REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Quezon City

February 6, 2020

REVENUE MEMORANDUM CIRCULAR NO. __________

10-2020

SUBJECT : Suspending the Requirement for Permit to Use (PTU)

Computerized Accounting System (CAS), Computerized Books
of Accounts (CBA) and/or Component(s) Thereof and Allowing
their Use Subject to Compliance Requirement

TO : All Business Establishments, Internal Revenue Officials and

Employees and Others Concerned

Pursuant to the provisions of Section 232 to 235 of the National Internal

Revenue Code of 1997, as amended by Republic Act (RA) No. 10963 also known as
“Tax Reform for Acceleration and Inclusion (TRAIN)”, in relation to RA No. 9485,
“Anti-Red Tape Act of 2007”, as amended by RA No. 11032, also known as “Ease of
Doing Business and Efficient Government Service Delivery Act of 2018”, this
Circular is hereby promulgated to suspend the issuance of Permit to Use CAS/CBA
and/or Components thereof as provided under Revenue Memorandum Order (RMO)
No. 21-2000, as amended by RMO No. 29-2002.

All taxpayers with pending applications for Permit To Use CAS, CBA, and/or
Components thereof which were filed with the National Accreditation Board (NAB)
and were assigned to the Technical Working Group (TWG) for evaluation as of the
effectivity of this Circular, shall be allowed to use such CAS, CBA, and/or
components thereof, in the absence of the required PTU, provided that the following
shall be submitted by the taxpayer to the TWG Secretariat of the RDO/LT Office
where they are registered created under Revenue Memorandum Circular (RMC) No.
49-2019:

1. A duly accomplished and notarized Sworn Statement (Annex “A”) with

attached Summary of System Description, Commercial Invoice/Receipts/
Document Description, Forms/Records and Reports Specification (Annex
“A-1”) executed and signed by the taxpayer/company’s authorized
representative/s, including the Special Power of Attorney, Board
Resolution, or Secretary’s Certificate stating such authority;

2. Sample print copy of system-generated Principal and Supplementary

Receipts/Invoices as defined under Section 2 of Revenue Regulations (RR)
No. 18-2012 showing compliance with RR No. 16-2018, if applicable; and

3. Sample print copy of system-generated Books of Accounts such as but not

limited to General Journal, General Ledger, Sales Journal, Purchase
Journal, Inventory Book, Cash Receipts Book and Cash Disbursements
Book reflecting the mandatory fields stated in RR No. 9-2009, if applicable.
 In the absence of the required PTU, an “Acknowledgement Certificate” shall be
prepared and issued by the TWG Secretariat of the RDO/LT Office where the taxpayer
is registered following the herein prescribed format in Annex “B.” The said Certificate
must be issued within three (3) working days from the receipt of the abovementioned
requirements with a Control Number which shall be indicated or reflected on the face
of the principal and/or supplementary receipts/invoices to be generated from the
systems in order to authorize the use of such receipts/invoices.

In case the taxpayer opted to maintain Loose-leaf Books of Accounts, the

application of such shall be continuously processed by the RDO having jurisdiction
over such taxpayer pursuant to RMC No. 68-2017.

All CAS, CBA, and/or Components thereof used sans the required PTU shall
be subject to post-evaluation to check compliance with existing revenue issuances.
Such evaluation may be done simultaneous with the audit of the books of accounts
and other accounting records of the taxpayer pursuant to a Letter of Authority (LOA).
A separate Revenue Issuance shall be issued relative to the post-evaluation in
coordination with the Assessment Service of the Bureau.

All pending applications for PTU CAS/CBA, and/or Components thereof that
have undergone system demonstration are covered under this RMC. Hence, the
dockets including the findings, shall be turned over by NAB to the respective TWG of
the RDO/LT Office having jurisdiction over the taxpayer’s place of business for
validation during post-evaluation.

In case of any system enhancement/modification and/or upgrade of

CAS/CBA and/or Components thereof and if such will result in the change of version
number and/or systems release, the taxpayer shall inform in writing the TWG
Secretariat of the RDO/LT Office where they are registered. A matrix showing the
comparative changes of the current and upgraded system shall be submitted
together with the letter notification.

A separate RMO shall be issued by the Bureau relative to the detailed

procedures implementing this Circular.

All internal revenue officials and employees are hereby enjoined to give this
Circular as wide a publicity as possible.

This Circular shall take effect fifteen (15) days after publication in any
newspaper of general circulation.

(Original Signed)
CAESAR R. DULAY
Commissioner of Internal Revenue
GAM ______ ASDG ______ SCD ______ TMA ______ JRC ______ ESM ______ MLH ______ RAF ______

H-2
 ANNEX “A”
SWORN DECLARATION

Republic of the Philippines

Province of_________________________
City/Municipality of __________________

(Name of Authorized Representative)

I, _________________________________, (Nationality)
_____________, of legal age, designated as
(Position)
_____________ (Registered Name of Company/Corporation)
duly representing _________________________________, with
business address
located at _________________________________ do hereby voluntary depose and say that:

 the company is engaged in ________________(Line of Business) and existing under

(Business Name)
_____________________ (VAT/Non-VAT Reg)
with _______________ TIN __________________;

 the software/system to be adopted has the following functional and technical

features/description as shown on Annex “A” hereof;

 there is no suppression of sale/income and/or other technical scheme within the system
that may affect the appropriate computation of taxes due thereon;

 the subject <Computerized Accounting System (CAS)/Computerized Books of Accounts (CBA) and/or
______________________________________________________
Component(s)/Middleware/ESS>
____________________ complies with the applicable requirements prescribed under
existing revenue issuances;

 the _______________________________________
<CAS/CBA and/or its Component(s)/Middleware/ESS> is integrated with effective

security controls;

 the _________________________________________:
<CAS/CBA and/or its Component(s)/Middleware/ESS>

• can produce audit trails/activity logs with substantive compliance;

• can produce a standard audit file;
• can provide archive/restore procedures;
• can provide comprehensive systems documentation.

 the target system implementation date shall be on <Month-Day-Year>;

 the system application and database backup shall be preserved for a mandatory period
of ten (10) years pursuant to Revenue Regulations (RR) No. 17-2013, as amended by
RR No. 5-2014;

 the system application can be accessed and viewed by authorized Revenue Officers
for purposes of official audit activity, Post Evaluation or Tax Compliance Verification
Drive (TCVD);

 the company as a user of the software/system shall be responsible to assist the BIR in
the extraction of sales data from the software/system;

 any misrepresentation herein and in case of violation of existing rules and regulations,
I hereby undertake to face any legal sanctions and pay corresponding penalties thereof
as provided for under the National Internal Revenue Code of 1997, as amended, and
relevant revenue issuances.
Page 1 of 2
 ANNEX “A”

I HEREBY DECLARE UNDER THE PENALTIES OF PERJURY THAT THE FOREGOING

ATTESTATIONS ARE TRUE AND CORRECT.

__________________________
Authorized Representative
(Signature over Printed Name)
TIN: _____________________

SUBSCRIBED AND SWORN TO BEFORE ME this _______ day of ___________, 2018 at

(any Government ID)
__________, affiant exhibited to me his/her __________________________.

NOTARY PUBLIC

Doc. No. ___________

Page No. ___________
Book No. ___________
Series of ___________.

Page 2 of 2
 ANNEX “A-1”

Quezon City

SUMMARY OF SYSTEM DESCRIPTION, COMMERCIAL INVOICES/RECEIPTS/ DOCUMENT

DESCRIPTION, FORMS/RECORDS AND REPORTS SPECIFICATION

Taxpayer’s Registered Name :

Registered Address :
TIN and Branch Code :
Registered RDO :

Part I: Software/System Description

Old Software/Core System (if applicable)

Software Name :
Version Number :
Release Number and/or Date :

Main Software/Core System

Software Name :
Version Number :
Release Number and/or Date :
Type of Software* :
Database Platform and Version No. :
Software Provider’s Name :
Software Provider’s Address :
TIN and Branch Code :
*Note: indicate whether the system/software is In-house developed, Imported, Off-the-shelf, Customized, etc.

Components/Middleware/Interfacing Software/System (if applicable)

Software Name :
Version Number :
Release Number and/or Date :
Type of Software* :
Database Platform and Version No. :
Software Provider’s Name :
Software Provider’s Address :
TIN and Branch Code :
Linked/Not Linked to the Core System? :
*Note: indicate whether the system/software is In-house developed, Imported, Off-the-shelf, Customized, etc.

Part II: List of Branches that will Use the Software/System

Branch Name Branch Code Registered Address Modules to be Used

Note: Add rows, if necessary. Indicate “N/A” if no branch will use the same system.

Part III: List of Modules (per software/system)

Old Software/Core System Name and Version Number List of Modules

Note: Add rows, if necessary.

Main Software/ Core System Name and Version Number List of Modules

Note: Add rows, if necessary. Indicate specific modules to be used by the Branch, if any.

Components/Middleware/Interfacing Software/System List of Modules

Name and Version Number

SUMMARY OF SYSTEM DESCRIPTION, COMMERCIAL INVOICE/RECEIPTS/ DOCUMENT DESCRIPTION, FORMS/RECORDS AND REPORTS SPECIFICATION
Page 1 of 3
 ANNEX “A-1”
Note: Add rows, if necessary. Indicate specific modules to be used by the Branch, if any.

Part IV: Description of Point-of-Sale (POS) to be used (if applicable)

POS Server
Machine Details Software Details Machine Identification Permit to Use (PTU)
(Software Name and Version No.) Number (MIN) Number

Note: Add rows, if necessary. Indicate “N/A” if not applicable.

Terminal Details
Machine Details (Brand/Model/Serial Number)

Note: Add rows, if necessary. Indicate “N/A” if not applicable.

Part V: List of System-generated Accountable Forms/Documents with Approved Serial Numbers and/or
Manually Issued Receipts/Invoices

A. System-Generated Forms/Documents

Main Software/Core System

Name of Prefix/ Range of Serial Internal/ With Module Globally Description
Form/ Suffix Nos. External Printable Used to Used
Document (Running Digits only) Document Form? Generate Series
From To (Yes/No) (Yes/No)

*Note: List all documents with series ranges generated in the system. Add rows, if necessary. Indicate “N/A” if not applicable.

Components/Middleware/Interfacing Software/System
(For applications with any other system/s linked/integrated with the core system being evaluated)
Name of Prefix/ Range of Serial Internal/ With Module Globally Description
Form/ Suffix Nos. External Printable Used to Used
Document (Running Digits Document Form? Generate Series
only) (Yes/No) (Yes/No)
From To

*Note: List all documents with series ranges generated in the system. Add rows, if necessary. Indicate “N/A” if not applicable.

B. Manually Issued Forms/Documents

Name of Form/ Internal/External Document With Authority to Print?
Document (Yes/No)

Note: Add rows, if necessary. Indicate “N/A” if not applicable.

Part VI: List of Approved Books of Accounts, Financial Statements, BIR Forms and Other Accounting
Records/Reports and Method of Record Keeping

A. Books of Accounts
Description Method (Manual/Electronic)
TO BE MAINTAINED/GENERATED AT THE HEAD OFFICE

TO BE MAINTAINED/GENERATED AT THE BRANCH/ES

Notes: (1) Add rows, if necessary. Indicate “N/A” if not applicable;

(2) State if the Books of Accounts are maintained in a Centralized or Decentralized manner; and
(3) If there are branch/es, state the Books of Accounts that will be maintained/generated in such branch/es, using the matrix above.

B. Financial Statements
Description Method
(Manual/Electronic)
TO BE GENERATED AT THE HEAD OFFICE
SUMMARY OF SYSTEM DESCRIPTION, COMMERCIAL INVOICE/RECEIPTS/ DOCUMENT DESCRIPTION, FORMS/RECORDS AND REPORTS SPECIFICATION
Page 2 of 3
 ANNEX “A-1”

TO BE GENERATED AT THE BRANCH/ES

Notes: (1) Add rows, if necessary. Indicate “N/A” if not applicable; and
(2) If there are branch/es, state the Financial Statements that will be generated in such branch/es, using the matrix above.

C. Other Accounting Records/Reports

Description Method
(Manual/Electronic)
TO BE GENERATED AT THE HEAD OFFICE

TO BE GENERATED AT THE BRANCH/ES

Notes: (1) List all documents and/or reports used by the company;
(2) Add rows, if necessary. Indicate “N/A” if not applicable; and
(3) If there are branch/es, state the accounting records/reports that will be generated in such branch/es, using the matrix above.

D. System-generated BIR Forms (if applicable)

Description Method
(Manual/Electronic)

Note: Add rows, if necessary. Indicate “N/A” if not applicable.

Part VII: Server Specifications/Technical Infrastructure

Hardware Hardware Hardware Processor Storage Date Date Location Type of Major
Serial No. Brand/Model Type Capacity Capacity Acquired Installed Connectivity Application
(server, (leased line,
PC, etc.) IPVPN, etc.)

Note: Add rows, if necessary. Indicate “N/A” if not applicable. Align information as declared on the Technical Checklist.

Cloud-based Hardware/Network Service & Maintenance Maintenance

Data Retention/ Retrieval Preservation Maintenance Agreement Service Provider
(In-house or outsource)

Note: Add rows, if necessary. Indicate “N/A” if not applicable. Align information as declared on the Technical Checklist.

Part VIII: Backup Procedure and Disaster Recovery Plan (DRP)

Back-up Procedures
<Back-up Frequency (Daily, Weekly, Monthly, Annually), Automated/Manual, External Media used (USB, CD, DVD,
HD, etc.)>

Restoration Procedures
<Restoration procedure and time frequency within which reports and accounting records can be restored for BIR Audit
purposes>

Retention Period: <Time Frame>

Physical Location of Back-up Media: <Onsite – within the office vicinity, and/or Offsite – outside the office vicinity>

I declare under the penalties of perjury, that the above system description together with the
documents/records/reports specification and technical Infrastructure has been verified by me and to the best
of my knowledge is true and correct pursuant to the provisions of the NIRC and existing BIR issuances.

Signature over Printed Name of

Taxpayer/Authorized Representative
TIN: ______________________________

SUMMARY OF SYSTEM DESCRIPTION, COMMERCIAL INVOICE/RECEIPTS/ DOCUMENT DESCRIPTION, FORMS/RECORDS AND REPORTS SPECIFICATION
Page 3 of 3
 ANNEX “B”

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Revenue District Office No. ___ - ____________________

ACKNOWLEDGEMENT
CERTIFICATE
CONTROL NO. :
DATE ISSUED :
TAXPAYER DETAILS
TIN :
NAME OF TAXPAYER :
REGISTERED ADDRESS :
SYSTEM/SOFTWARE DETAILS
TYPE OF APPLICATION :
TYPE OF SOFTWARE :
SOFTWARE NAME :
VERSION NUMBER :
RELEASE NUMBER :

This is to acknowledge the receipt of the complete documentary requirements

submitted by the abovementioned taxpayer for the use of aforesaid software/system
effective _______________, based on the provisions of Revenue Memorandum Circular No.
______________ and other existing revenue issuances.

Any system enhancements/modifications and/or upgrade of the aforesaid system that

will result to the change of version number and/or system release shall require a formal
written notification to the registered Revenue District Office (RDO), together with the
required documents mentioned under RMC No. __________________ and comparative
matrix for the changes of the current and upgraded system.

ACKNOWLEDGED BY:

_________________________________
(SIGNATURE OVER PRINTED NAME)
Revenue District Officer/LTAD/ELTRD/LTDO