RMO No. 07-2004: Specifies the details of the Centennial Taxpayers Recognition Program (CTRP)

Key points

1. Who can vie. All corporations following the calendar year of reporting, and all individuals engaged in business or considered mixed income earners, can vie for the CTRP.
2. Income tax conditions. Income Tax payment for 2003 must grow at least 20% over 2002. Growth for 4th quarter 2003 (April 15, 2004 payment) over 4th quarter 2002 must be at least 25%. Growth for 1st quarter 2004 (May 31, 2004 for corporate, April 15 for individual) must be at least 25% over 1st quarter 2003. For business entities, the ratio of Income Tax to Gross Sales in 2003, and in the 1st quarter of 2004, must be at least equal to the 2002 and 1st quarter 2003 ratios.
3. VAT and percentage tax conditions. For VAT taxpayers, VAT actually paid for 2003 must equal or exceed the higher of 3% of total 2003 sales or receipts, or the effective VAT rate for 2002. For Percentage Tax payers, the ratio of tax paid to gross sales or receipts for 2003 must not be less than the 2002 ratio. Only amounts actually paid in cash count, and Creditable Withholding Taxes supported by BIR Form 2307 are treated as cash.
4. Honors and benefits. Honorees are recognized at the BIR Centennial Anniversary Celebration on August 1, 2004 and listed in an Honor Roll in a national newspaper. They receive a Centennial Taxpayer’s Trophy, a Centennial Honor Taxpayer’s Card, and priority use of e-Services such as Electronic Filing and Payment System, E-Submission and E-Payee. Top Centennial Taxpayers also get last priority in audit and investigation for taxable calendar year 2003 for all tax payments, undertaken only on careful evaluation and authorization by the BIR Commissioner.
5. Voluntary payment and other awards. An aspirant whose correct income tax payment falls short of the growth rates or ratios may make a voluntary additional payment using the Centennial Voluntary Payment Waiver of Refund Form (BIR Form 0605-100). Non-qualifying taxpayers with commendable improvement in 4th quarter and 1st quarter 2004 Income Tax payments get Centennial Awards under standards in a separate Revenue Memorandum Circular.

Who is affected

• Corporations following the calendar year of reporting
• Individuals engaged in business
• Mixed income earners

Deadlines and effectivity

• Honored at the Centennial Anniversary Celebration on August 1, 2004
• Tax year 2003 compared with tax year 2002
• 1st quarter 2004 payment: May 31, 2004 for corporate, April 15 for individual