RMO No. 28-2018 — Creates and modifies the Alphanumeric Tax Codes (ATCs) for Individual Income Tax under RA No. 10963 (TRAIN Act)

PUREAUOFN 2 REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City 03 2018 Lssom

April 20, 2018 RECORIEMeIUIVSiOm

REVENUE MEMORANDUM ORDER NO. 28-2018

SUBJECT Creation and Modification of Alphanumeric Tax Code (ATC) for Individual Income Tax and Inclusion (TRAIN) Act under Republic Act (RA) No. 10963, otherwise known as Tax Reform for Acceleration

TO Concerned Ali Collection Agents, Revenue District Officers and Other Internal Revenue Officers

I ObJeCtiVe:

To facilitate the proper identification and monitoring of tax collection from Individual Income Tax in BIR Form Nos. 1701 (Annual Income Tax Return For Self-Employed Individuals, Estates and Trusts) and 1701Q (Quarteriy Income Tax Return For Individuais, Estates and Trusts) pursuant to RA No. 10963.

THE FOLLOWING ATCs ArE HerEBY CReATeD:

I1015 ATC Business Income -- 8% Income Tax Rate Description Rate Tax 8% Ra No. 10963 Legal Basis 1701/1701Q BIR Form

11016 Mixed Income - 8% Income Tax Rate 1017 Income from Profession -- 8% Income Tax Rate

II THe FOLLOWING atCs Are HereBY MOdIFied:

I011 I1012 ATC EXISTING (per ATC Handbook) Pure Compensation Business Income Description Tax Rate 5% - 32% Compensation Income Business Income -- Graduated Description MODIFIED/NEW Income Tax Graduated Tax Rate RA. No. Legal Basis 10963 FORM 1701Q 1701 NO. BIR

Income Tax Rates Rates I1013 Mixed Income Mixed Income - Graduated

11014 Income from Profession Income from Profession - Income Tax Rates Graduated Income Tax Rates

V REPEALING CLAUSE:T

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

V. EFFECTIVITY:

This RMO shafl take effect immediately AuSaMM

B - 3 Commissioner of Internal Revenue CAeSAr R. DuLAy 017820