Creation of Alphanumeric Tax Codes (ATC) of Selected Revenue Sources Subject to Expanded Withholding Tax Per Revenue Regulations No. 14-2002

January 16, 2003 REVENUE MEMORANDUM ORDER NO. 01-03 SUBJECT : Creation of Alphanumeric Tax Codes (ATC) of Selected Revenue Sources Subject to Expanded Withholding Tax Per Revenue Regulations No. 14-2002 TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective : To facilitate the proper identification and monitoring of additional income payments subject to withholding tax based on BIR Form No. 1601E (Monthly Remittance Return of Creditable Income Tax Withheld Expanded) and BIR Form No. 2307 (Certificate of Creditable Taxes Withheld at Source), and for Integrated Tax System (ITS) purposes, the following ATCs are hereby created: cEaDTA KIND OF TAXES ISSUANCE/ LEGAL ATC BASIS/REASONS For Taxes on Net Income and Profit Creditable Withholding Tax on: 1. Commissions of independent and RR 14-2002 exclusive distributors, medical/technical and sales representatives & marketing agents of multi-level marketing companies WI 515 Individual (10% tax rate) WC 515 Corporate (10% tax rate) 2. Gross payments to embalmers by RR 14-2002 WI 530 funeral parlors (1% tax rate) 3. Payments made by pre-need RR 14-2002 companies to funeral parlors Individual (1% tax rate) WI 535 Corporate (1% tax rate) WC 535 4. Tolling fee paid to refineries RR 14-2002 Individual (5% tax rate) WI 540 Corporate (5% tax rate) WC 540 As amended by Sec. 2 of RR No. 14-2002, the scope of income payments subject to creditable withholding tax from rentals of real property was extended to rentals of personal properties; poles, satellites and transmission facilities; and billboards. No separate ATC shall be created for this purpose, instead the existing ATCs for rentals of real property (per RMO No. 14-1999) will be assigned and shall read as follows: KIND OF TAXES ISSUANCE/LEGAL ATC BASIS/REASONS I. Tax on Income xxx xxx xxx B. Taxes Withheld xxx xxx xxx 2. Withholding at Source a) Subject to creditable withholding tax 2) Rentals on gross for the continued use or possession of real property, Sec. 2.57.2(C) of RR No. personal properties, poles, satellites 2-98 as amended by Sec. 2 & transmission facilities, and of RR No. 14-2002. billboards used in business which the payor or obligor has not taken or is not taking title or in which has no equity Individual (5%) WI 100 Corporate (5%) WC 100 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. (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue