RMC No. 69-2023: Reverts the rates of Percentage Tax, Minimum Corporate Income Tax, and Regular Corporate Income Tax on proprietary educational institutions and not for profit hospitals, pursuant to RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act [CREATE])

Key points

1. Percentage Tax. The rate reverts to three percent (3%) of gross quarterly sales or receipts. It applies to corporations, self-employed individuals and professionals with gross sales or receipts not exceeding the ₱ 3Million threshold, except cooperatives and those availing of the eight percent (8%) Income Tax rate.
2. MCIT. The rate for domestic and resident foreign corporations, including Offshore Banking Units and Regional Operating Headquarters, reverts to two percent (2%) of gross income.
3. RCIT. The rate for proprietary educational institutions and non-profit hospitals reverts to ten percent (10%) of taxable income.
4. Computation for taxable year 2023. For calendar year and fiscal year filers, the 1% rate applies to amounts up to June 30, 2023. From July 1, 2023, the rates of 2%, 10% or 3% apply.

Who is affected

• Proprietary educational institutions
• Not for profit hospitals

Deadlines and effectivity

• Effective July 1, 2023
• 1% rate through June 30, 2023 for taxable year 2023