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

Key points

1. Commissions of distributors and agents. Commissions of independent and exclusive distributors, medical/technical and sales representatives and marketing agents of multi-level marketing companies are taxed at 10%. The codes are WI515 for individuals and WC515 for corporations.
2. Funeral-related payments. Gross payments to embalmers by funeral parlors are taxed at 1%, under code WI530. Payments by pre-need companies to funeral parlors are also taxed at 1%, under WI535 for individuals and WC535 for corporations.
3. Tolling fees. Tolling fees paid to refineries are taxed at 5%. The codes are WI540 for individuals and WC540 for corporations.
4. Gross rentals. Gross rentals for continued use or possession of real property, personal properties, poles, satellites and transmission facilities, and billboards used in business are taxed at 5%. This applies where the payor has not taken or is not taking title or has no equity, under WI100 for individuals and WC100 for corporations.

Who is affected

• Withholding agents paying the listed income
• Recipients of the listed commissions, fees and rentals, whether individual or corporate