RMO No. 03-2004 — Creates and modifies the Alphanumeric Tax Code of selected revenue sources subject to withholding taxes Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City January 29, 2004 REVENUE MEMORANDUM ORDER NO. 3-2004 SUBJECT : Creation and Modification of Alphanumeric Tax Code (ATC) of Selected Revenue TO Sources Subject to Withholding Taxes : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective : To facilitate the proper identification and monitoring of Withholding Taxes pursuant to Revenue Regulations No. 30-2003 and for Integrated Tax System (ITS) purposes, the following ATCs are hereby modified/created: KIND OF TAXES ISSUANCE/ ATC LEGAL BASIS/ Income Payment Subject to Creditable Withholding Taxes WI010 REASONS WI011 Existing Description New Description WC010 RR No. 30- 2003 WC011 Professionals (lawyers, CPAs, Professionals (lawyers, CPAs, Sec. 3 (A) (1) engineers, etc) engineers, etc) RR No. 30-2003 Sec. 3 (B) - If the current year's gross income is P720,000 and below (10%) - If the currents year's gross income exceeds P720,000 (15%) Professional talent fees paid to Professional talent fees paid to juridical persons (5%) juridical persons - If the current year's gross income is P720,000 and below (10%) - If the currents year's gross income exceeds P720,000 (15%)

KIND OF TAXES ISSUANCE/ ATC LEGAL BASIS/ Income Payment Subject to Creditable Withholding Taxes WI021 REASONS WI031 Existing Description New Description WI041 RR No. 30-2003 WI070 Professional entertainers; Professional entertainers such as, Sec. 3(A) (2) WI071 WI050 but not limited to, actors and RR No. 30-2003 WI051 Sec. 3 (A) (3) WI060 actresses, singers, lyricist, WI061 RR No. 30-2003 composers and emcees Sec. 3 (A) (4) - If the current year's gross - If the currents year's gross RR No. 30-2003 Sec. 3 (A) (5) income exceeds P720,000 income exceeds P720,000 RR No. 30-2003 (20%) (15%) Sec. 3 (A) (6) Professional athletes including Professional athletes including RR No. 30-2003 Sec. 3 (A) (7) basketball players, pelotaris and basketball players, pelotaris and jockeys jockeys - If the current year's gross - If the current year's gross income exceeds P720,000 income exceeds P720,000 (20%) (15%) Movie, stage, radio, television and Movie, stage, radio, television and musical directors musical directors and producers - If the current year's gross - If the current year's gross income exceeds P720,000 income exceeds P720,000 (20%) (15%) Insurance agents and insurance Insurance agents and insurance adjusters (10%) adjusters - If the current year's gross income is P720,000 and below (10%) - If the current year's gross income exceeds P720,000 (15%) Management and technical Management and technical consultants (10%) consultants - If the current year's gross income is P720,000 and below (10%) - If the current year's gross income exceeds P720,000 (15%) Business and Bookkeeping agents Business and Bookkeeping agents and agencies (10%) and agencies - If the current year's gross income is P720,000 and below (10%) - If the current year's gross income exceeds P720,000 (15%)

KIND OF TAXES ISSUANCE/ ATC LEGAL BASIS/ WI081 Income Payment Subject to Creditable Withholding Taxes WI090 REASONS WI091 Existing Description New Description WI52 RR No. 30-2003 WI153 Other recipient of talent fees Other recipient of talent fees Sec. 3 (A) (8) WI151 - If the current year's gross - If the current year's gross RR No. 30-2003 WI150 Sec. 3 (A) (9) income exceeds P720,000 income exceeds P720,000 RR No. 30-2003 (20%) (15%) Sec. 3 (H) Fees of directors who are not Fees of directors who are not employees of the company (10%) employees of the company - If the current year's gross income is P720,000 and below (10%) - If the current year's gross income exceeds P720,000 (15%) Payment to partners in general Payment to partners in general professional partnerships (10%) professional partnerships - If the current year's income payments for the partner is P720,000 and below (10%) - If the current year's income payments for the partner exceed P720,000 (15%) Payments for medical/ dental/ Payments for medical/ dental/ RR No. 30-2003 veterinary services thru veterinary services thru Sec. 3 (I) Hospitals/Clinics/Health Hospitals/Clinics/Health Maintenance Organizations , Maintenance Organizations , including direct payments to including direct payments to service providers (10%) service providers - If the current year's income payments for the medical/dental/ veterinary services is P720,000 and below (10%) - If the current year's income payments for medical/dental/ veterinary services exceeds P720,000 (15%)

KIND OF TAXES ISSUANCE/ ATC LEGAL BASIS/ REASONS Income Payment Subject to Creditable Withholding Taxes Existing Description New Description Income payments made by the Income payments made by the RR No. 30-2003 Sec. 3 (N) government to its local/resident government to its local/resident suppliers of goods and services suppliers of goods and services (i) Individual (i) Individual 2% � Supplier of Goods 1% WI640 WI157 � Supplier of Services WC640 2% WC157 (ii) Corporate (ii) Corporate 2% � Supplier of Goods 1% � Supplier of Services 2% II. Repealing Clause : This Revenue Memorandum Order revises portions of all other issuances inconsistent herewith. III. Effectivity : This Revenue Memorandum Order shall take effect immediately. (Original Signed) GUILLERMO L. PARAYNO, Jr. Commissioner of Internal Revenue