RMC No. 02-2018: Provides the transition procedures for all taxpayers filing tax returns affected by the revised tax rates pursuant to the provisions of RA No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law)

Summary

RMC No. 02-2018 gives transition procedures for taxpayers filing returns affected by the revised tax rates under RA No. 10963 (TRAIN Law). The new rates are not yet built into eFPS, eBIRForms or the manual forms.

Key points

1. Forms and rate changes. BIR Form 1602 (ATCs WI 170 and WC 170) moves from 7 1/2% to 15%. BIR Form 1603 (ATC WF 320) moves from 15% to 35%. BIR Form 2552 (ATC PT 200) moves from 1/2 of 1% to 6/10 of 1%.
2. eFPS filers. They file online with the existing form and pay online. They then file and pay the deficiency tax online using BIR Form No. 0605, entering the Tax Type and ATC MC 031 (Deficiency Tax) in place of the correct form.
3. eBIRForms filers. They file with the existing form and pay online through GCash, LBEPS or BDPTO, or over the counter at Authorized Agent Banks. The deficiency tax goes through BIR Form No. 0605 with the same Tax Type and ATC MC 031 entries.
4. Manual filers. They fill in the form using the new tax rates and compute the tax due. They file and pay manually at Authorized Agent Banks under the Revenue District Office where they are registered.
5. Later notice and penalties. A later Revenue Memorandum Circular will announce when the enhanced forms are in eFPS. Taxpayers remain responsible for declaring the correct tax, and deficiencies found in validation or audit carry the applicable penalties.

Who is affected

• All taxpayers filing returns affected by the TRAIN Law rate changes
• eFPS filers
• eBIRForms filers
• Manual filers

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.