RMC 29-2021: Use of e-Signatures on BIR Forms/Certificates

As of February 26, 2021, The Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular No. 29-2021 (RMC No. 29-2021).

This announcement was released to inform Filipino Taxpayers that they will be allowed to use Electronic Signatures (e-Signature) on certain BIR Forms/Certificates. This was done to take into account the mandates given for Republic Act (RA) No. 11032 or the “Ease of Doing Business and Efficient Government Delivery Act of 2018” for the continuing effects of the pandemic.

The difference between an e-Signature and a Digital signature can be confusing, but simply put, an e-Signature is a distinctive mark, characteristic, and/or sound in electronic form that represents the identity of a person and is attached to a form or certificate. A digital signature offers more security than a traditional e-Signature. When you sign a document with a digital signature, that information is permanently embedded into the document, this allows users to determine if the signature has been tampered with or copied.

Legal Basis

e-Signatures have long been recognized under RA No. 8792, otherwise known as the Electronic Commerce Act of 2000. Section 8 of RA No. 8792 legally recognizes e-Signatures and is as follows:

• An electronic signature on an electronic document shall be equivalent to a written signature on a written document. This works if that signature is proved by showing the prescribed procedure that has not been changed or modified, under which:
  • A method is used to identify sought to be bound and has access to the electronic document necessary for approval
  • Said method is reliable and appropriate for the purpose of creating an electronic document
  • It is necessary for the party to be bound in order to continue with the transaction
  • The other party is authorized and enabled to verify the e-Signature and make a decision to move forward with the transaction

The following forms have been approved by the BIR to accept e-Signatures from taxpayers:

1. Form 2304 – Certificate of Income Payment Not Subject to Withholding Tax (Excluding Compensation Income)
2. Form 2306 – Certificate of Final Tax Withheld at Source
3. Form 2307 – Certificate of Creditable Tax Withheld at Source
4. Form 2316 – Certificate of Compensation Payment/Tax Withheld

To learn more about the policies and guidelines, you can read more on RMC 29-2021.

As of February 26, 2021, The Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular No. 29-2021 (RMC No. 29-2021).

This announcement was released to inform Filipino Taxpayers that they will be allowed to use Electronic Signatures (e-Signature) on certain BIR Forms/Certificates. This was done to take into account the mandates given for Republic Act (RA) No. 11032 or the “Ease of Doing Business and Efficient Government Delivery Act of 2018” for the continuing effects of the pandemic.

The difference between an e-Signature and a Digital signature can be confusing, but simply put, an e-Signature is a distinctive mark, characteristic, and/or sound in electronic form that represents the identity of a person and is attached to a form or certificate. A digital signature offers more security than a traditional e-Signature. When you sign a document with a digital signature, that information is permanently embedded into the document, this allows users to determine if the signature has been tampered with or copied.

Legal Basis

e-Signatures have long been recognized under RA No. 8792, otherwise known as the Electronic Commerce Act of 2000. Section 8 of RA No. 8792 legally recognizes e-Signatures and is as follows:

• An electronic signature on an electronic document shall be equivalent to a written signature on a written document. This works if that signature is proved by showing the prescribed procedure that has not been changed or modified, under which:
  • A method is used to identify sought to be bound and has access to the electronic document necessary for approval
  • Said method is reliable and appropriate for the purpose of creating an electronic document
  • It is necessary for the party to be bound in order to continue with the transaction
  • The other party is authorized and enabled to verify the e-Signature and make a decision to move forward with the transaction

The following forms have been approved by the BIR to accept e-Signatures from taxpayers:

1. Form 2304 – Certificate of Income Payment Not Subject to Withholding Tax (Excluding Compensation Income)
2. Form 2306 – Certificate of Final Tax Withheld at Source
3. Form 2307 – Certificate of Creditable Tax Withheld at Source
4. Form 2316 – Certificate of Compensation Payment/Tax Withheld

To learn more about the policies and guidelines, you can read more on RMC 29-2021.