RMC No. 29-2021: Adoption of e-Signature on Certain BIR Forms

By: Hergie Anne C. De Guzman, CPA

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 29-2021 for the adoption of the electronic signatures (e-Signatures) in the following BIR Forms or Certificates:

1. BIR Form 2304 or Certificate of Income Payment Not Subject to Withholding Tax (Excluding Compensation Income)
2. BIR Form 2306 or Certificate of Final Tax Withheld at Source
3. BIR Form 2307 or Certificate of Creditable Tax Withheld at Source 
4. BIR Form 2316 or Certificate of Compensation Payment / Tax Withheld For Compensation Payment With or Without Tax Withheld

BIR was already eyeing on this adoption since the issuance of RMC No. 121-2019 which prescribes the use of certain BIR Forms/Certificate in electronic format.

E-signature is defined in Section 5 of Republic Act No. 8792 or the Electronic Commerce Law of 2000 as 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. E-signature is also legally recognized under the said Republic Act. 

The following are the policies and guidelines set by BIR for the adoption of e-signatures:

1. E-signature is an option aside from the manual signature. E-signature serves as the functional equivalent of the manual signature.
2. Using e-signature does not require approval from BIR.
3. The Form/Certificate to be issued or affixed with e-signature, should be the exact  copy of the latest version issued by the BlR. 
4. The Form/Certificate should also contain the manual or e-signature of the payee to be valid and binding.
5. Using e-signature has the following presumptions: 

• The eSignature is that of the person to whom it correlates; 
• The intention is to authenticate or approve the electronic document to which it is related or to indicate such person’s consent; 
• The methods or processes utilized to affix or verify the e-Signature operated without error or fault;
• The person responsible (partner, president, general manager, treasurer, officer-in-charge, and employees, in case of  associations, partnerships or corporations) shall be held liable criminally, civilly and administratively pursuant to the provisions of the Tax Code, as amended, the Revised penal Code and other applicable laws; and,
• The Form/Certificate with e-Signature shall only be issued once. ln case of re-issuance or the payee requested for another copy after giving the original copy, the withholding agent shall reprint a copy that should contain a “RE-PRINT” watermark in cambria font and font size of 144 to avoid double take up of tax credits. A sample format for reissuance is annexed in the RMC.