RMO No. 47-2004: Prescribes the policies and procedures in the monitoring, identification for inclusions or deletions of Withholding Agents classified as Top 10,000 Private Corporations

Key points

1. Inclusion criteria. The RDO recommends to the Withholding Tax Division an alphalist of agents who meet any criterion. These are: Large Taxpayer notified under RR No. 1-98 (automatic inclusion); net VAT of at least P 100,000; annual income tax of at least P 200,000; percentage taxes of at least P 100,000; gross sales over P 10,000,000; or gross purchases over P 5,000,000. All figures are for the preceding year.
2. Former top 5000. The top 5000 Corporations notified under RR No. 12-94 continue withholding 1% on goods and 2% on services other than those under other withholding tax rates. Their previous CIR notification is presented if needed.
3. Evaluation and deletion. The RDO submits its evaluation of the preceding year, with a recommendation for inclusion or deletion, on or before May 31 of the following year. Deletion is for those failing all the criteria under RR No. 17-2003.
4. Automatic cessation. The RDO, LTAD or LTDO immediately notifies the WTD of taxpayers who cease to be withholding agents, with no prior written CIR notice required. These are closure or dissolution, merger or consolidation of dissolved or absorbed corporations, and any business combination where a corporation loses its juridical personality by law. The LTAD/LTDO gives the WTD and LTPD a list of delisted or newly identified Large Taxpayers within 10 days after notification.
5. Alphalist of regular suppliers. TTCs submit the Initial and Semestral Alphalist of Regular Suppliers of Goods and Services. Manual filers use hard copy if below 10 payees and soft copy (diskette) for 10 or more per semester, while Electronic Filing and Payment System filers use e-submission regardless of payees. Technical specifications are prescribed in a separate issuance.
6. Monitoring and KPIs. Revenue Officers are equitably assigned to monitor TTCs. The KPIs are submission of the semestral alphalist, measured against total TTCs, with a target of 80%, and case closure of non-filers and stop-filers, measured against cases assigned, also at 80%.

Who is affected

• Withholding agents classified as Top 10,000 Private Corporations
• Revenue District Offices, LTAD, LTDO and Large Taxpayers Service

Deadlines and effectivity

• Initial alphalist: 15 days upon receipt of notice
• 1st semester alphalist: July 31
• 2nd semester alphalist: January 31 of the following year
• RDO evaluation: on or before May 31 of the following year