REVENUE MEMORANDUM CIRCULAR NO. 2-2018 issued on January 8, 2018 provides the transition procedures for all taxpayers filing tax returns affected by the revised tax rates pursuant to the provisions of Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law).
Some of the forms/returns being enhanced, together with the corresponding Alphnumeric Tax Codes (ATCs) affected and changes in tax rates, are as follows:
| BIR Form No. | Form Name | ATC Affected | Changes in Tax Rate |
|---|---|---|---|
| 1602 | Monthly Remittance Return of Final Income Taxes Withheld | WI 170 and WC 170 | From 7 ½% to 15% |
| 1603 | Quarterly Remittance Return of Final Income Taxes Withheld | WF 320 | From 15% to 35% |
| 2552 | Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded Through the Local Stock Exchange or Through Initial and/or Secondary Public Offering | PT 200 | From ½% of 1% to 6/10 of 1% |
The above-mentioned changes in tax rates are not yet reflected and implemented in Electronic Filing and Payment System (eFPS), Electronic Bureau of Internal Revenue Forms (eBIRForms) and Manual Forms. Thus, the following work-around procedures in the filing of the said BIR forms/returns shall be adopted:
a. eFPS Filers shall:
File online using the existing BIR form in the eFPS then pay online the corresponding taxes due thereon by proceeding to payment; and
File and pay online the deficiency tax using BIR Form No. 0605. Fill in the corresponding information in the Tax Type and ATC fields in lieu of the correct BIR Form that should have been used:
| BIR Form Supposed to be Used | Tax Type | ATC |
|---|---|---|
| 1602 | WB Withholding Tax – Banks and Other Financial Institutions | All eFPS filers shall use ATC MC 031 – Deficiency Tax |
| 1603 | WR Withholding Tax – Fringe Benefits | |
| 2552 | ST Percentage Tax - Stocks |
Once the enhanced versions of the aforesaid forms are available in eFPS, there will be a notification/announcement through a Revenue Memorandum Circular. Guidelines shall be issued accordingly if there is a necessity to amend the previously-filed returns in eFPS.
b. eBIRForms Users/Filers shall:
File online using the existing BIR Form in the eBIRForms Package then pay the corresponding taxes due thereon via:
Online payment thru Gcash, Landbank Electronic Payment Service (LBEPS) or BIR-DBP PayTax Online (BDPTO); or
Manual payment via over-the-counter (OTC) of Authorized Agent Banks (AABs) under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered; and
File online and pay online thru GCash, LBEPS or BDPTO, or pay manually the deficiency tax using BIR Form No. 0605 via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered. Fill in the corresponding information in the Tax Type and ATC fields specified below in lieu of the correct BIR Form that should have been used.
| BIR Form Supposed to be Used | Tax Type | ATC |
|---|---|---|
| 1602 | WB Withholding Tax – Banks and Other Financial Institutions | All eFPS filers shall use ATC MC 031 – Deficiency Tax |
| 1603 | WR Withholding Tax – Fringe Benefits | |
| 2552 | ST Percentage Tax - Stocks |
c. Manual Filers shall:
Fill-in applicable BIR Form [pre-printed or downloaded form in BIR website (www.bir.gov.ph) under the BIR Forms section of the website] using the new tax rates then compute the tax due thereon; and
File and pay manually via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered.
All concerned taxpayers shall be responsible in ensuring that the correct tax due is being declared and paid for accordingly. Any deficiency taxes that will be discovered in the validation/audit process shall be subjected to all applicable penalties incident thereto in accordance with existing rules and regulations.