RMC No. 02-2018 — Provides the transition procedures for all taxpayers filing tax returns affected by the revised tax rates pursuant to the provisions of RA No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law)

REPUBLIC OF THE PHILIPPINES I - OF DYNENAL T RS MGT. DIT

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE RECEIVED JAN 0.8 2018 Yy 8`4cam

January 4, 2018

REVENUE MEMORANDUM CIRCULAR NO. &- .20/&

SUBJECT Transition Procedures for All Taxpayers Filing Tax Returns Affected by the

Revised Tax Rates Pursuant to the Provisions of Republic Act (RA) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion (TRAIN)

TO All Internal Revenue Officiais, Empioyees and Others Concerned

In line with the implementation of the provisions of RA No. 10963 (known as TRAIN)

Some of the forms/returns being enhanced and the Alphanumeric Tax Codes (ATCs) affected various Bureau of internal Revenue (BIR) Forms/Returns are being developed or enhanced

are as follows:

No Form TBIR T Form Name W G ATCAffected H Changes in Tax Rate TTTNH 1. 1602 Final Income Taxes Withheld Monthiy Remittance Return of W{ 170 and WC 170} From 7 /%% to 15%

2. 1603 3. 2552 Percentage Quarteriy Remittance Return of Final Income Taxes Withheld Tax Return for WF 320 PT 200 From 1/2 of 1% to 6/10 From 15% to 35%

Stock Listed and Traded Through Transactions Involving Shares of Of 1%

Public Offering the Local Stock Exchange or Through Initial and/or Secondary

the following: 1. Electronic Filing and Payment System (eFPS) The changes in tax rates mentioned above are not yet refiected and impiemented in

2. Electronic Bureau of internal Revenue Forms (eBIRForms); and 3. Manual Forms

thus, the following work around procedures in filing the said BIR forms/returns shall be adopted by:

DS MGT DIEAN OF DTEAAALE R

A. eFPS fiiers shall - RECEIVED JAN 0.8 2018 Yy 8:45qmV

1. File online using the existing BIR form in the eFPS then pay online the corresponding taxes due thereon by proceeding to payment. The result of this transaction is deficiency tax;

2. To cover the deficiency tax, eFPS filers shall likewise file and pay online the information in the Tax Type and ATC fields stated.below in lieu of the deficiency tax using BIR Form No. o6o5 and fill in the corresponding correct BIR form that should have been used:

BIR Formto be Used Supposed TaxType ::-.

1. 1602 WB Withholding Tax.- Banks and Other] All eFPS filers

Financial Institutions shall use 2. 1603 3: 2552 ST Percentage Tax - Stocks WR Withhoiding Tax - Fringe Benefits I Deficiency Tax ATC MC 031

3. Once the enhanced versions of the aforesaid forms are available in eFPS, there will be a notification/announcement through a Revenue Memorandum Circular (RMC). Guidelines shall be issued accordingly if there is a necessity whether or not to amend the previously filed returns in eFPS.

B. eBiRForms Users/Filers shali -

1. File online using the existing BIR form in the eBIRForms Package then pay the corresponding taxes due thereon via:

a) Online payment thru Gcash, Landbank Electronic Payment Service (LBEPS) or BIR-DBP PayTax Online(BDPTO); or

b) Manual payment via over-the-counter (OTC) of Authorized Agent Banks (AABs) under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

2. The above transactions will result to deficiency tax, and to cover the online, thru GCash, LBEPS or BDPTO, or pay manually via OTC of AABs under deficiency tax, eBiRForms users/filers shall likewise file online and pay Tax Type and ATC fields stated below in lieu of the correct BIR form that should have been used: the jurisdiction of the RDO where the taxpayer is registered, the deficiency tax using BIR Form No. o6o5 and fill in the corresponding information in the

SUD BiR Form to be Used 2. 1603 3. 2552 1. 1602 WR Withholding Tax - Fringe Benefits ST Percentage Tax - Stocks WB Withhoiding Tax - Banks and Other Financial Institutions Tax Type Deficiency Tax ATC MC 031 All eFPS filers shall use A

C. Manual Filers shall - 1. Fill-in the applicable BIR form [pre-printed or downloaded form in BIR 2. File and pay manually via OTC of AABs under the jurisdiction 'of the RDO website (www.bir.gov.ph) under the BIR Forms section of the website] using the new tax rates then compute the tax due thereon. where the taxpayer is registered.

accordance with existing rules and regulations. validation/audit process shal! be subjected to all applicable penaltie's incident thereto in being declared and paid for accordingly. Any deficiency taxes that will be discovered in the All concerned taxpayers shall be responsible in ensuring that the correct tax due is

wide a publicity as possibie. All concerned are hereby enjoined to be guided accordingiy and give this Circular as

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H-2 IMariam Commissioner of Internal Revenue CAESAR R. DULAY 012458

RECOPES MGT DIE FHREAH M T TRAE

RECEIVED y 8:4ram JAN 0:8 2018