BIR Issuances – RMO No. 14-2025

CY 2025 BIR Collection Goal Allocation, By Implementing Office Based on FY 2025 Budget of Expenditures and Sources of Financing (BESF), Development Budget Coordination Committee (DBCC) Ad Referendum dated June 27, 2024

Revenue Memorandum Order (RMO) No. 014-2025

20 March 2024

I.     BACKGROUND

The Department of Finance (DOF) has set the Bureau of Internal Revenue’s CY 2025 overall collection goal at P3,232.475 Billion. This collection goal, which is based on the FY 2025 BESF, DBCC Ad Referendum dated June 27, 2024, is higher than the CY 2024 actual collection of P2,851.604 Billion by P380.871 Billion, or 13.36%. The CY 2025 Goal is composed of BIR Operations (P3,130.559 Billion) and Non-BIR Operations (P101.916 Billion).

II.    OBJECTIVE

This Order is being issued to establish the following:

1. The policies, methodology and guidelines used in the allocation of the CY 2025 Collection Goal; and
2. The resulting distribution of the collection goal to the Large Taxpayers Service (LTS) and Revenue Regions (RRs), including LT Divisions (LTDs)/Revenue District Offices (RDOs).

DEFENITION OF TERMS

A. Collections from Non-BIR Operations – include Final Withholding Tax (under Income Taxes) and Documentary Stamp Tax collections derived from transactions on Government Securities.

B. Collections from BIR Operations – composed of Income Taxes, Value-Added Tax, Excise Taxes, Percentage Taxes, and Other Taxes generated from transactions not classified as “Non-BIR Operations”.

C. Implementing Offices (IOs) – refer to the collecting offices of the BIR, i.e., LTS, RRs and LTDs/RDOs.

IV.   GENERAL POLICIES AND GUIDELINES

The following policies and guidelines were observed relative to the data requirements and allocation methodology used in the computation of the goal of IOs:

A. Data Used:

1. CY 2024 Actual Collection from Revenue Accounting Division (RAD), as reconciled with the Bureau of the Treasury (BTr), dated February 21, 2025.
2. Data considered as refinements to CY 2024 Collections:a.    Non-Recurring transactions from January to December 2024, which include those that qualified within the threshold prescribed under RA No. 9335 (Lateral Attrition Act) and other special non-recurring transactions which account for at least 4% of CY 2024 total annual collection of the RDOs or 10% of RDO’s collection for a particular month (Source: RRs/RDOs Reports submitted as of March 3. 2025);b.    Collections from Registration Fees, January to December 2024 (Source: BIR Form No. 1209 Reports, updated as of February 26, 2025);c.    Collections from Estate Tax Amnesty, January to December 2024 (Source: BIR Form No. 1209 Reports, updated as of February 26, 2025);

   d.    Collections from identified Transferred-in/out Taxpayers e.g. significant business restructuring/movement, etc. (Source: RDO Reports as of February 25, 2025); and

   e.    Collections from Excise Taxes (Source: BIR Form No. 1209 Reports, updated as of February 26, 2025).

3. Other Data Considered:
   a.    CY 2025 Macroeconomic Assumptions and Indicators (Source: FY 2025 BESF, DBCC Ad Referendum dated June 27, 2024);b.    CY 2025 Collection Goal, by Major Tax Type (Source: FY 2025 BESF, DBCC Ad Referendum dated June 27, 2024); andc.    Data on Tax on T-bills (Government Securities) dated June 27. 2024, FY 2025 BESF. DBCC Ad Referendum and estimated corresponding DST (Source: BTr dated November 29, 2024).

B. Goal Allocation methodology

1. The CY 2025 Goal for BIR Operations amounting to P3,130.559 Billion is composed of Existing and New Measures amounting to P3,108.580 Billion and P21.979 Billion, respectively.

a. Goal Allocation, by IO:

a.1. Existing Measures

1. The CY 2024 Refined Collection was derived by netting-out collections from Non-Recurring Transactions, Registration Fees, Estate Tax Amnesty and Excise Taxes and adding/deducting to concerned RDOs collections from Transferred-in/out Taxpayers in CY 2024.

2. The CY 2025 Total Goal on Excise Taxes amounting to P337.797 Billion was allocated as follows:

1. Excise Taxes Goal on the following products was directly allocated to LTS:

EXCISE TAXES	AMOUNT (In Billion Pesos)
Total	336.030
Alcohol Products	130.038
Tobacco Products	148.920
Mining	11.070
Automobiles	6.503
Tobacco Inspection Fee	0.010
Miscellaneous	0.195
Sweetened Beverages	39.279
Cosmetic Procedures	0.015

2. Goal on Excise Tax from Mining amounting to P1.767 Billion was allocated to RRs using ratio and proportion based on CY 2024 Actual Collection from Mining; and

3. The Actual CY 2025 Collection Goals of IOs for the rest of the taxes amounting to P2,770.783 Billion were computed by increasing their respective refined CY 2024 collection by a uniform growth rate of 14.03%. This growth rate is equivalent to the percentage increase in the Total CY 2025 BIR Operations Goal net of excise taxes and new measures vs. Total CY 2024 BIR Refined Collection.

4. The Total Goal on Existing Measures is the sum of items “a.1.2.* and “a.1.3.”.

a.2. New Measures

Goal on New Measures amounting to P21.979 Billion includes VAT on Digital Service Provider (DSP), Windfall Tax on Mining, Royalty on Mining, Single-use Plastics, Tax on Passive Income, Tax on Financial Intermediaries, Tax on Transactions (DST), CREATE MORE (CIT) and Prospectivity on Final Withholding Taxes on Interest Income, Long-Term Negotiable Certificate of Deposits (LTNCDs), etc. was allocated to concerned IOs, where applicable.

a.3. The Total CY 2025 Goal by IO is the sum of Existing and New Measures

b. Goal Allocation, by Major Tax Type and Month:

The Total CY 2025 Goals of IOs (Table 5A) were distributed monthly, by major tax type, based on the following:

b.1. The Total CY 2025 target allocated to IOs per tax type was aligned with the program in BESF; and

b.2. The monthly distribution of goal was based on the Refined CY 2024 Monthly Collections.

2. The CY 2025 Goal for Non-BIR Operations amounted to P101.916 Billion considered the following:

a. FWT on Government Securities which was allocated based on the monthly trend provided by BTr; and

b. DST on Government Securities which was sourced from the monthly program provided by BTr.

C. Attachments

The following tables are attached for the reference of all concerned revenue officials and personnel:

Table 1	Macroeconomic Indicators and Assumptions, CY 2025
Table 2	Monthly Collection Goal Allocation, By Major Tax Type, CY 2025
Table 3	Total Collection Goal Allocation, By Implementing Office, CY 2025
Table 4	Collection Goal Allocation, By Implementing Office and Major Tax Type, CY 2025
Table 5A	Monthly Total Collection Goal Allocation, By Implementing Office. CY 2025
Table 5B	Monthly Collection Goal Allocation For Income Taxes, By Implementing Office, CY 2025
Table 5C	Monthly Collection Goal Allocation For Excise Taxes, By Implementing Office, CY 2025
Table 5D	Monthly Collection Goal Allocation For Value-Added Tax, By Implementing Office, CY 2025
Table 5E	Monthly Collection Goal Allocation For Percentage Taxes, By Implementing Office, CY 2025
Table 5F	Monthly Collection Goal Allocation For Other Taxes, By Implementing Office, CY 2025

D. Other Requirements

The Deputy Commissioner for Operations Group and the Assistant Commissioner of LTS shall provide the Deputy Commissioner for Resource Management Group the individual goal allocation of the concerned personnel assigned in the implementing units under their respective jurisdictions, within ten (10) working days upon the issuance of this Order.

V.    EFFECTIVITY

This Order shall take effect immediately.

You may access the Memorandum Circular and Annexes thru the links below.