Modification of Alphanumeric Tax Code for Compensation Income under RA No. 10963 and for Withholding Taxes

December 19, 2018 REVENUE MEMORANDUM ORDER NO. 005-19 SUBJECT : Modification of Alphanumeric Tax Code (ATC) for Compensation Income under Republic Act (RA) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act and for Withholding Taxes 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 Individual Income Tax in BIR Form Nos. 1700 (Annual Income Tax Return for Individuals Earning Purely Compensation Income Including Non-Business/Non-Profession Income), 1701 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts) and 1701Q (Quarterly Income Tax Return for Individuals, Estates and Trusts) pursuant to RA No. 10963, and from withholding taxes and for Integrated Tax Systems (ITS) purposes, the following ATCs are hereby modified: acEHCD EXISTING (per ATC Handbook) MODIFIED/ NEW ATC Description Tax Rate BIR Form No. Legal Basis BIR Form No. II010 Compensation Income Graduated Income Tax Rates 1701 RA No. 10963 1700 1701Q RR No. 11-2018 1701 1701Q Income payments subject to final withholding taxes 1600 1706 1601-E 2307 WI450 1. Capital gains Tax on sale/exchange or other disposition of real property individual 6% 1601-F RR 17-2003 2307 Sec. 2.57.1 (A) (6) WC450 2. Capital gains tax on the sale/exchange or other disposition of land and building corporate 6% RR 17-2003 Sec. 2.57.1 (G) (5) II. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. EcTCAD III. EFFECTIVITY: This RMO shall take effect immediately. Date Issued: January 15, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue