REPUBLIC OF THE PHILIPPINES. DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE ‘Quezon City May 24,2018 REVENUE MEMORANDUM ORDER NO. 262018 SUBJECT : Prescribing the Guideins in Mentoring, lentifieation, Icusion and Deletion of ‘Top Withholding Agens Pursuant to\ the Perinent Provisions of Revenue ‘Regulations No. 11-2018 TO Allien Reve Officers and Others Concerned |. BACKGROUND, Revenue Memerandum Order (RMO) No. 47-2008 was issued with the objectives of Instinwonaliing the mentoring, ientfation, inclusion and delion of top 10,000 (futher Ineresod fo 20,000 under Revenue Regulations No, 6-2008) private corporations, inching the ‘stiblishiment of Key Ferformane Indicators (KPIs) ensure compliance ofthese idetifed taxpayers with existing rls and regulations. However, with the isuanee of Revenue Regulations (FRR) No. 11-2018 amending RR Nos. 2-98, 17-2003, nd 6-200, the taxpayers who are mandated to whol the expanded wielding tax ftom tet income payments equvalent to one percent (16) an goods and wo percent (294) on serves ee naw ieated as top withholding apes, In this regard thre is nod to update and amend the provisions of RMO No. 47-2004 in ‘onde tag the sme with the provisions of Section 257-20) [formerly under leer (M) and (W)] (of RR No. 298, as amend by RR No 11-2018, 8 well asthe caren administrative regiments ofthis Buen 1, GUIDELINES 1 The Top Witholing Agents (TWAs) shall include the following ‘Exiting tp txsayers who‘whih weee clasifed and duly notified by the Commissioner as any ofthe flowing unless previusly de-lsiied as such or had already ceased busines operations: i. large spayer under Revenue Regulations No. 1-98, a amended, ‘Top twenty thovsand (20,00) private corporations under RR No,6-2008; it Top ive thousand (5,000) individ taxpayers ander RR No, 6:2008; +, Taxpayers newly identified and included as Medium Taxpayers, and those under the “Texpeyer Account Management Progr (TAME). 2. The exiting large txpayers, tp twenty thousand (20,000) pivate corporations and op five ‘thousand (5,00) individual taxpayers, though already witholding the required one percent (1%) om purchase of goods and two pecan (2%) on purchase of scrvices, other than those ‘covered by oer wi holding tax aes under Section 2.572 of Revene Regultions No. 2-98, {8 amended, sal il be incloded inthe inl pulition of TWAS, sn addition to the taxpayers inf! ws Medium Taxpayers and those under the TAMP if they are not yet RG. Manabat & Co. TX yapreviously classified as ither top 20,000 private corporations or top 5,00 individual tapeyen. (On a somes basi not ater than every Apel 30 and October 31 of each calendar yer, the soncemed RDO, fwough their concerned Repional Directors, shall submit tothe ACIR, Collecion Service, Attention: Chief, Miscellaneous Operations Monitoring, Division (MOM), s list of expayers recommended for ncusion as TWAS andor list of TWAS foe ‘eletion, say, The is sal be prepared ia the following format LIST OF TAXPAYERS FOR INCLUSION/DELETION IN THE LIST OF TOP WITHHOLDING AGENTS (TWAs) For the Semester, 20 Complete Name of Taxpayer | SOmPIste | tan I For Deletion r 2 3 For Incision 1 2 3 “The ACIR, LTS shllHikewise submit she same lis, in cas of inelusionideletion of large taxpayers falling under ther jurisdiction, fr purposes maltaning complete master ist of Was Based onthe sid sens sts recommended by the regional offices, the Chief, MOMD shal ‘consolidate and cviuate all the recommended lis and submit the same to the ACIR, ‘Galeton Service not ater than every May 31 and November 31 of each calendar year, fo subsequent approval by the CTR, ‘The ACI, Colleton Service, thru the Chief, MOMD, sal be response in he pubiaton ‘ofthe CIK-approvel list of TWAs and te egularsemestal lis of TWAS for inclusion or ‘eletion ina newspaper of gnealcrultion not later han every June 15 and December 1S tf ech calendar ea with the complete names ofexpayers and RDOSLTS Divisions where they ate daly repstred, aswel as nthe posting ef the same in the BIR website and issuance lof Revenue Memcrandum Circular (RMC} ‘While the publication ofthe CIR-approved lis is sulicint noice to the concemed TWA pursuant to the provisions of RK No, 11-2018, the concered RDOs may prepare and Petsomly serve individual writen notes ofincuson/eletion tthe concemed TWAs under thei eepetivejrsitions, However, th obligation of th concemed TWAS to withhold the Wand 2% creda withholding taxes on goods and services, respectively, shall commence ‘nthe ist (1°) day ofthe mon fllowing the month of puicaen (Le, Jly I and January Tecapeively of nh elena ea) ‘A complete and upd ist of TWaAs shall be maintained in he Bureau's website. The ACTR, Calleaion Service, thru the Chie, MOMD, shll ensure tht the sad list immediatly ‘update simltanoons with the smestralpubiation of newly incudedeleed TWAS. aA RG. Manabat & Co,8, The MOMD shall mans a master ist of Top Withholding Agents containing te following information 28) Complete mame of taxpayer, 2) Complete addres; 6) Taxpayer dentition Number (TN): 4 Revenue Region and RDO or LTS Divisio where duly registered: €@) Date of publication ofthe CIR-approved lit where the TWA was included 1) Complete mame of newspapecpubliser, and 8) Remus For taxpayers includ in the intl publication but already identified as large taxpayers or fop 20,000 privat corporation or top 5,000 nv txpayers the columa fr “Remarks should indicate “existing porto RR No, 11-2018" Despite the dele infrmtion required o be maintained by the MOMD, for puposes of publication, only thecompete names ofthe TWAs and tei respective RDOVLTS office where ‘hey are rested hal be indicted HLTRANSITORY PROVISIONS. For purposes of isuing the fist of TWAs forthe init publication, the ACIR, Cetin Sv, te Chi MOND, sal end ace ofthe esis ola taxpayers, top 20,000 pavate corporations, 1 5,000 individual taxpayers, as wel ‘tet elon spay an TAME tapes n cmd wi he lowing pls snd procedures 1. Alluspayers wo are classified as large taxpayer, top 20,000 private corporations or op 5,00 individual which ave not ben elited prior othe effectivity of KK NO. 112018, shall remain as tp withholding agents. 2 Onex efi June 30, 2018, the following lists shall be submited in sof and hard copes, bythe eaneered revenue’ offices 10 the ACIR, Collection Service, Attention: Cie, MOM: Type of List, ‘Submiting Revenue Omics) 1 Updated i of ree payers “ACIR, LTS: Validated psd Tit of existing op Regional Decors and RDOs 20,0 pie corporation and op 5,000 individuals previously uansmited by the Chief, MOMD, including ditional taxpayer frinclsin nthe List of TWAS and payers for deletion, provided tht ‘he criteri fr inclusion deletion has been fly satstod us presrbed by RR No. 6- 3. Upsned Valdaed Tit of taxpayers under | Regional Direiors wad RDOs the TAMP areviously generated by the ‘eoneemed Revenue Dasa Centers and farmed-outtoconcemed Revenue Disc Oties for validation a 7 6.Manabet aco, | tx |