ORGANIZATION AND FUNCTION OF TAX RELATED GOVERNMENT AGENCIES

BUREAU OF INTERNAL REVENUE (BIR)

The BIR….

shall be under the supervision and control of the Department of Finance.

is principally tasked with the enforcement of the NIRC and other tax-related laws.

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.

BIR Officers

COMMISSIONER OF INTERNAL REVENUE

DEPUTY COMMISSIONERS

Under Section 3 of NIRC as amended, there are 4 deputy commissioners.

Under EO 430, each deputy commissioner shall head the following functional groups:

Operations Group

Legal and Enforcement

Information Systems Group

Resource Management Group

Operations Group
Operations Group

Client Support Service

Assessment Service

Collection Service

Revenue Regional Offices (19)

- Revenue District Offices

Revenue Regional Offices (19)

Revenue District Offices (124)

Legal and Enforcement Group

Legal and Enforcement Group

Legal Service

Internal Affairs Service

Enforcement and Advocacy Service

Information Systems Group

Information Systems Group

Information Systems Development and Operations Service

Information Systems Project Management Service

Revenue Data Centers (5)

Revenue Data Centers (5)

Resource Management Group

Resource Management Group

Human Resource Development Service

Finance Service

Administrative Service

BIR – DOF Approved Organizational Structure

REVENUE REGIONAL DIRECTOR

REVENUE REGIONAL DIRECTOR

Under rules and regulations, policies and standards formulated by the Commissioner, with the approval
of the Secretary of Finance, the Revenue Regional director shall, within the region and district offices
under his jurisdiction, among others:

(a) Implement laws, policies, plans, programs, rules and regulations of the department or agencies in the
regional area;

(b) Administer and enforce internal revenue laws, and rules and regulations, including the assessment
and collection of all internal revenue taxes, charges and fees.

(c) Issue Letters of authority for the examination of taxpayers within the region;

(d) Provide economical, efficient and effective service to the people in the area;

(e) Coordinate with regional offices or other departments, bureaus and agencies in the area;

(f) Coordinate with local government units in the area;

(g) Exercise control and supervision over the officers and employees within the region; and

(h) Perform such other functions as may be provided by law and as may be delegated by the
Commissioner.

REVENUE DISTRICT OFFICER

REVENUE DISTRICT OFFICER

It shall be the duty of every Revenue District Officer or other internal revenue officers and employees to
ensure that all laws, and rules and regulations affecting national internal revenue are faithfully executed
and complied with, and to aid in the prevention, detection and punishment of frauds of delinquencies in
connection therewith.

REVENUE DISTRICT OFFICER

It shall be the duty of every Revenue District Officer to examine the efficiency of all officers and
employees of the Bureau of Internal Revenue under his supervision, and to report in writing to the
Commissioner, through the Regional Director, any neglect of duty, incompetency, delinquency, or
malfeasance in office of any internal revenue officer of which he may obtain knowledge, with a
statement of all the facts and any evidence sustaining each case.

REVENUE EXAMINERS AND OFFICERS

Powers and Duties of the BIR

 1. To asses and collect all national internal revenue taxes, fees and charges.

2. To enforce all forfeitures, penalties and fines connected with the above.

3. To execute judgement in all cases decided in its favor by the Court of Tax Appeals and the
ordinary courts.

4. To administer, supervise and effect police powers authorized by the NIRC and other laws such as:

Assigning Internal Revenue Officers to establishments where articles subject to excise taxes are
produced;

Providing and distributing forms, receipts, certification, stamps and other BIR documents to concerned
officials;

Issuing receipts for tax collected; and

Submitting annual report and pertinent information to the Congress.

The BIR can exercise police power only when necessary in the enforcement of its principal powers and
duties consisting of the collection of fees and charges, including the enforcement of all forfeitures,
penalties and fines connected therewith.

Powers of the BIR Commissioner

The Commissioner of Internal Revenue (CIR) is the chief Official of the BIR who has the following powers
or authority as provided in the Tax Code:

Interpret Tax Laws (subject to review by the Secretary of Finance)

Decide disputed assessments (subject to the exclusive appellate jurisdiction of the Court of Tax
Appeals or CTA; tax assessments issued by the Regional Directors, Assistant Commissioners and
Deputy Commissioners may be appealed administratively to the CIR; CIR CTA [30 days] SC [15
days])

Summon, and obtain information or testimony of persons (to confirm correctness of tax liability)

Make assessments and prescribe additional tax requirements(examination of tax returns and other
documents submitted, conduct inventory and surveillance, conduct jeopardy assessments, prescribe
real property values, inquire into ban deposit accounts, accredit and register tax agents, prescribe
additional procedural or documentary requirements)

Delegate powers (delegate powers to any official with a rank equivalent to a division chief or higher
subject to the restriction of the Secretary of Finance; the power to abate or compromise tax liability
amounting to more than P500,000 is not delegable; the power to recommend promulgation of rules
and regulation to the Secretary of Finance is not delegable; the power to issue rulings of first
impression or to reverse, revoke or modify any existing ruling is not delegable; the power to assign or
reassign officers is not delegable)

Compromise, abate and refund or credit taxes

Suspend the business operations of a taxpayer

BUREAU OF CUSTOMS (BOC)

The BOC….

shall be under the supervision and control of the Department of Finance.

is an authority or agency in a country responsible for collecting custom duties and taxes for controlling
the flow of animal and goods in and out a country.

The BOC….

depending on local legislation and regulations, the import and export of some goods may be prohibited,
restricted or regulated, and the agency enforces these rules.

VISION

A modernized and efficient customs administration that every Filipino can trust and be proud of.

MISSION

To assess and collect lawful revenues efficiently

To effectively curb illicit trade and all forms of customs fraud

To facilitate trade in a secured manner

MISSION

To implement relevant technology for an efficient and effective customs management aligned with
the international customs best practices.

To promote professionalism and integrity in the service.

PRIMARY FUNCTIONS

Assessment and collection of lawful revenues from imported articles and all other dues, fees , charges,
fines and penalties accruing under the tariff and customs law.

PRIMARY FUNCTIONS

Prevention and suppression of smuggling and other frauds upon the revenue.
ANCILLARY FUNCTIONS

Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign
commerce.

Enforcement of the tariff and customs laws and all other laws, rules and regulations relating to the tariff
and customs administration.

ANCILLARY FUNCTIONS

Supervision and control over the handling of foreign mails arriving in the ph for the collection of the
lawful duty on the dutiable articles thus imported and the prevention of smuggling through the medium
of such mails.

ANCILLARY FUNCTIONS

Supervise and control all import and export cargoes, landed of stored in piers, airports, terminal
facilities, including container yards and container freight stations, for the protection of government
revenue.

ANCILLARY FUNCTIONS

Exercise exclusive jurisdiction over seizure and forfeiture cases under the tariff and customs law.

RESPONSIBILITIES

Prevent smuggling and other frauds.

Control vessels/aircraft’s doing foreign trade

Enforce tariff and customs laws

Control the handling of foreign mails for revenue

Control import and export cargoes

Jurisdiction over forfeiture and seizure cases

ORGANIZATION

The Bureau of Customs is headed by a Commissioner, who is responsible for the general administration
and management of the bureau. The Commissioner is assisted by six (6) Deputy Commissioners and an
Assistant Commissioner, who supervises the

ORGANIZATION

(1) Internal Administration Group

(2) Revenue Collection Monitoring Group

 (3) Assessment and Operations Coordination Group

(4) Intelligence Group

(5) Enforcement Group

(6) Management Information System and Technology Group

ORGANIZATION

However, Executive Order No. 160 s. 2013 created the so-called POST-ENTRY AUDIT GROUP (PEAG) of
the Bureau of Customs which performs the post clearance audit functions of the BOC.

Whereas, Executive Order 155 s. 2013 transfer the function of BOC-PEAG to the Fiscal Intelligence Unit
of the DOF.

ORGANIZATION

However, RA 10863 (Customs Modernization and Tariff Act or CMTA [2015] ) mandates the BOC to
conduct audit examination, inspection, verification and investigation of transaction records of importers
and brokers.

ORGANIZATION

Thus, pursuant to RA 10863 (CMTA), President Duterte revived the post clearance audit function of the
BOC by thu Executive Order no. 46 on 2017.

As a result, the Post-Clearance Audit Group is now again present under BOC which shall be headed by an
Assistant Commissioner.

BOC Organizational Chart

Function of the Commissioner

Function of Groups

Function of Groups

Customs Districts

The Bureau of Customs has 17 Customs Districts Each Customs District is headed and supervised by a
District Collector, assisted by as many Deputy District Collectors as may be necessary. A Customs District
has a designated “principal port of entry”. Generally, a principal port of entry has its “sub-port(s) of
entry”.

• ORGANIZATION AND FUNCTION OF TAX RELATED GOVERNMENT AGENCIES

 • Local Government Taxing Authority

• What is the source of the local taxing power of the government?

Article X - Section 5 (1987 Phil Const) Each local government unit shall have the power to create its own
sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the
Congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees, and charges
shall accrue exclusively to the local governments.

It is granted by the Constitution under Section 5, Article X of the 1987 Constitution. It is not inherent in
the Local Government.

• Local Government Code

Sec. 129 - Power to Create Source of Revenue - Each local government unit shall exercise its power to
create its own sources of revenue and to levy taxes, fees, and charges subject to the provisions herein,
consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively
to the local government units.

• Local Government Code

Sec. 132 - Local Taxing Authority - The power to impose a tax, fee, or charge or to generate revenue
under this Code shall be exercised by the SANGGUNIAN of the local government unit concerned through
an appropriate ordinance.

• Local Government Code

Sec. 142 - Except as otherwise provided in this Code, MUNICIPALITIES may levy taxes, fees, and charges
not otherwise levied by provinces.

• Local Government Code

Sec. 151 - Scope of Taxing Powers. - Except as otherwise provided in this Code, the CITY, may levy the
taxes, fees, and charges which the province or municipality may impose: Provided, however, That the
taxes, fees and charges levied and collected by highly urbanized and independent component cities shall
accrue to them and distributed in accordance with the provisions of this code.

• Local Government Code

Sec. 152 - The BARANGAYS may levy taxes, fees, and charges, as provided in this Article, which shall
exclusively accrue to them

• Local Government Code

Sec. 170 - Collection of Local Revenues by Treasurer. - All local taxes, fees, and charges shall be collected
by the provincial, city, municipal, or Barangay treasurer, or their duly authorized deputies.
The provincial, city or municipal treasurer may designate the Barangay treasurer as his deputy to collect
local taxes, fees, or charges.

• Local Government Code

Sec. 186 - Power To Levy Other Taxes, Fees or Charges. - Local government units may exercise the power
to levy taxes, fees or charges on any base or subject not otherwise specifically enumerated herein or
taxed under the provisions of the National Internal Revenue Code, as amended, or other applicable
laws:

• Local Government Code

Sec. 186 (Continuation) Provided, That the taxes, fees, or charges shall not be unjust, excessive,
oppressive, confiscatory or contrary to declared national policy: Provided, further, That the ordinance
levying such taxes, fees or charges shall not be enacted without any prior public hearing conducted for
the purpose.

• Local Government Code

Sec. 188 Publication of Tax ordinances and Revenue Measures. - Within ten (10) days after their
approval, certified true copies of all provincial, city, and municipal tax ordinances or revenue shall be
published in full for three (3) consecutive days in a newspaper of local circulation: Provided, however,
That in provinces, cities and municipalities where there are no newspapers of local circulation, the same
may be posted in at least two (2) conspicuous and publicly accessible places.

• Taxing Power of LGUs

Province

Expressly provided in the Code:

1. Local Transfer Tax (Section 135, LGC)

2. Business Tax on Printing and Publication (Section 136 LGC)

3. Local Franchise Tax (Section 137, LGC)

4. Tax on Sand, Gravel and Other Quarry Resources (Section 138, LGC)

5. Professional Tax (Section 139, LGC)

6. Amusement Tax (Section 140, LGC)

7. Tax on Route Delivery Truck or Vans (Section 141, LGC)

• Taxing Power of LGUs

Municipalities
A municipality may levy on those taxes, fees and charges not otherwise levied by provinces (see Section
142, LGC)

Expressly provided in the Code:

1. Local Business Tax (Section 143, LGC)

2. Fees on business and occupation (Section 146, LGC)

3. Fees on sealing and licensing of weights and measures (Section 148, LGC)

4. Fishery Rentals, Fees and charges (Section 149, LGC)

• Taxing Power of LGUs

Cities

They may levy taxes which the province and municipality may impose. The tax rates, fees, and charges
which the city may levy may exceed the maximum rates allowed for the province or municipality by not
more than 50% except the rates of professional and amusement taxes (see Section 151, LGC)

• Taxing Power of LGUs

Barangays

1. Taxes on stores with fixed business establishments (gross receipts of P50,000 or less for cities,
P30,000 for municipalities)

2. Service fees for use of barangay-owned properties and services rendered

3. Barangay clearance

4. Other fees and charges for (a) commercial breeding of fighting cocks, cockpits and cockfighting; (b) on
places of recreation with admission fees; and (c) billboards, signboards and outdoor advertisements

• Taxing Power of LGUs

Common only to Cities and Municipalities

1. Community tax

• Taxing Power of LGUs

Common to all LGUs

1. Service fees and charges for services rendered

2. Public utility charges

3. Toll fees or charges

• Board of Investment

• Philippine Board of Investments

• an attached agency of Department of Trade and Industry (DTI)

• the lead government agency responsible for the promotion of investments in the Philippines

• Mandate

Article 7 EO 226 Omnibus Investments Code of 1987 - The Board shall be responsible for the regulation
and promotion of investments in the Philippines.

• Vision

A Global Industry Promotion Agency (IPA) for Accelerating Investments, Industry Growth, and
Sustainable Jobs by 2022.

• Mission

We, the BOI family, are committed to develop globally competitive industries and generate local and
foreign investments, thus, increasing employment through the responsible use of the country’s
resources, guided by the principles of private initiative and government cooperation. In pursuit of these
commitments, we bind ourselves to render competent and efficient service with utmost integrity and
professionalism. Ours is a challenging task, yet with discipline and the guidance of an enlightened and
strong leadership, we shall move forward.

• The Organization

DTI Secretary as the BOI Chairman (RAMON LOPEZ)

• The Organization

DTI Undersecretary for Industry Development and Trade Policy Group as the BOI Vice-Chairman and
Managing Head (CEFERINO RODOLFO)

• The Organization

DTI Undersecretary for Regional Operations Group as BOI Governor (ZENAIDA MAGLAYA)
 • The Organization

DTI Undersecretary for Industry Promotions Group as BOI Governor (NORA TERRADO)

• The Organization

BOI Governor (LUCITA REYES)

• The Organization

BOI Governor (HENRY CO)

• The Organization

BOI Governor (NAPOLEON CONCEPCION)

• Why is BOI a tax-related government agency?

An enterprise registered with the BOI, pursuant to the 1987 Omnibus Investments Code (Executive
Order No. 226) is entitled to, among others, the following incentives subject to certain terms and
conditions:

• BOI Registered Enterprise is subject to….

Income Tax Holiday

A tax holiday is a government incentive program that offers a tax reduction or elimination to businesses.

• BOI Registered Enterprise is subject to….

Tax credit on raw materials, supplies and semi-manufactured products (for export producers only)

• BOI Registered Enterprise is subject to….

Additional deduction from taxable income for labor expense

• BOI Registered Enterprise is subject to….

Exemption from wharfage dues and export tax, duty, import and fees.

• BOI Registered Enterprise is subject to….

Income Tax Holiday

A tax holiday is a government incentive program that offers a tax reduction or elimination to businesses.

• Philippine Economic Zone Authority (PEZA)

• Philippine Economic Zone Authority

 • an attached agency of Department of Trade and Industry (DTI)

• he Philippine government agency tasked to promote investments, extend assistance, register,

grant incentives to and facilitate the business operations of investors in export-oriented
manufacturing and service facilities inside selected areas throughout the country proclaimed by
the President of the Philippines as PEZA Special Economic Zones.

• Philippine Economic Zone Authority

• It oversees and administers incentives to developers/operators of and locators in world-class,

ready-to-occupy, environment-friendly, secured and competitively priced Special Economic
Zones.

• Mandate

Legal Basis: Republic Act No. 7916 (as amended by Republic Act No. 8748) otherwise known as “The
Special Economic Zone Act of 1995”

• Mandates

• To establish the legal framework and mechanisms for the integration, coordination, planning
and monitoring of special economic zones, industrial estates / parks, export processing zones
and other economic zones;

• To transform selected areas in the country into highly developed agro industrial, industrial,
commercial, tourist, banking, investment, and financial centers, where highly trained workers
and efficient services will be available to commercial enterprises;

• Mandates

• To promote the flow of investors, both foreign and local, into special economic zones which
would generate employment opportunities and establish backward and forward linkages among
industries in and around the economic zones;

• To stimulate the repatriation of filipino capital by providing attractive climate and incentives for
business activity;

• Mandates

• To promote financial and industrial cooperation between the philippines and industrialized
countries through technology-intensive industries that will modernize the country’s industrial
sector and improve productivity levels by utilizing new technological and managerial know-how;
and

• To vest the special economic zones on certain areas thereof with the status of a separate
customs territory within the framework of the constitution and the national sovereignty and
territorial integrity of the philippines
 • General Powers & Function

• To operate, administer, manage and develop the ecozone according to the principles and
provisions set forth in this act;

• To register, regulate and supervise the enterprises in the ecozone in an efficient and
decentralized manner;

• To coordinate with local government units and exercise general supervision over the
development, plans, activities and operations of the ecozones, industrial estates, export
processing zones, free trade zones,and the like;

• General Powers & Function

• In coordination with local government units concerned and appropriate agencies, to construct,
acquire, own, lease, operate and maintain on its own or through contract, franchise, license,
bulk purchase from the private sector and build-operate-transfer scheme or joint venture,
adequate facilities and infrastructure, such as light and power systems, water supply and
distribution systems, telecommunication and transportation, buildings, structures, warehouses,
roads, bridges, ports and other facilities for the operation and development of the ecozone;

• to create, operate and/or contract to operate such agencies and functional units or offices of
the authority as it may deem necessary;

• General Powers & Function

• To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise dispose of
personal or real property; sue and be sued; and otherwise carry out its duties and functions as
provided for in this act;

• To coordinate with the national economic development authority (NEDA), the department of
trade and industry (DTI), and the local government units and appropriate government agencies
for policy and program formulation and implementation; and

• To monitor and evaluate the development and requirements of ecozones and recommend to
the local government units or other appropriate authorities the location, incentives, basic
services, utilities and infrastructure required or to be made available for said entities.

• Vision

By 2023, PEZA will be the nation’s primary catalyst for sound and balanced development by promoting
viable and sustainable economic zones and by bringing in targeted investments to generate jobs,
exports and economic opportunities especially in the countryside.

• Mission
To promote the attainment of a sound and balanced industrial, economic and social development of the
country through ecozone development by:

1. Promoting locator and developer investments in economic zones particularly, in targeted growth
areas and economic activities, in order to create more jobs, exports, diverse products and
services, and economic opportunities in these areas.

• Mission

2. Enhancing ecozone linkages with the local governments, communities, businesses and other
stakeholders towards spurring countryside development and creating integrated/green townships and
industry clusters

• Mission

3. Continuing to provide a globally competitive and sustainable business environment through effective
management of economic zones, efficient administration of incentive, and utmost delivery of service.

In the country, we also have free ports and special economic zones.

• Example of Economic Zones

Cagayan Special Economic Zone

also known as Cagayan Freeport, is a special economic zone in Cagayan Province, northern Luzon, in the
Philippines. It is envisioned to be a self-sustaining industrial, commercial, financial, tourism and
recreational center, in order to effectively encourage and attract legitimate and productive local and
foreign investments and eventually create employment opportunities and increase income and
productivity in the rural areas around the Freeport Zone.

• Example of Economic Zones

Cagayan Special Economic Zone

Spatially, the Cagayan Economic Zone & Freeport covers the entire Municipality of Sta. Ana, including
the Islands of Fuga, Barit, and Mabbag in the Municipality of Aparri in the Province of Cagayan.

• Cagayan Special Economic Zone

• Example of Economic Zones

Ecofuel Agro-Industrial Economic Zone

Location: Sta. Filomena, San Mariano, Isabela

Developer: Ecofuel Land Development, Inc.

Land Area: 24 hectares

PEZA-Registered Enterprises: Green Future Innovation, Inc. - manufacture/production of bioethanol and
its by-products, i.e., power/electricity (Date Approved : 22 September
2010 Date Registered : 23 November 2010)

• Organizational Chart

• Why is PEZA a tax-related government agency?

Subject to rules and regulations, an enterprise registered with the PEZA has the following benefits:

• PEZA Registered Enterprise is subject to….

Income Tax Holiday

A tax holiday is a government incentive program that offers a tax reduction or elimination to businesses.
(i.e. 100% exemption from corporate income tax)

• PEZA Registered Enterprise is subject to….

Tax and duty free importation of raw materials, capital equipment, machineries and spare parts.

• PEZA Registered Enterprise is subject to….

Exemption from wharfage dues and export tax, impost or fees

• PEZA Registered Enterprise is subject to….

VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements

• PEZA Registered Enterprise is subject to….

Exemption from payment of any and all local government imposts, fees, licenses or taxes.