Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Republic Act (RA) No. 11534, Otherwise Known as Corporate Recovery and Tax Incentives for Enterprise (CREATE) Act

November 2, 2021 REVENUE MEMORANDUM ORDER NO. 4-2022 SUBJECT : Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Republic Act (RA) No. 11534, Otherwise Known as Corporate Recovery and Tax Incentives for Enterprise (CREATE) 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 Corporate Income Tax in BIR Form Nos. 1702Q (Quarterly Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers), 1702-RT (Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to Regular Income Tax Rate) and 1702-MX (Annual Income Tax Return for Corporation, Partnership and Other Non-Individual with Mixed Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rate) pursuant to RA No. 11534, the following ATCs are hereby modified: EXISTING (per ATC Handbook) MODIFIED/ NEW ATC Description Tax Rate BIR Form No. Legal Basis Tax Rate IC010 Domestic Corporation, in general 30% 1702Q/ 1702-RT/ 1702-MX R.A. No. 11534 RR No. 5-2021 25% or 20% July 01, 2020 onwards IC030 Proprietary Educational Institutions 10% July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 10% Proprietary Educational Institutions whose gross income from unrelated trade, business or other activity exceeds fifty percent (50%) of the total gross income from all sources 30% 25% or 20% July 01, 2020 onwards IC031 Non-Stock, Non-Profit Hospitals 10% July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 10% Non-Stock, Non-Profit Hospitals whose gross income from unrelated trade, business or other activity exceeds fifty percent (50%) of the total gross income from all sources 30% 25% or 20% July 01, 2020 onwards IC040 GOCC, Agencies & Instrumentalities 30% 25% or 20% July 01, 2020 onwards IC041 National Government and LGUs 30% 1702Q/ 1702-RT/ 1702-MX R.A. No. 11534 RR No. 5-2021 25% or 20% July 01, 2020 onwards IC020 Taxable Partnership 30% 25% or 20% July 01, 2020 onwards IC055 Minimum Corporate Income Tax (MCIT) 2% July 01, 2020 to June 30, 2023 1% July 01, 2023 onwards 2% IC070 Resident Foreign Corporation, In General 30% 25% IC190 Offshore Banking Units (OBUs) Foreign Currency Transaction not subjected to Final Tax 10% 25% Other Than Foreign Currency Transaction 30% 25% IC101 Regional Operating Headquarters January 01, 2022 10% 25% IC191 Foreign Currency Deposit Units (FCDUs) Foreign Currency Transaction not subjected to Final Tax 10% 25% Other Than Foreign Currency Transaction 30% 25% II. REPEALING CLAUSE: This Revenue Memorandum Order (RMO) revises portions of all other issuances inconsistent herewith. III. EFFECTIVITY: This RMO shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue