Special InTAX: January 2022 Issue 1 | Volume 5

 

Bureau of Internal Revenue

 

The Bureau of Internal Revenue (BIR) issued the following:

Bank Bulletin No.2022-02, 10 January 2022, to inform all Authorized Agent Banks (AABs) to accept returns and the corresponding tax payments due thereon from taxpayers registered under areas classified and will be classified under Alert Level 3 and higher levels, notwithstanding the Revenue District Office (RDO) jurisdiction.

The existing procedures on the processing of out-of-district returns and payment of taxes shall be followed.

This Bank Bulletin shall take effect until Alert Level 3 and higher levels have been lifted and this supersede Bank Bulletin No. 2022-01.

Revenue Memorandum Order (RMO) No. 6-2022, 13 January 2022, to prescribe the following updated guidelines and procedures on the creation, modification and dropping of Alphanumeric Tax Code (ATC) in view of the implementation of different tax reforms in the Philippine tax administration system:

1.   The concerned office shall officially communicate its request for the creation, modification and/or dropping of ATCs to the Assistant Commissioner (ACIR), Client Support Service (CSS), Attention: The Chief, Taxpayers Service Programs & Monitoring Division (TSPMD) together with the appropriate supporting documents, to effect the creation/changes on the corresponding BIR Forms.

2.  Such request shall be presented using the prescribed format illustrated in the issuance.

3.  The CSS shall then endorse the said request to the ACIR, Planning and Management Service, Attention: The Chief, Research and Statistics Division (RSD), for appropriate action.

4.  The RSD shall prepare the RMO for approval of the Commissioner of lnternal Revenue.

RMO No. 4-2022 on 14 January 2022, to circularize the modification of the following ATC to facilitate the proper identification and monitoring of tax collections from Corporate Income Tax in BIR Form Nos. 1702Q, 1702-RT, 1702-MX pursuant to Republic Act (RA) No. 11534, otherwise known as Corporate Recovery and Tax lncentives for Enterprise (CREATE) Act:

Existing (per ATC Handbook)					Modified/ New
ATC	Description	Tax Rate	BIR Form No.	Legal Basis	Tax Rate
IC010	Domestic Corporation, in general    01 July 2020 onwards	30%	1702Q/ 1702-RT/ 1702-MX	RA No. 11534   RR No. 5-2021	25% or 20%
IC030	Proprietary Educational lnstitutions	10%
	01 July 2020 to 30 June 2023				1%
	01 July 2023 onwards				10%
	Proprietary Educational lnstitutions whose gross income from unrelated trade, business or other activity exceeds fifty percent (50%) of the total gross income from all sources    01 July 2020 onwards	30%			25% or 20%
IC031	Non-Stock, Non-Profit Hospitals	10%
	01 July 2020 to 30 June 2023				1%
	01 July 2023 onwards				10%
	Non-Stock, Non-Profit Hospitals whose gross income from unrelated trade, business or other activity exceeds fifty percent (50%) of the total gross income from all sources   01 July 2020 onwards	30%			25% or 20%
IC040	GOCC, Agencies & lnstrumentalities   01 July 2020 onwards	30%			25% or 20%
IC041	National Government and LGUs   01 July 2020 onwards	30%			25% or 20%
IC020	Taxable Partnership   01 July 2020 onwards	30%			25% or 20%
IC055	Minimum Corporate lncome Tax (MCIT)	2%
	01 July 2020 to 30 June 2023				1%
	01 July 2023 onwards				2%
IC070	Resident Foreign Corporation, ln General	30%			25%
IC190	Offshore Banking Units (OBU's)
	Foreign Currency Transaction not subjected    to Final Tax	10%			25%
	Other Than Foreign Currency Transaction	30%			25%
IC101	Regional Operating Headquarters   01 January 2022 onwards	10%			25%
IC191	Foreign Currency Deposit Units (FCDUs)
	Foreign Currency Transaction not subjected to Final Tax	10%			25%
	Other Than Foreign Currency Transaction	30%			25%

 

RMO No. 3-2022, 27 September 2021, to circularize the creation of the following ATC to facilitate the proper identification and monitoring of remittances for Final Income Taxes withheld pursuant to the implementation of RA No. 9505, otherwise known as Personal Equity and Retirement Account (PERA) Act of 2008:

 

ATC	Description	Tax Rate	Legal Basis	BIR Form No.
WI730	Total income earned from the time of its opening to its withdrawal under the PERA Act of 2008	20%	RA No. 9505	1601-FQ
			Revenue Regulations (RR) No. 6-2021

 

The RMOs revise portions of all other issuances inconsistent herewith and shall take effect immediately.

Revenue Memorandum Circular (RMC) No. 3-2022, 01 December 2021, to clarify the proper procedure in the preparation of assessment notices for compromise penalty(ies) pursuant to the provisions under RMO No. 7-2015 with regards to compromise penalties and RR No. 12-99, as amended by RR No. 18-2013, in the issuance of a deficiency tax assessment.

Following the provision under Item III.4 of RMO No. 7-2015 and for uniformity in the preparation of assessment notices, the prescribed formats under RR No. 18-2013 such as Preliminary Assessment Notice (PAN)  and Formal Letter of Demand shall now be composed of 2 parts where Part I shall pertain to deficiency basic taxes and civil penalties, while Part II (see Annexes “A”, “B.1” and “B.2”) shall pertain to the assessed compromise penalties relative to violations uncovered during the conduct of audit. Likewise, preparation of the BIR Form No. 0605 – Payment Form for the settlement/payment of the deficiency basic tax and civil penalties in “Part 1” of the assessment notices and BIR Form No. 0605 for compromise penalties in “Part II” (see Annex “C”) shall be done separately.

The RMC shall take effect immediately.

 

Attached are the full texts of the said issuances

Revenue Memorandum Order No. 6-2022

Revenue Memorandum Order No. 4-2022

Revenue Memorandum Order No. 3-2022

Revenue Memorandum Circular No. 3-2022

Revenue Memorandum Circular No. 3-2022 Annex C

Revenue Memorandum Circular No. 3-2022 Annex B2

Revenue Memorandum Circular No. 3-2022 Annex B1

Revenue Memorandum Circular No. 3-2022 Annex A

Acceptance of Tax Returns and Payments from TPs in ALert Level 3 Areas Bank Bulletin 2022-01-10