BIR Updates on the Use of E-signatures on Selected Forms

In light of the current global health crisis brought about by the COVID-19 pandemic and in accordance to Republic Act (RA) No. 11032, or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018′, the Bureau of Internal Revenue (BIR) has issued REVENUE MEMORANDUM CIRCULAR No. 29-2021 on the 25th of January allowing the use of electronic signatures (e-signatures) for selected BIR forms.

As defined in Section 5 RA No. 8792, otherwise known as the “Electronic Commerce Act of 2000′, an e-signature refers to any distinctive mark, characteristic, and/or sound in electronic form that represents the identity of a person. The e-signature should be attached to or logically associated with the form or certificate, or any methodology or procedure 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 document.

Further, Section 8 of RA No. 8792 states that an e-signature on an electronic document shall be equivalent to the signature of a person affixed on the written document if that signature is proved by a prescribed procedure, which is not alterable by the parties that are interested in the electronic document, as follows:

● A method is used to identify the party sought to be bound (signatory), and to indicate the said party’s access to the electronic document which requires his consent or approval through the electronic signature;

● Said method is reliable and appropriate for the purpose for which the electronic document or electronic data message was generated or communicated in the light of all circumstances, including any relevant agreement;

● lt is necessary for the party sought to be bound (signatory) to have executed or provided the e-signature in order to proceed further with the transaction; and

● The other party is authorized and enabled to verify the e-signature, and to make the decision to proceed with the transaction authenticated by the same.

Taxpayers should be responsible in ensuring the credibility of all “e-signed” documents, as well as in exercising the proper monitoring and control on the procedures to guarantee the integrity of the e-signed document, and to make it easier to prove or disprove the same or any correspondence that was electronically signed legitimately by the authorized signatory.

See link below for a copy of the above mentioned circular.

Click to access RMC%20No.%2029-2021.pdf