Prescribing the use of the Government Expense Code

August 31, 2004 REVENUE MEMORANDUM CIRCULAR NO. 62-04 SUBJECT : Prescribing the Use of the Government Expense Code Implementing Sections 2.57.2, 4.114 and 5.116 of Revenue Regulations No. 2-98 in Relation to Sections 57(B), 114(c) and 116 to 123 of Republic Act No. 8424 TO : All Government Withholding Agents, Internal Revenue Officials, Employees and Others Concerned For the information and guidance of all government withholding agents, internal revenue officials, employees and others concerned, a Government Expense Code (Annex "A") is hereby prescribed for the computation of taxes withheld at source on the sale of goods and services to the government or to any of its political subdivision including barangays, instrumentalities or agencies, including government-owned or controlled-corporations (GOCCs) whether subject to creditable income tax, VAT and Percentage Tax beginning January 1, 2004. The revised government expense code takes into consideration the new rates provided in RR 12-2001 , RR 14-2002 and RR 30-2003 . IDaCcS All concerned are hereby enjoined to be guided accordingly and give this circular as wide a publicity as possible. (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue ANNEX A GOVERNMENT EXPENSE CODE