account and internet access who are registered in the BIR

Integrated Tax System (ITS). Taxpayers who shall avail of

EFPS shall enroll online with the EFPS which is linked to

the BIR website (http://www.bir.gov.ph).

B. Taxpayers shall be responsible for safeguarding their

respective user names, passwords and answers to challenge

question in accessing EFPS. In case a taxpayer forgets this

necessary information or there is a change in the corporate

authorized signatory, the taxpayer concerned shall be

required to re-enroll to EFPS.

C. Taxpayers who shall file their returns through the EFPS

shall file only returns for the tax type/s registered in the

ITS and the form type of which is available in EFPS.

Initially, the following thirteen (13) tax forms are

available in the EFPS:

1. 1601C Monthly Remittance Return of Income Taxes Withheld

on Compensation

2. 1601E Monthly Remittance Return of Creditable Income

Taxes Withheld (Expanded)

3. 1602 Remittance Return of Final Income Taxes Withheld

4. 1603 Remittance Return of Final Income Taxes Withheld on

Fringe Benefits Paid to Employees Other than the Rank and

File

5. 1700 Annual Income Tax Return (for purely compensation

income)

6. 1702 Annual Income Tax Return for Corporations and

Partnerships

7. 1702Q Quarterly Income Tax Return for Corporations and

Partnerships

8. 2200A Excise Tax Return for Alcohol Products

9. 2200P Excise Tax Return for Petroleum Products

10. 2200T Excise Tax Return for Tobacco Products

11. 2550M Monthly Value Added Tax Declaration

12. 2550Q Quarterly Value Added Tax Return

13. 2551 Percentage Tax Return (Quarterly)

The above listing may be expanded and/or the existing form

format enhanced later.

D. The e-filing of returns shall be available 24 hours a

day, 7 days a week. However, to ensure receipt by the BIR

before midnight of the due date set by applicable laws and

regulations for the filing of a return and the payment of

the corresponding tax, the electronic return for the

applicable tax must be filed on or before 10 p.m. of the due

date. In case the EFPS is not available during due

dates, as declared by the BIR, taxpayers shall manually file

their returns with the collecting agent (AAB or RCO/DMT) for

the returns with payment, or with the Revenue District

Office (RDO) or Large Taxpayers Service (LTS) or Large

Taxpayers District Office (LTDO) where they are registered

for no-payment returns.

E. Taxpayers who are filing refundable returns are not

allowed to directly offset against the amount to be refunded

as indicated in the return the penalties arising from late

filing thereof.

F. Taxpayers who shall avail of the EFPS shall be required

to submit their audited financial statements, certificates

of withholding tax, Tax Debit Memo (TDM) utilized in the

payment of taxes, in case of any, to the RDO or LTS (LTAD)

or LTDO where they are registered within fifteen (15) days

from date of filing of the applicable return.

G. Taxpayers who shall file their returns through EFPS may

pay the taxes due thereon either manually or electronically.

Following the “pay as you file” principle, payment of taxes

shall be made within the banking hours of the day the return

was electronically filed in case of manual payment, or

within the day of e-filing in case of electronic payment.

However, no penalties shall be imposed for taxpayers who e-

filed earlier and paid at a later date but on or before the

due date

for the applicable tax. Starting July 1, 2002, however, e-

payment for the covered tax types is mandatory for large

taxpayers, and other non-large taxpayers which will be

announced later. For taxpayers intending to utilize Tax

Debit Memo (TDM) in the payment of taxes, their returns

shall have to be e-filed much earlier than the due date to

allow the BIR to issue TDM on or before the due date of the

applicable tax. It should be noted that the issuance of TDM

and its application against the tax due on the return e-

filed through the e-payment facility of the BIR should all

be done on or before the due date of the aforesaid tax. If

payment of taxes are to be made partly in cash and partly in

TDM, taxpayer shall first e-file the return and using the e-

payment facility of the system, he may, at his option, first

pay the portion of the tax in cash and thereafter apply TDM

on the remaining portion of the tax due, or first apply the

TDM against the portion of the tax and pay the remaining

balance thereof in cash. All of these must be done on or

before the due date of the tax.

H. Taxpayers who shall opt to pay manually shall present the

Filing Reference Number Form issued by EFPS to the

Authorized Agent Bank (AAB) concerned which shall validate

the said form and issue an Official Receipt upon receipt of

payment.
I. Payment of taxes electronically through EFPS shall be

done thru the bank debit system using the internet banking

facilities of any capable AAB. To ensure the

security/integrity of the transaction, AABs should require

taxpayers to enroll in their bank debit system using their

internet banking facilities. However, for Large Taxpayers,

payment shall be limited to the AABs authorized to serve

them, provided that said banks are capable of accepting

electronic payment, until such time that the Bureau of

Treasury is allowed to maintain accounts with other

commercial banks authorized by the Monetary Board of the

Bangko Sentral ng Pilipinas. Notwithstanding the foregoing,

insurance companies shall still be required to e-pay their

taxes with the Land Bank of the Philippines, U.N. Avenue

Branch, in accordance with existing issuances. J. Taxes duly

paid by the taxpayer through e-payment shall be deemed paid

after a Confirmation Number has been issued by the AAB

concerned to the taxpayer and BIR . In addition, an

Acknowledgement Number shall be issued by the BIR to the

taxpayer to confirm that the tax payment has been credited

to the account of the government.

K. Taxpayers may print via the EFPS a copy of their tax

returns filed within the period of two (2) months from the

date of filing the return. In the event that the taxpayer

shall need a copy of the return filed after the two-month

period, he shall request instead for a Certification with

the information mentioned in the filed return/form from the

RDO/LTS/LTDO where he is registered.

L. The participating AABs in the EFPS should be internet

ready and accredited by the BIR to participate in the

System.

M. The AABs accredited to participate in the EFPS should

ensure that the necessary e-payment system security is in

place.

IV. PROCEDURES:

A. ENROLLMENT/RE-ENROLLMENT

1. Taxpayer
1.1 Access the BIR website http://www.bir.gov.ph.

1.2 Click on “EFPS” icon, (the EFPS home page will

appear), click on “Filingand Payment” icon and click on

“Enroll to EFPS” button.

1.3 Encode all the necessary information/data on the

screen.

1.4 Click the “Submit” button.

1.5 In case of a corporation, submit to RDO –

Taxpayers Service Section (TSS)/ LTS – Large Taxpayers

Assistance Division (LTAD)/LTDO – Large Taxpayers

Assistance Section (LTAS), a certification from the

President, Vice President or other principal officer

authorized by law to sign and file the return of the

corporation, certified to as such officers by the

Corporate Secretary, to the effect that the bearer

thereof is authorized to enroll for availment of the

EFPS.
1.6 Receive an e-mail from LTS-LTAD/LTDO-LTAS/RDO-TSS

on the status of the application for enrollment.

1.7 Submit written request to LTS-LTAD/LTDO-LTAS/RDO-

TSS for reenrollment in case given password/user

name/answer to challenge question was forgotten or

there is a change in the corporate authorized

signatory. Procedures in 1.5 hereof shall be followed

if the reason for re-enrollment is the change in the

corporate authorized signatory.

1.8 Receive an e-mail from LTS-LTAD/LTDO-LTAS/RDO-TSS

on the status of re-enrollment request.

1.9 Perform Item A.1.1.1 to A.1.1.4 after approval of

the re-enrollment request.

2. LTS – LTAD / LTDO – LTAS / RDO –TSS

2.1 View list of enrollees.

2.2 Verify/investigate manually the

authenticity/completeness of taxpayer’s supplied

information against the ITS registration data. (In case

the taxpayer’s enrollment data do not match with ITS

registration data, require the taxpayer to update

registration data by submitting BIR Form No. 1905).

2.3 Receive certification from the President, Vice

President or other principal officer authorized by law

to sign and file the return of the corporation,

certified to as such officers by the Corporate

Secretary, to the effect that the bearer thereof is

authorized to enroll for availment of the EFPS.

2.4 Activate/reject enrollment application of taxpayer

as a result of Item A.2.2.2 (please refer to

corresponding EFPS Operations Manual).

2.5 Notify taxpayer thru e-mail of the result of his

enrollment application (activated/rejected/onhold)

using the pro-forma Activation Form (Annex A) for

activated application, or Rejection/On Hold Form (Annex

B) for rejected/ on hold application.

2.6 Receive written request of taxpayer for re-

enrollment.

2.7 Deactivate enrollment data if taxpayer re-

enrollment request is found to be valid.

2.8 For purposes of re-enrollment, perform Item

A.2.2.1, A.2.2.2, A.2.2.3, A.2.2.4 and A.2.2.5.

2.9 Answer taxpayer’s queries regarding EFPS.

3.0 Receive weekly report on the status of EFPS

production server availability (covering the past

week) every Monday from Information Systems Operations

Service- Systems Support Division (ISOS-SSD) for

reference.

3.1 Notify taxpayer of the system unavailability.

3. ISOS

3.1 Database Administrator

3.1.1 Run/execute the following front-end tasks whenever

necessary (please refer to the corresponding EFPS

Operations Manual)

a. EFPS reference upload; and

b. DBA functions referred to in the EFPS System

Administration Manual

3.1.2 Maintain/update the codes/reference tables used by

EFPS (please refer to the corresponding EFPS

Operations Manual).

3.2 Systems Administrator

3.2.1 Run/execute system administration functions

referred to in the EFPS System Administration

Manual.

3.2.2 Act on request of user to access EFPS post-

enrollment filter form and reports menu (please

refer to the Intranet User Admin Operations Manual)

upon approval of IPQS-SMD.

3.2.3 Monitor and provide weekly report on the status of

EFPS production server availability (covering the

past week) to LTS-LTAD, LTDOLTAS and RDO-TSS every

Monday.

3.2.4 Inform ISOS-SSD-Help Desk Section and Office

Automation Section – SSD on EFPS production server

unavailability.

3.3 Help Desk Section – Systems Support Division (SSD)

3.3.1 Attend to BIR-user or taxpayer’s queries/issues

regarding EFPS.

3.3.2 Log issues at Issues Management Log (IML)

supplying the name, telephone number, e-mail address

of the caller and the details of the problem

encountered.

3.3.3 Monitor resolutions to issues logged at Issues

Management Log (IML).

3.3.4. Forward notice of unavailability (due to network

failure) to LTAS / LTDO / RDO

immediately.

3.3.5. Document all instances of system unavailability.

3.4 Network Administrator

3.4.1 Issue notice immediately to Help Desk Section of

EFPS unavailability due to network failure.

3.5 Office Automation Section – SSD

3.5.1 Broadcast system unavailability (due to server

failure) using the existing e-mail facility

4. Information Planning and Quality Service - Security

Management Division (IPQS-SMD)

4.1 Maintain the EFPS Security and Access Matrix.

4.2 Monitor all EFPS intranet user accounts.

B. ELECTRONIC FILING AND PAYMENT

1. Taxpayer

1.1 Access EFPS button linked to BIR website @

http://www.bir.gov.ph.

1.2 Click on “Login” or “Filing and Payment” button of

EFPS home page and supply the following information:

a. User Name;

b. Password; and

c. TIN.

1.3 Answer the challenge question displayed on the

screen.

1.4 Select the tax return form to be filed and fill-up

all necessary information.

 1.5 Click “Validate” button to confirm if all the

required fields in the return are filled-up.

1.6 Click “Edit” button to correct erroneous

entry/ies, if any.

1.7 Click “Submit” button to complete e-filing.

1.8 Print Filing Reference Number issued by EFPS as

proof of filing.

1.9.1 For e-payment

a. Access e-payment facility to pay the tax due (the said

facility is only available to those taxpayers with

amount payable greater than zero).

b. Print the Confirmation Number as proof of payment and

the Acknowledgement Number.

c. Print the tax return filed and payment details thru the

Inquiry Facility, if needed.

1.9.2 For manual payment

a. Print the tax return filed thru the Inquiry Facility,

if needed.

b. Present the Filing Reference Number Form to the bank

for payment of tax due.

c. Pay the tax due (when amount payable is greater than

zero).

d. Receive validated Filing Reference Form and Official

Receipt from the bank as a proof of payment.

1.9.3 Submit attachments of returns with Filing Reference

Number to LTAD/LTDO (TSS) and RDO-TSS.

1.9 In case of need to have a copy of the return filed

after the two-month period, file the necessary request

with the LTDPQAD/LTDODPS/ RDO-DPS.

2. Information Systems Operations Service-Systems Operations

Division
(ISOS-SOD)

2.1 Run/execute the following back-end modules at the

end of each day (please refer to the corresponding

EFPS Operations Manual):

i) Upload bank confirmation file (UplConf);

ii) Upload bank acknowledgement file (UplAck);

iii) Generate RPS transaction file (GenRPS);

iv) Generate CBR transaction file (GenCBR); and

v) File transfer of RPS and CBR transaction files

(FTPtrans).

3. Revenue Data Center Concerned/ISOS-Data Center

(RDCs/ISOS-DC)

3.1. e-Filing and e-Payment/e-Filing and Manual Payment

3.1.1 e-Filing and e-Payment

a. Run/execute the following back-end modules at

the end of each day (please refer to

corresponding EFPS Operations Manual):

i) Upload RPS transaction file (UplRPS); and

ii) Upload CBR transaction files (CBRUPØØ5.pc

& CBRUPØ16.ksh).

b. Provide technical support to users.

c. Resolve technical issues and elevate unresolved

issues to concerned offices.

3.1.2 e-Filing and Manual Payment

a. Upload RPS transaction file (Up1RPS).

b. Process payment data following the procedures

in RMO No. 32- 99 dated March 11, 1999.

 c. Receive and print payment data of banks’ own

liabilities from BSP.

3.2 Print reports generated by the system (please refer to

corresponding EFPS Operations Manual), including

attachments, if any.

3.3 Transmit reports to Large Taxpayers Document Processing

and Quality Assurance Division (LTDPQAD)/Large Taxpayers

District Office- Document Processing Section (LTDO-

DPS)/Revenue District Office- Document Processing Section

(RDO-DPS).

4.Authorized Agent Bank (AAB)

 4.1 Authorized Agent Bank (AAB) shall receive internal

revenue tax payments

through EFPS or over-the-counter:

4.1.1 e-Payment

a. Receive and process taxpayers’ payment

instructions;

b. Issue Confirmation Number to the taxpayers

after e-payment was processed.

c. Issue bank acknowledgement number to the BIR

which will be the latter’s basis for the issuance

to the taxpayer of the Acknowledgment Number.

d. Transit to BIR confirmation file and

acknowledgement file thru transfer protocol at

the end of the day.

IV.1.2 Manual Payment

a. Receive the Filing Reference Number Form and

payment from taxpayer.

 b. Validate Filing Reference Number Form and issue

Official Receipt to taxpayers as proof of tax

payment.

c. Process tax payment data using LBDES following

the existing procedures.

IV.2 Submit Daily Summary of Taxpayers’ Payments for

both manual and epayment system to LTDPDQAD/LTDO-

DPS/RDO-DPS.

5. LTAD/LTDO-TSS/RDO-TSS

5.1 Receive attachments of return including original

copy of TDM utilized with Filing Reference Number from

taxpayer.

5.2 Forward attachments of return with Filing Reference

Number to LTDPQAD/LTDO-DPS/RDO-DPS.

6. LTDPQAD/LTDO-DPS/RDO-DPS
 6.1 Receive attachments of return from LTAD/RDO-

TSS/LTDO-TSS.

6.2 Monitor the timeliness and accuracy of collection

information and documents submitted by ABBs.

6.3 Retrieve/view electronic return data for error

resolution. (Note: For manual payment, verify manual

payment data against electronic data)

6.4 Analyze and resolve errors which the data capture

system has not successfully processed, if any.

6.5 Monitor and maintain a file of attachments for

safekeeping and future reference.

6.6 Prepare ad hoc collection reports and various

correspondences.

6.7 Receive system generated collection reports from

ISOS-DC/RDC.

6.8 Perform quality checking of reports.

 6.9 Manage and maintain taxpayer ledgers.

6.10 Submit report to Large Taxpayer Service and

Collection Service for LTDPQAD and LTDO-DPS and to the

Collection Division for RDODPS.

6.11 Issue Certification of Tax Payments and Declared Income

as requested by taxpayers.

V. REPEALING CLAUSE

All revenue issuances or portion/s thereof inconsistent

herewith are hereby revoked and/or amended accordingly.

VI. EFFECTIVITY

This Order takes effect immediately.

(Original Signed)

RENÉ G BAÑEZ

Commissioner of Internal Revenue

BUREAU OF INTERNAL REVENUE

Electronic Filing and Payment System

ACTIVATION FORM

From: <RDO Code – Description, rdo__@mailsvr.bir.gov.ph>

For: <taxpayer_name, name@domain.com>

Date: <Month dd, yyyy>

Subject: Status of Enrollment

____________________________________________________________

__________

CONGRATULATIONS! Your enrollment to the Electronic Filing

and Payment System (EFPS) has been approved, thus, your

account has been activated. To eFile/Pay, please visit:

www.bir.gov.ph.

For the initial implementation of the system, the following

tax returns are available for eFiling:

• 1601C - Monthly Remittance Return of Income Taxes Withheld

on Compensation
• 1601E - Monthly Remittance Return of Creditable Income

Taxes Withheld

(Expanded)

• 1602 - Remittance Return of Final Income Taxes Withheld

• 1603 - Remittance Return of Final Income Taxes Withheld on

Fringe Benefits Paid

to Employees other than Rank and File

• 1700 - Annual Income Tax Return for Individuals Earning

Purely Compensation

Income

• 1702 - Annual Income Tax Return for Corporations and

Partnerships

• 1702Q - Quarterly Income Tax Return for Corporations and

Partnerships

• 2200A - Excise Tax Return for Alcohol Products

• 2200P - Excise Tax Return for Petroleum Products

• 2200T - Excise Tax Return for Tobacco Products

• 2550M - Monthly Value Added Tax Declaration

• 2550Q - Quarterly Value Added Tax Return

• 2551 - Percentage Tax Return

ANNEX A

The eFPS provides on-line help features such as:

• Guidelines and Instructions for each form

• Help Link – Directions that can guide you through the

efiling/pay process

• Frequently Asked Questions (FAQs) – Answers to questions

commonly asked by eFPS users.

For further assistance, please call <name of office> at

<924-32-45; 924-32-64> or e-mail us at

<rdo__@mailsvr.bir.gov.ph> .

Thank you for your continued support and cooperation.

COMMISSIONER OF INTERNAL REVENUE

By:

_________________________________

Name and Signature of Authorized Official Legend:

<> to be filled-up by BIR-Office concerned

BUREAU OF INTERNAL REVENUE

Electronic Filing and Payment System

REJECTION/ON HOLD FORM

From: <RDO Code – Description, rdo__@mailsvr.bir.gov.ph>

For: <taxpayer_name, name@domain.com>

Date: <Month dd, yyyy>

Subject: Status of Enrollment

____________________________________________________________

__________

Thank you for enrolling in the Electronic Filing and Payment

System of the Bureau of Internal Revenue.

Please be informed that based on the following reason/s, the

processing of your application for the use of the system

was:

! REJECTED

# Field entries do not match your registration data with the

BIR

Integrated Tax System:

____ TIN

____ Registered Name

____ Address

____ Date of Incorporation/Birth

____ Contact No.

# Invalid e-mail address

# Others _________________________________________________

_______________________________________________________

! ON HOLD
# Failure to submit the certification from the President,

Vice President

or other authorized principal officer who identifies and

authorizes a

person/s to enroll for the system usage

# Un-updated registration data

(Any changes on your registration data should be made on

BIR Form No. 1905

and be submitted to the Large Taxpayers

Service/LTDO/concerned Revenue

District Office where you are registered)

ANNEX B

# Others _________________________________________________

____________________________________________________

Your application shall be re-considered upon compliance or

submission of the foregoing requirements within ten (10)

working days from receipt of this notice.

For further inquiry, please call <name of office> at <924-

32-45; 924-32-

64> or e-mail us at <rdo__@mailsvr.bir.gov.ph> .

Thank you for your continued support and cooperation.

COMMISSIONER OF INTERNAL REVENUE

By:
__________________________________

Name and Signature of Authorized Official Legend:

<> to be filled-up by BIR-Office concerned

REVENUE MEMORANDUM CIRCULAR NO. 19-2015

SUBJECT: Clarifications/Resolutions on Issues and Concerns

to the Frequently Asked Questions (FAQs) Relative to the

Implementation of the Electronic Platform in Filing Tax

Returns under eFPS or eBIRForms for filing Income Tax

Returns for Calendar Year 2014 Due on or before April 15,

2015, and others.

TO : All Internal Revenue Officials, Employees and Others

Concerned In connection with the implementation of the

Electronic Platform in Filing Tax Returns under eFPS or

eBIRForms specially for those filing or filing and payment

of Income Tax Returns for Calendar Year 2014 due on or

before April 15, 2015, this Circular is issued to provide

answers/resolutions to FAQs in addition to those already

posted in the eFPS/eBIRForms Systems available in the BIR

website.
1. What are the available electronic platforms of the BIR in

filing tax return?

There are 2 electronic platforms available:

a) Electronic Filing and Payment System (eFPS)

b) Electronic Bureau of Internal Revenue Forms System

(eBIRForms)

2. How do I make use of eBIRForms?

The taxpayer must first download the Offline eBIRForms

Package from either of the following webistes:

a) www.bir.gov.ph

b) www.knowyourtaxes.ph

c) www.dof.gov.ph

d) www.bamaquino.com

e) Dropbox using this link: http://goo.gl/UCr8XS

f) Direct link using:

http://ftp.pregi.net/bir/ebirforms_package_v4.7.08_ITRv2013.

zip;
or copy through taxpayer’s USB flash drive from the RDO e-

Lounge and install it in his/her computer. The package

contains the thirty-six (36) BIR Forms comprised of Income

Tax Returns (ITR); Excise Tax Forms; VAT Forms; Withholding

Tax Forms; Documentary Stamp Tax Forms; Percentage Tax

Forms; ONETT Forms and Payment Form. It is used in the

preparation of tax returns. Users must click on the "SUBMIT"

button after successful form validation.

After downloading the package, the taxpayer should now close

the website, specially the BIR website or go offline, so as

not to congest traffic going to the websites. After

downloading, install the said package, and prepare the

returns offline. After preparing the returns offline, you

should save the copy of the return you will be filing by

clicking the button, Final Copy, and then click Submit. When

you are ready to click the Submit button, make sure you are

online. When you click Submit, you will be redirected to

eFile using Online eBIRForms System. After submitting the

returns online, the system will prompt you if you are

already enrolled in the Online eBIRForms System or not. If

yes, you will be asked to provide your user name and

password. If not, you will be asked to enroll and you will

be redirected to the enrollment site. To enroll, click on

the “SIGN UP” tab.

Online eBIRForms System is a filing infrastructure that

accepts tax returns submitted online and automatically

computes penalties for tax returns submitted beyond the due

date. 2

3. What are the systems requirements?

 Supported Operating System: Windows Vista, Windows 7;

 Hard disk drive space needed: at least 100 MB free space;

 RAM memory needed: Runs best on 2GB or higher;

 ActiveX components via Internet Explorer version 9;

 Java Run-time Environment version 1.7; and

 eBIRForms Package is best viewed in 1152 x 864 screen

resolution.

4. What are the browser requirements?

a. Internet Explorer v9
b. Mozilla Firefox v16 or up

c. Google Chrome v23 or up

Note: You can use any of the above browsers during

enrollment but you must have Internet Explorer v9 to be

able to submit online.

5. Who are those mandated to use eFPS?

Those mandated are the following:

 Taxpayer Account Management Program (TAMP) Taxpayers (RR

No. 10-2014)

 Accredited Importer and Prospective Importer required to

secure the BIR-ICC & BIR-BCC

(RR No. 10-2014)

 National Government Agencies (NGAs) (RR No. 1-2013)

 All Licensed Local Contractors (RR No. 10-2012)

 Enterprises Enjoying Fiscal Incentives (PEZA, BOI, Various

Zone Authorities, Etc.)

(RR No. 1-2010)

 Top 5,000 Individual Taxpayers (RR No. 6-2009)

 Corporations with Paid-Up Capital Stock of P10 Million and

above (RR No. 10-2007)

 Corporations with Complete Computerized Accounting System

(CAS) (RR No. 10-2007)

 Procuring Government Agencies with respect to Withholding

of VAT and Percentage Taxes

(RR No. 3-2005)

 Government Bidders (RR No. 3-2005)

 Insurance companies and Stock brokers (RMC No. 71-2004)

 Large Taxpayers (RR No. 2-2002, as amended)

 Top 20,000 Private Corporation (RR No. 2-98, as amended)

6. Who are those mandated to use eBIRForms and eFile?

RR 6-2014 mandates the use of eBIRForms as follows:

 ACCREDITED TAX AGENTS/ PRACTITIONERS & all its client-

taxpayers who authorized them to file in their behalf

 ACCREDITED PRINTERS of Principal and Supplementary

Receipts/Invoices

 One-Time Transaction (ONETT) taxpayers

 Those engaged in business, or those with mix income (both

compensation and business income) who shall file a “NO

PAYMENT” Return (exception under RMC No. 12-2015)

 Government-Owned or Controlled Corporations (GOCCs)

 Local Government Units (LGUs), except barangays

 Cooperatives, registered with National Electrification

Administration (NEA) and Local Water Utilities

Administrations (LWUA)

NOTE: For the filing of ITR for taxable Year 2014, those

mandated to use eBIRForms will be allowed to eFile even

before enrollment and receive a system generated email

notification as an evidence of filed return. Enrollment to

eBIRForms will follow after the eFiling process.

7. Under Sec. 4(3) of RR 6-2014 and RR 5-2015 mandating the

use of eBIRForms and electronically filing “No Payment

Returns”, who are those exempted and may file manually?

The following can file manually their “No Payment Returns”:

o Senior Citizen (SC) or Persons with Disabilities (PWDs)

filing for their own return;

o Employees deriving purely compensation income whether from

one or more employers, whether or not they have any tax due

that need to be paid;

o Employees qualified for substituted filing under RR 2-98

Sec. 2.83.4, as amended, but opted to file for an Income Tax

Return (ITR) and are filing for purposes of promotion

(PNP/AFP), loans, scholarship, foreign travel requirements,

etc.

8. What are the steps in enrolling?

Step 1: Access BIR website at www.bir.gov.ph using your

internet browser.

Step 2: Click eServices.

Step 3: Click either eFPS or eBIRForms

Step 4: From the Login page, click on 'Enroll to eFPS or

eBIRForms’
Step 5: The eFPS or eBIRForms online enrollment form

appears. Complete the required fields on the Enrollment Form

page. Then, click on the "Submit" button.

Step 6: Submit to BIR a certificate authorizing any three

(3) officers designated to file the return.

(Under Section 52 (A) of the Tax Code (President or

representative and Treasurer or Asst. Treasurer of the

Corporation). Individuals enrolling online for themselves

shall be automatically activated without submitting any

documents to BIR.

Note: Detailed process is enumerated in RMO 24-2013.

9. Are all taxpayers required to electronically file

returns?

NO, NOT ALL TAXPAYERS ARE REQUIRED TO FILE ELECTRONICALLY.

Only taxpayers enumerated in items no. 5 and 6 of this RMC

are required/mandated to file electronically. Other

taxpayers such as Micro Small Medium Enterprises (MSME) who

are filing their own returns and have tax payment due are

not required to file electronically. However, nothing

prevents them to voluntarily enrol and file using either the

eFPS/eBIRForms electronic platform of the BIR. Thus, the

existing procedures on MANUAL FILING shall still apply.

10. Is using eBIRForms mandatory to all taxpayers?

NO. Only those taxpayers enumerated under item no. 6 of this

RMC (and as mentioned under RR No. 6-2014) are mandated to

use and enroll in the eBIRForms System. Individual and non-

individual taxpayers who do not fall under those categories

may still file manually using the printed BIR Forms or file

using the generated form from the Offline eBIRForms either

manually or electronically by online submission or e-Filing.

Illustration No. 1. Mr. A is a Single Proprietor who owns a

Barbershop and started his business operations last January

01, 2015. He is not required to enroll and file

electronically using eBIRForms. On April 2015, his business

has no operations thus he is going to file a No Payment

Return on May 2015. This time, Mr. A is mandated to file

electronically his No Payment Return using eBIRForms since

all No Payment returns are mandated to file electronically

using eBIRForms under RR 6-2014, as amended by RR 5-2015 and

enroll in the eBIRForms system.

On the succeeding month, if Mr. A tax return is with

payment, can he still file manually using the printed BIR

Forms or eBIRForms? No. Since Mr. A is already enrolled in

the eBIRForm, he is henceforth required to file his return

electronically.

Illustration No. 2. Mr. B is a Single Proprietor who is an

Accredited Printer of the BIR. He is mandated to enroll and

file electronically using eBIRForms whether it is a No

Payment or with Payment tax return.

11. Should the Revenue District Offices (RDOs) and

Authorized Agent Banks (AABs) still accept the manual filing

of tax returns for Income Tax Returns for Calendar Year

ending December 31, 2014?

YES, RDOs and AABs should continue to accept manually filed

returns (either printed BIR Forms or generated forms from

the Offline eBIRForms). However, for taxpayers that are

mandated to use eFPS & eBIRForms but continue to file

manually, the taxpayer shall be subjected to the P 1,000

penalty per return pursuant to Section 250 of the NIRC of

1997 and 25% surcharge for wrong venue under RR No. 5-2015.
The RDOs shall assess the penalties and surcharge after the

filing of the returns.

12. What are the steps to efile a return?

Step 1. Go to any of the website mentioned in item no. 2 of

this RMC and DOWNLOAD the Offline eBIRForms Package;

Step 2. After downloading the Package, log off the website.

Step 3.. INSTALL the Package you have previously downloaded,

and then open it.

Step 4. Select the form and FILL-UP by encoding data in the

return;

Step 5. VALIDATE after completely encoding all necessary

information. You may still update/modify by clicking EDIT if

needed, and Indicate correct entries. Then click “Validate”

again;

Step 6. Click FINAL COPY (applicable only to ITRs in the

eBIRForms)
Step 7. Go online and then SUBMIT the accomplished tax

return to eFPS or online eBIRForms.

Filing Reference Number (FRN) shall be generated in all

returns as acknowledgement of its receipt. However, for

Income Tax Return filed for Calendar Year 2014,

acknowledgement in the form of email notification for BIR

Form Nos. 1700, 1701, 1702RT, 1702EX and 1702MX shall be

received by the taxpayer as evidence of eFiled ITR in the

eBIRForms.

For eFPS, continue to ePay following existing issuances. For

eBIRForms, continue to ePay (upon availability) or manually

pay to any AABs/Collection Agents under the RDO where

registered following existing issuances.

13. Do you still need to submit the printed form after

eFiling to the RDO or AAB? How about attachment?

If you electronically file and electronically pay using

eBIRForms or eFPS without any attachments required, you

don’t need to submit anything to the RDO/LTDO/LT Office.

However, if there are required attachments in your income

tax returns, you shall submit to the RDO/LTDO/LT Office

within fifteen (15) days from the date of eFiling.

For eFPS:

a. Printed copy of Tax Returns with Filing Reference Number

(FRN) Page; and

b. Required attachments.

For eBIRForms eFile and ePay (upon availability) / eFile and

manually pay:

a. Printed copy of the return with the eMail Notification

Page received:

b. Required attachments

If there are other attachments to be submitted such as

Summary Alphalists of Withholding Tax (SAWT), Monthly

Alphalists of Payees (MAP) required under BIR Form Nos.

1600, 1601E, 1601F, it shall prepared using the Data Entry

Module or Summary List of Sales/Purchases/Importation for

all VAT taxpayers in BIR Form No. 2550Q prepared using the

RELIEF of the BIR and submitted via email to:

esubmission@bir.gov.ph.
14. How do I know if the form has already been submitted to

the online eBIRForms System?

The tax return has been successfully filed if the system

displays the FRN along with the continue button to go to the

FRN page. The page should also display the message "The form

has been successfully filed."

However, for eBIRForms on 2014 ITR filing (BIR Form Nos.

1700, 1701, 1702RT, 1702EX, 1702MX), instead of an FRN, a

system generated eMail Notification will be received by the

taxpayer as an evidence of eFiled return.

Users can also view their submitted forms by clicking on the

"Submitted Tax Returns" link.

15. After filling-up all necessary information in the return

and validating if all entries are correct, can I still

modify/correct/edit?

Yes, modify/correct/edit entries are still possible. The

Offline eBIRForms is encouraged to be used to provide ample

time for return preparation, and does not require an

internet connection. Ensure to click validate everytime

there are changes/edits/modifications.

16. What happens when I click “FINAL COPY” of my ITR under

eBIRForms?

Once the FINAL COPY is clicked subsequent changes to the

forms will no longer be allowed. This is the final copy for

submission to the BIR. It creates an encrypted copy with an

xml file extension. For taxpayers enrolled with eBIRForms,

type username and password for the return to be eFiled and

an eMail Notification will be generated as proof that the

return has been received by the BIR. Then proceed to ePay

(upon availability) or manually pay following existing

issuances.

For taxpayers not enrolled with eBIRForms, after completing

the returns in Offline eBIRForms and click “FINAL COPY”, the

system will ask if filing online, if “YES” is chosen, then

the return will be eFiled where an eMail Notification will

be generated as proof that the return has been received by

the BIR. Proceed to manually pay following existing

issuances and procedures. Subsequently, when asked to enroll

to eBIRForms, if click “YES”, the system redirects to the

eBIRForms enrollment process.

17. When do I PRINT the final copy of my ITR?

After clicking the “FINAL COPY”, the system will pop-up a

message that the data was successfully sent to BIR. An email

will likewise be sent to taxpayer’s inbox and there’s a need

to print and save the email notification as an evidence of

eFiled return. Click “OK”, will require to click “PRINT” for

each page of the return as evidence of eFiled return. Print

three (3) copies or as many as needed for future use. Ensure

that the printed returns from electronic platform should be

similar to the official printed form issued by the BIR

without resizing/shrinking/enlarging.

18. What happens when I click “SUBMIT”?

The log-in page will appear, then type your username and

password. The return will be eFiled where a FRN will be

generated as proof that the return has been received by the

BIR. Proceed to ePayment/manual payment for eBIRForms. The

FRN Page/email notification may be printed for future use.

However, under eBIRForms for 2014 ITR filing (BIR Form Nos.

1700, 1701, 1702RT, 1702EX, 1702MX), instead of an FRN, a

system generated eMail Notification will be received by the

taxpayer upon receipt of the eFiled return, then proceed to

manually pay following existing issuances.

19. If no email notification is received, what shall I do?

To be able to receive the EMAIL NOTIFICATION from the BIR on

the submitted tax return, make sure that all of the

following are complied with:

The email address indicated/encoded in the return is VALID

and ACTIVE.

The mailbox has enough space/not “quota exceeded”.

BIR email is not in the SPAM folder.

BIR website “bir.gov.ph” is NOT BLOCKED by your email

provider.

Non-compliance in any of the above requires re-encoding and

re-submission of the return.

a. If all of the above were undertaken and still NO EMAIL

is received after two (2) hours from efiling, then

 MANUALLY eMail the generated xml file following the

steps in Annex D of RMC 14-2015.

b. If after MANUALLY emailing following the steps in Annex

D of RMC 14-2015, and still NO EMAIL is received after

two (2) hours, then call the BIR for assistance, the

help desk number to call are also contained in Annex D

of RMC 14-2015.

20. In the email notification received from BIR using

eBIRForms, there is an attached file (xml) of the efiled

return. Can I open the attached file for my printing and

use?

NO, the attached file is a programmed file and is encrypted

for security purposes.

The final copy of the returns automatically saved in the

computer and can be retrieve/open thru the eBIRForms where

the list of BIR Forms are shown, then select the form number

and the list of filed returns will be displayed on the

summary table with the corresponding return periods. Click

the specific return to be retrieved then click “view”.

21. Can I open the return filed in online eBIRForms and re-

print?

Yes, simply click on “Submitted Tax Return” button and

select the required return to view and print.

22. I am both mandated to use eFPS and eBIRForms, which one

should I use?

Use eFS. However, for forms not available in eFPS, use

eBIRForms. In which case, enrollment to eBIRForms is

required.

23. Why do I receive an error on the telephone number field

during enrolment to the eBIRForms System?

It all depends on the browser of the computer being used.

eBIRForms System is compatible to Internet Explorer 9. Enter

3 numeric on the 1St box, then the 7 digit number in the 2nd
box. For browser Internet Explorer 10 or higher, use Google

Chrome Browser v23 or up and Mozilla FireFox v16 or up in

enrolment.

24. Why do I receive an error that my TIN is invalid during

enrolment in the eBIRForms?

The TIN is not yet uploaded in the eFPS/eBIRForms. Contact

the RDO to upload TIN and proceed to enrolment.

25. Why can I not file and instead receive an error that my

form is not registered when I submit my return online using

eBIRForms?

The form type is not updated in BIR’s database. Fill-out BIR

Form No. 1905 (Update Registration Information) with the

required attachments and submit to the RDO where registered

to update registration record.

26. HOW TO PRINT THE FORM?

To print the form make sure to adjust the PRINTER SETTING to

the following:
On your computer (Windows)

Start button > Devices and Printers > Locate your printer

Right click > Printing Preferences > Advances or select the

FOLIO or LEGAL size on Paper Size option

Click Ok.

Do not resize/shrink to fit/enlarge or custom scale when

printing.

Page scaling should be set to ''NONE'' or ACTUAL SIZE.

Returns from electronic platform should be similar to the

Official printed form issued by the BIR.

All RDOs/AABs are mandated to accept photocopied or

electronic/computer-generated income tax returns, in lieu of

the officially printed forms, provided that the said forms

are updated and originally filled-out and signed by the

taxpayer or his/her/its duly authorized representative;

provided, further, that the said income tax forms are

printed in the format prescribed in RMO 24-2013 dated

September 11, 2013, printed in FOLIO size bond paper (8.5” x

13”) for ALL TAX FORMS EXCEPT for the annual ITRs (BIR Form

Nos. 1700, 1701 and 1702RT, 1702EX, 1702MX) which shall be

printed using the A4 size bond paper (8.27” x 11.69”);

portrait orientation/layout.

Page set up margins (internet explorer) shall be: Left

margin: 0.146, Right margin: 0.148, Top margin: 0.14, Bottom

margin: 0.14 inches, with no header, no footer.

27. What are the penalties for failure to file returns under

electronic systems of the BIR by taxpayers mandatorily

covered by eFPS or eBIRForms?

All taxpayers, under the existing issuances, who are

mandatorily covered to file their returns using eFPS or

eBIRForms, who fail to do so, shall be imposed a penalty of

P1,000 per return pursuant to Section 250 of the NIRC of

1997, as amended.
In addition, the taxpayer, shall also be imposed civil

penalties equivalent to 25% of the tax due to be paid, for

filings a return not in accordance with existing

regulations, thus, tantamount to WRONG VENUE filing pursuant

to Section 248 (A)(3) of the NIRC of 1997, as amended.

RDOs are directed to include non-compliant taxpayers in

their priority audit program.

28. Under RR 6-2014, mandated to use eBIRForms are tax

agent/practitioners and all its clients-taxpayers. Clarify

the term “Client-Taxpayers”?

The term “Client-Taxpayers” shall mean those taxpayers who

are otherwise authorizing their tax agents/practitioners to

file on their behalf.

Thus, client-taxpayers whose tax agents/practitioners only

sign the audit certificate but have NO AUTHORITY TO FILE THE

RETURNS IN THEIR BEHALF are NOT COVERED by the said revenue

issuance.
The linking module of authorization by the client-taxpayer

to his/her tax agent/practitioner is available online via

eBIRForms.

29. For purposes of penalty calculation, when is the date

the returns are eFiled?

For the purpose of determining the date when the returns are

filed, if no payment is required, it shall be the date the

original eFiling was duly submitted. Hence, it is necessary

that the FRN and/or email notification must always be kept

as evidence of efiling. However, if payment is required, it

is the date of the payment that determines whether the

returns were file on time and whether or not surcharges,

penalties and/or interest shall be due.

In case of dispute, the final copy of the return in file

extension xml which can be viewed in the electronic platform

of the BIR shall prevail.

The system is available 24 hours everyday. However, returns

eFiled during tax deadline must be submitted on or before

10pm, to provide enough time in assuring that the return was

received by the BIR as evidenced by the FRN/email

notification received by the taxpayer.

30. Are those mandated to eFile but filed manually be

penalized?

Yes, under RR 5-2015. If there will be an extension or

waiver of penalties, the same shall be circularized in a

revenue issuance. However, for those who are required to

file because they fall under the “No Payment” returns, and

they were able to file manually their Income Tax Returns for

Calendar Year 2014 on or before April 15, 2015, they may

refile their returns online on or before June 15, 2015

without incurring any penalty.

31. Should penalties be imposed for some returns of

taxpayers with peculiar transactions such as: a) those with

NOLCO of over four (4) years e.g. renewable energy where

NOLCO is seven (7) years, and b) ONETT specifically for

Capital Gains Tax Return (CGT) where payments should be

where the property is located?

Yes, penalties shall be imposed for those not electronically

filing but are mandated to use eFPS/eBIRForms. Provided,

where there are systems enhancements being developed to

conform with the special requirements, these taxpayers may

be allowed to manually file on their peculiar nature without

penalties. Provided further, that upon systems availability,

conformance of electronic platform must be complied with.

32. Can filing anywhere of ITR be allowed?

No. All taxpayers must file where they are registered. The

only instance where you are not required to file your return

physically with where the taxpayer is registered is when

they submit and file the returns online, using either the

eFPS or the eBIRForms platform.

33. Where will employees of Large Taxpayers (LTs) file their

ITRs?

Under RMC 10-2015, for taxable year 2014, LT employees will

file to the RDO where the LT is physically located/situated

or RDO where the taxpayer is registered. As such, if with

payment, it shall be within the concerned RDO. They can file

manually to the concerned RDO for “No Payment Return”.

However, they are encouraged to prepare and fill-up forms

using the Offline eBIRForms and submit via email for their

ease, convenience and avoid long lines during the filing

period.

34. Is disclosure of Supplemental Information mandatory?

RMC 13-2015 provides that all juridical

entities/corporations are mandated to disclose Supplementary

Information such as Income/Receipts/Revenue subjected to

Final Withholding including Real Properties/stock

transactions, Income/Receipts/Revenue Exempt from Income

Tax, etc. For individuals filing BIR Form Nos. 1700 and

1701, it shall be optional for calendar year 2014 due for

filing on or before April 15, 2015, and mandatory starting

calendar year 2015.

35. Can I use offline eBIRForms even if I am enrolled with

eFPS?

Yes, all taxpayers enrolled in either eFPS or eBIRForms or

those who will file manually, are encouraged to use Offline

eBIRForms for ease and convenience, and to provide them

ample time to encode/edit and complete their returns. Upon

completion of the return and when ready to submit, to either

eFPS or online eBIRForms. This will provide better

opportunity for all to connect to BIR faster and with ease.

Only then taxpayer will be redirected to the login page to

type username and password.

36. What do I need to present to the AABs to pay my Annual

Income Tax? I

In paying the tax due for the returns eFiled using

eBIRForms, you must present to the AABs the following:

Printed copy of returns duly signed, and

Email notification of successful e-Filing;

For eFPS, eFile and FRN shall be generated by the system,

then continue to ePay.

37. How do I submit attachments for the voluminous

creditable withholding taxes under BIR Form Nos. 2307 /

2316?

Under RR 2-2015, the SAWT is submitted using Data Entry and

validation module of the BIR under RR 1-2014. On the other

hand, in lieu of the submission of hard copies of BIR Form

Nos. 2307/2316 as an attachment to SAWT, must SCAN the

original copies of BIR Form No. 2307 through a scanning

machine or device; store the soft copies using pdf file

format with filenames alphabetically arranged in DVD-R.

Submit the DVD-R (properly labeled) to the BIR where

registered, together with a Notarized Certification of said

RR, duly signed by the authorized representative of the

taxpayer certifying that the soft copies of the said form

are the complete and exact copies of the original thereof.

The filename shall contain the following information

separated by an underline: BIR registered name of the

taxpayer-payor, TIN including branch code and Taxable

period.

Example: Rizal Mfg.Corp_131885220000_09312014

However, if several BIR Form No. 2307 of same payor and same

taxable period, indicate at the end the series number suffix

such as:

Bonifacio Mfg.Corp_131885250000_09312014_1;

Bonifacio Mfg.Corp_131885250000_09312014_2;

Bonifacio Mfg.Corp3_131885250000_09312014_3

This requirement is mandatory for all Large Taxpayers. Any

non-LTS may, at its/his/her option comply with the said

requirements. Provided, that non-LTS shall no longer be

allowed to submit in hard copies thereafter once the said

taxpayer opted to comply with the requirements prescribed by

the Regulations.

All concerned are hereby enjoined to be guided accordingly

and to give this Circular as wide a publicity as possible.

(Original Signed)

KIM S. JACINTO-HENARES

Commissioner of Internal Revenue

Chapter 3

Research Design and Methodology

This chapter presents the research methodology used by

the researcher in the conduct of the study. It specifically

explains the research design, locale of the study,

respondents and sampling procedures, research instruments,

data gathering procedure and statistical analysis of data.

Research Design

The study made use of the descriptive-correlational

research design where questionnaires and client interviews

were used as data gathering tools. It involves the

collection of data mainly on: the profile of business owners

and BIR employees, the level of awareness of the respondents

on using eFPS, the level of satisfaction of taxpayers in

using eFPS.

The questionnaire was used to gather valid and factual

information from which to draw conclusions.

Locale of the Study

The study was conducted in City of Cauayan, Isabela and

at BIR RDO 15 Naguilian Isabela. They were considered

considering the number of TAMP taxpayers who are mandated to

use eFPS. While the employees are knowledgeable on how to

use the eFPS.

Respondents an Sampling Procedures

The population of the study considered (2) groups of

respondents. The primary respondents were the business

owners (TAMP Taxpayers) from City of Cauayan, Isabela. A

total of 111 respondents were involved, seventy-five (75)

taxpayers and thirty-six (36) employees.

The researcher set a predetermined number of business owners

and employees and use the accidental or convenience sampling

in determining the respondents.

Table 1

Distribution of respondents-employees of the study

RESPONDENTS POPULATION SAMPLE

TAMP Taxpayer- 161 75

Cauayan
BIR Employees 61 36

TOTAL 221 111

Total Number of Respondents: 111

Research Instruments
 The questionnaire was the principal instrument to

gather the data needed for this study. There were two sets

of questionnaire used: one for the TAMP taxpayers and the

other for the BIR Employees. The questionnaire for TAMP

taxpayer composed of their profile, their level of awareness

and their assessment of the effectivity of the Electronic

Filing and Payment System.

The responses on the awareness were scored through a scale

of three (3) using the following values:

3- Very Much Aware

2- Aware

1- Aware

In addition, the responses on the assessment of the eFPS

were scored through a five point Likert Scale which was

described as follows:

5- Strongly Agree

4- Agree

3-Neither Agree nor Disagree

2-Disagree
 1-Strongly Disagree

Finally, their problems encountered, suggestions and

recommendations.

A written permission was forwarded to the Office of the

Revenue District Officer at RDO 15 Naguilian Isabela.

The questionnaires were pretested before the final floating.

Data Gathering Procedure

The researcher prepared a letter request to the Revenue

District Officer of RDO 15 Naguilian, Isabela seeking

permission to conduct the study.

Aside from the use of questionnaires to business owners an d

BIR employees, informal interviews were also conducted to

them. the questionnaires from the employees were monitored

through call and personal appearance.

Statistical Analysis of Data

 The data gathered were categorized, interpreted and

analyzed in order to attain the objectives of the study. The

profile and other information elicited from the respondents

were analyzed quantitatively using frequency counts,

weighted mean, percentage and ranking.

For the research hypotheses, the analysis of variance

was used to determine whether there is significant

difference between the level of awareness and assessment to

the perceptions of Electronic Filing and Payment System.

Moreover, Pearson R Correlation was used to determine

the relationship between the business owners’ assessment of

the Electronic Filing and Payment System and their awareness

of the eFPS.

The business owners’ assessment of the extent of

awareness on the eFPS program was analyzed through the use

of weighted mean, percentage and ranking and a three point

Likert Scale as shown below.

Scale Descriptive Value
2.34 – 3.0 Very Much Aware
1.67 – 2.33 Aware
1-0 – 1.65 Not Aware

The business owners and employees assessment on the

level of satisfaction on how the implementing officers

conduct eFPS and their level of satisfaction on the policies

and procedures of eFPS were analyzed through the use of

weighted mean. A five point Likert Scale was also used which

was described as follows:

Scale Descriptive Value

1.00 – 1.79 Strongly Disagree
1.80 – 2.59 Disagree
2.60 – 3.39 Neither Agree nor Disagree
3.40 – 4.19 Agree
4.20 – 5.00 Strongly Agree
 Chapter 4

Presentation, Interpretation and Analysis of Data

This chapter presents the interpretation and analysis

of data gathered by the researcher through interview using

the structured questionnaires. The presentation and analysis

of data composed of three (3) parts. The first part

discussed the profiles of the business owners and BIR

employees, their extent of awareness on the Electronic

Filing and Payment System. The second part presents the

assessment of the TAMP taxpayers and BIR employees on

implementation of eFPS and lastlt the assessed level of

satisfaction of TAMP taxpayers and BIR employees on using

the eFPS.

PART I. EXTENT OF AWARENESS OF THE BUSINESS OWNERS AND BIR

EMPLOYEES ON THE ELECTRONIC FILING AND PAYMENT SYSTEM.

Profile of the Business Owners and BIR Employees

Table 2 presents the profile of the business owners as to

age, sex, civil status, educational attainment, number of

business owned, type of ownership of business and number of

employees.