Contact us:

Alexander B. Cabrera
Tax Alert No. 37
Chairman & Senior Partner, Modification of Alphanumeric Tax Code (ATC) for Percentage Taxes in
concurrent Tax Partner BIR Form Nos. 2551M/2551Q Pursuant to the Implementation of Repub-
T: +63 (2) 459 2002
alex.cabrera@ph.pwc.com
lic Act (RA) No. 10963, also known as Tax Reform for Acceleration and
Inclusion (TRAIN) Law
Malou P. Lim
Tax Managing Partner Modified/
T: +63 (2) 459 2016 Existing (per ATC Handbook)
New
malou.p.lim@ph.pwc.com
ATC Description Tax BIR Form Legal BIR Form
Rate No. Basis No.
Fedna B. Parallag
PT010 Persons exempt from value-added tax (VAT) under Sec. 3%
Tax Partner
109(BB) (Sec. 116)
T: +63 (2) 459 3109
PT040 Domestic carriers and keepers of garages (Sec. 117) 3%
fedna.parallag
@ph.pwc.com PT041 International carriers (Sec. 118) 3%
PT060 Franchises on gas and water utilities (Sec. 119) 2%
Lawrence C. Biscocho PT070 Franchises on radio/television broadcasting companies 3%
Tax Partner whose annual gross receipts do not exceed P10M (Sec.
T: +63 (2) 459 2007 119)
lawrence.biscocho
Tax on banks and non-bank financial intermediaries
@ph.pwc.com performing quasi-banking functions:
1. On interest, commissions and discounts from lending
Carlos T. Carado II activities as well as income from financial leasing, on
Tax Partner the basis of remaining maturities of instruments from
T: +63 (2) 459 2020 which such receipts are derived
carlos.carado PT105 a. Maturity period is five (5) years or less 5%
@ph.pwc.com PT101 b. Maturity period is more than five (5) years 1%
PT102 2. On dividends and equity shares and net income of 0%
subsidiaries
Roselle Yu Caraig RA No. 2551M/
PT103 3. On royalties, rentals of property, real or personal, 7% 2551M
Tax Partner 10963 2551Q
profits from exchange and all other gross income
T: +63 (2) 459 2023 4. On net trading gains within the taxable year on foreign
PT104 7%
roselle.y.caraig currency, debt securities, derivatives and other
@ph.pwc.com financial instruments

Tax on other non-bank financial intermediaries not

Harold S. Ocampo
performing quasi-banking functions:
Tax Principal 1. On interest, commissions and discounts from lending
T: +63 (2) 459 2029 activities as well as income from financial leasing, on
harold.s.ocampo the basis of remaining maturities of instruments from
@ph.pwc.com which such receipts are derived 5%
PT113 a. Maturity period is five (5) years or less 1%
Geraldine E. Longa PT114 b. Maturity period is more than five (5) years 5%
Tax Partner PT115 2. From all other items treated as gross income under
the code
T: +63 (2) 459 2038
geraldine.c.esguerra- PT120 Life insurance premium 5%
longa@ph.pwc.com Agents of foreign insurance companies:
PT130 a. Insurance agents 10%
PT132 b. Owners of property obtaining insurance directly with 5%
foreign insurance companies

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