Summary
RMO No. 4-2022 modifies the Alphanumeric Tax Codes (ATC) of selected revenue sources under RA No. 11534 (CREATE Act).
Key points
- Corporate income tax rates. IC010 Domestic Corporation in general, IC020 Taxable Partnership, IC040 GOCC, Agencies and Instrumentalities, and IC041 National Government and LGUs move from 30% to 25% or 20% from July 01, 2020 onwards. IC070 Resident Foreign Corporation in general moves from 30% to 25%.
- Other ATCs modified. The modified list also covers IC030 Proprietary Educational Institutions, IC031 Non-Stock, Non-Profit Hospitals, IC055 Minimum Corporate Income Tax, IC190 Offshore Banking Units, IC101 Regional Operating Headquarters and IC191 Foreign Currency Deposit Units. The rates for these appear in the table of the Order.
- Basis and forms. The legal basis is RA No. 11534 and RR No. 5-2021, and the codes are used with BIR Form Nos. 1702Q, 1702-RT and 1702-MX.
Who is affected
- Corporate taxpayers using the listed ATCs
Deadlines and effectivity
- Rates from July 01, 2020 onwards
- MCIT and certain institutions: periods July 01, 2020 to June 30, 2023 and July 01, 2023 onwards
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.