RMO No. 18-2004: Further expands the coverage of the Centennial Taxpayers Recognition Program (CTRP) to include individual taxpayers who reported a net loss for Tax Year 2002

Key points

1. Income Tax ratio. The ratio of Income Tax payment to Gross Sales in 2003 must be at least equal to the 2002 ratio. The same ratio for the first quarter of 2004 must be at least equal to the first quarter 2003 ratio.
2. VAT and Percentage Tax. For VAT taxpayers, the effective VAT rate 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.
3. Actual tax payment for 2003. The taxpayer must have made an actual tax payment for tax year 2003 equal to or greater than 25% of the Minimum Corporate Income Tax (MCIT) he or she would have paid in tax year 2002 as a corporation.
4. Actual tax payment for 1st quarter 2004. The payment must be equal to or greater than 25% of the taxpayer’s tax due for the first quarter of 2003. That tax due cannot be less than 25% of the aggregate of the 2003 tax payment under the preceding condition and any current creditable withholding tax included in computing it.
5. Clarifications. The Order also clarifies provisions of RMO Nos. 7 and 14-2004 on the criteria in the centennial award selection process.

Who is affected

• Individual business income taxpayers who reported a net loss for tax year 2002

Deadlines and effectivity

• Tax year 2003 payments
• First quarter of tax year 2004 payments