Creation, Modification and Dropping of Alphanumeric Tax Code of Selected Revenue Source under RA No. 10963

April 3, 2018 REVENUE MEMORANDUM ORDER NO. 038-18 SUBJECT : Creation, Modification and Dropping of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Republic Act (RA) No. 10963, Otherwise Known as Tax Reform for Acceleration and Inclusion (TRAIN) Law and Pursuant to Revenue Regulations (RR) No. 11-2018 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 income payments subject to creditable and final withholding taxes pursuant to RA No. 10963 and the issuance of RR No. 11-2018. HTcADC II. CREATION OF NEW ATCs: ATC Description Tax Rate Legal Basis BIR Form Gross commissions or service fees of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners (RESPs), ( i.e. , real estate consultants, real estate appraisers and real estate brokers) RA No. 10963 RR No. 11-2018 1601-EQ a. Individual WI139 - If gross income for the current year did not exceed P3M 5% b. Corporate WC139 - If gross income for the current year did not exceed P720,000 10% Professional fees paid to medical practitioners (includes doctors of medicine, doctors of veterinary science & dentists) by hospitals & clinics or paid directly by Health Maintenance Organizations (HMOs) and/or similar establishments RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC151 - If gross income for the current year did not exceed P720,000 10% WC150 - If gross income exceeds P720,000 15% Professional entertainers such as, but not limited to actors and actresses, singers, lyricists, composers, emcees RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC020 - If gross income for the current year did not exceed P720,000 10% WC021 - If gross income exceeds P720,000 15% Professional athletes including basketball players, pelotaris and jockeys RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC030 - If gross income for the current year did not exceed P720,000 10% WC031 - If gross income exceeds P720,000 15% All directors and producers involved in movies, stage, radio, television and musical productions RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC040 - If gross income for the current year did not exceed P720,000 10% WC041 - If gross income exceeds P720,000 15% Business and bookkeeping agents and agencies RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC060 - If gross income for the current year did not exceed P720,000 10% WC061 - If gross income exceeds P720,000 15% Insurance agents and insurance adjusters RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC070 - If gross income for the current year did not exceed P720,000 10% WC071 - If gross income exceeds P720,000 15% Other recipients of talent fees RA No. 10963 RR No. 11-2018 1601-EQ Corporate WC080 - If gross income for the current year did not exceed P720,000 10% WC081 - If gross income exceeds P720,000 15% Commissions, rebates, discounts and other similar considerations paid/granted to independent and/or exclusive sales representatives and marketing agents and sub-agents of companies, including multi-level marketing companies RA No. 10963 RR No. 11-2018 1601-EQ a. Individual WI516 - If gross income is more than P3M or VAT Registered regardless of amount 10% b. Corporate WC516 - If gross income exceeds P720,000 15% Income payments on locally produced raw sugar RA No. 10963 RR No. 11-2018 1601-EQ WI720 a. Individual 1% WC720 b. Corporate 1% III. THE FOLLOWING ATCs ARE HEREBY MODIFIED: EXISTING (per ATC Handbook) MODIFIED/NEW ATC Description Tax Rate BIR Form No. Description Tax Rate Legal Basis BIR Form No. Professionals (lawyers, CPAs, engineers, etc.) 1601-E Professional (Lawyers, CPAs, Engineers, etc.) RA No. 10963 RR No. 11-2018 1601-EQ a. Individual a. Individual WI010 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI011 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% b. Corporate b. Corporate WC010 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P720,000 10% WC011 - If the current year's gross income exceeds P720,000 15% - If gross income exceeds P720,000 15% Professional entertainers such as, but not limited to actors and actresses, singers, lyricist, composers, emcees 1601-E Professional entertainers such as, but not limited to actors and actresses, singers, lyricists, composers, emcees RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI020 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI021 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Professional athletes including basketball players, pelotaris and jockeys 1601-E Professional athletes including basketball players, pelotaris and jockeys RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI030 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI031 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Movie, stage, radio, television and musical directors 1601-E All directors and producers involved in movies, stage, radio, television and musical productions RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI040 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI041 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Management and technical consultants 1601-E Management and technical consultants RA No. 10963 RR No. 11-2018 1601-EQ a. Individual a. Individual WI050 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI051 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% b. Corporate b. Corporate WC050 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P720,000 10% WC051 - If the current year's gross income exceeds P720,000 15% - If gross income exceeds P720,000 15% Business and bookkeeping agents and agencies 1601-E Business and bookkeeping agents and agencies RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI060 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI061 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Insurance agents and insurance adjusters 1601-E Insurance agents and insurance adjusters RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI070 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI071 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Other recipients of talent fees 1601-E Other recipients of talent fees RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI080 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI081 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Fees of directors who are not employees of the company 1601-E Fees of directors who are not employees of the company RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI090 - If the current year's gross income is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI091 - If the current year's gross income exceeds P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Rentals on gross for the continued use or possession of real property, personal properties, poles, satellites & transmission facilities, and billboards used in business which the payor or obligator has not taken or is taking title, or in which has no equity 1601-E Rentals: On gross rental or lease for the continued use or possession of personal property in excess of Ten thousand pesos (P10,000) annually and real property used in business which the payor or obligor has not taken title or is not taking title, or in which has no equity; poles, satellites, transmission facilities and billboards RA No. 10963 RR No. 11-2018 1601-EQ WI100 a. Individual 5% a. Individual 5% WC100 b. Corporate 5% b. Corporate 5% Cinematographic film rentals and other payments to resident individuals and corporate cinematographic film owners, lessors or distributors 1601-E Cinematographic film rentals and other payments to resident individuals and corporate cinematographic film owners, lessors or distributors RA No. 10963 RR No. 11-2018 1601-EQ WI110 a. Individual 5% a. Individual 5% WC110 b. Corporate 5% b. Corporate 5% Income payments to certain contractors, on gross payments 1601-E Income payments to certain contractors RA No. 10963 RR No. 11-2018 1601-EQ WI120 a. Individual 2% a. Individual 2% WC120 b. Corporate 2% b. Corporate 2% WI130 Income distribution to beneficiaries of estates and trusts 15% 1601-E Income distribution to the beneficiaries of estates and trusts 15% RA No. 10963 RR No. 11-2018 1601-EQ Gross commission or service fees of custom, insurance, stock, real estate, immigration and commercial brokers & fees of agents of professional entertainers 1601-E Gross commissions or service fees of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners (RESPs), ( i.e. , real estate consultants, real estate appraisers and real estate brokers) RA No. 10963 RR No. 11-2018 1601-EQ WI140 a. Individual 10% a. Individual 10% - If gross income is more than P3M or VAT Registered regardless of amount WC140 b. Corporate 10% b. Corporate 15% - If gross income exceeds P720,000 Payments for medical/dental/veterinary services thru Hospitals/Clinics/Health Maintenance Organizations, including direct payments to service providers 1601-E Professional fees paid to medical practitioners (includes doctors of medicine, doctors of veterinary science & dentists) by hospitals & clinics or paid directly by Health Maintenance Organizations (HMOs) and/or similar establishments RA No. 10963 RR No. 11-2018 1601-EQ Individual Individual WI151 - If the current year's income payments for the medical/dental/veterinary services is P720,000 and below 10% - If gross income for the current year did not exceed P3M 5% WI150 - If the current year's income payments for the medical/dental/veterinary services exceed P720,000 15% - If gross income is more than P3M or VAT Registered regardless of amount 10% Payment by the general professional partnerships (GPP) to its partners 1601-E Payment by the General Professional Partnerships (GPPs) to its partners RA No. 10963 RR No. 11-2018 1601-EQ WI152 - If the current year's income payments for the partners is P720,000 and below 10% - If gross income for the current year did not exceed P720,000 10% WI153 - If the current year's income payments for the partners exceed P720,000 15% - If gross income exceeds P720,000 15% Income payments made by credit card companies 1/2 of 1% 1601-E Income payments made by credit card companies 1/2 of 1% RA No. 10963 RR No. 11-2018 1601-EQ WI156 a. Individual a. Individual WC156 b. Corporate b. Corporate WI159 Additional income payments to gov't. personnel from importers, shipping and airline companies of their agents for overtime services 15% 1601-E Additional income payments to government personnel from importers, shipping and airline companies or their agents for overtime services 15% RA No. 10963 RR No. 11-2018 1601-EQ Income payments made by the government to its local/resident suppliers of services 1601-E Income payments made by the government and government-owned and controlled corporations (GOCCs) to its local/resident suppliers of services other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-EQ WI157 a. Individual 2% a. Individual 2% WC157 b. Corporate 2% b. Corporate 2% Income payments made by top 20,000 private corporations to their local/resident suppliers of goods 1601-E Income payment made by top withholding agents to their local/resident supplier of goods other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-EQ WI158 a. Individual 1% a. Individual 1% WC158 b. Corporate 1% b. Corporate 1% Income payments made by top 20,000 private corporations to their local/resident suppliers of services 1601-E Income payment made by top withholding agents to their local/resident supplier of services other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-EQ WI160 a. Individual 2% a. Individual 2% WC160 b. Corporate 2% b. Corporate 2% Commission, rebates, discounts and other similar considerations paid/granted to independent and/or exclusive sales representatives and marketing agents and sub-agents of companies 1601-E Commissions, rebates, discounts and other similar considerations paid/granted to independent and/or exclusive sales representatives and marketing agents and sub-agents of companies, including multi-level marketing companies RA No. 10963 RR No. 11-2018 1601-EQ WI515 a. Individual 10% a. Individual 5% - If gross income for the current year did not exceed P3M WC515 b. Corporate 10% b. Corporate 10% - If gross income for the current year did not exceed P720,000 WI530 Gross payments to embalmers by funeral parlors 1% 1601-E Gross payments to embalmers by funeral parlors 1% RA No. 10963 RR No. 11-2018 1601-EQ Payments made by pre-need companies to funeral parlors 1601-E Payments made by pre-need companies to funeral parlors RA No. 10963 RR No. 11-2018 1601-EQ WI535 a. Individual 1% a. Individual 1% WC535 b. Corporate 1% b. Corporate 1% Tolling fee paid to refineries 1601-E Tolling fees paid to refineries RA No. 10963 RR No. 11-2018 1601-EQ WI540 a. Individual 5% a. Individual 5% WC540 b. Corporate 5% b. Corporate 5% Income payments made to suppliers of agricultural products and quarry resources 1601-E Income payments made to suppliers of agricultural products in excess of cumulative amount of P300,000 within the same taxable year RA No. 10963 RR No. 11-2018 1601-EQ WI610 a. Individual 1% a. Individual 1% WC610 b. Corporate 1% b. Corporate 1% Income payments on purchases of minerals, mineral products and quarry resources 1601-E Income payments on purchases of minerals, mineral products and quarry resources, such as but not limited to silver, gold, marble, granite, gravel, sand, boulders and other mineral products except purchases by Bangko Sentral ng Pilipinas RA No. 10963 RR No. 11-2018 1601-EQ WI630 a. Individual 5% a. Individual 5% WC630 b. Corporate 5% b. Corporate 5% Income payments on purchases of gold by Bangko Sentral ng Pilipinas (BSP) from gold miners/suppliers under PD 1899, as amended by RA No. 7076 1601-E Income payments on purchases of minerals, mineral products and quarry resources by Bangko Sentral ng Pilipinas (BSP) from gold miners/suppliers under PD 1899, as amended by RA No. 7076 RA No. 10963 RR No. 11-2018 1601-EQ WI632 a. Individual 5% a. Individual 1% WC632 b. Corporate 5% b. Corporate 1% Income payments made by the government to its local/resident suppliers of goods 1601-E Income payments made by the government and government-owned and controlled corporations (GOCCs) to its local/resident suppliers of goods other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-EQ WI640 a. Individual 1% a. Individual 1% WC640 b. Corporate 1% b. Corporate 1% Withholding on gross amount of refund given by Meralco to customers with active contracts as classified by Meralco 1601-E On gross amount of refund given by MERALCO to customers with active contracts as classified by MERALCO RA No. 10963 RR No. 11-2018 1601-EQ WI650 a. Individual 25% a. Individual 25% WC650 b. Corporate 25% b. Corporate 25% Withholding on gross amount of refund given by Meralco to customers with terminated contracts as classified by Meralco 1601-E On gross amount of refund given by MERALCO to customers with terminated contracts as classified by MERALCO RA No. 10963 RR No. 11-2018 1601-EQ WI651 a. Individual 32% a. Individual 32% WC651 b. Corporate 32% b. Corporate 32% Gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO 1601-E On gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO RA No. 10963 RR No. 11-2018 1601-EQ WI660 a. Individual 10% a. Individual 10% WC660 b. Corporate 10% b. Corporate 10% Gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO 1601-E On gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO RA No. 10963 RR No. 11-2018 1601-EQ WI661 a. Individual 10% a. Individual 10% WC661 b. Corporate 10% b. Corporate 10% Gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) 1601-E On gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) RA No. 10963 RR No. 11-2018 1601-EQ WI662 a. Individual 10% a. Individual 10% WC662 b. Corporate 10% b. Corporate 10% Gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) 1601-E On gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) RA No. 10963 RR No. 11-2018 1601-EQ WI663 a. Individual 20% a. Individual 20% WC663 b. Corporate 20% b. Corporate 20% Income payments made by political parties and candidates of local and national elections of all their purchase of goods and services as campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates 1601-E Income payments made by political parties and candidates of local and national elections on all their purchases of goods and services related to campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contributions to political parties and candidates RA No. 10963 RR No. 11-2018 1601-EQ WI680 a. Individual 5% a. Individual 5% WC680 b. Corporate 5% b. Corporate 5% WC690 Income payments subject to Withholding Tax received by Real Estate Investment Trust (REIT) Corporate 1% 1601-E Income payments received by Real Estate Investment Trust (REIT) 1% RA No. 10963 RR No. 11-2018 1601-EQ Interest income derived from any other debt instruments not within the coverage of deposit substitutes and Revenue Regulations No. 14-2012 subject to Creditable/Expanded Withholding Tax 1601-E Interest income derived from any other debt instruments not within the coverage of deposit substitutes and Revenue Regulations No. 14-2012 RA No. 10963 RR No. 11-2018 1601-EQ WI710 a. Individual 20% a. Individual 20% WC710 b. Corporate 20% b. Corporate 20% WC180 On interest on foreign currency loans payable to non-resident foreign corporations 20% 1601-F Interest on foreign loans payable to Non-Resident Foreign Corporations (NRFCs) 20% RA No. 10963 RR No. 11-2018 1601-FQ WC190 Interest on income and other income on foreign currency transactions/loans payable to OBUs 10% 1601-F Interest and other income payments on foreign currency transactions/loans payable to Offshore Banking Units (OBUs) 10% RA No. 10963 RR No. 11-2018 1601-FQ WC191 Withholding Tax on Income Payment to FCDUs 10% 1601-F Interest and other income payments on foreign currency transactions/loans payable to Foreign Currency Deposit Units (FCDUs) 10% RA No. 10963 RR No. 11-2018 1601-FQ On cash dividend payments of domestic corporation to citizens or resident aliens and non-resident foreign corporations 1601-F Cash dividend payment by domestic corporation to citizens and resident aliens/NRFCs RA No. 10963 RR No. 11-2018 1601-FQ WI202 a. Individual 10% a. Individual 10% WC212 b. Corporate 32% b. Corporate 30% On property dividend payments of domestic corporation to citizens or resident aliens and non-resident foreign corporations 1601-F Property dividend payment by domestic corporation to citizens and resident aliens/NRFCs RA No. 10963 RR No. 11-2018 1601-FQ WI203 a. Individual 10% a. Individual 10% WC213 b. Corporate 32% b. Corporate 30% WC222 On cash dividend payments of domestic corporation to non-resident foreign corporations whose countries allow tax deemed paid credit of 20% for 1997, 19% for 1998, 18% for 1999, & 17% thereafter (subject to tax sparing rule) 15% 1601-F Cash dividend payment by domestic corporation to NRFCs whose countries allowed tax deemed paid credit (subject to tax sparing rule) 15% RA No. 10963 RR No. 11-2018 1601-FQ WC223 On property dividend payments of domestic corporation to non-resident foreign corporations whose countries allow tax deemed paid credit of 20% for 1997, 19% for 1998, 18% for 1999, & 17% thereafter (subject to tax sparing rule) 15% 1601-F Property dividend payment by domestic corporation to NRFCs whose countries allowed tax deemed paid credit (subject to tax sparing rule) 15% RA No. 10963 RR No. 11-2018 1601-FQ WI224 On cash dividend payments of domestic corporation to non-resident alien engaged in trade or business (NRAETB) 20% 1601-F Cash dividend payment by domestic corporation to Non-Resident Alien Engage in Trade or Business within the Philippines (NRAETB) 20% RA No. 10963 RR No. 11-2018 1601-FQ WI225 On property dividend payments of domestic corporation to non-resident alien engaged in trade (NRAETB) 20% 1601-F Property dividend payment by domestic corporation to NRAETB or business 20% RA No. 10963 RR No. 11-2018 1601-FQ WI226 On dividend payments of domestic corporation to share of a non-resident alien (NRA) individual in the distributable net income after tax of a partnership (except a GPP) of which he is a partner, or the share of NRA individual in the net income after tax of an association, a joint account, or joint venture taxable as a corporation of which he is a member or a co-venturer 20% 1601-F Share of NRAETB in the distributable net income after tax of a partnership (except General Professional Partnership) of which he is a partner, or share in the net income after tax of an association, joint account or a joint venture taxable as a corporation of which he is a member or a co-venturer 20% RA No. 10963 RR No. 11-2018 1601-FQ WC230 On payments to non-resident foreign corporation not engaged in trade or business in the Philippines 32% 1601-F On other payments to NRFCs 30% RA No. 10963 RR No. 11-2018 1601-FQ WI240 On profit share of individual partners in a taxable partnerships, association, a joint account, or a joint venture or consortium 10% 1601-F Distributive share of individual partners in a taxable partnership, association, joint account or joint venture or consortium 10% RA No. 10963 RR No. 11-2018 1601-FQ Other royalties paid to citizens, resident aliens and non-resident aliens, domestic and resident foreign corporations (juridical persons) engaged in trade or business in the Philippines 1601-F All kinds of royalty payments to citizens, resident aliens and NRAETB (other than WI380 and WI341), domestic and resident foreign corporations RA No. 10963 RR No. 11-2018 1601-FQ WI250 a. Individual 20% a. Individual 20% WC250 b. Corporate 20% b. Corporate 20% WI260 On prizes exceeding P10,000 and other winnings paid to citizens, resident aliens and NRAETB 20% 1601-F On prizes exceeding P10,000 and other winnings paid to individuals 20% RA No. 10963 RR No. 11-2018 1601-FQ WC280 On branch profits remittances by all corporations except PEZA/SBMA/CDA registered 15% 1601-F Branch profit remittances by all corporations except PEZA/SBMA/CDA registered 15% RA No. 10963 RR No. 11-2018 1601-FQ WC290 On branch profits remittances by all corporations except PEZA/SBMA/CDA registered (vessels) 4.5% 1601-F On the gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign vessels 4.5% RA No. 10963 RR No. 11-2018 1601-FQ WC300 On branch profits remittances by all corporations except PEZA/SBMA/CDA registered (aircraft, machineries, and other equipment) 7.5% 1601-F On the gross rentals, charters and other fees derived by non-resident lessor or aircraft, machineries and equipment 7.5% RA No. 10963 RR No. 11-2018 1601-FQ On payments to oil exploration service contractors and subcontractors (OESS) 1601-F On payments to oil exploration service contractors/sub-contractors RA No. 10963 RR No. 11-2018 1601-FQ WI310 a. Individual 8% a. Individual 8% WC310 b. Corporate 8% b. Corporate 8% WI330 On payments to non-resident alien individuals not engaged in trade or business w/in the Philippines (dividends, royalties, etc.) 25% 1601-F Payments to Non-resident alien not engage in trade or business within the Philippines (NRAETB) except on sale of shares in domestic corporation and real property 25% RA No. 10963 RR No. 11-2018 1601-FQ On payments to non-resident cinematographic film owner, lessor or distributor 1601-F On payments to non-resident individual/foreign corporate cinematographic film owners, lessors or distributors RA No. 10963 RR No. 11-2018 1601-FQ WI340 a. Individual 25% a. Individual 25% WC340 b. Corporate 25% b. Corporate 25% WI341 On royalties paid to non-resident alien engaged in trade or business (NRAETB) on cinematographic films and similar works 25% 1601-F Royalties paid to NRAETB on cinematographic films and similar works 25% RA No. 10963 RR No. 11-2018 1601-FQ WI350 Other income subject to final withholding tax (On interest or other payments in tax-free covenant, bonds, mortgages, deeds of trust or other obligations) 30% 1601-F Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of trust or other obligations under Sec. 57C of the National Internal Revenue Code of 1997, as amended 30% RA No. 10963 RR No. 11-2018 1601-FQ WI380 On royalties paid to citizens, resident aliens and non-resident alien engaged in trade or business (NRAETB) on books, other literary works and musical composition 10% 1601-F Royalties paid to citizens, resident aliens and NRAETB on books, other literary works and musical compositions 10% RA No. 10963 RR No. 11-2018 1601-FQ Informer's Reward to Persons Instrumental in the Discovery of Violations of the NIRC and in the Discovery and Seizure of Smuggled Goods 1601-F Informers Cash Reward to individuals/juridical persons RA No. 10963 RR No. 11-2018 1601-FQ WI410 a. Individual 10% a. Individual 10% WC410 b. Corporate 10% b. Corporate 10% Cash or property dividends paid by a REIT subject to Final Tax 1601-F Cash or property dividend paid by a Real Estate Investment Trust (REIT) RA No. 10963 RR No. 11-2018 1601-FQ WI700 a. Individual 10% a. Individual 10% WC700 b. Corporate 10% b. Corporate 10% On interest from bank deposits 1602 Interest on savings/time deposit RA No. 10963 RR No. 11-2018 1602-Q WI161 a. Individual 20% a. Individual 20% WC161 b. Corporate 20% b. Corporate 20% On interest from Treasury Bills and Other Government Securities 1602 Interest on Government Securities RA No. 10963 RR No. 11-2018 1602-Q WI162 a. Individual 20% a. Individual 20% WC162 b. Corporate 20% b. Corporate 20% On interest from deposit substitutes, trusts funds and other similar arrangements 1602 Interest on deposit substitute/others RA No. 10963 RR No. 11-2018 1602-Q WI163 a. Individual 20% a. Individual 20% WC163 b. Corporate 20% b. Corporate 20% WI165 On amounts withdrawn from decedent's deposit account 6% 1602 On amounts withdrawn from decedent's deposit account 6% RA No. 10963 RR No. 11-2018 1602-Q On interest from foreign currency deposits 1602 Interest on foreign currency deposits RA No. 10963 RR No. 11-2018 1602-Q WI170 a. Individual 7.5% a. Individual 15% WC170 b. Corporate 7.5% b. Corporate 15% On interest income from long-term deposit in the form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year 1602 Interest on pre-terminated long-term deposits/investments RA No. 10963 RR No. 11-2018 1602-Q WI440 a. Individual 20% a. Individual 20% WI441 12% 12% WI442 5% 5% WC440 b. Corporate 20% b. Corporate 20% On Fringe Benefits Paid to Employees Other than Rank and File 1603 On Fringe Benefits Paid to Employees Other than Rank and File RA No. 10963 RR No. 11-2018 1603-Q WF360 a. On Payments to employees (except rank and file) of fringe benefits based on the grossed up monetary value 32% a. In general, for citizen, resident alien and non-resident alien engaged in trade or business within the Philippines 35% WF330 b. On payments to non-resident alien individuals not engaged in trade or business in the Philippines 25% b. Non-resident alien not engaged in trade or business within the Philippines 25% IV. THE FOLLOWING ATCs ARE HEREBY DROPPED: ATC Description Tax Rate Legal Basis BIR Form Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of goods other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-E WI670 a. Individual 1% WC670 b. Corporate 1% Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of services other than those covered by other rates of withholding tax RA No. 10963 RR No. 11-2018 1601-E WI672 a. Individual 2% WC672 b. Corporate 2% Payments to medical practitioners by a duly registered professional partnership for the practice of the medical profession RA No. 10963 RR No. 11-2018 1601-E Individual WI141 - If the current year's income payments to the medical practitioner is P720,000 and below 10% WI142 - If the current year's income payments to the medical practitioner exceed P720,000 15% WI320 On payments to alien individual employed by OBUs, Foreign Petroleum Service Contractors and Subcontractors by, Regional or Area Headquarters and Regional Operating Headquarters of multinational companies including its Filipino employees occupying the same position 15% RA No. 10963 RR No. 11-2018 1601-F V. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. CAIHTE VI. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue