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C entennial T axpayers R ecognition P rogram. “ We are not in a debt or a fiscal crisis but if we don ’ t address these problems immediately, we will.

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Presentation on theme: "C entennial T axpayers R ecognition P rogram. “ We are not in a debt or a fiscal crisis but if we don ’ t address these problems immediately, we will."— Presentation transcript:

1 C entennial T axpayers R ecognition P rogram

2 “ We are not in a debt or a fiscal crisis but if we don ’ t address these problems immediately, we will be ”. - Rafael Buenaventura BSP Governor B ackground Failure to collect the programmed revenues increases the need to borrow even more, which can lead to a crisis.

3 Fortunately for the Philippines, the solution is simple. Just raise the necessary level of tax revenues each year to close the budget gap. This requires that taxpayers increase their actual tax payments. Background

4 BIR collections in 2004 must grow by 12% or P 52 Billion to attain target of P 477 Billion. Rationale

5 What is CTRP? What is CTRP? The Centennial Taxpayers Recognition Program or CTRP is a voluntary tax program designed to recognize taxpayers, whether corporate or individual, who have shown remarkable growth rates in their tax payments (income and business) for particular periods of time.

6 Centennial Taxpayers Recognition Program (CTRP) The CTRP is a WIN – WIN situation for both the taxpayer and the country. It does so by REWARDING taxpayers whose income tax payments are greatly improved this year.

7  All corporations following the calendar year of reporting  All individuals engaged in business or considered as mixed income earners Who can vie for CTRP?

8  INCOME TAX PAYMENT GROWTH RATE of at least:  20% - for annual 2003 vs. annual 2002  25% - for 4 th quarter 2003 vs. 4 th quarter 2002  25% - for 1 st quarter 2004 vs. 1 st quarter 2003  For business entities  the ratio of Income Tax payment to Gross Sales in year 2003 must be at least equal to the year 2002 ratio  the ratio of Income Tax payment to Gross Sales for 1 st quarter of 2004 must be at least equal to 1 st quarter 2003 Criteria for the CTRP Selection Process

9  For those subject to VAT, the VAT actually paid for taxable year 2003 shall be equal to or greater than the higher of: (a) the equivalent of 3% of their total sale/receipt of 2003, or (b) effective VAT rate for taxable year 2002  For those subject to PERCENTAGE TAX, the ratio of Percentage Tax actually paid to gross sales/receipt for taxable year 2003 should not be less than the ratio of the Percentage Tax actually paid to gross sales/receipt for taxable year Criteria for the CTRP Selection Process

10 A Centennial Award aspirant who has a shortfall or gap in the prescribed growth rates and ratio may opt to make up for the shortfall or gap by making a voluntary additional payment using the Payment Form for Centennial Taxpayers Recognition Program (BIR Form ) Centennial Voluntary Payment

11  Limited to amounts actually paid in CASH.  Creditable withholding taxes supported by a Certificate of Tax Withheld (BIR Form 2307) are considered cash payments.  TCCs/TDMs are not considered cash payment. Payments for Inclusion in CTRP Computation

12  Recognition during the Centennial Anniversary Celebration of the BIR on August 1, 2004  Inclusion in the List of Honor Roll to be published in national newspaper  Centennial Taxpayer’s Trophy  Centennial Honor Taxpayer’s Card  Priority availment of e-Services Entitlements of Centennial Taxpayers TOP CENTENNIAL TAXPAYERS shall be accorded the protection of last priority in audit and investigation for taxable calendar year 2003 for all tax payments.

13 MANCOM Consideration in Granting the Centennial Award The BIR Management Committee reserves the right to make the final selection of awardees to ensure that only deserving taxpayers are awarded. Among the MANCOM considerations for not granting the award are: 1.Taxpayers with verified derogatory information covering taxable year Taxpayers with verified tax discrepancies for taxable year 2003 as obtained from third party information.

14 Taxpayers who failed to meet the criteria for CTRP selection but will show commendable improvement in their 4th quarter and 1st quarter 2004 Income Tax Payments shall be given Centennial Awards following the standards to be prescribed in a separate RMC. Other Centennial Awardees

15 1.Taxpayers who did not pay any income tax or are in a refundable position for taxable year Taxpayers who filed their taxable year 2003 ITR beyond April 15, Individuals availing of the second installment (i.e. with amount due on or before July 15, 2004). 4.Taxpayers whose initial year of business/employment does not have a full calendar year 2002 operation. Other Centennial Awardees may be -

16  BIR Form for individuals engaged in business (on or before April 15, 2004)  BIR Form for corporate taxpayers (on or before April 15, 2004)  BIR Form – to be filed together with the ITR when additional payment is needed  Centennial Participation Form Note: Copies of the above forms may be downloaded from the BIR website (www.bir.gov.ph) Forms for Filing

17 Private Sector’s Pledge to Support Revenue Generation Rotary International “Voluntarily increase income tax payments by at least 20% over the preceding year” Philippine Exporters Confederation Philippine Chamber of Commerce and Industry Philippine Institute of Certified Public Accounts The Lina Group of Companies “Pledge of FULL SUPPORT for the BIR’s Centennial Taxpayers Recognition Program, and ADOPT it as their own”

18 Private Sector’s Pledge to Support Revenue Generation

19 CTRP Actualizes Private Sector’s Pledge of Support


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