Tax Reform Cash Transfer Unconditional Cash Transfer.pptx

TAX REFORM CASH TRANSFER (TRCT) / UNCONDITIONAL CASH TRANSFER (UCT) The Implementing Rules and Regulation (IRR)

UCT / TRCT

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Rationale and Objectives Unconditional Cash Transfer/ Tax Reform Cash Transfer

Description of UCT/TRCT Legal Basis

Implementing Rules and Regulation Modes of Payment

Annex

RATIONALE AND OBJETIVES Unconditional Cash Transfer and Tax Reform Cash Transfer

UCT/TRCT PROGRAM REPUBLIC ACT 10963 OF 2017 OTHERWISE KNOWN: TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN)

This seek to enhance the efficiency,

simplicity, and equity of the tax system in order to promote investment, create jobs and reduce poverty. The first of five tax reform package of the following key measure: 1. lowering the personal income tax (PIT) 2. lowering of the estate and donor taxes 3. expanding the value added tax (VAT) base by removing around 80 line of exemption that have little base or whose benefits can be provide through targeted measure; 4. increasing the excise on oil products; 5. increasing the excise on automobile and 6. introducing a sugar-sweetened beverage tax

UCT/TRCT PROGRAM REPUBLIC ACT 10963 OF 2017 OTHERWISE KNOWN: TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN)

To mitigate the increase in prices, particularly due to the increase in the excise on oil products, TRAIN mandates the government to provide social mitigating measures to protect and improve the lives of poor and vulnerable. UCT/ TRCT is the biggest tax reform mitigation project, that provides unconditional cash transfer to NHTS-PR, Pantawid Pamilya Pilipino Program, and Social Pension Program, who will not benefit from the lower income tax rate but affected by the rising prices.

UCT/ TRCT Description:

This provide a ONE-TIME unconditional grant of P 2,400.00 equivalent to Two Hundred Pesos (P 200.00) per month in the first year of implementation, and P 3,600.00 equivalent to Three Hundred Pesos (P 300.00) per month in the succeeding years of its implementation.

Legal Basis Section 2 of republic Act No. 10963 also known as TRAIN Incremental Revenues from, the Tax Reform for Acceleration and Inclusion (TRAIN) – For five (5) years from the effectivity of this Act. The yearly incremental revenues generated shall be appropriated as follows: Not more than 30% to fund Republic Act No 10964, or the General Appropriation Act for Fiscal Year 2018 Subsidy for the Tax Reform Cash Transfer Project.

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Joint Memorandum Circular (JMC) 2018-001 The Department of Finance (DOF), Department of Budget and Management (DBM), and Department of Social Welfare and Development (DSWD) Joint Memorandum 2018-001 states that the Unconditional Cash Transfer (UCT) and Tax Reform Cash Transfer shall be considered as one and the same program.

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GENERAL GUIDELINES Implementing Rules and Regulation

General Guidelines UCT/TRCT

Target Beneficiaries

Target beneficiaries shall be selected based on the following criteria as indicated in RA 10963: • • •

Households in the Pantawid Pamilyang Pilipino Program Beneficiaries of the Social Pension Program; and Other households in the database of NHTS-PR or Listahanan

Applicability The provision set fort he rein shall apply to the payment and distribution of UCT/ TRCT cash grants to household-beneficiaries through:

• LBP Cash Card • LBP Over-thecounter • LBP Conduits

Preparation before Funding and Payout

Schedule of Payment of UCT/TRCT Program Cash Grants

• The validated list shall turn over to the UCT National Program Manag ement Office

DSWD shall provide LBP the mapping for CY 2018 in accordance with schedule agreed upon by the RACs. The mapping shall include in the regions, provinces, municipalities, barangays, number of beneficiaries, mode of payment.

• LBP shall open “LANDBANK Tax Reform Cash Transfer/ Unconditional Cash Trans fer Program Account”

 LBP shall determine the servicing branches that will handle the distribution of cash grants.

Payout LBP Over-theCounter It is the mode of payment where the beneficiaries will go to their assigned LBP branch to claim their UCT/TRCT grants.

 DSWD RO shall determine the venue distribution for the LBP branches nearby areas subject to final confirmation by the LBP taking into the consideration of the following. - Peace and order situation in the payout site; and - Accessibility and safety of the payout areas in transporting the cash rants from LBP Servicing Branches.  DSWD RO shall provide logistical requirement (e.g. venue, security etc.) in coordination with the Local Government Unit (for nearby offsite payout activities)  DSWD shall assign authorized DSWD representative s (Municipal Link or City Link and Municipal Bookkeep er or Authorized Field Office Finance Representative) who will present during the UCT/TRCT payouts.

 DSWD shall provide LBP Servicing Branches the specimen of signature of Authorized DSWD Representative through official letter ten (10) working days before the start of payout month. 

LBP shall print the payroll.

P P P P

(DATE)

(NAME OF THE BENEFICIARY) (HOUSEHOLD/OSCA/PHILHEALTH ID NUMBER) (BRACH OF WITHDRAWAL)

Requirements for the CLAIM of the Stipend 01

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Shall present the following ID • Office of the Senior Citizens (OSCA) ID • Certification Issued by DSWD Regional Office Beneficiaries shall accomplish the following fields of UCT/TRCT Payment Slip • • • • • •

Date Name of the beneficiaries OSCA ID Number LBP Branch of Withdrawal Payout Period Signature or Thumbmark of beneficiary

Affix Signature of Thumbmark

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Beneficiaries shall affix signature/thumbmark on the above of the printed name of the beneficiary on the payment slip and payroll list upon the receipt of the cash.

(NAME)

(AGE)

P P P P

P

P

(ADDRESS)

Requirements for the CLAIM of the Stipend

(OSCA ID)

P

P

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• Valid ID of the beneficiary • One (1) valid ID of the beneficiary representative

(DATE)

P

(SIGNATURE OF THE REGIONAL DIRECTOR)

(NAME OF THE REPRESENTATIVE)

P

P

P

(AGE)

P

(SIGNATURE/THUMBMARK OF BENEFICIARY)

(ADDRESS)

P

(acceptable IDs to LBP: SSS ID, GSIS ID, Driver’s License, Company ID (present), School ID, Passport, TIN ID, Postal ID, Phil Health ID, Marriage Contract (original copy), Major Credit Card, Membership Card of well-known associations and clubs, HMO ID, Senior Citizens Card)

(RELATIONSHIP TO THE BENEFICIARY)

P

(REASON OF ABSENCE OF THE SENIOR CITIZENS)

P

P

Beneficiary’s Representative • Up to the 2nd degree of consanguinity

(SIGNATURE/THUMBMARK AUTHORIZED REPRESENTATIVE)

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• Certification of Identity of the UCT/TRCT beneficiary issued by DSWD RO • Authorization of the Beneficiary representative issued by DSWD RO

(SIGNATURE OF THE REGIONAL DIRECTOR)

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UCT/TRCT Payment Slip

Payout LBP Over-theCounter It is the mode of payment where the beneficiaries will go to their assigned LBP branch to claim their UCT/TRCT grants.

 LBP Servicing Branches shall handle the distribution if cash grants at LBP Servicing Branches or nearby areas on Saturdays weekdays after banking hours.  Distribution during the weekdays on banking hours shall be held onsite areas or nearby areas from the LBC Servicing Branches.  DSWD representative (Municipal/City Link) shall affix the signature on the Payroll and UCT/TRCT Program Payment Slip BEFORE THE RECIEPT OF THE GRANTS by the beneficiaries on the verified form  DSWD representative, (Municipal Roving Bo okkeeper or the Authorized Field Office Fina nce Representative) shall affix signature on the Payroll and UCT/TRCT Program Payment Slip AFTER THE RECIEPT OF THE GRANTS by the beneficiaries on the witness portion of the form during the payout day;

DSWD-LBP Servicing Branch After the payment of the Grants

Liquidation Documents: a. Acknowledgement Payroll List – signed by DSWD Municipal/City Link Municipal Roving Bookkeeper or the Authorized Field Office Finance Representative b. Certification of Accounting of the Total Amount Disbursed and Number of Paid and Unpaid Beneficiaries per Municipality – signed by Municipal Roving Bookkeeper or the Authorized Field Office Finance Representative. Note: An advance copy shall be sent t LBP CCT-PMO by the LBP servicing branches through the fax or email as supporting documents for the funding Monitoring Report

LBP servicing branches shall reconcile daily the following: - Amount of cash grant funded - Amount of cash grants paid and unpaid - Number of Paid beneficiaries

Processes Land of the Philippines

LBP Servicing Branch

LBP CCT-PMO

LBP Intramuros Branch

Shall provide the LBP CCT-PMO

Shall provide LBP Intramuros

Shall credit back to the main account

Certification of Accounting of the Total Amount Disbursed and Number of Paid and Unpaid Beneficiaries per Municipality signed by LBP branch head;

Shall handle, maintain, and safekeep original copy of the liquidation documents on the distribution UCT/TRCT

To debit the balance from the LBP Servicing Branches using the Bank facility within five working days after the last payout.

“Landbank UCT/TRCT” account the total balance debited from the Landbank Servicing Branch Name maintained at the LBP servicing branch within the eight working days from the last payout. Shall provide summary report on debited balances (unpaid cash grants) from LBP servicing branches within 10 days from the last payout.

The distribution of the UCT/TRCT cash grant during the payout month shall be liquidated first by the LBP servicing branch before the releasing funds for the next payout period.

Thank you - UCT/TRCT -