RMO No. 22-2019: Modifies the Alphanumeric Tax Code for Percentage Taxes in BIR Form Nos. 2551M/2551Q pursuant to the implementation of RA No. 10963 (TRAIN Act)

Summary

RMO No. 22-2019 modifies the Alphanumeric Tax Codes (ATCs) for Percentage Taxes in BIR Form Nos. 2551M and 2551Q, under the implementation of RA No. 10963 (TRAIN Act).

Key points

1. 3% codes. At 3%, PT010 covers persons exempt from VAT under Sec. 109(BB) (Sec. 116), and PT040 covers domestic carriers and keepers of garages (Sec. 117). PT041 covers international carriers (Sec. 118), and PT070 covers franchises on radio and television broadcasting companies whose annual gross receipts do not exceed P10 M (Sec. 119), also at 3%.
2. Franchises and insurance. PT060 covers franchises on gas and water utilities (Sec. 119) at 2%. PT120 covers life insurance premium at 5%.
3. Banks and quasi-banking. Codes PT105, PT101, PT102, PT103 and PT104 cover banks and non-bank financial intermediaries performing quasi-banking functions. Rates include 5% and 1% on lending income by remaining maturity (five years or less, and more than five years), 0% on dividends and equity shares and net income of subsidiaries, and 7% on royalties, rentals and other gross income and on net trading gains.
4. Other non-bank intermediaries. Codes PT113, PT114 and PT115 cover non-bank financial intermediaries not performing quasi-banking functions. The rates are 5% and 1% on lending income by maturity, and 5% on all other items treated as gross income.
5. Agents of foreign insurers. PT130 covers insurance agents at 10%. PT132 covers owners of property obtaining insurance directly with foreign insurance companies at 5%.

Who is affected

• Persons liable for percentage taxes
• Banks and non-bank financial intermediaries
• Insurance agents and owners of property insured with foreign insurers

Deadlines and effectivity

• Issued May 3, 2019

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