RMO No. 4-2022 — Modifies the Alphanumeric Tax Code (ATC) of selected revenue source under RA No. 11534 (CREATE Act)

REPUBLIC OF THE PHILIPPINES BUREAUOF INTERMREVENUE DnTIyTn

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City November z. RECORDS MGi.D.VISiON JAN J.. 2022 GG 94a Km

REVENUE MEMORANDUM ORDER NO. --20 2

SUBJECT: Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Incentives for Enterprise (CREATE) Act Republic Act (RA) No. 11534, otherwise known as Corporate Recovery and Tax

TO All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned

I OBJECTIVE:

or with Income Subject to Special/Preferential Rate) pursuant to RA No. 11534, the following ATCs are hereby BIR Form Nos. 1702Q (Quarterly Income Tax Return for Corporations, Partnerships and Other Non-individual Corporation, Partnership and Other Non-Individual with Mixed Income Subject to Multiple Income Tax Rates Taxpayers), 1702-RT (Annual Income Tax Return For Corporation, Partnership and Other Non-Individual Taxpayer Subject Oniy to Regular Income Tax Rate) and 1702-MX (Annual Income Tax Return For modified: To facilitate the proper identification and monitoring of tax collection from Corporate Income Tax in

EXISTING (per ATC Handbook) MODIFIEDI NEW ATC Description Rate Tax Form No. BIR Legal Basis Tax Rate

ICO10 Domestic Corporation, in generai 30% 25% or 20%

July 01, 2020 onwards IC030 Proprietary Educational Institutions 10%

July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 10% ProprietaryEducationalinstitutions trade,businessor whose gross income from unrelated exceeds fifty percent (50%) of the total gross income from all sources otheractivity 30% 1702-RT/ 1702Q R.A. No. 11534 RR No. 5-2021 25% or 20%

July 01, 2020 onwards 1702-MX ICO31 Non-Stock, Non-Profit Hospitals 10%

July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 10%

whose gross income from unreiated trade, business or other activity gross income from all sources exceeds fifty percent (50%) of the total Non-Stock, Non-Profit Hospitals 30% 25% or 20%

July 01, 2020 onwards ICO40 GOCC, Agencies & Instrumentalities 30% 25% or 20%

July 01, 2020 onwards

1:t

ATC Description EXISTING (per ATC Handbook) Rate Tax Form No BIR Legal Basis MODIFIED/ Tax Rate NEW

ICO41 National Government and LGUs 30% 25% or 20%

July 01, 2020 onwards

IC020 Taxable Partnership 30% 25% or 20%

July 01, 2020 onwards

IC055 Minimum Corporate Income Tax (MCIT) 2%

July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 2% tC070 Resident Foreign Corporation, In General 30% 1702-RT/ 1702Q R.A. No. 11534 RR No. 5-2021 25%

IC190 Offshore Banking Units (OBU's) subjected to Final Tax Foreign Currency Transaction not 10% 1702-MX 25%

Other Than Foreign Currency Transaction 30% 25%

IC101 Regional Operating Headquarters 10% 25%

January 01, 2022

IC191 Foreign Currency Deposit Units (FCDUs} Foreign Currency Transaction not subjected to Final Tax 10% 25%

Other Than Foreign Currency Transaction 30% 25%

I REPEALING CLAUSE:

herewith. This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent

EFFECTIVITY:

This RMO shall take effect immediately.

X5a

B-3 Commissioner of Internal Revenue CAESAR R. DULAY 048784

BUREAUOF INTERNAL PEVENUE 1 nm Page 2 of 2 JAN 1: 2022 G AS AM

RECORD