Creation and Modification of Alphanumeric Tax Code for Individual Income Tax under RA No. 10963 (TRAIN Act)

April 20, 2018 REVENUE MEMORANDUM ORDER NO. 028-18 SUBJECT : Creation and Modification of Alphanumeric Tax Code (ATC) for Individual Income Tax under Republic Act (RA) No. 10963, Otherwise Known as Tax Reform for Acceleration and Inclusion (TRAIN) Act 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. 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. II. THE FOLLOWING ATCs ARE HEREBY CREATED: ATC Description Tax Rate Legal Basis BIR Form II015 Business Income 8% Income Tax Rate 8% RA No. 10963 1701/1701Q II016 Mixed Income 8% Income Tax Rate II017 Income from Profession 8% Income Tax Rate III. THE FOLLOWING ATCs ARE HEREBY MODIFIED: EXISTING (per ATC Handbook) MODIFIED/NEW BIR FORM NO. ATC Description Tax Rate Description Tax Rate Legal Basis II011 Pure Compensation 5%-32% Compensation Income Graduated Income Tax Rates RA. No. 10963 1701/ 1701Q II012 Business Income Business Income Graduated Income Tax Rates II013 Mixed Income Mixed Income Graduated Income Tax Rates II014 Income from Profession Income from Profession Graduated Income Tax Rates IV. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. V. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue