Tax Alert No. 7 [Revenue Memorandum Order No. 3-2019 dated 5 November 2018]

31 Jan 2019

Creating and dropping the Alphanumeric Tax Code (ATC) on Microfinance Non-government Organizations (NGOs) and Documentary Stamp Tax (DST) in Bureau of Internal Revenue (BIR) Form No. 2000-OT under Republic Act (RA) No. 10963, otherwise known as the TRAIN Law

The Commissioner of Internal Revenue has issued Revenue Memorandum Order (RMO) No. 3 – 2019 dated 5 November 2018 to create and drop ATCs to properly identify and monitor tax collections from Microfinance NGOs and DST in BIR Form No. 2000 – OT (Documentary Stamp Tax Declaration/Return – One Time Transactions).

The following ATCs are hereby created:

ATC	Description	Tax Rate	Legal Basis	BIR Form No.
IC210	Preferential tax rate on Microfinance NGOs	2%	Sec. 20 of RA No. 10963 Revenue Regulations (RR) No. 3-2017	1702Q 1702MX
DO102 DO125	Sales, Agreements to Sell, Memoranda of Sales, Deliveries/Transfers of Shares or Certificate of Stock a. in case of stock with par value b. in case of stock without par value	PHP1.50/P200 50% of DST paid on original issue	Sec. 52 of RA No. 10963	2000-OT
DO122	Deeds of Sale, Conveyances, and Donation of Real Property	PHP15/PHP1,000	Sec. 69 of RA No. 10963	2000-OT

The following ATCs are hereby dropped:

ATC	Description	Tax Rate	Legal Basis	BIR Form No.
PT118	Preferential tax rate on Microfinance NGOs	2%	Sec. 20 of RA No. 10963 Revenue Regulations (RR) No. 3-2017	2551M
DO102 DO125	Sales, Agreements to Sell, Memoranda of Sales, Deliveries/Transfers of Shares or Certificate of Stock a. in case of stock with par value b. in case of stock without par value	PHP1.50/PHP200 50% of DST paid on original issue	Sec. 52 of RA No. 10963	2000-OT
DO122	Deeds of Sale, Conveyances, and Donation of Real Property	PHP15/PHP1,000	Sec. 69 of RA No. 10963	2000-OT