RMO No. 20-2019 — Modifies the Alphanumeric Tax Code for Business Income and Income from Profession in BIR Form Nos. 1701/1701A/1701Q pursuant to the implementation of RA No. 10963 (TRAIN Act)

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

I0 April 1, 2019

REVENUE MEMORANDUM ORDER NO.20-&0/

SUBJECT Modification of Alphanumeric Tax Code (ATC) for Business Income and Income from Profession in BIR Form Nos.1701/1701A/1701Q Pursuant to the Implementation of

Republic Act (RA) No.10963,also known as Tax Reform for Acceleration and Inclusion (TRAIN)

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 Business Income and Income from Profession in BIR Form Nos. 1701 - Annual Income Tax Return Individuals (including Mixed Income Earner), Estates and Trusts; 1701A - Annual Income Tax Return Individuals Earning Income Purely from

Business/Profession [Those under the graduated income tax rates with OSD as mode of deduction or those who

opted to avail of the 8% flat income tax rate]; and 1701Q -Quarterly Income Tax Return For Individuals, Estates

and Trusts, in connection with the implementation of RA No. 10963, the following ATCs are hereby modified

EXISTING (per ATC Handbook) MODIFIED/ NEW

I1012 ATC Business In come - Graduated Income Tax Rates Description Income Tax Graduated Tax Rate Rates BIR Form 1701Q 1701/ No. RA No. 10963 Legal Basis BIR Form 1701A/ 1701Q 1701/ NO.

I014 Income from Profession - Graduated Income Tax Rates

I1015 II017 Business Income -8% Income Tax Rate Income from Profession - 8% Income Tax Rate 8% Income Tax Rate

I REPEALING CLAUSE:

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

II. EFFECTIVITY:

This RMO shall take effect immediately.

B-3 BURGAIOFINTERNALREVENUE RECORDS MGT.DIVISION VTGIA APR 3 0,2019 2ISAM TYN Mwa Commissioner of Internal Revenue aeama CAESAR R.DULAY 025391