Modification of Alphanumeric Tax Code (ATC) for Business Income and Income from Profession in BIR Form Nos. 1701/1701A/1701Q Pursuant to the Implementation of Republic Act (RA) No. 10963, also known as Tax Reform for Acceleration and Inclusion (TRAIN)

April 1, 2019 REVENUE MEMORANDUM ORDER NO. 020-19 SUBJECT : Modification of Alphanumeric Tax Code (ATC) for Business Income and Income from Profession in BIR Form Nos. 1701/1701A/1701Q Pursuant to the Implementation of Republic Act (RA) No. 10963, also known as Tax Reform for Acceleration and Inclusion (TRAIN) 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 Business Income and Income from Profession in BIR Form Nos. 1701 Annual Income Tax Return Individuals (including Mixed Income Earner), Estates and Trusts; 1701A Annual Income Tax Return Individuals Earning Income Purely from Business/Profession [Those under the graduated income tax rates with OSD as mode of deduction or those who opted to avail of the 8% flat income tax rate]; and 1701Q Quarterly Income Tax Return for Individuals, Estates and Trusts, in connection with the implementation of RA No. 10963, the following ATCs are hereby modified: SDHTEC EXISTING (per ATC Handbook) MODIFIED/ NEW ATC Description Tax Rate BIR Form No. Legal Basis BIR Form No. II012 Business Income Graduated Income Tax Rates Graduated Income Tax Rates 1701/ 1701Q RA No. 10963 1701/ 1701A/ 1701Q II014 Income from Profession Graduated Income Tax Rates II015 Business Income 8% Income Tax Rate 8% Income Tax Rate II017 Income from Profession 8% Income Tax Rate II. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. HSAcaE III. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue