RMO No. 01-2003 — Creates the Alphanumeric Tax Codes (ATC) of selected revenue sources subject to Expanded Withholding Tax per RR No. 14-2002 Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City January 16, 2003 REVENUE MEMORANDUM ORDER NO. 1-2003 SUBJECT: Creation of Alphanumeric Tax Codes (ATC) of Selected Revenue Sources Subject to Expanded Withholding Tax Per Revenue Regulations No. 14-2002 TO : All Collection Agents, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objective : To facilitate the proper identification and monitoring of additional income payments subject to withholding tax based on BIR Form No. 1601E (Monthly Remittance Return of Creditable Income Tax Withheld � Expanded) and BIR Form No. 2307 (Certificate of Creditable Taxes Withheld at Source), and for Integrated Tax System (ITS) purposes, the following ATCs are hereby created: KIND OF TAXES ISSUANCE/ LEGAL ATC BASIS/ REASONS For Taxes on Net Income and Profit � WI 515 Creditable Withholding Tax on: RR 14 � 2002 WC 515 WI 530 1. Commissions of independent and RR 14 � 2002 exclusive distributors, medical/technical and sales representatives & marketing agents of multi-level marketing companies � Individual (10% tax rate) � Corporate (10% tax rate) 2. Gross payments to embalmers by funeral parlors (1% tax rate)

KIND OF TAXES ISSUANCE/ LEGAL ATC BASIS/ REASONS 3. Payments made by pre-need WI 535 companies to funeral parlors RR 14 � 2002 WC 535 � Individual (1% tax rate) WI 540 � Corporate (1% tax rate) RR 14 � 2002 WC 540 4. Tolling fee paid to refineries � Individual (5% tax rate) � Corporate (5% tax rate) As amended by Sec. 2 of RR No. 14 � 2002, the scope of income payments subject to creditable withholding tax from rentals of real property was extended to rentals of personal properties; poles, satellites and transmission facilities; and billboards. No separate ATC shall be created for this purpose, instead the existing ATCs for rentals of real property (per RMO No. 14 � 1999) will be assigned and shall read as follows: KIND OF TAXES ISSUANCE/ LEGAL ATC BASIS/ REASONS xxx I. Tax on Income xxx xxx Xxx WI 100 B. Taxes Withheld Xxx WC 100 xxx Sec. 2.57.2(C) of RR No. 2. Withholding at Source 2-98 as amended by Sec.2 a) Subject to creditable withholding tax of RR No. 14-2002. 2) 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 obligor has not taken or is not taking title or in which has no equity � Individual (5%) � Corporate (5%)

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. (Original Signed) GUILLERMO L. PARAYNO, Jr. Commissioner of Internal Revenue b-3