Creation of Alphanumeric Tax Codes (ATCs) of Revenue Sources For Proper Classification of Taxes

August 10, 1999 REVENUE MEMORANDUM ORDER NO. 73-99 SUBJECT : Creation of Alphanumeric Tax Codes (ATCs) of Revenue Sources For Proper Classification of Taxes TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective : In order to facilitate identification and monitoring of certain taxes required for Comprehensive Tax Reform Program (CTRP - R.A. 8424) and for ITS purposes, the following ATCs are hereby created: KIND OF TAXES ISSUANCE/LEGAL BASIS ATC New ATC: A. Income Taxes 1. Capital Gains from Sale of Real Properties (Capital Assets) a. Individual Sec. 24 (D)(1) and Sec. 25 (A)(3) II420 b. Corporate Sec. 27 (D)(5) of RA 8424 IC420 2. National Government and Local Sec. 32 (B)(7)(b) of RA 8424 IC041 Government Units (For proprietary activities except public utility business) 3. Non-stock, Non-profit Hospitals Sec. 27(B) of RA 8424 IC031 4. Regional Operating Headquarters Sec. 28(A)(6)(b) of RA 8424 IC101 of Multinational Companies 5. Offshore Banking Units (OBUs) Sec. 28(A)(4) of RA 8424 IC190 6. Foreign Currency Deposit Units Sec. 28(A)(7)(b) of RA 8424 IC191 (FCDUs) 7. Minimum Corporate Income Tax Sec. 27(E) and Sec. 28(A)(2) IC055 (MCIT) of RA 8424 8. Withholding Tax on Income Sec. 28(A)(7)(b) of RA 8424 WC191 Payment to FCDUs B. Value Added Tax 1. Mining & Quarrying Sec. 106 of RA 8424 VQ010 2. On Manufacturing a. Food, Products & Beverages Sec. 106 of RA 8424 VM020 b. Cement Sec. 106 of RA 8424 VM030 c. Tobacco Sec. 106 of RA 8424 VM040 d. Flour Sec. 106 of RA 8424 VM050 3. Compulsory Social Security Public Sec. 108 of RA 8424 VD010 Administration and Defense 4. Withholding Tax on Business a. Tax on sale, barter or exchange of shares of stock a.1. Tax on share of stock sold Sec. 127(C) of RA 8424 in WB202 or exchanged through relation to RA 1051 and secondary public offering RR 2-98 (Sec. 5.116(11)) C. Other Percentage Taxes 1. Owners of Property Obtaining Sec. 124 of RA 8424 PT131 Insurance Directly with Foreign Insurance Companies D. Other Sources of Revenue 1. Deficiency Tax Sec. 6 of RA 8424 MC031 Revised ATC: Item no. B (2)(b)(4) - Interest on income and other income on foreign currency transaction/loans payable to OBU/FCDU - WC190 specified under RMO No. 14-99 is hereby revised to read as follows: "Interest and other income payments on Sec. 28 (A)(4) of RA 8424 & WC190" foreign currency transaction/loans (H)(1)(5) of RR No. 2-98 payable to OBUs II. Effectivity : This Revenue Memorandum shall take effect immediately. llcd (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue