Revised Tax Numeric Codes of Revenue Sources

January 20, 1978 REVENUE MEMORANDUM ORDER NO. 05-78 SUBJECT : Revised Tax Numeric Codes of Revenue Sources TO : All Collection Agents, RTR-Issuing Officers and Others Concerned SCOPE AND PURPOSE : The original Tax Numeric Codes of Revenue Sources which was adopted for use since January 1, 1969, has been rendered inadequate and obsolete by the numerous amendments introduced to the National Internal Revenue Code by the various Presidential Decrees and special laws. Consequently, a new coding scheme was evolved by the Committee on the Revision and Updating of the Tax Numeric Codes to make sure the faithful inclusion of all taxes provided for in the Updated Tax Code of 1977 and further, to comply, for the first time, with the long-standing requirement of the International Monetary Fund for a uniform classification and identification of government revenues of all member-countries. Accordingly, BTR/GFS (Bureau of Treasury/Government Financial Statistics) codes have been assigned by the Department of Finance viz-a-viz the B.I.R. numeric codes. cdt The electronic data processing of all Revenue Tax Receipts, with the tax numeric codes properly indicated, will certainly facilitate data retrieval, even in detailed form, making available to top management of the Bureau as well as other government users, statistical information on the different taxes collected and the corresponding amounts collected therefrom thus making possible more effective policy-making. STRUCTURAL PRESENTATION : The taxes are classified into group levels with the types of tax as the highest group level. These are further subdivided into intermediate groups, sub-groups and items, with the items as the lowest level of classification. The first digit represents the type of tax in accordance with the Titles enumerated in the Tax Code and in the sequence they appear therein. The next five digits represent sub-groups while the last two digits stand for the item under the sub-group. The manner of assignment of numeric codes affords the greatest flexibility with adequate room for expansion so that it is possible to insert new codes for future taxes, on any classification level. As much as possible, in the listing of the taxes, close adherence to the codal sequence has been followed and rarely has there been any deviation except in cases where the importance of classifying taxes according to their nature far outweighs the need to follow the codal sequence. One very good example of such divergence is in the grouping under the topic, Withholding Tax at Source. Regardless of whether the taxes are classified under any Title of the Tax Code (Income, Business, etc.), Presidential Decree or special law, for as long as the collection thereof is subject to withholding tax at source, such taxes were made to fall under Withholding Tax at Source. The rationale behind this grouping is to provide easy reference for Collection Agents and RTR-Issuing Officers to turn to only one place in the handbook, at any time they come across taxes withheld at source. The importance of properly filling up Item 10 of the Revenue Tax Receipt (portion for B.I.R. and BTR/GFS Numeric Codes) cannot be overemphasized. All Collection Agents and RTR-Issuing Officers are enjoined to follow strictly the instructions contained in Revenue Memorandum Order No. 5-77 dated January 28, 1977 regarding payments of tax liabilities with the use of the Revenue Tax Receipts. REPEALING CLAUSE : This Revenue Memorandum Order supersedes Revenue Memorandum Order No. 50-68 dated November 4, 1968. EFFECTIVITY : The provisions of this Revenue Memorandum Order takes effect immediately. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8 ANNEX TABLE OF CONTENTS TITLE I. INCOME TAXES A. Individual Income Tax 1. Citizen a) Resident Citizen b) Non-resident Citizen 2. Alien a) Resident Alien b) Non-resident Alien 3. Income of Estate and Trust B. Corporate Income Tax 1. Domestic Corporation 2. Foreign Corporation a) Resident Foreign Corporation b) Non-resident Foreign Corporation 3. Surtax C. Capital Gains Tax D. Withholding Tax 1. On Wages 2. At Source a) Individual b) Corporation c) Mixed E. Transaction Taxes F. Tax on Winnings G. Tax on Casinos II. ESTATE AND DONOR'S (GIFT) TAX A. Estate Tax B. Donor's (Gift) Tax III. SPECIFIC TAXES A. Distilled Spirits B. Wines C. Fermented Liquors D. Tobacco Products E. Cigars F. Cigarettes G. Matches H. Fireworks (Firecrackers, sparklers, rockets and similar devices which are exploded or burned to produce noises or brilliant lighting effects) I. Kerosene J. Lubricating Oils K. Naptha, regular gasoline and all other similar products of distillation L. Premium and aviation gasoline M. Denatured alcohol to be used for motive power N. Denatured alcohol for blending with motor gasoline for motive power purposes (alcogas) O. Processed gas P. Thinners and Solvents Q. Liquified Petroleum gas R. Liquified Petroleum gas for motive power S. Asphalts T. Greases, waxes and petrolatum U. Aviation turbo jet fuel V. Coal and coke W. Bunker fuel oil, and all similar fuel oils having more or less the same generating power X. Diesel fuel oil, and all similar fuel oils having more or less the same generating power Y. Cinematographic films, including television films Z. Saccharine, sodium saccharinate and all its derivatives or salts of saccharine and other artificial sweetening agents IV. TAX ON BUSINESS A. Fixed Taxes 1. On persons subject to percentage tax 2. Graduated Fixed Taxes 3. Other Fixed Taxes B. Percentage Tax 1. Jewelry, Toilet Preparations and Others a.) Locally manufactured 1.) Luxury Articles 2.) Ordinary Articles b) Imported 1) Imported with tax rate under section 194 2) Imported with tax rate under section 199 2. Automobiles (including parts and accessories) a) Locally manufactured b) Imported 1) Imported with tax rates under section 195 2) Imported with tax rates under section 199 3. Sporting Goods and Others a) Locally manufactured 1) Semi-luxury articles 2) Ordinary articles b) Imported 1) Imported with tax rate under section 196 2) Imported with tax rate under section 199 4. Refrigerators, Air-conditioners, Beverage Coolers, Ice Cream Cabinets and Others a) Locally manufactured 1) Integrated manufactured products 2) Non-integrated manufactured products 3) Not classified as integrated or non-integrated by the Board of Investments b) Imported 1) Integrated manufactured products 2) Non-integrated manufactured products 3) Not classified as integrated or non-integrated manufactured products 5. Phonographs, combination radio and phonograph sets, television sets, combination radio and television sets, combination radio-phonograph-television sets, gramophones and similar articles a) Locally manufactured 1) Classified as locally manufactured articles by the Board of Investments 2) Not classified as locally manufactured articles by the Board of Investments b) Imported 6. Other articles not enumerated in sections 194, 195, 196, 197, 198 and 201 7. Processed meat, milk and vegetables, fish and other sea foods, wheat flour and feeds a) Locally manufactured b) Imported 8. Rope factories, sugar centrals and mills, coconut oil mills, cassava mills and desiccated coconut factories C. Compensating Tax cd 1. Jewelry, Toilet Preparations and Others a.) Luxury articles b) Ordinary articles 2. Automobiles (including parts and accessories) 3. Sporting goods and others a) With tax rates under Section 196 b) With tax rates under Section 199 4. Refrigerators, air-conditioners, beverage coolers, ice cream cabinets and others 5. Phonographs, combination radio and phonograph sets, television sets, combination radio and television sets, combination radio-phonograph-television sets, gramophones and similar articles 6. Other articles not enumerated in section 194, 195, 196, 197, 198 and 201 7. Processed meat, milk and vegetables, fish and other sea foods, wheat flour and feeds D. Contractors, proprietors or operators of dockyards and others E. Caterer's tax F. Carriers and keepers of garages G. Stock, real estate, commercial, customs and immigration brokers and cinematographic film owners, lessors or distributors H. Dealers in securities and lending investors V. DOCUMENTARY STAMP TAXES VI. MINING TAXES VII. MISCELLANEOUS TAXES A. Banks and financial intermediaries B. Finance companies doing business in the Philippines C. Insurance companies D. Franchise grantees E. Government-owned or controlled corporations F. Amusement taxes G. Charges on timber and forest products from public forest or reserve and from private land H. Charges on firewood cut in public forests and forest reserves I. Charges on timber cut for use on mining claim J. Charges on gums, resins, rattan and other products of the forest gathered or removed from any public forest or forest reserve not provided for above K. Charges on stone, earth, salt and guano gathered or removed from lands under the jurisdiction of the bureau of Forest Development L. Charges on charcoal, daluru, stone or earth, clean salago bark, manila copal, almaciga, manila elemi and others M. License fees of dealers in firearms, ammunitions and explosives N. Firearms license fees O. Tobacco inspection fees P. Water rentals Q. Energy or ad valorem tax on private cars R. Tax on sweepstakes total prize fund S. Taxes collected under the Sugar Adjustment Act T. Proceeds from forfeitures of bonds U. Cost of suit V. Proceeds from the sale of smuggled or confiscated goods W. Sale of assets, confiscated property under distraint and levy VIII. FINES AND PENALTIES NUMERIC CODES OF REVENUE SOURCES TAX NUMERIC CODE SOURCES OF REVENUE BTR/GFS BIR TAX RATES REFERENCE I.INCOME TAXES A.Individual Income Tax 1.2.0 1011-1001 1.Citizen a)Resident Citizen - on net income from all sources Graduated Sec. 21 Over But not over Tax Due P - P2,000 3% P 2,000 4,000 60 plus6% of excess over P2,000 4,000 6,000 180 plus9% of excess over 4,000 6,000 8,000 360 plus 12% of excess over 6,000 8,000 10,000 600 plus 14% of excess over 8,000 10,000 12,000 880 plus 16% of excess over 10,000 12,000 14,000 1,200 plus 18% of excess over 12,000 14,000 16,000 1,560 plus 20% of excess over 14,000 16,000 18,000 1,960 plus 22% of excess over 16,000 18,000 20,000 2,400 plus 24% of excess over 18,000 20,000 24,000 2,880 plus 27% of excess over 20,000 24,000 28,000 3,960 plus 30% of excess over 24,000 28,000 32,000 5,160 plus 33% of excess over 28,000 32,000 36,000 6,480 plus 36% of excess over 32,000 36,000 40,000 7,920 plus 39% of excess over 36,000 40,000 46,000 9,480 plus 42% of excess over 40,000 46,000 52,000 12,000 plus 44% of excess over 46,000 52,000 58,000 14,640 plus 46% of excess over 52,000 58,000 64,000 17,400 plus 48% of excess over 58,000 64,000 70,000 20,280 plus 50% of excess over 64,000 70,000 78,000 23,280 plus 52% of excess over 70,000 78,000 86,000 27,440 plus 54% of excess over 78,000 86,000 94,000 31,760 plus 56% of excess over 86,000 94,000 102,000 36,240 plus 57% of excess over 94,000 102,000 110,000 40,800 plus 58% of excess over 102,000 110,000 120,000 45,440 plus 59% of excess over 110,000 120,000 130,000 51,340 plus 60% of excess over 120,000 130,000 140,000 57,340 plus 61% of excess over 130,000 140,000 150,000 63,440 plus 62% of excess over 140,000 150,000 160,000 69,640 plus 63% of excess over 150,000 160,000 180,000 75,940 plus 64% of excess over 160,000 180,000 200,000 86,740 plus 65% of excess over 180,000 200,000 250,000 100,740 plus 66% of excess over 200,000 250,000 300,000 134,740 plus 67% of excess over 250,000 300,000 400,000 168,240 plus 68% of excess over 300,000 400,000 500,000 236,240 plus 69% of excess over 400,000 500,000 305,240 plus 70% of excess over 500,000 b) Non-resident Citizen - 1.2.0 1011-2001 1) On income from sources within the Philippines Graduated Sec. 21 1.2.0 1011-2002 2) On adjusted gross income from sources outside the Philippines at the preferential rates, as follows: Net over $6,000 - 1% Over $6,000 but not over $20,000 - 2% Special Over $20,000 - 3% Graduated Sec. 21 2. Alien 1.2.0 1012-1001 a) Resident Alien - on net income from all sources Graduate Sec. 21 b) Non-resident Alien - 1.2.0 1012-2001 1) Engaged in trade or business - on net income in the Philippines Graduated Secs. 21 & 22(a) 1.2.0 1012-2002 2) Employed by regional or area headquarters of multinational corporations - on gross compensation in the Philippines 15% Sec. 22(c) 1.2.0 1012-2003 3) Employed by offshore banking units - on gross income in the Philippines 15% Sec. 22 (d) 1.2.0 1013-0001 3 Income of estate and trust - on net income Graduated Secs. 21 & 56 B. Corporate Income Tax 1.) Domestic Corporation - 1.1.0 1021-0001 a) Ordinary Domestic Corporation - on net income from all sources Sec. 24(a) 1.1.0 1021-0002 b) Private Educational Institutions - on net income from the operations of school, related school activities and passive investment income 10% Sec. 24(a) 1.1.0 1021-0003 c) Mutual Life Insurance Companies - on gross investment income from all sources 10% Sec. 24(d) 1.1.0 1021-0004 d) Government-owned or controlled corporations Special PD 1177 1.1.0 1021-0005 e) Partnerships, no matter how created or organized, but not including general professional partnerships and joint ventures engaged in construction projects 25% - 35% Sec. 24 2.) Foreign Corporation - a) Resident Foreign Corporation 1.1.0 1022-1001 1) Ordinary foreign corporation engaged in trade or business in the Philippines - on net income from sources within the Philippines 25% - 35% Sec. 24(a), (b) (2) 1.1.0 1022-1002 2) International carriers - on gross Philippine billings 2% Sec. 24(b) (2) 1.1.0 1022-1003 3) Foreign Mutual life Insurance Company - on gross investment income from all sources within the Philippines 10% Sec. 24(d) 1.1.0 1022-1004 4) Offshore banking units authorized by the Central Bank, transactions with non-residents and other offshore banking units - on net income 5% Sec. 24(f)(1) Offshore banking units, transactions with local commercial banks including branches of foreign banks authorized by the Central Bank 1.1.0 1022-1005 5) On net income derived by a depository bank from foreign currency transactions with non- residents, offshore banking units in the Philippines and other depository banks under the expanded foreign currency deposit system 5% Sec. 24(f)(2) 1.1.0 1022-2001 b) Non-resident Foreign Corporation 1) Cinematographic film owners, lessors, or distributors on gross income from sources within the Philippines 25% Sec. 24(b) (1) 3) Surtax 1.1.0 1023-0001 a) Development tax on domestic or resident foreign corporation - on net income 5% Sec. 24(c) 1.1.0 1023-0002 b) Surtax on improper accumulation of profits or surplus - on undistributed portion of its accumulated profits or surplus 25% Sec. 25 1.1.0 1023-0003 c) Surtax on a personal holding company - on undistributed net income 45% Sec. 63 C. Capital Gains Tax* 1.1.0 1030-0001 1. On gains derived from sale, barter, exchange of shares of stocks within the Philippines, as follows: Graduated Sec. 34(g) Not over P10,000 - 10% Over P10,000 but not over P15,000 - 12% Over P15,000 but not over P20,000 - 14% Over P20,000 but not over P35,000 - 17% Graduated Sec. 34(g) Over P35,000 but not over P50,000 - 20% Over P50,000 - 25% D. Withholding Tax 1.2.0 1041-0001 1. On wages Graduated Withholding Tax Table Rev. Reg. 9-75 2. At source a) Individual 1.2.0 1042-1001 1) On interest or other payments in tax-free covenant bonds, mortgages, deeds of trust or other obligations payable to non-resident alien or to a citizen or a resident of the Philippines 30% Sec. 53(a) (1) 1.2.0 1042-1002 2) On interest, dividends, rents, royalties, salaries, wages, premiums, annuities, compensation, remunerations, emoluments or other fixed or determinable annual, periodical or casual gains, profits and income and capital gains payable to non-resident alien not engaged in trade or business in the Philippines 30% Sec. 22(b),(53)(b)(1) 1.2.0 1042-1003 3) On dividends received by individuals residing in the Philippines from a domestic corporation 10% Sec. 53(c) 1.2.0 1042-1004 4) On royalties received by individuals residing in the Philippines and by domestic and/or resident foreign corporations 10% Sec. 53(c) 1.2.0 1042-1005 5) On interest income from loans granted by offshore banking units to residents other than offshore banking units or local commercial banks including local branches of foreign banks authorized by Central Bank to transact business with offshore banking units (final tax) 10% Sec. 24(f) 1.2.0 1042-1006 6) On interest income from foreign loans granted by depository banks under the expanded foreign currency deposit system to residents other than offshore banking units in the Philippines or other depository banks under the expanded system (final tax) 10% Sec. 24(f)(2) b) Corporation 1.1.0 1042-2001 1) On interest, dividends, rents, royalties, salaries, wages, premiums, annuities, expirations, remunerations, emoluments or other fixed or determinable annual, periodical or annual gains, profits and income and capital gains payable to non-resident foreign corporation including remunerations for technical services or otherwise paid to a foreign corporation not engaged in trade or business in the Philippines 35% Secs. 24(b)(1), 53(b)(2) 1.10 1042-2002 2) On interest on foreign loans received by foreign corporation not engaged in trade or business in the Philippines 15% Secs. 24(b)(1) (ii), 53(b)(2) 1.10 1042-2003 3) On dividends received by a domestic or resident foreign corporation from a domestic corporation subject to tax under the National Internal Revenue Code (final tax) 10% Sec. 24(c)(1) 1.10 1042-2004 4) On dividends received by foreign corporations not engaged in trade or business in the Philippines from a domestic corporation subject to corporate income tax 15% Sec. 24(b)(1) (iii) c) Mixed 1.30 1042-3001 1) Interest on bank deposits (except interest paid or credited to non-resident alien individuals and foreign corporations) 15% Sec. 53(e)(1) 1.30 1042-3002 2) On rentals, lease and charter fees payable to non-resident owners of vessels chartered by Philippine nationals (final tax) 4.50% Sec. 24(b)(1) d) Under RA 1051 - on transactions with private individuals, corporations, partnerships, associations and/or joint ventures contemplated in PD No. 929 in their capacity as contractors of services, producers or manufacturers, by the Philippine Government or any of its branches or agencies (R.A. 1051), on gross receipts 5.1.0 1042-4101 1) Sales tax due from producers or manufacturers under Sections 194, 195, 196, 197, 198, 199 and 201 Various Secs. 194, 201 5.1.0 1042-4201 2) Percentage tax due from proprietors of rope factories, sugar centrals & mills, coconut oil mills, cassava mills and desiccated coconut factories 2% Sec. 203 3) Percentage tax due from contractors proprietors or operators of dockyards and other contractors 5.1.0 1042-4301 aa) General engineering, general building and specialty contractors as defined in RA 4566 3% Secs. 192(1) 205(1) 5.1.0 1042-4302 ab) Filling, demolition and salvage work contractors and proprietors and operators of mine drilling apparatus 3% Secs. 192(1) 205(2) 5.1.0 1042-4303 ac) Proprietors or operators of dockyards 3% Secs. 192(1) 205(3) 5.1.0 1042-4304 ad) Persons engaged in the installation of water system and gas or electric light, heat or power 3% Secs. 192(1) 205(4) 5.1.0 1042-4305 ae) Proprietors or operators of smelting plants, engraving plants, plating establishments and plastic lamination establishments 3% Secs. 192(1) 205(5) 5.1.0 1042-4306 af) Proprietors or operators of establishments for upholstering, washing, or greasing of motor vehicles, vulcanizing, recapping and battery charging 3% Secs. 192(1) 205(6) 5.1.0 1042-4307 ag) Proprietors or operators of establishments for planning or surfacing and recutting of lumber, and sawmills under contract to saw or cut logs belonging to others 3% Secs. 192(1) 205(7) 5.1.0 1042-4308 ah) Proprietors or operators of dry-cleaning or dyeing establishments, steam laundries, and laundries using machines 3% Secs. 192(1) 205(8) 5.1.0 1042-4309 ai) Proprietors or owners of shops for the