RMO No. 5-2019 — Modifies the Alphanumeric Tax Code for Compensation Income under RA No. 10963 (TRAIN Act) and for Withholding Taxes

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF inTERNAL RE aTTT JAN 1 5.2019 2:38PM NAaA

t Quezon City RECoRdS Mgt. diVISION

December 19, 2018

REvenue MeMOrANDUM ORDer NO. _5- &0/9

SUBJECT Modification of Alphanumeric Tax Code (ATC) for Compensation Income under Republic Act (RA) No. 10963, otherwise known as the Tax Reform for

Acceleration and Inclusion (TRAIN) Act and for Withholding Taxes

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

I. OBJECTIVE:

To facilitate the proper identification and monitoring of tax collection from Individual Income Tax in BIR Form Nos. 1700 (Annuai Income Tax Return For Individuais Earning Pureiy Compensation Income Including Non-Business/Non-Profession Income), 1701 (Annual Income Tax Return For Self- Employed Individuals, Estates and Trusts) and 1701Q (Quarterly Income Tax Return For Individuals, Estates and Trusts) pursuant to RA No. 10963, and from withholding taxes and for Integrated Tax Systems (ITS) purposes, the following ATCs are hereby modified:

EXISTING (per ATC Handbook) MOdIFIED/ NEW

ATC Description Tax Rate Form N. BIR Legal Basis BIR Form No.

I1011 Compensation Income Income Tax Graduated Rates 1701Q 1701 RR No. 11-2018 RA No. 10963 1701Q 1700 1701

WI4501. Capital gains Tax on Income payments subject to final withholding taxes saie/exchange or other disposition of real property individual 6% 1601-F 1601-E 2307 1600 Sec. 2.57.1 (A) (6) RR 17-2003 2307 1706

WC450 2.Capital gains tax on the 6% RR 17-2003

saie/exchange or other disposition of land and building Sec. 2.57.1 {G) (5)

corporate

H REPEALING CLAUSE:

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

I. EFFECTIVITY:

This RMO shall take effect immediately.

1wsoA M

Commissioner of Internal Revenue CAESAR R. DULAY 022769

B - 3 BUREAU OF INTE RAL Rt VENUt

RmmYy

2:0YP.M JAN 15.2019 AAEx UUI RECORDS MGT. DIVISION

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