Revenue District Audit Order · RDAOInternal administration / RMO ops

Delegation Authority to Sign and Approve Certificate of Tax Exemption from lncome Tax

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Document type: RDAO
Number: 4
Year: 2022
Text quality: ocr

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REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINAN(]E BUREAU OF INTERNAI RXVENUE June2,2O22 REVEN UE DETEGATTON AUTHORITY ORD ER NO. lzo ?-2- TO: All Revenue Officers, Employees and Others Concerned SUBJECT: Delegation Authority to Sign and Approve Certificate of Tax Exemption from lncome Tax and from Withholding Tax (CTEI for Separation Benefits Received by Officials and Employees on Account of Their Separation from Employment Due to Death, Sickness or Other Disability l. Delegated Authority ln order to expedite the processing of applications for tax exemption of separation benefits received by officials and employees on account of their separation from employment due to death, sickness or other disability processed at the Large Taxpayers Service (LTS), pursuant to Revenue Memorandum Order (RMO) No. 26-2011 as amended by RMO No. 66 - 201,6, the approval and signing of the Certificate of Tax Exemption f rom lncome Tax and from Withholding Tax (CTE) is hereby delegated to the Assistant Commissioner (ACIR) of the LTS, or in his/her absence, the concerned Head Revenue Executive Assistant (HREA), as an addendum to RDAO No. 4-2007 as amended by RDAO No. 7-2007 and RDAO No. 4-2018 as follows: "8. The Assistant Commissioner (ACIR), LTS or in his/her obsence, the concerned Head Revenue Assistont (HREA) shall opprove and sign the following: 1.. xxx xxx 28. Certificate ol Tox Exemption from lncome Tax and from Withholding Tax (CTE) for Seporation Benefits Received by Officials ond Employees on Account of Their Separotion from Employment Due to Death, Sickness or Other Disability" Effectivity This Revenue Delegation Authority Order shall take effect immediately. rti4"^A$*1 CAESAR R. DULAY Commissioner of lnternal Revenue ,.1 Lt, 051745 ;

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Structured from the available issuance text · Internal administration / RMO ops

This order speeds up tax-exemption processing for separation benefits. It delegates to the Assistant Commissioner of the Large Taxpayers Service (LTS), or in his/her absence the concerned Head Revenue Executive Assistant (HREA), the authority to approve and sign the Certificate of Tax Exemption from Income Tax and from Withholding Tax (CTE) for benefits received by officials and employees who separate from employment due to death, sickness, or other disability. The order takes effect immediately.

Purpose

To expedite the processing, at the Large Taxpayers Service (LTS), of applications for tax exemption of separation benefits received on account of separation from employment due to death, sickness or other disability, by delegating approval and signing of the CTE to the ACIR-LTS (or HREA in absence).

In brief

RDAO No. 4-2022 delegates to the Large Taxpayers Service Assistant Commissioner (or, in his/her absence, the Head Revenue Executive Assistant) the authority to approve and sign the Certificate of Tax Exemption from income tax and from withholding tax for separation benefits received due to death, sickness, or other disability.

Keywords

Certificate of Tax Exemption (CTE)separation benefitsdelegation of authorityLarge Taxpayers Service (LTS)Assistant Commissioner (ACIR), LTSdeath, sickness or other disabilityRMO No. 26-2011RDAO No. 4-2007income taxwithholding tax

Key points

The approval and signing of the Certificate of Tax Exemption from Income Tax and from Withholding Tax (CTE) is delegated to the Assistant Commissioner (ACIR) of the Large Taxpayers Service, or in his/her absence, the concerned Head Revenue Executive Assistant (HREA).
The delegation covers CTEs for separation benefits received by officials and employees on account of separation from employment due to death, sickness or other disability.
The delegation applies to tax exemption applications processed at the Large Taxpayers Service (LTS).
The order is issued pursuant to RMO No. 26-2011 as amended (the OCR shows the amending RMO as '66 - 201,6', apparently RMO No. 66-2016).
The delegation is made as an addendum to RDAO No. 4-2007 as amended by RDAO No. 7-2007 and RDAO No. 4-2018, adding an item (shown as item 28 in the OCR) to the list of documents the ACIR-LTS or HREA shall approve and sign.
The order takes effect immediately upon issuance.
The order is signed by Caesar R. Dulay, Commissioner of Internal Revenue.

Forms referenced

Certificate of Tax Exemption from Income Tax and from Withholding Tax (CTE) for Separation Benefits Received by Officials and Employees on Account of Their Separation from Employment Due to Death, Sickness or Other Disability (a BIR certificate; no BIR form number is stated in the text).

Tax types

Income tax - the CTE certifies exemption from income tax on qualifying separation benefits.
Withholding tax - the CTE also covers exemption from withholding tax on qualifying separation benefits.

Affected taxpayers

Officials and employees who receive separation benefits on account of separation from employment due to death, sickness or other disability, whose tax exemption applications are processed at the Large Taxpayers Service (and the applicants/employers seeking the CTE on their behalf).
Internally, Revenue Officers and Employees of the LTS, particularly the Assistant Commissioner and the concerned Head Revenue Executive Assistant, who are given (or act in lieu of) the delegated signing authority.