RMO No. 22-2019 — Modifies the Alphanumeric Tax Code for Percentage Taxes in BIR Form Nos. 2551M/2551Q pursuant to the implementation of RA No. 10963 (TRAIN Act)

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE MAY 03,2019 3: wAA P.M

BUREAU OF INTERNAL REVENUE Quezon City RE 0ORDS : ETDIYIGCN

April 10, 2019

REVENUE MEMORANDUM ORDER NO. 2 &- 2 D/ G

SUBJECT Modification of AIphanumeric Tax Code (ATC) for Percentage Taxes in BIR Form Nos. 2551M/2551Q Pursuant to the Implementation of Republic Act (RA) No.

10963, also known as Tax Reform for Acceleration and Inclusion (TRAIN) Law

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 Percentage Taxes BIR Form Nos. 2551M - Monthly Percentage Tax Return; and 2551Q - Quarterly Percentage Tax Return, in connection with the implementation of RA No. 10963, the following ATCs are hereby modified:

ATC EXISTING (per ATC Handbook) Description Rate Tax BIR Form No. Legal Basis MOdIFIEd/ BIR Form NEW No. PT010 Persons exempt from value-added tax (VAT) under Sec. 109(BB) (Sec. 116) 3 % 2551M 10963 No. RA 2551M/ 2551Q

PT040 PT041 (Sec. 117) Domestic carriers and keepers of garages International carriers (Sec. 118) 3 % 3 % PT060 Franchises on gas and water utilities (Sec. 119) 2%

PT070 Franchises on radio/television broadcasting 3%

companies whose annual gross receipts do not exceed P10 M (Sec. 119) Tax on banks and non-bank financial intermediaries performing quasi-banking functions 1. On interest, commissions and discounts from financial leasing, on the basis of from lending activities as well as income

remaining maturities of instruments from

PT105 which such receipts are derived a. Maturity period is five (5) years or less 5 % PT101 b. Maturity period is more than five (5) 1%

years PT102 2. On dividends and equity shares and net 0%

income of subsidiaries

EXISTING (per ATC Handbook) MODIFIED/ NEW

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

PT103 3. On royalties, rentals of property, real or personal, profits from exchange and all other gross income 7% 2551M 10963 NO. RA 2551M/ 2551Q

PT1044. On net trading gains within the taxable year 7%

on foreign currency, debt securities. derivatives and other financial instruments

Tax on other non-bank financial intermediaries not performing quasi-banking functions

1. On interest, commissions and discounts

from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from

PT113 PT114 a. Maturity period is five (5) years or less which such receipts are derived b. Maturity period is more than five (5) 5 % 1%

PT115 years 5 %

2. From all other items treated as gross income

under the code

PT120 Life insurance premium 5 %

Agents of foreign insurance companies

PT130 PT132 b. Owners of property obtaining insurance a. Insurance agents directly with foreign insurance companies 10% 5%

I. REPEALING CLAUSE:

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

I EFFECTIVITY:

This RMO shall take effect immediately.

NO FNALREV-NU ACA

B -3 MAY 03 2019 UMw QA} DIVISION Commissioner of Internal Revenue CAeSar r. dulAy $ 025600

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