Modification of Alphanumeric Tax Code (ATC) for Percentage Taxes in BIR Form Nos. 2551M/2551Q Pursuant to the Implementation of Republic Act (RA) No. 10963, also known as Tax Reform for Acceleration and Inclusion (TRAIN) Law

April 10, 2019 REVENUE MEMORANDUM ORDER NO. 022-19 SUBJECT : Modification of Alphanumeric Tax Code (ATC) for Percentage Taxes in BIR Form Nos. 2551M/2551Q Pursuant to the Implementation of Republic Act (RA) No. 10 963, also known as Tax Re form for Accele ration and Inclusion (TR AIN) Law 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 Percentage Taxes BIR Form Nos. 2551M Monthly Percentage Tax Return; and 2551Q Quarterly Percentage Tax Return, in connection with the implementation of RA No. 10963, the following ATCs are hereby modified: DHITCc EXISTING (per ATC Handbook) MODIFIED/ NEW ATC Description Tax Rate BIR Form No. Legal Basis BIR Form No. PT010 Persons exempt from value-added tax (VAT) under Sec. 109 (BB) (Sec. 116) 3% 2551M RA No. 10963 2551M/ 2551Q PT040 Domestic carriers and keepers of garages (Sec. 117) 3% PT041 International carriers (Sec. 118) 3% PT060 Franchises on gas and water utilities (Sec. 119) 2% PT070 Franchises on radio/television broadcasting companies whose annual gross receipts do not exceed P10M (Sec. 119) 3% Tax on banks and non-bank financial intermediaries performing quasi-banking functions: 1. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: PT105 a. Maturity period is five (5) years or less 5% PT101 b. Maturity period is more than five (5) years 1% PT102 2. On dividends and equity shares and net income of subsidiaries 0% PT103 3. On royalties, rentals of property, real or personal, profits from exchange and all other gross income 7% PT104 4. On net trading gains within the taxable year on foreign currency, debt securities, derivatives and other financial instruments 7% Tax on other non-bank financial intermediaries not performing quasi-banking functions: 1. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: PT113 a. Maturity period is five (5) years or less 5% PT114 b. Maturity period is more than five (5) years 1% PT115 2. From all other items treated as gross income under the code 5% PT120 Life insurance premium 5% Agents of foreign insurance companies: PT130 a. Insurance agents 10% PT132 b. Owners of property obtaining insurance directly with foreign insurance companies 5% II. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. CAacTH III. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue