RMO No. 19-2016 — Further amends RMO No. 2-2014, prescribing the use of the revised Taxpayer Type Classification and adopting the latest 2009 Philippine Standard Industrial Classification (PSIC) and 2012 Philippine Standard Occupational Classification (PSOC) Digest | Full Text | Annex A

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City September 2 May 17, 20169, 2015 REVENUE MEMORANDUM ORDER NO. 19-2016 SUBJECT : Further Amends Revenue Memorandum Order No. 2 � 2014, Prescribing the use of the Revised Taxpayer Type Classification, and Adopting the Latest 2009 Philippine Standard Industrial Classification (PSIC) and 2012 Philippine Standard Occupational Classification (PSOC) TO : All Internal Revenue Officials, Employees and Others Concerned. ______________________________________________________________________________ I. OBJECTIVES: This Revenue Memorandum Order (RMO) is issued to: 1. Prescribe the use of the Revised Taxpayer Type Classifications. 2. Provide a standard code guide on taxpayer types to be uniformly used in all district offices and other concerned offices to eliminate misclassification of taxpayer. 3. Generate more accurate statistics as to the active taxpayers per taxpayer type classification. 4. Provide uniform Registration Report Format for a more reliable and accurate reporting of registration data for computerized and non- computerized Revenue District Offices (RDOs). 5. Adopt and implement the latest 2009 PSIC and 2012 PSOC published by the National Statistical Coordinating Board (NSCB). II. TAXPAYER TYPE CLASSIFICATIONS The following is the updated Taxpayer Type Classifications with ITS applicable codes: TAXPAYER TYPE CLASSIFICATIONS RMO 11-2004 New Code INDIVIDUAL (specify PSOC/PSIC) (ITS) (eTIS) EO98 Executive Order No. 98-Filipino Citizen EO98FC Executive Order No. 98-Foreign National ONETT EO98FN One-Time Transaction � Filipino Citizen ONETT ONETFC One-Time Transaction � Foreign National LOCAL ONETFN Local Employee � Compensation Income Earner Only LOCAL (Resident Citizen)

SINGL RAEMP Resident Alien Employee � Compensation Income Earner Only RESAL SNRAE Special Non-Resident Alien Employees of RHQ, ROHQ, OBU, Petroleum MIE SINGL Single Proprietorship Only (Resident Citizen) RASP Resident Alien � Single Proprietorship LOCAL + SINGL RAP Resident Alien � Professional MIE Marginal Income Earner LOCAL + PROF MIXCS Mixed Income Earner � Compensation Income Earner and Single Proprietor LOCAL + PROF MIXCP Mixed Income Earner � Compensation Income Earner and + SINGL Professional MIXCSP Mixed Income Earner � Compensation Income Earner, Single PROF Proprietorship & Professional PROFL PROFL Professional � Licensed (PRC, IBP) PROFG Professional � In General PROF + SINGL PROFSP Professional & Single Proprietor ESTAFC Estate � Filipino Citizen ESTAT ESTAFN Estate � Foreign National TRUSTFC Trust � Filipino Citizen TRUST TRUSFN Trust � Foreign National NRAET Non-Resident Alien Engaged in Trade / Business Passive Income Earner Only PIE RMO 11-2004 New Code JURIDICAL ENTITIES (specify PSIC) (ITS) (eTIS) PART GPP General Professional Partnership Limited Partnership RFCGL LMPART General Partnership ULPART Domestic Corporation ROHQ Resident Foreign Corporation JOINT CORP Regional or Area Headquarters GOVTA RFC Regional Operating Headquarters LGU RHQ Joint Venture GVTCP ROHQ National Government Agency NONST JOINT Local Government Units NGA Government Owned & Controlled Corporation NRFC LGU Non-stock Non-Profit Organizations, (e.g., Political Parties, NRFCG GOCC Homeowners' Assoc., Business Leagues, etc.) NONST Cooperatives Non-Resident Foreign Corporation COOP Non-Resident Foreign Partnership NRFC Foreign Embassies and International Organizations NRFP FEIO III. POLICIES 1. The standard taxpayer type classifications and its corresponding codes as provided under Section II of this RMO shall be uniformly used by all district offices and other concerned offices in classifying taxpayers/new registrants and their corresponding taxes to avoid inconsistencies in the registration reports. 2. There should be one taxpayer type CLASSIFICATION per taxpayer by choosing the taxpayer's main line of business/profession as the criteria for classification. For cases with multiple line of businesses/profession, Client Support Section is required to indicate applicable 2009 PSIC/ 2012 PSOC as many as appropriate. 2

3. Passive Income Earners are those active individual taxpayers who are no longer engaged in trade or business with no outstanding tax liabilities or no longer employed (e.g. retired, persons with disabilities, pensioner) without business income but receiving passive income only from sources within or without the Philippines. 4. "Passive Income Earner Only" is available in the update of taxpayer type classification for those existing taxpayers only and cannot be used as classification during initial registration with the Bureau. Therefore, no new taxpayers shall be registered under this classification. 5. The prescribe revised format on Report on Registration By "Taxpayer Type" Classification, TAS Report No. 007 (Annex A) shall be submitted on or before the 10th day of the following month to tspmd_tas@bir.gov.ph. 6. In the case of tax type classifications, the same codes shall be used for system generated report purposes. Any modification/addition in classification shall be covered by a separate RMO. 7. RDO's front liners should strictly follow Section II and III of this Order in classifying the correct taxpayer type of the taxpayers. 8. The Client Support Service shall monitor and recommend to the Internal Investigation Division the following penalties to RDOs who fail to comply with the provisions of this Order: 1st offense: Warning 2nd offense: Reprimand 3rd offense: Suspension for 30 days IV. EFFECTIVITY This Order shall take effect immediately to RDOs under eTIS and upon implementation of Taxpayer Registration Information Update (TRIU). Pending the eTIS roll out to other Revenue District Offices, policies and procedures set forth under RMO 11 � 2004 shall still be observed in the meantime. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue H-2LMB _______ NMA _______ LMB _______ NMA _______ EBQ _______ MLDR _______ BSM _______ MAG _______ ESM _______ GMA _______ MAC _______ EBQ _______ MLDR _______ BSM _______ MAG _______ ESM _______ GMA _______ MAC _______ 3