RMO No. 20-2019: Modifies the Alphanumeric Tax Code for Business Income and Income from Profession in BIR Form Nos. 1701/1701A/1701Q pursuant to the implementation of RA No. 10963 (TRAIN Act)

Summary

RMO No. 20-2019 modifies the Alphanumeric Tax Codes (ATCs) for business income and income from profession in BIR Form Nos. 1701, 1701A and 1701Q, under the implementation of RA No. 10963 (TRAIN Act).

Key points

1. Forms covered. BIR Form No. 1701 is the annual return for individuals (including mixed income earners), estates and trusts. BIR Form No. 1701A is the annual return for individuals earning income purely from business or profession, and BIR Form No. 1701Q is the quarterly return for individuals, estates and trusts.
2. Graduated rate codes. ATC II012 covers business income and ATC II014 covers income from profession, both under graduated income tax rates.
3. 8% rate codes. ATC II015 covers business income and ATC II017 covers income from profession, both under the 8% income tax rate.
4. Form assignment. The order lists the BIR forms for each code, showing the existing assignment and the modified or new one. Forms 1701, 1701A and 1701Q appear in the table.

Who is affected

• Individuals with business income or income from profession
• Estates and trusts

Deadlines and effectivity

• Issued April 30, 2019

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