Creation and Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Sources Subject to Withholding Taxes

January 29, 2004 REVENUE MEMORANDUM ORDER NO. 03-04 SUBJECT : Creation and Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Sources Subject to Withholding Taxes TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective To facilitate the proper identification and monitoring of Withholding Taxes pursuant to Revenue Regulations No. 30-2003 and for Integrated Tax System (ITS) purposes, the following ATCs are hereby modified/created: KIND OF TAXES ISSUANCE/ LEGAL BASIS ATC REASONS Income Payment Subject to Creditable Withholding Taxes Existing Description New Description Professionals (lawyers, Professionals (lawyers, RR No. 30-2003 CPAs, engineers, etc) CPAs, engineers, etc) Sec. 3 (A) (1) If the current year's gross WI010 income is P720,000 and below (10%) If the currents year's WI011 gross income exceeds P720,000 (15%) Professional talent fees paid Professional talent fees paid RR No. 30-2003 to juridical persons (5%) to juridical persons Sec. 3 (B) If the current year's gross WC010 income is P720,000 and below (10%) If the currents year's gross income exceeds WCO11 P720,000 (15%) Professional entertainers; Professional entertainers such RR No. 30-2003 as, but not limited to, actors Sec. 3(A) (2) and actresses, singers, lyricist, composers and emcees If the current year's gross If the currents year's gross WI021 income exceeds income exceeds P720,000 (20%) P720,000 (15%) Professional athletes Professional athletes RR No. 30-2003 including basketball players, including basketball players, Sec. 3 (A) (3) pelotaris and jockeys pelotaris and jockeys If the current year's gross If the current year's gross WI031 income exceeds income exceed P720,000 (20%) P720,000 (15%) Movie, stage, radio, Movie, stage, radio, RR No. 30-2003 television and musical television and musical Sec. 3 (A) (4) directors directors and producers If the current year's gross If the current year's gross WI041 income exceeds income exceeds P720,000 (20%) P720,000 (15%) Insurance agents and Insurance agents and RR No. 30-2003 Insurance adjusters (10%) insurance adjusters Sec. 3 (A) (5) If the current year's gross WI070 income is P720,000 and below (10%) If the current year's gross WI071 income exceeds P720,000 (15%) AETcSa Management and technical Management and technical RR No. 30-2003 consultants (10%) consultants Sec. 3 (A) (6) If the current year's gross WI050 income is P720,000 and below (10%) If the current year's gross WI051 income exceeds P720,000 (15%) Business and Bookkeeping Business and Bookkeeping RR No. 30-2003 agents and agencies (10%) agents and agencies Sec. 3 (A) (7) If the current year's gross WI060 income is P720,000 and below (10%) If the current year's gross income exceeds WI061 P720,000 (15%) Other recipient of talent fees Other recipient of talent fees RR No. 30-2003 If the current year's gross If the current year's gross Sec. 3 (A) (8) WI081 income exceeds income exceeds P720,000 (20%) P720,000 (15%) Fees of directors who are not Fees of directors who are not RR No. 30-2003 employees of the company employees of the company Sec. 3 (A) (9) (10%) If the current year's gross WI090 income is P720,000 and below (10%) If the current year's gross WI091 income exceeds P720,000 (15%) Payment to partners in Payment to partners in RR No. 30-2003 general professional general professional Sec. 3 (H) partnerships (10%) partnerships If the current year's WI52 income payments for the partner is P720,000 and below (10%) If the current year's WI153 income payments for the partner exceed P720,000 (15%) Payments for medical/ Payments for medical/ RR No. 30-2003 dental/veterinary services dental/veterinary services Sec. 3 (I) thru Hospitals/Clinics/Health thru Hospitals/Clinics/Health Maintenance Organizations, Maintenance Organizations, including direct payments to including direct payments to service providers (10%) service providers If the current year's WI151 income payments for the medical/dental/veterinary services is P720,000 and below (10%) If the current year's WI150 income payments for medical/dental/ veterinary services exceeds P720,000 (15%) Income payments made by Income payments made by RR No. 30-2003 the government to its the government to its Sec. 3 (N) local/resident suppliers of local/resident suppliers of goods and services goods and services (i) Individual (i) Individual 2% Supplier of Goods WI640 1% Supplier of Services WI157 2% (ii) Corporate (ii) Corporate 2% Supplier of Goods WC640 1% Supplier of Services WC157 2% 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 Commissioner of Internal Revenue