RMO No. 38-2018 — Creates, modifies and drops the Alphanumeric Tax Codes (ATCs) of selected revenue source under RA No. 10963 (TRAIN Law) Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City April 03, 2018 REVENUE MEMORANDUM ORDER NO. 38-2018 SUBJECT : Creation, Modification and Dropping of Alphanumeric Tax Code (ATC) of Selected TO Revenue Source under Republic Act (RA) No. 10963, Otherwise Known as Tax Reform for Acceleration and Inclusion (TRAIN) Law and Pursuant to Revenue Regulations (RR) No. 11-2018 : 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 income payments subject to creditable and final withholding taxes pursuant to RA No. 10963 and the issuance of RR No. 11-2018. II. CREATION OF NEW ATCs: ATC Description Tax Rate Legal BIR Form Basis 1601-EQ WI139 Gross commissions or service fees of customs, insurance, stock, 5% RA No. WC139 immigration and commercial brokers, fees of agents of professional 10% 10963 1601-EQ entertainers and real estate service practitioners (RESPs), (i.e. real estate RR No. WC151 consultants, real estate appraisers and real estate brokers) 10% 11-2018 1601-EQ WC150 15% 1601-EQ a. Individual RA No. 1601-EQ WC020 - If gross income for the current year did not exceed P 3M 10% 10963 WC021 15% RR No. WC030 b. Corporate 10% 11-2018 WC031 - If gross income for the current year did not exceed P 720,000 15% RA No. WC040 Professional fees paid to medical practitioners (includes doctors of 10% 10963 WC041 medicine, doctors of veterinary science & dentists) by hospitals & clinics 15% RR No. or paid directly by Health Maintenance Organizations (HMOs) and/or 11-2018 similar establishments RA No. Corporate 10963 - If gross income for the current year did not exceed P 720,000 RR No. - If gross income exceeds P 720,000 11-2018 RA No. Professional entertainers such as, but not limited to actors and 10963 actresses, singers, lyricists, composers, emcees RR No. 11-2018 Corporate - If gross income for the current year did not exceed P 720,000 - If gross income exceeds P 720,000 Professional athletes including basketball players, pelotaris and jockeys Corporate - If gross income for the current year did not exceed P 720,000 - If gross income exceeds P 720,000 All directors and producers involved in movies, stage, radio, television and musical productions Corporate - If gross income for the current year did not exceed P 720,000 - If gross income exceeds P 720,000

ATC Description Tax Rate Legal BIR Form Basis 1601-EQ WC060 Business and bookkeeping agents and agencies 10% RA No. 1601-EQ WC061 Corporate 15% 10963 1601-EQ - If gross income for the current year did not exceed P 720,000 RR No. 1601-EQ WC070 - If gross income exceeds P 720,000 10% 11-2018 WC071 15% RA No. 1601-EQ Insurance agents and insurance adjusters 10963 WC080 Corporate 10% RR No. WC081 - If gross income for the current year did not exceed P 720,000 15% 11-2018 - If gross income exceeds P 720,000 RA No. Other recipients of talent fees 10963 Corporate RR No. - If gross income for the current year did not exceed P 720,000 11-2018 - If gross income exceeds P 720,000 RA No. Commissions, rebates, discounts and other similar considerations 10963 RR No. paid/granted to independent and/or exclusive sales representatives and 11-2018 marketing agents and sub-agents of companies, including multi-level RA No. 10963 marketing companies RR No. 11-2018 a. Individual WI516 - If gross income is more than P 3M or VAT Registered 10% regardless of amount b. Corporate WC516 - If gross income exceeds P 720,000 15% Income payments on locally produced raw sugar WI720 a. Individual 1% WC720 b. Corporate 1% III. THE FOLLOWING ATCs ARE HEREBY MODIFIED: EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI010 Professionals (lawyers, CPAs, No. Professional (Lawyers, CPAs, No. WI011 engineers, etc.) 10% Engineers, etc.) 5% RA No. 15% 1601-E 10% 10963 1601-EQ a. Individual a. Individual RR No. - If the current year's gross - If gross income for the 10% 11-2018 income is P720,000 and current year did not 15% below exceed P 3M - If the currents year's - If gross income is more gross income exceeds than P 3M or VAT P720,000 Registered regardless of amount WC010 b. Corporate WC011 - If the current year's gross 10% b. Corporate income is P720,000 and - If gross income for the below current year did not - If the current year's gross 15% exceed P 720,000 income exceeds - If gross income exceeds P720,000 P 720,000

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI020 Professional entertainers such No. Professional entertainers such as, RA No. No. WI021 as, but not limited to actors and 10% 1601-E but not limited to actors and 5% 10963 1601-EQ actresses, singers, lyricist, 15% actresses, singers, lyricists, 10% RR No. composers, emcees 1601-E composers, emcees 11-2018 1601-EQ 5% Individual 1601-E Individual 10% RA No. 1601-EQ - If the current year's gross - If gross income for the 10963 income is P720,000 and 1601-E current year did not exceed 5% RR No. 1601-EQ below P 3M 10% 11-2018 - If the current year's gross - If gross income is more than income exceeds P720,000 P 3M or VAT Registered 5% RA No. regardless of amount 10% 10963 Professional athletes including 10% RR No. Professional athletes including 15% 11-2018 basketball players, pelotaris and basketball players, pelotaris and jockeys RA No. jockeys 10963 Individual RR No. Individual - If gross income for the 11-2018 current year did not exceed WI030 - If the current year's gross 10% P 3M - If gross income is more than income is P720,000 and P 3M or VAT Registered regardless of amount below All directors and producers WI031 - If the current year's gross 15% involved in movies, stage, radio, television and musical productions income exceeds P720,000 Individual Movie, stage, radio, television - If gross income for the and musical directors current year did not exceed P 3M WI040 Individual - If gross income is more than WI041 - If the current year's gross 10% P 3M or VAT Registered income is P720,000 and regardless of amount below - If the current year's gross 15% Management and technical income exceeds P720,000 consultants Management and technical a. Individual - If gross income for the consultants current year did not exceed P 3M a. Individual - If gross income is more than P 3M or VAT WI050 - If the current year's gross 10% Registered regardless of amount income is P720,000 and b. Corporate below - If gross income for the current year did not WI051 - If the current year's gross 15% exceed P 720,000 - If gross income exceeds income exceeds P 720,000 P720,000 WC050 b. Corporate WC051 - If the current year's gross 10% income is P720,000 and below - If the current year's gross 15% income exceeds P720,000

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI060 Business and bookkeeping No. Business and bookkeeping agents RA No. No. WI061 agents and agencies 10% 1601-E and agencies 5% 10963 1601-EQ 15% 10% RR No. Individual 1601-E Individual 11-2018 1601-EQ - If the current year's gross - If gross income for the 5% income is P720,000 and current year did not exceed 10% RA No. 1601-EQ below P 3M 10963 - If the current year's gross - If gross income is more than RR No. 1601-EQ income exceeds P720,000 P 3M or VAT Registered 11-2018 regardless of amount 1601-EQ Insurance agents and insurance RA No. Insurance agents and insurance 10963 adjusters adjusters RR No. 11-2018 Individual Individual - If gross income for the RA No. WI070 - If the current year's gross 10% current year did not exceed 10963 P 3M RR No. income is P720,000 and - If gross income is more than 11-2018 P 3M or VAT Registered below regardless of amount RA No. 10963 WI071 - If the current year's gross 15% RR No. 11-2018 income exceeds P720,000 Other recipients of talent fees 1601-E Other recipients of talent fees Individual Individual WI080 - If the current year's gross 10% - If gross income for the 5% income is P720,000 and current year did not exceed below P 3M WI081 - If the current year's gross 15% - If gross income is more than 10% income exceeds P720,000 P 3M or VAT Registered regardless of amount Fees of directors who are not 1601-E Fees of directors who are not employees of the company employees of the company Individual Individual WI090 - If the current year's gross 10% - If gross income for the 5% WI091 income is P720,000 and current year did not exceed below P 3M - If the current year's gross 15% - If gross income is more than 10% income exceeds P720,000 P 3M or VAT Registered regardless of amount Rentals- on gross for the 1601-E Rentals: On gross rental or lease continued use or possession of for the continued use or real property, personal possession of personal property in properties, poles, satellites & excess of Ten thousand pesos transmission facilities, and (P 10,000) annually and real billboards used in business property used in business which which the payor or obligator has the payor or obligor has not taken not taken or is taking title, or in title or is not taking title, or in which has no equity which has no equity; poles, satellites, transmission facilities and billboards WI 100 a. Individual 5% a. Individual 5% WC100 b. Corporate 5% b. Corporate 5%

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI 110 Cinematographic film rentals No. Cinematographic film rentals and RA No. No. WC110 and other payments to resident 5% 1601-E other payments to resident 5% 10963 1601-EQ individuals and corporate 5% individuals and corporate 5% RR No. cinematographic film owners, 1601-E cinematographic film owners, 11-2018 1601-EQ lessors or distributors 2% lessors or distributors 2% 1601-EQ 2% 1601-E 2% RA No. 1601-EQ a. Individual 15% a. Individual 15% 10963 b. Corporate b. Corporate RR No. 1601-EQ 11-2018 WI 120 Income payments to certain Income payments to certain RA No. WC120 contractors, on gross payments contractors 10963 RR No. a. Individual a. Individual 11-2018 b. Corporate b. Corporate RA No. 10963 WI130 Income distribution to Income distribution to the RR No. beneficiaries of estates and beneficiaries of estates and trusts 11-2018 trusts RA No. Gross commission or service fees 1601-E Gross commissions or service fees 10963 RR No. of custom, insurance, stock, real of customs, insurance, stock, 11-2018 estate, immigration and immigration and commercial commercial brokers & fees of brokers, fees of agents of agents of professional professional entertainers and real entertainers estate service practitioners (RESPs), (i.e. real estate consultants, real estate appraisers and real estate brokers) WI140 a. Individual 10% a. Individual 10% - If gross income is more than P 3M or VAT Registered regardless of amount WC140 b. Corporate 10% b. Corporate 15% - If gross income exceeds P 720,000 Payments for 1601-E Professional fees paid to medical medical/dental/veterinary practitioners (includes doctors of services thru Hospitals/ medicine, doctors of veterinary Clinics/Health Maintenance science & dentists) by hospitals & Organizations, including direct clinics or paid directly by Health payments to service providers Maintenance Organizations (HMOs) and/or similar establishments Individual Individual WI151 - If the current year's 10% - If gross income for the 5% income payments for the current year did not exceed medical/dental/veterinary P 3M services is P720,000 and below WI150 - If the current year's 15% - If gross income is more than 10% income payments for the P 3M or VAT Registered medical/dental/veterinary regardless of amount services exceed P720,000

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI152 Payment by the general No. Payment by the General RA No. No. professional partnerships (GPP) 10% 1601-E Professional Partnerships (GPPs) to 10% 10963 1601-EQ WI153 to its partners its partners RR No. 15% 1601-E 11-2018 1601-EQ WI156 - If the current year's � of 1601-E - If gross income for the 1601-EQ WC156 income payments for the 1% 1601-E current year did not exceed RA No. 1601-EQ WI159 partners is P720,000 and 15% P 720,000 10963 below 1601-E RR No. 1601-EQ - If gross income exceeds 15% 11-2018 - If the current year's 1601-E RA No. 1601-EQ income payments for the P 720,000 10963 partners exceed P720,000 RR No. Income payments made by credit � of 11-2018 Income payments made by card companies 1% credit card companies 15% RA No. a. Individual 10963 a. Individual b. Corporate 2% RR No. b. Corporate 2% 11-2018 Additional income payments to Additional income payments to government personnel from 1% RA No. gov't. personnel from importers, importers, shipping and airline 1% 10963 shipping and airline companies companies or their agents for RR No. of their agents for overtime overtime services 2% 11-2018 services Income payments made by the 2% Income payments made by the government and government- RA No. government to its local/resident owned and controlled 10963 suppliers of services corporations (GOCCs) to its RR No. local/resident suppliers of services 11-2018 WI157 a. Individual 2% other than those covered by other rates of withholding tax WC157 b. Corporate 2% a. Individual Income payments made by top b. Corporate 20,000 private corporations to their local/resident suppliers of Income payment made by top goods withholding agents to their local/resident supplier of goods WI158 a. Individual 1% other than those covered by other rates of withholding tax WC158 b. Corporate 1% a. Individual Income payments made by top b. Corporate 20,000 private corporations to their local/resident suppliers of Income payment made by top services withholding agents to their local/resident supplier of services WI160 a. Individual 2% other than those covered by other rates of withholding tax WC160 b. Corporate 2% a. Individual b. Corporate

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form No. Commissions, rebates, discounts RA No. No. Commission, rebates, discounts 1601-E and other similar considerations 5% 10963 1601-EQ and other similar considerations paid/granted to independent 10% RR No. paid/granted to independent 1601-E and/or exclusive sales 1% 11-2018 1601-EQ and/or exclusive sales representatives and marketing 1601-EQ representatives and marketing agents and sub-agents of RA No. 1601-EQ agents and sub-agents of companies, including multi-level 10963 1601-EQ companies marketing companies RR No. 11-2018 1601-EQ WI515 a. Individual 10% a. Individual RA No. - If gross income for the 10963 WC515 b. Corporate 10% current year did not RR No. exceed P 3M 11-2018 WI530 Gross payments to embalmers 1% RA No. b. Corporate 10963 by funeral parlors - If gross income for the RR No. current year did not 11-2018 exceed P 720,000 RA No. 10963 Gross payments to embalmers by RR No. funeral parlors 11-2018 Payments made by pre-need 1601-E Payments made by pre-need RA No. 10963 companies to funeral parlors companies to funeral parlors RR No. 11-2018 WI535 a. Individual 1% a. Individual 1% WC535 b. Corporate 1% b. Corporate 1% Tolling fee paid to refineries 1601-E Tolling fees paid to refineries WI540 a. Individual 5% a. Individual 5% WC540 b. Corporate 5% b. Corporate 5% Income payments made to 1601-E Income payments made to suppliers of agricultural products suppliers of agricultural products and quarry resources in excess of cumulative amount of P 300,000 within the same taxable year WI610 a. Individual 1% a. Individual 1% WC610 b. Corporate 1% b. Corporate 1% Income payments on purchases 1601-E Income payments on purchases of of minerals, mineral products minerals, mineral products and and quarry resources quarry resources, such as but not limited to silver, gold, marble, granite, gravel, sand, boulders and other mineral products except purchases by Bangko Sentral ng Pilipinas WI630 a. Individual 5% a. Individual 5% WC630 b. Corporate 5% b. Corporate 5%

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form No. Income payments on purchases of RA No. No. Income payments on purchases 1601-E minerals, mineral products and 1% 10963 1601-EQ of gold by Bangko Sentral ng quarry resources by Bangko 1% RR No. Pilipinas (BSP) from gold 1601-E Sentral ng Pilipinas (BSP) from 11-2018 1601-EQ miners/suppliers under PD 1899, gold miners/suppliers under PD 1% as amended by RA No. 7076 1601-E 1899, as amended by RA No. 7076 1% RA No. 1601-EQ 1601-E 10963 1601-EQ WI632 a. Individual 5% a. Individual 25% RR No. 1601-E b. Corporate 25% 11-2018 1601-EQ WC632 b. Corporate 5% 1601-E Income payments made by the RA No. 1601-EQ Income payments made by the government and government- 10963 government to its local/resident owned and controlled RR No. suppliers of goods corporations (GOCCs) to its 11-2018 local/resident suppliers of goods WI640 a. Individual 1% other than those covered by other RA No. rates of withholding tax 10963 WC640 b. Corporate 1% RR No. a. Individual 11-2018 Withholding on gross amount of b. Corporate RA No. refund given by Meralco to On gross amount of refund given 10963 by MERALCO to customers with RR No. customers with active contracts active contracts as classified by 11-2018 MERALCO as classified by Meralco RA No. a. Individual 10963 WI650 a. Individual 25% b. Corporate RR No. 11-2018 WC650 b. Corporate 25% On gross amount of refund given by MERALCO to customers with Withholding on gross amount of terminated contracts as classified by MERALCO refund given by Meralco to customers with terminated contracts as classified by Meralco WI651 a. Individual 32% a. Individual 32% WC651 b. Corporate 32% b. Corporate 32% Gross amount of interest on the On gross amount of interest on refund of meter deposit whether the refund of meter deposit paid directly to the customers or whether paid directly to the applied against customer's customers or applied against billings of Residential and customer's billings of Residential General Service customers and General Service customers whose monthly electricity whose monthly electricity consumption exceeds 200 kwh consumption exceeds 200 kwh as as classified by MERALCO classified by MERALCO WI660 a. Individual 10% a. Individual 10% WC660 b. Corporate 10% b. Corporate 10% Gross amount of interest on the On gross amount of interest on refund of meter deposit whether the refund of meter deposit paid directly to the customers or whether paid directly to the applied against customer's customers or applied against billings of Non-Residential customer's billings of Non- customers whose monthly Residential customers whose electricity consumption exceeds monthly electricity consumption 200 kwh as classified by exceeds 200 kwh as classified by MERALCO MERALCO WI661 a. Individual 10% a. Individual 10% WC661 b. Corporate 10% b. Corporate 10%

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI662 Gross amount of interest on the No. On gross amount of interest on RA No. No. WC662 refund of meter deposit whether 10% 1601-E the refund of meter deposit 10% 10963 1601-EQ paid directly to the customers or 10% whether paid directly to the 10% RR No. applied against customer's 1601-E customers or applied against 11-2018 1601-EQ billings of Residential and customer's billings of Residential 20% General Service customers 1601-E and General Service customers 20% RA No. 1601-EQ whose monthly electricity whose monthly electricity 10963 consumption exceeds 200 kwh 1601-E consumption exceeds 200 kwh as 5% RR No. 1601-EQ as classified by other electric 1601-E classified by other electric 5% 11-2018 1601-EQ Distribution Utilities (DU) Distribution Utilities (DU) 1% RA No. a. Individual a. Individual 10963 b. Corporate b. Corporate RR No. 11-2018 Gross amount of interest on the On gross amount of interest on refund of meter deposit whether the refund of meter deposit RA No. paid directly to the customers or whether paid directly to the 10963 applied against customer's customers or applied against RR No. billings of Non-Residential customer's billings of Non- 11-2018 customers whose monthly Residential customers whose RA No. electricity consumption exceeds monthly electricity consumption 10963 200 kwh as classified by other exceeds 200 kwh as classified by RR No. electric Distribution Utilities (DU) other electric Distribution Utilities 11-2018 (DU) WI663 a. Individual 20% a. Individual WC663 b. Corporate 20% b. Corporate Income payments made by Income payments made by political parties and candidates of political parties and candidates local and national elections on all their purchases of goods and of local and national elections of services related to campaign expenditures, and income all their purchase of goods and payments made by individuals or juridical persons for their services as campaign purchases of goods and services intended to be given as campaign expenditures, and income contributions to political parties and candidates payments made by individuals a. Individual or juridical persons for their b. Corporate purchases of goods and services Income payments received by Real Estate Investment Trust (REIT) intended to be given as campaign contribution to political parties and candidates WI680 a. Individual 5% WC680 b. Corporate 5% WC690 Income payments subject to 1% Withholding Tax received by Real Estate Investment Trust (REIT) - Corporate Interest income derived from Interest income derived from any other debt instruments not within any other debt instruments not the coverage of deposit substitutes and Revenue within the coverage of deposit Regulations No. 14-2012 substitutes and Revenue Regulations No. 14-2012 subject to Creditable/Expanded Withholding Tax WI710 a. Individual 20% a. Individual 20% WC710 b. Corporate 20% b. Corporate 20%

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WC180 On interest on foreign currency No. Interest on foreign loans payable RA No. No. loans payable to non-resident 20% to Non-Resident Foreign 20% 10963 1601-FQ foreign corporations 1601-F Corporations (NRFCs) RR No. 1601-FQ 11-2018 1601-FQ WC190 Interest on income and other 10% 1601-F Interest and other income 10% RA No. 1601-FQ 10963 income on foreign currency payments on foreign currency RR No. 1601-FQ 11-2018 transactions/loans payable to transactions/loans payable to RA No. 1601-FQ 10963 OBUs Offshore Banking Units (OBUs) RR No. 1601-FQ 11-2018 WC191 Withholding Tax on Income 10% 1601-F Interest and other income 10% 1601-FQ Payment to FCDUs RA No. 1601-FQ payments on foreign currency 10963 RR No. transactions/loans payable to 11-2018 Foreign Currency Deposit Units RA No. 10963 (FCDUs) RR No. 11-2018 On cash dividend payments of 1601-F Cash dividend payment by RA No. domestic corporation to citizens domestic corporation to citizens 10963 RR No. or resident aliens and non- and resident aliens/NRFCs 11-2018 resident foreign corporations RA No. 10963 WI202 a. Individual 10% a. Individual 10% RR No. 11-2018 WC212 b. Corporate 32% b. Corporate 30% RA No. On property dividend payments 1601-F Property dividend payment by 10963 RR No. of domestic corporation to domestic corporation to citizens 11-2018 citizens or resident aliens and and resident aliens/NRFCs RA No. 10963 non-resident foreign RR No. 11-2018 corporations WI203 a. Individual 10% a. Individual 10% WC213 b. Corporate 32% b. Corporate 30% WC222 On cash dividend payments of 15% 1601-F Cash dividend payment by 15% domestic corporation to non- domestic corporation to NRFCs resident foreign corporations whose countries allowed tax whose countries allow tax- deemed paid credit (subject to deemed paid credit of 20% for tax sparing rule) 1997, 19% for 1998, 18% for 1999, & 17% thereafter (subject to tax sparing rule) WC223 On property dividend payments 15% 1601-F Property dividend payment by 15% of domestic corporation to non- domestic corporation to NRFCs resident foreign corporations whose countries allowed tax whose countries allow tax- deemed paid credit (subject to deemed paid credit of 20% for tax sparing rule) 1997, 19% for 1998, 18% for 1999, & 17% thereafter (subject to tax sparing rule) WI224 On cash dividend payments of 20% 1601-F Cash dividend payment by 20% domestic corporation to non- domestic corporation to Non- resident alien engaged in trade Resident Alien Engage in Trade or or business (NRAETB) Business within the Philippines (NRAETB) WI225 On property dividend payments 20% 1601-F Property dividend payment by 20% of domestic corporation to non- domestic corporation to NRAETB resident alien engaged in trade or business (NRAETB)

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR WI226 Rate Form Rate Basis Form On dividend payments of 20% No. Share of NRAETB in the RA No. No. WC230 domestic corporation to share of 1601-F distributable net income after tax 20% 10963 1601-FQ WI240 a non-resident alien (NRA) 32% of a partnership (except General RR No. individual in the distributable 10% 1601-F Professional Partnership) of which 11-2018 1601-FQ WI250 net income after tax of a 1601-F he is a partner, or share in the net 1601-FQ WC250 partnership (except a GPP) of 20% 1601-F income after tax of an association, RA No. 1601-FQ WI260 which he is a partner, or the 20% joint account or a joint venture 10963 WC280 share of NRA individual in the 20% 1601-F taxable as a corporation of which RR No. 1601-FQ net income after tax of an 15% 1601-F he is a member or a co-venturer 11-2018 1601-FQ association, a joint account, or RA No. 1601-FQ joint venture taxable as a On other payments to NRFCs 30% 10963 1601-FQ corporation of which he is a RR No. 1601-FQ member or a co-venturer Distributive share of individual 10% 11-2018 On payments to non-resident partners in a taxable partnership, RA No. foreign corporation not engaged 10963 in trade or business in the association, joint account or joint RR No. Philippines 11-2018 venture or consortium On profit share of individual RA No. partners in a taxable All kinds of royalty payments to 10963 partnerships, association, a joint citizens, resident aliens and RR No. account, or a joint venture or NRAETB (other than WI380 and 11-2018 consortium WI341), domestic and resident RA No. foreign corporations 10963 Other royalties paid to citizens, RR No. resident aliens and non-resident a. Individual 20% 11-2018 aliens, domestic and resident RA No. foreign corporations (juridical b. Corporate 20% 10963 persons) engaged in trade or RR No. business in the Philippines On prizes exceeding P 10,000 and 20% 11-2018 other winnings paid to individuals RA No. a. Individual 10963 b. Corporate Branch profit remittances by all 15% RR No. 11-2018 On prizes exceeding P10,000 corporations except and other winnings paid to RA No. citizens, resident aliens and PEZA/SBMA/CDA registered 10963 NRAETB RR No. 11-2018 On branch profits remittances by all corporations except PEZA/SBMA/CDA registered WC290 On branch profits remittances by 4.5% 1601-F On the gross rentals, lease and 4.5% WC300 all corporations except 7.5% 1601-F charter fees derived by non- 7.5% PEZA/SBMA/CDA registered 1601-F resident owner or lessor of foreign WI310 (vessels) 8% vessels 8% WC310 8% On the gross rentals, charters and 8% On branch profits remittances by other fees derived by non-resident all corporations except lessor or aircraft, machineries and PEZA/SBMA/CDA registered equipment (aircraft, machineries, and other equipment) On payments to oil exploration service contractors/sub- On payments to oil exploration contractors service contractors and subcontractors (OESS) a. Individual b. Corporate a. Individual b. Corporate MODIFIED/NEW

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Rate Basis Form WI330 On payments to non-resident No. Payments to Non-resident alien 25% RA No. No. alien individuals not engaged in 25% 1601-F not engage in trade or business 10963 1601-FQ trade or business w/in the within the Philippines (NRANETB) 25% RR No. Philippines (dividends, royalties, 1601-F except on sale of shares in 25% 11-2018 1601-FQ etc.) domestic corporation and real 25% 1601-F property RA No. 1601-FQ On payments to non-resident 1601-F 10963 1601-FQ cinematographic film owner, On payments to non-resident RR No. lessor or distributor 1601-F individual/foreign corporate 11-2018 1601-FQ cinematographic film owners, WI340 a. Individual 25% 1601-F lessors or distributors RA No. 1601-FQ 10963 WC340 b. Corporate 25% 1601-F a. Individual RR No. 1601-FQ 1602 b. Corporate 11-2018 1602-Q WI341 On royalties paid to non- 25% Royalties paid to NRAETB on RA No. resident alien engaged in trade cinematographic films and similar 10963 works RR No. or business (NRAETB) on 11-2018 cinematographic films and RA No. 10963 similar works RR No. 11-2018 WI350 Other income subject to final 30% Final tax on interest or other 30% RA No. withholding tax (On interest or payments upon tax-free covenant 10963 RR No. other payments in tax-free bonds, mortgages, deeds of trust 11-2018 covenant, bonds, mortgages, or other obligations under Sec. RA No. 10963 deeds of trust or other 57C of the National Internal RR No. 11-2018 obligations) Revenue Code of 1997, as RA No. amended 10963 RR No. WI380 On royalties paid to citizens, 10% Royalties paid to citizens, resident 10% 11-2018 aliens and NRAETB on books, resident aliens and non-resident other literary works and musical compositions alien engaged in trade or business (NRAETB) on books, other literary works and musical composition Informer's Reward to Persons Informers Cash Reward to individuals/juridical persons Instrumental in the Discovery of Violations of the NIRC and in the Discovery and Seizure of Smuggled Goods WI410 a. Individual 10% a. Individual 10% WC410 b. Corporate 10% b. Corporate 10% Cash or property dividends paid Cash or property dividend paid by by a REIT subject to Final Tax a Real Estate Investment Trust (REIT) WI700 a. Individual 10% a. Individual 10% WC700 b. Corporate 10% b. Corporate 10% On interest from bank deposits Interest on savings/time deposit WI161 a. Individual 20% a. Individual 20% WC161 b. Corporate 20% b. Corporate 20%

EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax BIR Description Tax Legal BIR Rate Form Interest on Government Securities Rate Basis Form WI162 On interest from Treasury Bills No. RA No. No. WC162 and Other Government 20% 1602 a. Individual 20% 10963 1602-Q Securities 20% RR No. WI163 1602 b. Corporate 20% 11-2018 1602-Q WC163 a. Individual 20% WI165 b. Corporate 20% 1602 Interest on deposit RA No. 1602-Q On interest from deposit 6% substitute/others 10963 1602-Q substitutes, trusts funds and RR No. 1602-Q other similar arrangements a. Individual 20% 11-2018 a. Individual 1603-Q b. Corporate b. Corporate 20% RA No. 10963 On amounts withdrawn from On amounts withdrawn from 6% RR No. decedent's deposit account 11-2018 decedent's deposit account RA No. 10963 On interest from foreign 1602 Interest on foreign currency RR No. currency deposits 1602 11-2018 deposits RA No. a. Individual 1603 10963 WI170 b. Corporate 7.5% a. Individual 15% RR No. WC170 7.5% 11-2018 On interest income from long- b. Corporate 15% WI440 term deposit in the form of 20% RA No. WI441 savings trust funds, deposit 12% Interest on pre-terminated long- 10963 WI442 substitutes which was pre- 5% term deposits/investments RR No. WC440 terminated by the holder before 20% 11-2018 the 5th year a. Individual 20% WF360 32% a. Individual 12% WF330 25% b. Corporate 5% On Fringe Benefits Paid to b. Corporate 20% Employees Other than Rank and File On Fringe Benefits Paid to a. On Payments to employees Employees Other than Rank and (except rank and file) of fringe benefits based on the File grossed up monetary value a. In general, for citizen, resident 35% b. On payments to non- resident alien individuals not alien and non-resident alien engaged in trade or business in the Philippines engaged in trade or business within the Philippines b. Non-resident alien not 25% engaged in trade or business within the Philippines

IV. THE FOLLOWING ATCs ARE HEREBY DROPPED: ATC Description Tax Rate Legal BIR Form Basis 1601-E WI670 Income payments made by the top five thousand (5,000) individual 1% RA No. 1601-E WC670 taxpayers to their local/resident suppliers of goods other than those 1% 10963 1601-E covered by other rates of withholding tax RR No. WI672 2% 11-2018 1601-F WC672 a. Individual 2% b. Corporate RA No. WI141 10% 10963 WI142 Income payments made by the top five thousand (5,000) individual 15% RR No. WI320 taxpayers to their local/resident suppliers of services other than those 15% 11-2018 covered by other rates of withholding tax RA No. a. Individual 10963 b. Corporate RR No. 11-2018 Payments to medical practitioners by a duly registered professional partnership for the practice of the medical profession RA No. 10963 Individual RR No. - If the current year's income payments to the medical 11-2018 practitioner is P 720,000 and below - If the current year's income payments to the medical practitioner exceed P 720,000 On payments to alien individual employed by OBUs, Foreign Petroleum Service Contractors and Subcontractors by, Regional or Area Headquarters and Regional Operating Headquarters of multinational companies including its Filipino employees occupying the same position V. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. VI. EFFECTIVITY: This RMO shall take effect immediately. (Original Signed) CAESAR R. DULAY Commissioner of Internal Revenue B-3