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REPUBLIC OF THE PHILIPPINES
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DEPARTMENT OF FINANCE
BUREAU OF INTERNAL
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25 January 2A21
REVENUE MEMoRANDUM crRcuLAR No. *Q &o Ll
SUBJECT Allowing the Use of Electronic Signature (e-signature) on Certain
Bureau of Internal Revenue (BIR) Forms/Certificates and
Providing the Policies and Guidelines Therefor
TO All Revenue Officials, Employees, and Others Concerned
SECTION 1- OBJECTIVE.
Due to the continuing effect of COVID-19 pandemic, and taking into account the mandates of
Republic Act (RA) No. 11032, or the "Ease of Doing Business and Effrcient Government Serylce
Delivery Act of 2018', there is a need to allow the use of Electronic Signature (e-signature) on certain
BIR Forms/Certificates.
This Circular, therefore, is hereby issued to provide the policies and guidelines for the use of
e-Signature on these BIR Forms/Certificates.
SECTION2-LEGALBASIS.
The use of e-Signature has long been recognized under RA No. 8792, othenruisi known as the
"Electronic Commerce Act of 2000'. Section 5 [e] of said law defines e-signature as follows:
"(e) Electronic Signature refers to any distinctive mark, characteristic and/or sound in
electronic form, representing the identity of a person and attached to or logically
associated with the electronic data message or electronic document or any methodology
or procedures employed or adopted by a person and executed or adopted by such
person with the intention of authenticating or approving an electronic data message or
electronic document."
Fufiher, Section 8 of RA No. 8792 accords legal recognition to e-Signature. lt reads:
"Section 8, Legal Recognition of Electronic Srgnafures. - An electronic signature on the
electronic document shall be equivalent to the signature of a person on a written
document if that signature is proved by showing that a prescribed procedure, not alterable
by the parties interested in the electronic ddcument, existed under which -
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(a) A method is used to identify the party sought to be bound and to indicate
said party's access to the electronic document necessary for his consent or
approval through the electronic signature;
(b) Said method is reliable and appropriate for the purpose for which the
electronic document 0r electronic data message was generated or
communicated,' in the light of all circumstances, including any relevant
agreement;
(c) lt is necessary for the party sought to be bound, in order to proceed further
with the transaction, to have executed or provided the electronic signature; and
(d) The other party is authorized and enabled to verify the electronic signature
and to make the decision to proceed with the transaction authenticated by the
same."
SECTION 3 - DEFINITION OF TERMS.
3,1 . e-Signature - refers to any distinctive mark, characteristic andior sound in electronic form,
representing the identity of a person and attached to or logically associated with the
form/certificate or any methodology or procedures employed or adopted by a person and
executed or adopted by such person with the intention of authenticating or approving an
electronic data message or electronic document. For purposes of this Circular, an e-
Signature includes digital signature and other methods of electronic signature.
3.2. Digital Signature - refers to an electronic signature consisting of a transformation of an
electronic or an electronic data message using an asymmetric or pubtic cryptosystem such
that a person having the initial untransformed electronic and the signer's public key can
accurately determine:
(i) whether the transformation was created using the private key that
corresponds to the signer's public key; and
(ii) whether the initial electronic document had been altered alter the
transformation was made.
3.3. -
Electronic Document refers to information or the representation of information, data,
figures, symbols or other modes of written expression, described or however representecl,
by which a right is established or an obligation extinguished, or by which a fact may be
proved and affirmed, which is received, recorded, transmitted, stored, processed,
retrieved or produced electronically. lt includes digitally signed documents and any print-
out or output, readable by sight or other means, which accurately reflects the electronic
data message or electronic documents. For purposes of this Circular, the term "electronic
document' may be used interchangeably with electronic data message.
3.4. Forms/Certificates - refer to any of the following BIR Forms/Certificates where the use
of e-Signature shallbe allowed:
a. 23A4 - Certificate of Income Payment Not Subject to Withholding Tax
(Excluding Compensation ncome)
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b. 2306 - Certificate of Final Tax Withheld at Source
c. 2301- Certificate of Creditable Tax Withheld at Source
d. 2316 - certificate of compensation paymenuTax withherd
SECTION 4- POLICIES AND GUIDELINES.
4'1. The withholding_agels or duly authorized representatives of the withholding agents who
issue the BIR Form/Certificate in Section 3,4 of this Circular have the o-ptio"n
to use
e-Signature, aside from the manual signature, on such BIR Fonns/Certificates.
The
e'Signature serves as the functional equivalent of his/her manual signature on said
Form/Certificate.
4,2. ln case the withholding agent opts to use e-signature, approval of the BIR is no longer
necessary.
4.3. The Form/Certificate to be issued or affixed with e-signature, should be the exact
replica
0r copy of the latest version officially printed by the BlR. ln case the BIR makes
revision or
changes in the Form/certificate (e.g. change in version date, size, etc,), such revised
Form/Certificate shall be used.
4.4. The Form/Certificate shall also contain the manual signature/e-signature of the payee
in
order to be valid and binding. The e-signature serves as the iunctional equivalent
of
his/her manual signature on said Form/Certificate.
4'5. The e-signature made herein gives rise to the following presumptions: (1) the e-
Signature is that of the person to whom it correlates; (2) td e-Signature
was'affixed by
that person with the intention of authenticating or appioving the 6bcftonic document
to
which it is related or to indicate such person's consent ti the transaction embodied
therein; and, (3) the methods or processes utilized to affix or verify the e-Sijnature
operated without error or fault.
4.6. ln case glt or any misrepresentations contained in the issued Form/Certificate, those
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responsible therefor shall be held criminally, civilly and administratively liable pursuant
to
the provisions of the Tax Code of 1997, as amended, the Revised penal Code
and other
applicable laws. Under Section 253 ol the Tax Code of 1g97, as amended, in
the case of
associations, partnerships or corporations, the penalty shall be imposed on
the partner,
president, general manager, treasurer, officer-in-charge, and employees
responsible for
the violation,
4.7. The withholding agent shall make sure that the Form/Certificate with e-Signature
shall
only be issued once, ln case of re-issuance or the payee requested for anither
.opy oi
the Form/Certificate after giving the original copy, tire're-issued Form/Certificate
should
contain a "RE-PRINT" watermark in cambria font and font size of 144,
sample of which
hereto attached as Annex "A". This is to avoid double take up of
tax credits, especially
with BIR Form No. 2307.
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SECTION 5 . REPEALING/AMENDATORY CLAUSE
All other circulars which are inconsistent herewith are hereby repealed, modified and/or
amended accordingly.
SECTION 6 . EFFECTIVITY.
This Circular shall take effect immediately.
All internal revenue gfficers, employees and others concerned are enjoined to give this Circular
the widest dissemination and publicity as possible.
F& CAESAR R. DULAY
Commissioner of Internal Revenue
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