BIR Issuances – RMO No. 17-2025

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BIR issues Operational Key Performance Indicators for CY 2025

Revenue Memorandum Order No. 17-2025

24 January 2025

Date of posting (BIR website): 24 March 2025

I. OBJECTIVES:

This Order is issued to:

Prescribe the Calendar Year (CY) 2025 Operational Keyl Performance Indicators (KPIs) for the Large Taxpayers Service (LTS), Revenue Regions (RRs)land Revenue District Offices (RDOs); and
Establish the policies, guidelines and procedures in the preparation and submission of Accomplishment Reports on the applicable Operational RKPIs and Rating of the Implementing Offices.

II. POLICIES:

The following policies shall be observed:

1. There are seventeen (17) Operational KPI specified in Annex A of this Order.

2.The detailed information for each KPI such as targets, weights, formulas, definitions, and monitoring offices are prescribed in Annex A.

3. The concerned Assistant Commissioner (ACIR) shall be the Measure Owner (MO) of a particular KPI involving the ACIR’s area of jurisdiction

4. The MO shall monitor, review, evaluate, and assess the KPI accomplishments/performance of RRs, LTS and RDOs vis a vis target of the various offices.

5. The implementing offices include the RRs, LTS and RDOs. Offices which were identified within the LTS for a specific KPI are as follows:

Applicable KPI	Weight	Implementing Office
Collection Performance	50.00	LTS National Office Audit Divisions (LTSNOADs, LTDs Cebu and Davao, Excise LT Field Operations Divisions (ELTFOD)
Percentage Increase in Collection	5.00	LTSNOADs, LTDs Cebu and Davao, ELTFOD
Audit Effort	3.00	LTSNOADs, LTDs Cebu and Davao, LTS Value Added Tax Audit (VATAU)
Increase in collection by 10% of previous year’s audit collection goal	3.00	LTSVATAU
Audit Efficiency (75% of eLAs handled were transmitted by the investigating office and acknowledged by the reviewing office)	3.00	LTSNOADs, LTDs Cebu and Davao, LTSVATAU
Reduction of Tax Arrears Collection	2.00 3.00	} LTDs Cebu and Davao, Large Taxpayers Collection Enforcement Division (LTCED)
Expedite promotion of qualified employees	1.50	LTS
Total	70.50

6. Calculation of Scores: The score for each KPI is calculated using the formula below.

The “Total Score” is calculated by adding up all the scores for the KPls that are applicable to an office.

7. Determination of Overall Rating: The overall rating shall be computed as:

*The Total Applicable KPI Weights is determined by summing up the weights

assigned to all the KPIs that are applicable to an Office.

8. If the actual performance exceeds the KPI target, the score will be set to the maximum assigned KPI weight.

9. All the figures to be used in all computations shall be rounded off to the nearest two (2) decimal places.

10. The Operational KPls will be incorporated as measures in the Office Performance Commitment and Review (OPCR) Form, as well as in the Office Index of Success Indicators of the RRs, LTS and RDOs.

11. The reports shall be prepared as follows:
• Semestral Report — Covers accomplishments from January to June
• Annual Report — Encompasses accomplishments from January to December.

12. Any concerns or issues arising from a particular Operational KPI, such as its implementation, monitoring, evaluation, and the reporting process, shall be referred and answered by the designated MO.

13. The Operational KPIs specified in this Order shall be adopted in CY 2025.

III. GUIDELINES AND PROCEDURES:

The following are the guidelines and procedures for the preparation and submission of the accomplishment reports:

LTSNOADs/LTDs Cebu and Davao/ELTFOD/RDOs/Regional Divisions shall:
• Prepare the first semester and annual Accomplishment report for each applicable Operational KPI using the prescribed format in Annex B.
• Ensure the accuracy of data prior to submission of the Accomplishment report to the Regional Director or ACI R-LTS.
ACIR-LTS/Regional Director shall:
• Consolidate the Accomplishment Reports per KPI using the prescribed format in Annex C.
• Validate the accuracy and completeness of the data prior to submission of the Accomplishment Report to the concerned MO.
The MO/AC[R shall:
• Monitor the timely submission of the Accomplishment Report by all Regional Directors and ACIR-LTS.
• Prepare the Semestral (January to June) and Annual (January to December) Evaluation Report for each KPI using Annex D. The details include:
– Score per KPI of LTS, RRs, RDOs, LTSNOADs, LTD Cebu and Davao, ELTFOD, LTCED and LTSVATAU.
• Ensure the completeness and accuracy of the Accomplishment Report received from RRs and LTS. Submit the Evaluation Report’ per KPI to the ACIR-Planning and Management Service (PMS), Attention: Planning and Programming Division (PPD).
PMS/PPD shall:
• Monitor the compliance of concerned MO/ACIR regarding the submission of KPI Evaluation Report.
• Prepare the Evaluation Report containing the overall ratings of LTs, RRs, and RDOs using the prescribed format in Annex E. Said report will be submitted to the Commissioner Internal Revenue (CIR), with copies furnished to all Deputy Commissioners of Internal Revenue (DCIRs)
• Prepares the ranking of offices based on the overall K PI score.
• Identifies the top and bottom performers among RRs and RDOs.

Below is the timeline for the submission of the Accomplishment and Evaluation Reports:

Report	Submitted By	Submitted To	Due Date of Submission
Accomplishment Report per Operational KPI (Annex B)	Chef, Regional Divisions and RDOs Chiefs, LTSNODs, LTDs Cebu and Davao, LTSVATAU	Regional Director concerned ACIR-LTS	Semestral Report: On or before July 25Annual Report: On or before January 25 of the following year
Consolidated Accomplishment Report on KPI (Annex C)	Regional Directors and ACIR-LTS	Measure Owner Concerned (ACIRs)	Semestral Report: On or before July 30Annual Report: On or before January 31 of the following year
Evaluation Report on KPI (Annex D)	Measure Owners Concerned (ACIRs)	ACIR-PMS Attention: Chief. PPD	Semestral Report: On or before August 25Annual Report: On or before February 25 of the following year
Consolidated Evaluation Report on KPIs (Annex E)	ACIR-PMS Thru: PPD	CIR All DCIRs	Semestral Report: On or before Sept. 25Annual Report: On or before March 25 of the following year