RMC No. 92-2018 — Clarifies the filing of tax returns of accredited Microfinance Non-Government Organizations Digest | Full Text

RXPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE RECORDS MGT, DIVI SION BUREAU OF INTERNAL REVENUE October31,2018 REVENUE MEMORANDUM CIRCULAR NO. Q I. 20 I g SUBJECT Clarification on the Filing of Tax Returns of Accredited Microfinance Non- TO Government Organizations All Accredited Microfinance Non-Government Organizations, Internal Revenue Officials, Employees and Others Concerned. This Circular is being issued to clariflz the forms to be used by the duly registered and accredited Microfinance Non-Government Organizations (MF-NGOs) in filing and payment of the two percent (2o/o)tax, based on its gross receipts from microfinance operations in lieu of all national taxes. A. Accredited MF-NGOs, whose operation is purely microfinance that refers only to the lending activities and insurance commission which are bundled and forming an integral part of tlre qualified lending activities of the MF-NGOs, shall declare theZYo tax on its gross receipts from microfinance operations using the following: '-',1126e,0f{ax Forms ,Frequency Purely microfinance operations Income Tax 2% 1102Q Quarterly l702MX Annually Business Tax Not applicable. The 2% tax on its gross receipts from microfinance operations is in lieu of alI national taxes. B. Accredited MF-NGOs with income from non-microfinance activities shall file the following: ,rsourc'- * come'' "':-,,::[.ype3f; Tgx,rit ':Taxao*le-Base'. , Forms. Frequency Purely microfinance Income Tax 2% Gross Receipts 1 702Q Quarlerly operations 1702MX ArrrrLrally Income Tax 30% faxable income r 702Q Quarlerly or 1702MX Annually 2% MCIT Gross Income All non-microfinance whichever activities or all other is higher income not generated Business Tax from microfinance operations . Non-VAT registered - Percentage Tax 3% Gross sales 2sslQ Quafterly or receipts '...i'..] '.r :ij'.' 'V-ATV-AreTgistered 12% 2s50Ml Monthly/ :',. ..: Gross sales 2ss0Q Quarterly 1'r ;ti ]fifr ii i:,;t:, or receipts ' jr:

Accredited MF-NGOs with income from purely microfinance operations shall use the Alphanumeric Tax Code (ATC)-1C210 in manual filing of income tax returns. In case the accredited MF-NGOs is enrolled in Electronic Filing and Payment Systern (eFpS) or using eBIRForms facility in filing the required income tax returns, the ATC-tC0ll shall be useJ pending enhancetnent of the income tax return forms in the eBIRForms/eFPS. Moreover, accredited MF-NGOs shall registeriupdate the applicable tax/form types above, or cancel, if applicable, the previously registered percentage tax type using BIR Form No. 1905 to the Revenue District office where they are registered. Previously Filed Tax Return Accredited MF-NGOs who filed and paid the 2o/o preferential tax rate using BIR Forrn Nos. 255lMl2551Q for the first ( I't) to third (3"r) quarters of 201 8, shall file its quarterly income tax return (BIR Fonn No. 1702Q) for the 3'd quarter of 2018 by declaring the cumulative gross receipts for the l$ to 3'd quarlers of20l8. Such gross receipts shall be reflected undei.the "Special Rate" column and compute the total2oh tax due thereon. The amount paid using BIR Forr Nos. 2551M12551Q be reflected for the l't to 3'd qu'arters of 2018 shall undir tax credits/payrnents in item no. 3 lG (Others, please specifl,) field of BIR Form No. I 702e. Accordingly, accredited MF-NGOs with income from non-microfinance activities shall declare the cumulative gross receipts from such activities for the I $ to 3.d quafiers of 201 g in the "Regular Rate" column of BIR Form No. 1702Q and compute the applicable tax due thereon. This Circular clarifies Section IV of RMO No. 2-2018 relative to Revenue Regulations No. 3- 2017 pertaiu ing to the formis to be used in filing of the 20 preferential tax rate. All internal revenue officers and employees are hereby enjoined to give this Circular a wide publicity as possible. tl-2lmag EUREAU OF lNfEt+.rAL HEvE { J#o"".(:f=<V CAESAR R. DULAY : 7t P.u. Commissioner of Internal Revenue 0 20 6I 2 RECORbS MGT. Di