Further Amends Revenue Memorandum Order No. 2-2014, Prescribing the Use of the Revised Taxpayer Type Classification, and Adopting the Latest 2009 Philippine Standard Industrial Classification (PSIC) and 2012 Philippine Standard Occupational Classification (PSOC)

May 17, 2016 REVENUE MEMORANDUM ORDER NO. 019-16 SUBJECT : Further Amends Revenue Memorandum Order No.2-2014, Prescribing the Use of the Revised TaxpayerType Classification, and Adopting the Latest 2009Philippine Standard Industrial Classification (PSIC) and 2012 PhilippineStandard Occupational Classification (PSOC) TO : All Internal Revenue Officials, Employees and Others Concerned I. Objectives This Revenue Memorandum Order (RMO) is issued to: 1. Prescribe the use of the Revised Taxpayer Type Classifications. 2. Provide a standard code guide on taxpayer types to be uniformly used in all district offices and other concerned offices to eliminate misclassification of taxpayer. 3. Generate more accurate statistics as to the active taxpayers per taxpayer type classification. 4. Provide uniform Registration Report Format for a more reliable and accurate reporting of registration data for computerized and non-computerized Revenue District Offices (RDOs). 5. Adopt and implement the latest 2009 PSIC and 2012 PSOC published by the National Statistical Coordinating Board (NSCB). II. Taxpayer Type Classifications The following is the updated Taxpayer Type Classifications with ITS applicable codes: Taxpayer Type Classifications RMO11-2004 New Code (ITS) (eTIs) INDIVIDUAL (specify PSOC/PSIC) EO98 EO98FC Executive Order No. 98-Filipino Citizen EO98FN Executive Order No. 98-Foreign National ONETT ONETFC One-Time Transaction Filipino Citizen ONETT ONETFN One-Time Transaction Foreign National LOCAL LOCAL Local Employee Compensation Income Earner Only (Resident Citizen) RAEMP Resident Alien Employee Compensation Income Earner Only SNRAE Special Non-Resident Alien Employees of RHQ, ROHQ, OBU, Petroleum SINGL SINGL Single Proprietorship Only (Resident Citizen) RESAL RASP Resident Alien Single Proprietorship RAP Resident Alien Professional MIE MIE Marginal Income Earner LOCAL + SINGL MIXCS Mixed Income Earner Compensation Income Earner and Single Proprietor LOCAL + PROF MIXCP Mixed Income Earner Compensation Income Earner and Professional LOCAL + PROF MIXCSP Mixed Income Earner Compensation Income + SINGL Earner, Single Proprietorship & Professional PROF PROFL Professional Licensed (PRC, IBP) PROFL PROFG Professional In General PROF + SINGL PROFSP Professional & Single Proprietor ESTAT ESTAFC Estate Filipino Citizen ESTAFN Estate Foreign National TRUST TRUSTFC Trust Filipino Citizen TRUSFN Trust Foreign National NRAET Non-Resident Alien Engaged in Trade/Business PIE Passive Income Earner Only RMO11-2004 New Code (ITS) (eTIS) JURIDICAL ENTITIES ( specify PSIC ) PART GPP General Professional Partnership LMPART Limited Partnership ULPART General Partnership CORP Domestic Corporation RFCGL RFC Resident Foreign Corporation RHQ Regional or Area Headquarters ROHQ ROHQ Regional Operating Headquarters JOINT JOINT Joint Venture GOVTA NGA National Government Agency LGU LGU Local Government Units GVTCP GOCC Government Owned & Controlled Corporation NONST NONST Non-stock Non-Profit Organizations, ( e.g. , Political Parties, Homeowners' Assoc., Business Leagues, etc.) COOP Cooperatives NRFC NRFC Non-Resident Foreign Corporation NRFCG NRFP Non-Resident Foreign Partnership FEIO Foreign Embassies and International Organizations III. Policies 1. The standard taxpayer type classifications and its corresponding codes as provided under Section II of this RMO shall be uniformly used by all district offices and other concerned offices in classifying taxpayers/new registrants and their corresponding taxes to avoid inconsistencies in the registration reports. 2. There should be one taxpayer type CLASSIFICATION per taxpayer by choosing the taxpayer's main line of business/profession as the criteria for classification. For cases with multiple line of businesses/profession, Client Support Section is required to indicate applicable 2009 PSIC/2012 PSOC as many as appropriate. AcICHD 3. Passive Income Earners are those active individual taxpayers who are no longer engaged in trade or business with no outstanding tax liabilities or no longer employed (e.g., retired, persons with disabilities, pensioner) without business income but receiving passive income only from sources within or without the Philippines . 4. "Passive Income Earner Only" is available in the update of taxpayer type classification for those existing taxpayers only and cannot be used as classification during initial registration with the Bureau. Therefore, no new taxpayers shall be registered under this classification . 5. The prescribe revised format on Report on Registration by "Taxpayer Type" Classification, TAS Report No. 007 (Annex A) shall be submitted on or before the 10th day of the following month to [emailprotected] . 6. In the case of tax type classifications, the same codes shall be used for system generated report purposes. Any modification/addition in classification shall be covered by a separate RMO. 7. RDO's front liners should strictly follow Sections II and III of this Order in classifying the correct taxpayer type of the taxpayers. 8. The Client Support Service shall monitor and recommend to the Internal Investigation Division the following penalties to RDOs who fail to comply with the provisions of this Order: 1st offense: Warning 2nd offense: Reprimand 3rd offense: Suspension for 30 days IV. Effectivity This Order shall take effect immediately to RDOs under eTIS and upon implementation of Taxpayer Registration Information Update (TRIU). Pending the eTIS roll out to other Revenue District Offices, policies and procedures set forth under RMO 11-2004 shall still be observed in the meantime. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A TAS REPORT NO. 007 Revised October 2015 Report on Registration by "Taxpayer Type" (Statistics/Figures Only) As of January 2015 RDO No. 1