REVENUE MEMORANDUM CIRCULAR NO. 51-2018 issued on June 11, 2018 amends Revenue Memorandum Circular No. 69-2017 re: registration and compliance requirements of individuals under a Job Order or Service Contract Agreement with the Departments and Agencies of the Government, Instrumentalities, Local Government Units (LGUs), State Colleges and Universities, including Government-Owned and/or -Controlled Corporations and Government Financial Institutions.
The registration and compliance requirements specified in the Circular are applicable only to individuals under a Job Order or Service Contract Agreement with the said government offices. Otherwise, the policies pursuant to Revenue Regulations No. 11-2018 shall be applicable.
The registration, filing and payment requirements for each type of taxpayers defined in the Circular are summarized below:
| Individuals under a Job Order or Service Contract Agreement with the Departments and Agencies of the Government Instrumentalities, LGUs, State Colleges and Universities, including the GOCCs and GFI | Registration & Compliance | Expanded Withholding Tax | Business Tax | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Registration Fee (RF) | Annual RF | COR | Percentage / VAT | Bookkeeping | Invoicing | 1701 ITR | 2551Q/2550M/2550Q | Gross Income ≤ 3,000,000 | Gross Income > 3,000,000 | Percentage Tax | VAT |
| Professionals and Other Supplier of Services deriving gross receipts of P250,000 and below in any 12-month period from lone payor | X | ✓ | * | ✓ | ✓ | X | X | 2% or 10%** | 10% | 3% | X |
| Other Supplier of Services deriving gross receipts above P250,000 in any 12-month period from lone payor | ✓ | ✓ | * | ✓ | ✓ | ✓ | * | 2% or 10%** | 10% | 3% | X |
| Professionals deriving gross receipts above P250,000 in any 12-month period from lone payor | ✓ | ✓ | * | ✓ | ✓ | ✓ | * | 5% or 10%** | 10% | 3% | X |
| Other Supplier of Services receiving income from multiple payor and/or other source of income | ✓ | ✓ | * | ✓ | ✓ | ✓ | * | 5% or 10%** | 10% | 3% | 5% |
| Professionals receiving income from multiple payor and/or other source of income | ✓ | ✓ | * | ✓ | ✓ | ✓ | * | 5% or 10%** | 10% | 3% | 5% |